Nixon Shock – August 15, 1971

https://www.youtube.com/watch?v=ye4uRvkAPhA

Create a new prosperity without war.

Prosperity without war requires action on 3 fronts:

We must create more and better jobs

We must stop the rise in the cost of living

We must protect the dollar from the attacks of international money speculators.
….

[Targets are international money speculation. This leads to the promotion of more car sales, more catalytic converters, more purchases of platinum from Apartheid South Africa’s main beneficiaries, De Beers-Engelhard Industries-Anglo American Corporation.]

The third indispensable element in building the new prosperity is closely related to creating new jobs and halting inflation.

we must protect the position of the american dollar as a pillar of monetary stability around the world.

in the past 7 years there has been an average of one international monetary crisis ever year

Now who gains from these crisis’?

Not the working man. Not the investor. Not the real producers of wealth.

The gainers are the international money speculators because they thrive on crisis they help to create them.

In recent weeks the speculators have been waging an all out war on the American Dollar.

The strength of a nation’s currency is based on the strength of that nation’s economy, and the American economy is by far the strongest in the world.

Accordingly I have direct the Secretary of the Treasury to take the action to defend the Dollar against the speculators.

I have directed Secretary Connelly to suspend temporary the convertibility of the dollar into gold or other reserve assets, except in amounts, and conditions determined to be in the interests of monetary stability, and in the best interests of the United States.

In full cooperation with the International Monetary Fund, and those who trade with us, we will press for the necessary reforms to set up an urgently needed new international monetary system.

Stability and equal treatment is in everybody’s best interest.

I am determined that the American Dollar must never again be a hostage in the hands of international speculators.

I am taking one further step to protect the dollar, to improve our balance of payments, and to increase jobs for Americans.

As a temporary measure I am today, opposing, imposing an additional tax of 10% on goods imported into the United States. This is a better solution for international trade than direct controls on the amount of imports.

This import tax is a temporary action. It isn’t directed against any other country. It is an action to make certain that American products will not be at a disadvantage because of unfair exchange rates.

When the unfair treatment is ended, the import tax will end as well.