In 1971, the world's financial system altered permanently during a secret weekend at Camp David. This investigative documentary uncovers the "1971 Lie" and how Richard Nixon's choice to end the gold basic produced the financial reality we reside in today-- from stagnant salaries to skyrocketing property prices.
TL; DR: On August 15, 1971, the U.S. "briefly" suspended the dollar's convertibility into gold to stop an international bank run. This pivot birthed the fiat period, where money is policy, debt is the engine, and the "petrodollar" deal with Saudi Arabia replaced gold as the dollar's global anchor, completely decoupling performance from middle-class wages.
Timestamps:
0:00 - The Secret Camp David Satisfying 2:15 - The Triffin Issue: Why the Math Broke 5:40 - The French Warship Event 8:12 - Nixon's Sunday Night Shock 11:30 - The Petrodollar Deal: Oil as the New Foundation 15:45 - WTF Took place in 1971? (The Data). 19:20 - Financial obligation Ascendant: The New Economic Engine. 23:10 - Winners and Losers of the Fiat Age. 27:45 - How to Navigate a Fiat World.
About This Documentary.
Why does it feel harder to get ahead although we are more efficient than ever? We dive deep into the "Nixon Shock" and the secret negotiations including the "Camp David Gang"-- John Connally, Arthur Burns, Paul Volcker, and George Shultz.
We explore the Triffin Problem, where foreign dollar claims ($ 60B) lastly swamped U.S. gold reserves ($ 10B), forcing an option between worldwide liquidity and the gold peg. You'll see how the 1974 "Milestone Pact" with Saudi Arabia made sure the dollar survived by tethering it to oil instead of metal.
If you've ever taken a look at the "WTF Occurred in 1971" charts revealing the divergence of salaries and productivity, this video explains the "why" behind the numbers.
