1971: Nixon Interrupts TV Western 'Bonanza,' Announces End Of Bretton Woods
By Martin Hill
May 2, 2016


On August 15, 1971 Richard Nixon signed Executive Order 11615. Later that evening he appeared on television to make his announcement, interrupting the TV show Bonanza. Nixon tried to convince the American people that he was protecting them from the international money interests. He told the people that it was a complicated issue, and proceeded to explain it in simple terms. He continued, explaining that he was suspending the convertibility of dollars into gold, and charging a 10% tariff on imports.

This criminal Nixon assured the people that his move would "increase jobs for Americans" and that "Our best days lie ahead."

He continued "But government, with all of its powers, does not hold the key to the success of a people. That key, my fellow Americans, is in your hands."

Watch the video here:

The transcript of Nixon's speech that night read: [Excerpts]

"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 every year. Now who gains from these crises? Not the workingman; not the investor; not the real producers of wealth. The gainers are the international money speculators. Because they thrive on crises, 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 directed the Secretary of the Treasury to take the action necessary to defend the dollar against the speculators.

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

Now, what is this action--which is very technical--what does it mean for you?

Let me lay to rest the bugaboo of what is called devaluation.

If you want to buy a foreign car or take a trip abroad, market conditions may cause your dollar to buy slightly less. But if you are among the overwhelming majority of Americans who buy American-made products in America, your dollar will be worth just as much tomorrow as it is today.

The effect of this action, in other words, will be to stabilize the dollar.

Now, this action will not win us any friends among the international money traders. But our primary concern is with the American workers, and with fair competition around the world.

To our friends abroad, including the many responsible members of the international banking community who are dedicated to stability and the flow of trade, I give this assurance: The United States has always been, and will continue to be, a forward-looking and trustworthy trading partner. 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 imposing an additional tax of 10 percent on goods imported into the United States.2 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.

As a result of these actions, the product of American labor will be more competitive, and the unfair edge that some of our foreign competition has will be removed. This is a major reason why our trade balance has eroded over the past 15 years.

We are fortunate to live in a nation with an economic system capable of producing for its people the highest standard of living in the world; a system flexible enough to change its ways dramatically when circumstances call for change; and, most important, a system resourceful enough to produce prosperity with freedom and opportunity unmatched in the history of nations.

The purposes of the Government actions I have announced tonight are to lay the basis for renewed confidence, to make it possible for us to compete fairly with the rest of the world, to open the door to new prosperity.

But government, with all of its powers, does not hold the key to the success of a people. That key, my fellow Americans, is in your hands.

A nation, like a person, has to have a certain inner drive in order to succeed. In economic affairs, that inner drive is called the competitive spirit.

Every action I have taken tonight is designed to nurture and stimulate that competitive spirit, to help us snap out of the self-doubt, the self-disparagement that saps our energy and erodes our confidence in ourselves.

Whether this Nation stays number one in the world's economy or resigns itself to second, third, or fourth place; whether we as a people have faith in ourselves, or lose that faith; whether we hold fast to the strength that makes peace and freedom possible in this world, or lose our grip--all that depends on you, on your competitive spirit, your sense of personal destiny, your pride in your country and in yourself.

We can be certain of this: As the threat of war recedes, the challenge of peaceful competition in the world will greatly increase.

We welcome competition, because America is at her greatest when she is called on to compete.

As there always have been in our history, there will be voices urging us to shrink from that challenge of competition, to build a protective wall around ourselves, to crawl into a shell as the rest of the world moves ahead.

Two hundred years ago a man wrote in his diary these words: "Many thinking people believe America has seen its best days." That was written in 1775, just before the American Revolution--the dawn of the most exciting era in the history of man. And today we hear the echoes of those voices, preaching a gospel of gloom and defeat, saying the same thing: "We have seen our best days."

I say, let Americans reply: "Our best days lie ahead."

LINK: http://www.presidency.ucsb.edu/ws/?pid=3115

Smaulgld.com reports in their article Think the Fed Destroyed the Dollar? [Excerpt:]

"After issuing executive order 6102, Roosevelt began stockpiling gold from mining companies and from foreigners. In the month following the issuance of the EO6201 Roosevelt himself, in consultation with his future secretary of the treasury Henry Morgenthau, would set the gold price nudging it ever higher.*

Dollar Devalued 41% in 1934

In January 1934 Congress passed the Gold Reserve Act which, among other things, changed the nominal price of gold from $20.67 an ounce to $35 an ounce providing Roosevelt;s government with a tidy 69% gain on their confiscated gold and a loss of 41% in purchasing power of the dollars people received in exchange for their gold. (see chart below).

The fixed price of gold of $35 an ounce remained in place until 1971 when Nixon unilaterally took the United States off the gold standard and closed the gold window.

Richard Milhous Nixon - Executive Order 11615

On August 15, 1971 Richard Nixon signed Executive Order 11615. Pursuant to that order Nixon instituted wage and price freezes to combat inflation and imposed a 10% surcharge on imports to support American industry.

Later that evening President Nixon appeared on national television (preempting the popular “Bonanza” show) to announce that he was unilaterally ripping up the Bretton Woods Agreement of 1944 that provided that foreign central banks could redeem their dollars at the U.S. Treasury for gold. Click here for background on the Bretton Woods Agreement.

Nixon announced that he was suspending the convertibility of dollars into gold. The measure was necessary, as Nixon explained, to protect the United States against 'international speculators' that were harming the American worker. In reality, Nixon closed the gold window to prevent an all out run on the United States' gold reserves.

In this short video you can hear Richard Nixon explain that taking the U.S. off the gold standard was good for the United States, good for the world and wouldn't result in inflation:

Dollar Devalued 51% 1971-1972

Stocks soared the next day with the Dow Jones turning in a 33 point gain-the largest ever to date. Nixon and his Treasury Secretary John Connoly had turned a collapsing dollar in to a show a strength! The dollar, however, immediately lost ground against gold and in a few months the price of gold rose from $35 to well past $50 an ounce resulting in a 51% devaluation of the dollar. As inflation raged during the 1970's, gold continued its ascent until 1980 when it reached an then all time high of $800 an ounce."

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Martin Hill is a Catholic paleoconservative and civil rights advocate. His work has been featured in the Los Angeles Daily News, San Gabriel Valley Tribune, The Orange County Register, KNBC4 TV Los Angeles, The Press Enterprise, LewRockwell.com, WhatReallyHappened.com, Infowars.com, PrisonPlanet.com, Economic Policy Journal, TargetLiberty.com, FreedomsPhoenix, Haaretz, TMZ, Veterans Today, Jonathan Turley blog, The Dr. Katherine Albrecht Show, National Motorists Association, AmericanFreePress.net, RomanCatholicReport.com, WorldNetDaily, HenryMakow.com, OverdriveOnline.com, Educate-Yourself.org, TexeMarrs.com, Dr. Kevin Barrett's Truth Jihad radio show, Strike-The-Root.com, Pasadena Weekly, ActivistPost.com, Los Angeles Catholic Lay Mission Newspaper, KFI AM 640, IamtheWitness.com, Redlands Daily Facts, SaveTheMales.ca, BlackBoxVoting, The Michael Badnarik Show, The Wayne Madsen Report, Devvy.com, Rense.com, FromTheTrenchesWorldReport.com, BeforeItsNews.com, The Contra Costa Times, Pasadena Star News, Silicon Valley Mercury News, Long Beach Press Telegram, Inland Valley Daily Bulletin, L.A. Harbor Daily Breeze, CopBlock.org, DavidIcke.com, Whittier Daily News, KCLA FM Hollywood, The Fullerton Observer, Antiwar.com, From The Trenches World Report, and many others. Archives can be found at LibertyFight.com and DontWakeMeUp.Org.

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