Nixon, Haldeman & Flanigan on Economic Policy and Stock Market

30:50I'm working out that Rogers could play as the golf learning tree.
30:53And so he could come to us and I could bring him out to the development office.
31:02And also he comes and he gave my name.
31:06And this is the name of the person I'm working on.
31:10He's been involved in this in eight months.
31:11And I play with him.
31:16You could say it in all of the years.
31:24Why don't you say all of the years?
31:27Okay, fine.
31:29I apologize.
31:37But she needs it.
31:38And I said, you know, you're so proud of her.
31:40She's great.
31:40And I said, I remember her being a friend.
31:42She said, well, obviously, you know, too.
31:43And I said, well, she's proud.
31:44And I said, well, she's great.
31:47And she said, I can't deal with it.
32:08I don't mind.
32:09Okay, just go from here and go with you.
32:40So really, I'm kind of on stand up.
33:16Did you see that star?
33:17It's really kind of fascinating because I don't recall ever seeing that much in this picture.
33:33Every line on this front page has an impact on the workers, stock exchange, wage price curves,
33:47revised policy, highlights, dollar growth, tax reductions, personal reaction of government employees.
33:52The entire front page is that story.
33:55And you get this entire page.
34:02There it is on the next story.
34:04The entire page.
34:05Here we go.
34:06You know what's the best thing about it?
34:13That's there.
34:14Yeah.
34:15This is the duty of that.
34:18George Shultz pointed that out.
34:19By doing this, we kill that.
34:22He said we don't know what this is going to do.
34:26And there was that page.
34:29There's this page, the text of the message.
34:33And there's that European...
34:39In fact, that confirms what we're known as Congress Ready to Act.
34:43And it says, well, don't master this.
34:45It's a total story on Nixon's taking the advice of his critics in front of the opposition.
34:51And this is a carryover from page one.
34:53So you've got one, two, three, four solid pages of this story.
35:02What does this say?
35:03You know, the pictures... Well, I realize it turned out better than I thought.
35:07I did a picture on TV last night.
35:12I thought you looked a bit like Peter, the director's firecracker.
35:14No, it didn't show.
35:15You only wiped once.
35:18What's the... Well, as you see, the title of the film, Master Blunts the Opposition, which is kind of a good...
35:26It's a pure political story.
35:30But he says that Nixon's statement of vice is as superior as critics, and while it will be weeks or months before outcome is known, he seems to have glimpsed the most cutting-edge and forthcoming campaign.
35:38That is the most obvious political effect of the Sunday night surprise package.
35:43The real core of the book, I think, depends on whether the game plan works better than the one I just described.
35:47Almost all of the President's potential opponents and many of his allies argue that the economy is broken by inflation, stagnation, and common problems.
35:54I'm repeating the decisive fact against the people this year.
35:58That has not changed.
35:59If the President's actions do not work, his future will be in danger.
36:02If the very fact the actions were decisive will work in the President's favor, the domestic political effect, and probably in the world opinion as well.
36:09In that sense, Nixon proved parallel to his recent announcement that he would visit China.
36:14In a single statement, he reversed long-standing U.S. foreign policy, and the reaction was highly favorable.
36:19Later, he came clear that, fortunately, it was possible for China to remain stable because of the possibility of failure.
36:25In that case, too, many of Nixon's political bonds already had announced their desire to open work on relations with China, and some had attempted to visit them.
36:33Thus, in the period of one month, the President has placed himself in the position of co-opting the ground of such opponents as Muskie and Kennedy.
36:38The United States Senate is a very strong president, and the president holds and now shares positions similar to those of China and the Euro-U.S. President.
36:47To varying degrees, he has adopted the positions of such traditional opponents as the relatively conservative, like George Meade, the head of the ACLCIO, and the liberal, like John Kenneth Godfrey, the heart of the economics.
36:57Four days before Nixon's announcement, a procession of potential Democratic candidates appeared at the NFL's Seattle State Convention in Dallas.
37:05Each laid its heaviest emphasis on economic questions and attacked Nixon.
37:08It must have used the Dallas Convention to unveil a horrible economic plan that included the wage price guideline for a less decisive action than that taken Sunday by Nixon.
37:18Senator William Jackson, who stated his potential presidential campaign on a belief the economy would overshadow Vietnam until the Dallas Convention, that Nixon should scrap his economic game plan.
37:28The President did so last night.
37:31Neither Muskie nor Jackson had any comment after the President's speech.
37:35One who did respond quickly but negatively was Senator George McGovern, who only announced Democratic candidate.
37:39He gave some indication of the criticism Nixon can expect from a dissident Congresswoman in terms of their rate.
37:46McGovern did not criticize the way Price received such a suggestion.
37:48It should have been taken by Johnson four years ago.
37:52McGovern did criticize voting for Gallup, a back-door devaluation unworthy of a great nation.
37:57The governor said the next approach would be... What do you think of that back towards the government?
38:01I don't think it's going to matter.
38:03People don't know what they're talking about.
38:10I don't think, no.
38:13That hasn't taken hold.
38:14I think so much positive overrides it.
38:15Some people don't worry about that, but it isn't getting to be part of the issue.
38:20That's the beauty of doing all this.
38:23The government said Nixon's approach to creating new jobs and accelerating investment tax credit is 10% of the one here.
38:28It looks like another handout for big business, which will only trickle down slowly to the working man when they will not reach the small business man environment at all.
38:34That's bullshit.
38:36It goes to small business, too.
38:38The government's decided to house the small business man, some of his work for big business.
38:43I don't think he's got any kind of investment.
38:48The countless comments show the greatest vulnerability of the President's kind of plan.
38:51The Congress must go along with about half the measures of the effect that he is precisely fixing to have.
38:57In Nixon's paper is the fact that Congress will not return for three more weeks, and meat on the President's actions stabilizing the dollar will have worthiest effect on the international money markets.
39:06The effectiveness of that action, as well as of the wage crisis, can then be looked at on the basis of your experience.
39:12The initial response of the stock markets and the business community is good.
39:18Nixon's chances of gaining favorable congressional action for the rest of the program will be excellent.
39:24Past attempts at such drastic economic steps have come at times of war or great depression.
39:28Congress has responded quickly and favorably.
39:31Nixon is testing his will against the Congress of the opposite party at a time when the emergency of the situation is less evident, if no less real.
39:38And as you know, that was the war of the Depression, the Great War of the Great Depression.
39:43It's kind of an interesting point.
39:50We'll have that planned, and then have, you know, the headline down here, the Congressional story, Congress seem ready to act.
39:55There you have it.
40:02Okay, another one is Hartford said, thanks Congress for reconvening immediately to address the South Korea crisis.
40:14Ellis said the plan is excellent.
40:18But at least the investment price doesn't look good.
40:24President Trump has been waiting too long to think strongly of the estimated funds, though it may not go far enough in some respects.
40:31You're gonna have trouble better than that.
41:38The reason being that there's words that say,
41:55China, you know, there's only so much you can say and so much that it takes some fairly intelligent kind of speculation.
42:05This, you've got the separate stories on each item and all that.
42:22No reaction.
42:22Whew.
42:27All-time record on both volume and gain.
42:47And of course the other all-time record gain was the Nixon dinner game.
42:54Yeah.
43:03With that in mind, I'm not at all sure that this is the right way to go.
43:06And so, if you weren't going anyway, it would be a bad idea.
43:10Yeah.
43:12But the fact that you are going anyway, it's just a matter of going out a couple hours early.
43:22You have to leave by 1.30.
43:22We're going to stop.
43:35Jesus Christ, I think people will watch.
43:36If they get out and run to the paper, they're going to be completely buried.
43:42They're going to be covered with wine.
43:43It's rather hard to see.
43:44It's funny because when we were at it, there were people calling me, you know, out here in the paper.
43:53So, it's not possible.
44:03OK, thank you.
44:24Tomorrow may be a down day, it's a risk, but we wouldn't have to announce it.
44:32We can wait until tomorrow.
44:35We can wait until tomorrow and have them call you tomorrow and say if you need a picture.
44:41The other thing you can do is look before you do this.
44:45and not announce the stock exchange, just go up, and you're going to have the water person privately to work on your stage.
44:53And then you're there.
44:54Then if you want to do the stock exchange, you can just say stop by at home.
45:01Make sure you do that.
45:08I don't want to stop by the chamber, please.
45:11I want to stop by without being invited.
45:13So we have to arrange the invitation just before taking off.
45:19It's not bad to get out of here.
45:22What?
45:22It's not a bad idea to get out of here.
45:24I want to work on that.
45:30Arrange the invitation just before taking off.
45:36Please don't do that.
45:37Situation.
45:38Do I get
45:39Okay, let's set it apart at 1.30.
45:42Letter to the guinean president.
45:46All right, we'll work it out.
45:49Good.
45:51We'll leave here at 1.30.
45:53That'll get you to the narrow path at 3 o'clock.
46:09uh don't don't put out anything on that all we want publicly just departing on the basis that you're going on up in new york you know if you work up there then if the other thing works out
46:41Right.
46:42Put out the other departure.
46:43I'm going to change the parking instead of the 130.
46:46Work on that for the purpose of getting to the market, whatever that gets us.
46:56Yeah, needs some kind of work out there.
47:05It's not a bad idea, but the market is cold, so you've got to move on already, don't you?
47:11Unless the bottom drops out of it, I don't see how it can.
47:12There's no way it can drop the bottom.
47:13Not until we're meeting with the legislative leaders in the morning.
47:15Is it possible to react to none of that?
47:20You got me at 10.30.
47:21One day at the 10.
47:28Bob?
47:28We've got you.
47:28Shanks is asking if you can see me.
47:32I don't know if you want to be able to see me, but I'm going to try.
47:39Who?
47:40Mayor, she was the last one in.
47:41Well, of course I'm not going to see it.
47:47Okay.
47:47All right.
47:48He's going to be in Washington getting on it.
47:49No, he's getting on it.
47:50I'm just not going to see it.
47:54Okay.
47:55I don't think he can count.
47:58Peterson, the greatest question.
48:00He's got to get his textile.
48:01I don't think he can count.
48:07I think you want a little deep planning to describe anything.
48:10I want to find planning to screw that down a little so that I can find Schultz and Peterson to work on it while I'm gone and get me a very one-page option is what the hell we're going to say.
48:22And I want to be sure it's clear for projects this time.
48:31I like that.
48:39I will not see him.
48:43I will under no circumstances see him.
48:49I don't want to get into this.
48:52I cannot be in a position to say that.
49:00You just got to tell John.
49:05I don't want to get into this sort of thing.
49:16That was a good break, Bob.
49:22It sure was.
49:29Pretty sure it was, though.
49:36the record, buying the record.
49:39You see, that's putting the two together.
49:40Even 30, even 30 would have been good, but breaking the record all the time, makes it a hell of a story.
49:50That would be a front-page story.
49:53It would be on every network.
49:54It's a front-page story.
49:55Stocks soar up, makes them lose.
49:56That's before the market.
50:01That's the way.
50:02And that tells people that they think it's good.
50:05That's it.
50:08People do pay attention to that, but I still believe in it.
50:11It's stock market vote.
50:14Volume and increased revenue vote.
50:31I'll text you back.
50:36I think that he's in the moment, and I don't want to, I wanted to tell the interviewer he's got a plan now, and he'll do it as a bumper, but if I let it out for him, I'm scared he can't make it.
50:47But if I did not want to have him come out of that meeting in the United States to impose force, I just can't say that.
50:55I've got to be worried.
50:55He said to me something, he's old enough here, gentlemen, and we're going to find a way to get him out.
51:11You're reassuring them on their argument.
51:37was that in order for him to keep his credibility with the textile people, he asked me to be a part of the textile board meeting tomorrow at 2.
51:45Oh, God, if we're going to tell him good news, why?
51:48Why do you think we're going to tell him very good news if he doesn't?
51:54Let's get it planned.
51:55If I go to this soon, maybe have them go straight around with us.
52:00Maybe we don't get what they want.
52:03So they go out, raise hell, and we're prepared to move.
52:07I know that we cannot move before .

Nixon, Haldeman & Flanigan on Economic Policy and Stock Market

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Nixon Library Finding Aid

Also recorded on August 16, 1971

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