Nixon, United States, President Trump discussed on Talking Politics
System on you on a slippery slope in this thing is going to undo anyway, can you can you get it back because isn't the domestic politics, basically impossible. It is. I think what happens in this respect is that when it comes into office in in nineteen sixty nine. Hey speeds up the end of Moore's I think it's possible that another American president would have dragged the system on for longer. But with the AllState, domestic Nixon, simply not willing to do that. And he's probably not willing to do that. Because he's already challenging parts of the international trading order when he runs for office in nineteen sixty eight because he's making a pretty protectionist message, particularly directed at textile producers in in the south because the other side of the way in which the international economy words in the fifties. And the sixties was the Americans turning a blind eye to protectionism both from the European Economic Community as it then was in particular from Japan and Nixon realizes that there's votes to be had in not tolerating that. And that sounds familiar today. All right. From clear parallels because of their is American trade deficit on and off during the nineteen sixties. But by the time you get to nineteen sixty nine got bigger. I think Nixon doesn't understand this is going to get even bigger in the nineteen seventies for the very simple reason that from about nineteen seventy onwards, the United States has to import more and more real. And so the more the US has become an oil importer which happens to seventies the bigger the US trade deficit is going to get now Brennan woods are being conceived in a world in which the Americans to lodge traits. Plus is why IDEX X why thought the dollar not only could be should be the basis of the International Monetary system. Not world is disappearing. Now, Nixon was particularly sensitive to all the domestic constraints that we're going to come with that in partly. He was extremely concerned about interest rates because in his mind, the Federal Reserve Board costume the election against John. Kennedy back in nineteen sixty by raising interest. Rates in the in the run-up to it's always absolute determined that wasn't going to happen to him in run up to nineteen seventy-two, and you could say didn't need to worry given that George McGovern was his opponent. But we know warrior. Attributed other things that didn't do many favors basically Nixon plays. The part of American president who says we are not going to accept the domestic constraints that come with this for us and he unilaterally without any consultation with anybody ends dollar goal convertibility in August, nineteen seventy-one that's the birth Mer. Well, it's patched up in this sense. That fixed exchange rates system continues are devaluations against the dollar Nixon, essentially puts tariffs on goods coming in from Europe, and Japan and says, they're staying there until you devalue, he gets devaluations in something called the Smithsonian agreement and the system sort of carries on in a patched up way until March nineteen seventy three, and then it becomes clear that there's no longer the will any longer to maintain fixed exchange rates and not as when that system, and I think that is the point when you say Britain is over one more question about the breakdown before talk about what came after the United States was doing Nixon came into. Office was fighting extremely expensive and ultimately unsuccessful war in Vietnam. Does that have anything to do with the breakdown? I think that it does. Because there's no doubt that is one of the sources of inflationary pressure in the US economy is that both particularly Johnson wanted to fight that war without raising taxes at the same time as it was financing. The the great society about meant United States was going to borrow that was partly what the goals critique is about the goals. Kind of saying you abusing your position in the system because you shouldn't be doing. These do goal was deeming is fabulous things, including ultimately for the one name was feckless as well as everything else, reckless at least if not feckless, and that you cannot be the power that is supposed to maintain this International Monetary order, if you simply the power also the power that is behaving in this way..