The Nixon Shock: The Closing of the Gold Window in 1971 (HOM 35-C)

[@ProfessorBarth]

Follow me on Twitter: twitter.com/Professor_Barth If you enjoy this channel and want to support: www.patreon.com/professorbarth Buy my book: www.amazon.com/Currency-Empire-Seventeenth-Century-English-America-ebook/dp/B08L6ZPV19/ref=sr_1_1?keywords=currency+of+empire&sr=8-1 History of Money playlist: kzbin.info/aero/PLinliDgP9EbScxfH5wxoX8I_HNRSElqZ_ Foundations of Western Political Thought playlist: kzbin.info/aero/PLinliDgP9EbRu4qZn8SJFgysSQB5I4c-L

[@understandunderstand1271]

Wow what a great playlist I’ll be sharing it. Appreciate you sharing your knowledge

[@superstar5123]

thank you for no non-sense information. no time wasters, no advertisements, just the information I came here for. thank you for disseminating this valuable information brother stay well

[@georgetomlin2737]

I had to triple checm the number of subscribers, I thought you were near 1m not near 1000. Absolutely incredible channel. Thank you so much

[@ProfessorBarth]

Thanks! Haha, well, a year ago I had just barely over a hundred, so nearing a thousand sounds alright to me. A million subscribers would be pretty sweet though.

[@griffruby8756]

I remember those days. Nixon imposed a wage price freeze as his first attempt to curb inflation. So prices and wages had to stay the same, but something had to give, and as a kid I remember watching the chocolate bars I could purchase get smaller and smaller (only now do we finally have a word for that: shrinkflation). Then, Nixon moved on to "phase II" of fighting inflation, and then to "phase III" and so on to however many further phases, all equally unavailing. All President Ford could do was make a bunch of WIN buttons (for "Whip Inflation Now"), and boy, did we whip it; we whipped it good, but nevertheless it continued unaffected. I also remember a cartoon I saw in 1973 in which a man and a woman are sitting at a small table on a drink date, and the man is lighting a cigar with a $20 dollar bill, and the woman says, "If you are trying to impress me, you are using the wrong currency."

[@jamesiii2330]

Europe dragged us into two world wars, begged us to help them rebuild, had the audacity to talk about American privilege.

[@thinkinginpictures4071]

Excellent presentation. Thanks.

[@detectiveofmoneypolitics]

Still watching Frank G Melbourne Australia 🇦🇺

[@Brandon-xp1ob]

Binge watched your videos for a few hours. Super interesting. Cheers!

[@paulkalungi1573]

Great content. Thanks for explaining so simply!

[@brandonzawaski]

I like these videos. An example of monetary debasement today: the price of copper is $4.02 per pound and the cost of a pound of pennies is $1.82. That is a $2.20 differential not taking into account the metal content.

[@johnqpublic2718]

Such good information presented by a grade A lecturer. As someone who majored in Letters (University of Oklahoma 2009) this Prof is top-notch.

[@ProfessorBarth]

Thank you for all your kind words

[@PoboyMusic]

NIce Job

[@wingsfan233]

Very good lesson, thank you!

[@ProfessorBarth]

You bet!

[@frankrizzo8918]

Great video !

[@DanielSanPedro]

Very informative. Thank you!

[@haroulawton9210]

Very helpful concise video, thank you

[@ProfessorBarth]

You are welcome!

[@jackgoldman1]

Remember it was Lyndon Johnson who lifted the gold cover from the US dollar March 19th, 1968. Nixon only announced the official end.

[@doughboy-dad]

Hi, Professor Barth! I have a question: Why did the price of gold rise so much? Is it because, when the US stopped redeeming dollars for gold, there was less supply, and therefore higher demand? Thank you for your lecture series!

[@MichaelJamesSeattle]

Since Nixon wasn't a party to the design of the Bretton Woods system, and Nixon wasn't wholly responsible for the deficit spending since then, I might have been open to giving him a pass if he'd been man enough to say "Sorry, we screwed up and don't see how we'll be able to keep our original promise." But to scapegoat "speculators" for the problems caused by governments and central banks is just despicable. What a weasel!

[@ProfessorBarth]

Blame shifting is apparently not new in politics -- go figure

[@huckleberryfinn8795]

He was a puppet for the banksters like every President since Woodrow Wilson til now.

[@johnnagle7702]

He could have revalued the gold and not deficit spent ?

[@joseftaghizadeh8655]

Thanks! Private owned banks had right and could issue dollar(bank note for gold) because this private banks had gold.After 1971 don't need have gold to issue dollar,then shouldn't private owned FED missed his monopoli to issue dollar? Shoulden't all citizens have right to issue dollar?Or their democratic elected and transparent and accountable agency should have this monopoly?

[@rovy3916]

About dumping gold standard it is connected to the yamashita gold did they find it in 70s or 70s?

[@MartinLewison]

Is there a primary source for the French naval visit story? There are a lot of New York Times articles about gold and the French in 1971, but nothing popping up about a French naval visit.

[@ProfessorBarth]

It was in February 1965. I did a thorough search of the NYT archives for early 1965 and found many articles and a couple op-eds about the extreme tension between the US and France on the gold question, but no specific references to the French using a warship to pick up their gold. Needless to say, though, the US Treasury was extremely upset with De Gaulle, who by that point was calling for a full return to the classical gold standard.

[@MartinLewison]

@@ProfessorBarth I appreciate the follow-up. Thank you.

[@welchkoservices4200]

Gold is money, everything else is just credit- JPMorgan Crazy my nephew just started his first job after college becoming an engineer. He starts at $18 an hour. My wife's brother barely made it through high school and makes $22 an hour. One of them owes $80,000 for an education. Neither of them know about this money history thing here. Frankly, I'm surprised this presenter has a job in education still.

[@FastlaneProductions1]

I'm not sure I understand what you're trying to say here. lol

[@Einnor084]

​@@FastlaneProductions1 Dat LOL...... YUPPERZ!!! I hope, UR joking.

[@dantheman4011]

So basically we got screwed.

[@mikeballard8404]

I'm curious, why did gold go down and stagnate for the mid 2010's?

[@Akum4Kam15ama]

I liked how Nixon rubbed his nose/face as he reassured "The United States has always been & continue to be a forward looking & trust worthy trading partner".... Why are you rubbing your face Mr. President?

[@dantheman4011]

Gold is overvalued and silver is undervalued. Currently 1 to 70 ratio ($22 to $1800). Actual physical ratio is 1 to 13 (for every oz of gold mined so far, 13 oz of silver have been mined). Ratio in 1970 was 1 to 20 ( $2 to $35). So in conclusion, either gold is overvalued, or, if gold is undervalued, silver must be extremely undervalued. Just to let people know.

[@ProfessorBarth]

Yes I've spoken of this a lot -- historically speaking, it is true that silver would appear extremely undervalued. I keep waiting for it to rise though, and it never seems to happen. Doesn't mean that it won't.

[@chad1755]

@@ProfessorBarth The classic saying applies here I guess: "The market can stay irrational longer than you can stay solvent"

[@Eugene384]

If Hubert Humphrey was elected the Nixon shock would not have happened

[@ProfessorBarth]

My grandfather Barth was an old-school, working-class Democrat -- pro-union, but socially conservative (including pro-life). He supported Humphrey. McCarthy and the 1968 Chicago convention disgusted him. Nixon was too friendly to big business.

[@Eugene384]

@@ProfessorBarth My parents were kinda weird liberals. Very economic conservative but big social liberals. Dad had the complete collection of Milton Freidmans works but was very big on abortion rights, (actually quoted Ayn Rand on abortion) lgbtq, gay marrage etc. But we're huge free traders , right to work, anti Union. I remember going to a Doug Wilder for Virginia governor rally in 1989 and they were kinda uncomfortable with the rally was dominated by United Mine Workers of America members. Totally supported the democratic slate but depised the miners union.

[@RADIUMGLASS]

So the question is, was Nixon wrong for doing this? If France sent a ship to take back gold, other countries were going to do the same thing.

[@johnnagle7702]

Any sane government would have taken back the gold after foul play

[@SandhillCrane42]

So, paper or gold? Um... let me think a minute...

[@zadokisrael9195]

United States Note, Deposit Receipt, Legal Tender, is withheld as an Reserve Currency, altered into Federal Reserve Note. Reserve Receipt of US$1000, can deposit $10,000 in Federal Reserve Note Credits, because of 10% Reserve Requirement. The first form of paper money is a RECEIPT. Whoever holds an Receipt, is entitled to par valuable gold consideration refund.

[@lawinnheli3467]

😍😍😍😍

[@saibhargav4236]

Suggest good books also professor

[@thejurydoctor6097]

Drink some water your mic picks up every. Single. Swallow. 😅

[@ProfessorBarth]

Advice long ago taken haha, unfortunately these were all recorded 4 years ago, so there's not much I can do about it now!