The Fed Didn't Know (or care?) about Nixon's Shock [Ep. 96a]

What did the Federal Reserve think about gold and the Nixon Shock in 1971? According to the transcripts they didn't think much about gold, neither pre- nor post-announcement. The Fed did not see the move as a release from its 'golden fetters' so as to dominate the monetary order.

-----SEE EPISODE 96-------

-----HEAR EPISODE 96-----

----EP. 96a TOPICS--------
00:00 Show Intro: What was the Federal Reserve discussing pre- and post-Nixon's (gold) shock!
00:50 What is gold's role? Is it ok that gold does 'nothing' even during a crisis?
03:34 What did the Federal Open Market Committee discuss on the precipice of the gold break?
06:23 How many times did the FOMC mention gold in the two meetings before the shock?
07:41 The Shock was inevitable if one followed the monetary signals; the Fed wasn't clued in.
09:41 One week after the Nixon Shock the Federal Reserve met again to discuss... not gold.
12:10 Donald Rumsfeld and Dick Cheney headed the Cost of Living Council in 1971.
14:33 When the FOMC finally turned to gold it was a technical discussion; not strategic.
17:09 The FOMC worried about a lack of global coordination - little did they know the depths!
19:14 In July the FOMC commented that they couldn't control money, just bank reserves.
22:15 Show Conclusion: August 15, 1971 did not unleash a fiat system; it already existed.

----EP. 96a REFERENCES----

-----------WHO-------------
Jeff Snider, Head of Global Investment Research for Alhambra Investments and Emil Kalinowski. Art by David Parkins.

---------WHERE-------------

-----------TAG------------
#JeffSnider #Gold #BrettonWoods #NixonShock

[robertwave]

Hey Emil, not sure if people say this enough but thank you so much hosting this show. It's great to hear (for free no less) you and Jeff discussing your opinions.

Sure hope that the two of you keep bringing us all your commentary, I personally look forward to it every week

[turek]

Finally something interesting on Friday.

[ralfg]

I really love your channel, I like the way you speak, your logical presentation, the pronounciation, the clear speech, even very good understandable for me as a German. You make things clear which seemed to me as eternal myths, what they don't are. Have you ever thought to make a dense book of this? I would buy 20 pieces and would give them away as valuable common knowledge, of course one piece I would keep :-). Regards!

[buckrogers]

That’s the show I’ve been waiting, I hope others will use these peace of information well! Obrigado, Gracias, Grazie, Ačiū ....

[AHill-lghw]

The duo infernale of the financial market. Thank you for the tireless educational work for the simple dregs of society.

Greets from Deutschland

[Applepie]

Who said money was boring-another great video. Love the way you "bounce" of each other.

[superf]

Great show, Emil. Sound money is market-determined money.

[yountune]

Lol, how old is Emil that he had a decade of mistakes in the 60s?

[topol]

Dick Cheney and Donald Rumsfeld head of the price control board. LOL, absolutely socialism.

[heldenby]

I wonder if the countries that did or did not manage to redeem some of their dollars for gold in the lead-up to the closing of the gold window might consider that date more significant than Jeff suggests?

[michaels]

"barbarous relic" -- Keynes had a way with words, yet it doesn't seem to have made his _General Theory_ any more readable.

[togoni]

Emil, you and Jeff are doing great job explaining what mainstream media doesn’t even understand. However, what you may also want to talk about why market is so disconnected from reality. Market doesn’t reflect real economy. So, how FED or anyone should understand reality when it’s not reflected anywhere, not even in bonds. Yes, FED is wrong but, so is the market in general.

[LanceHKW]

It's good to see nothing has changed at the Fed in 50 years.

[bleacherz]

I love you guys, but never have so many words been used to say so little.

[ryangcii]

Questions for Jeff. 1. If the Fed is not a Central Bank but merely a domestic banking authority (in Jeff's own words), what in his opinion then is really a Central Bank (or Dollar Central Bank)? 2. Recently the FIMA Repo Facility is made standing, while it does not address the permanent Eurodollar shortage, does it help prevent temporary liquidity crisis like that of March 2020? If not, why?

[rabbitbubs]

Emil, if you ever want to take "Gold Returns" to the silver screen, I know a guy.

[Dinngg]

Nixon: "I am not a crook!"
Fed: "I am not afraid!"

[mr.eccles]

I cannot see the coherence in saying closing the gold window is not a significant event as far as the authorities at the time were concerned. For the simple fact that if the president and the fed were so unbothered by gold backing, why bother closing gold window at all. Just let foreigners redeem all their gold until there was no gold left and close the window then.

[michaels]

University of Alabama Crimson Tide ring a bell? Bear Bryant?

[baguaboy]

I am assuming that i misheard Emil saying he had “regrets during the 60’s”… if not, then I humbly suggest he abandons all attempts at explaining the mysteries of the monetary system and embarks on a new enterprise selling his “elixir of youth “ serums together with easy-to-follow instructional videos.