Well, having read article I, you may forward the usual remark as I proceed on the Federal Reserve System´s history: "Pth!! Conspiration theory!!!". Normally such a remark excludes futher dialogue. But not when we are talking about the New World order. For it is admitted conspiracy  practice! Just look - and also see the videos in the right margin here with Gordon brown´s, Pres. Bush Sr.´s Henry Kissinger´s and Gorbachev´s New World Order speeches!

Milton Friedman, the Nobel Peace Prize winning economist stated the following in a radio interview in January 1996 on the Wall Street crash in 1929: "What happened is that [the Federal Reserve] followed policies which led to a decline in the quantity of money by a third….And that extraordinary collapse in the banking system, with about a third of the banks failing from beginning to end, with millions of people having their savings essentially washed out, that decline was utterly unnecessary.

At all times, the Federal Reserve had the power and the knowledge to have stopped that. And there were people at the time who were all the time urging them to do that. So it was, in my opinion, clearly a mistake of policy that led to the Great Depression."

This was confirmed by the present President of the Board of  Governors of the Federal Reserve System, Ben Bernanke, in 2002 at Milton Friedman´s 90th birthday party: You're right, we did it. We're very sorry. But thanks to you, we won't do it again.”

Well, won´t they or their cronies, after all?

The following is mainly from Andrew Hitchcock
This is how the Fed works
1.    The Federal Open Market Committee approves the purchase of United States Bonds.
2.    The bonds are purchased by the Federal Reserve.
3.    The Federal Reserve pays for these bonds with electronic credits to the seller's bank, these credits are based on nothing.
4.    The banks use these deposits as reserves.  They can loan out over ten times the amount of their reserves to new borrowers, all at interest.
* Bonds are simply promises to pay or Government IOU's (I Owe You, debt certificates).  People purchase bonds in order to get a secure rate of interest.  At the end of the term of the bond, the government repays the bond, plus interest and the bond is destroyed

Representative Charles A Lindbergh Sr ( 1914): The Federal Reserve System  can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by a greater rate variation, and in either case it will possess inside information as to financial conditions and advance knowledge of the coming change, either up or down. 

This is the strongest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money. 

They know in advance when to create panics to their advantage.  They also know when to stop panic.  Inflation and deflation work equally well for them when they control finance."

In  1916 President Wilson began to realize the gravity of the damage he had done to America: "Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something.  They know there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it."

The Bolshevik Revolution 1917
 The money changers never forgave the Tsars of Russia for both continually opposing their request to set up a central bank in Russia, as well as their support of President Lincoln during the Civil War.  Therefore, Jacob Schiff, a Rothschild, spent 20 million dollars through his firm, Kuhn, Loeb & Co., in financing the Russian Revolution.
Anthony C. Sutton has described the role of Wall Street´s bank bosses in the Russian Revolution  at length.

Here is a quotation from David Allen Rivera´s great work on the Illuminati: "Final Warning: A History of the New World Order." "In actuality, the reason for the Congress of Vienna (1815), was for the Illuminati to create a Federation, so they would have complete political control over most of the civilized world. Many of the European governments were in debt to the Rothschilds (therefore Denmark went bankrupt in 1813), so they figured they could use that as a bargaining tool.

The Illuminati, in their first attempt, had come terrifyingly close to gaining control of the world. This was prevented by Tsar Alexander I of Russia.
The head of the family, Nathan Rothschild, awaited the day that his family would get revenge by destroying the Tsar and his family, which they did in 1917."

It is commonly believed that Communism is the opposite of Capitalism, so why would these capitalists support it? 
Respected researcher, Gary Allen, explains it as follows, "Socialism is not a share-the-wealth program, but it is in reality a method to consolidate and control the wealth is not a movement of the downtrodden masses, but of the economic elite."

World War I
Eustace Mullins: "Woodrow Wilson: "The World War was a matter of economic rivalry."

It is now apparent that there might have been no World War without the Federal Reserve System.The system of national loans developed by the Rothschilds served to finance European struggles during the nineteenth century. Then the Europeans were economically unable to wage wars.
After our entry into World War I, Woodrow Wilson turned the government of the United States over to a triumvirate of his campaign backers, Paul Warburg, Bernard Baruch and Eugene Meyer.

1937, Bernard Baruch stated that "All wars are economic in their origin." Baruch made a profit of seven hundred fifty thousand dollars in one day during World War I
Chart I reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks."

1919: In January the Paris Peace Conference takes place following the end of World War I.  The bankers put World Government at the top of their agenda,  and Paul Warburg and Bernard Baruch attend this conference with President Wilson.  To the bankers dismay, the world was not yet ready to dissolve national boundaries and accept World Government, so that part of their plan had failed , as the USA would not join in. The plan for World Government was called the, "League Of Nations." 

The Wall Street Crash in 1929
In April, Paul Warburg sent out a secret warning to his friends that a collapse and nationwide depression had been planned for later that year.

                                       Joseph P. Kennedy, John F. Kennedy's father. In 1929 he was worth 4 million dollars, in 1935 that had increased to over 100 million dollars
The money did not simply disappear in 1929 , it just ended up consolidated in fewer and fewer hands, as was planned.

It is certainly no coincidence that the biographies of all the Wall Street giants of that era: John D. Rockefeller; J. P. Morgan; Joseph Kennedy; Bernard Baruch; et al. all marveled at the fact these people got out of the stock market completely just before the crash and put their assets into cash or gold.

So, as all the bankers and their friends already knew, in August the Federal Reserve began to tighten the money supply. Then on 24th October the big New York bankers called in their 24 hour broker call loans. 
This meant that both the stockbrokers and their customers had to dump their stocks on the stock market to cover their loans, irrespective of what price they had to sell them for. As a result of this the stock market crashed on a day that would go down in history as, "Black Thursday."

Here is what the Federal Debt Relief System writes: “In August of 1929, the Fed began to tighten the money supply continually by buying more government bonds. At the same time, all the Wall Street giants of the era, including John D. Rockefeller and J.P. Morgan divested from the stockmarket and put all their assets into cash and gold.”

Between 1929 and 1933, they reduced the money supply by an additional 33%.   
In only a few weeks from the day of the crash, 3 billion dollars of wealth vanished.
Within a year, 40 billion dollars of wealth vanished. 

This is why depressions are caused.
Republican Representative Louis T. McFadden of Pennsylvania, the Former Chairman of the House Banking & Currency Commission during the great depression, states,
"We have in this country one of the most corrupt institutions the world has ever known.  I refer to the Federal Reserve Board…This evil institution has impoverished…the people of the United  States…and has practically bankrupted our government.  It has done this through…the corrupt practices of the moneyed vultures who control it."

Louis T McFadden: "It was not accidental.  It was a carefully contrived occurrence…The international bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all."

A statement made by former British Prime Minister David Lloyd George: "Britain is the slave of an international financial bloc." Also in the article was the following words written by Lord Bryce, "Democracy has no more persistent and insidious foe than money power …questions regarding Bank of England, its conduct and its objects, are not allowed by the Speaker (of the House of Commons)."

Comment
This is indeed why depressions are caused.
Eustace Mullins writes: On February 6, 1929, Mr. Montagu Norman, Governor of the Bank of England, came to Washington and had a conference with Andrew Mellon, Secretary of the Treasury.
Immediately after that mysterious visit, the Federal Reserve Board abruptly changed its policy, pursued a high discount rate policy, abandoning the cheap money policy which it had inaugurated in 1927 after Mr. Norman’s other visit.

The stock market crash and the deflation of the American people’s financial structure was first scheduled to take place in March. The stock market bubble had gone much farther than it had been intended to go.

The New York Times reported on April 7, 1931,
"Montagu Norman, Governor of the Bank of England, conferred with the Federal Reserve Board here today." The London Connection had sent Norman over this time to ensure that the Great Depression was proceeding according to schedule.
Bank of England was in the hands of Rothschild 
  and here.

In 1929 we once more see how the Wall Street bosses repeat their old trick from the 19. century and 1907 (JP Morgan): Crash to create depressions so as to impoverish people, buy their shares and foreclosed homes for a song, thus enriching thenselves beyond imagination.

Do I have to add, that the real estate market collapsed consequently, and that these  ruthless person bought shares and property at 1/10 their real value?

In 2008 they are repeating their dirty tricks for the same 2 reasons as repeatedly in the 19. century, 1907 and 1929: 1. Personal gain at our cost 2. To make us slaves in their corporate dictatorial New World Order republic. Calling this a regrettable mistake today emphasizes  the mendacity of the New World Order.