Statistikhengst
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- #201
Incorrect! Nixon froze all prices and wages for 90 days based on controlling inflation as we switched over to the gold standard. The war in the Middle East and the Oil embargo caused the problem directly.
In response to the US aid to Israel, on October 16, 1973, OPEC announced a decision to raise the posted price of oil by 70%, to $5.11 a barrel.[14] The following day, oil ministers agreed to the embargo, a cut in production by five percent from September's output, and to continue to cut production over time in five percent increments until their economic and political objectives were met.[15] October 19, U.S. President Richard Nixon requested Congress to appropriate $2.2 billion in emergency aid to Israel, including $1.5 billion in outright grants. George Lenczowski notes, "Military supplies did not exhaust Nixon's eagerness to prevent Israel's collapse...This [$2.2 billion] decision triggered a collective OPEC response".[16] Libya immediately announced it would embargo all oil shipments to the United States.[17] Saudi Arabia and the other Arab oil-producing states quickly followed suit, joining the embargo on October 20, 1973.[18] At their meeting in Kuwait the OPEC oil-producing countries, proclaimed the oil boycott that provided for curbs on their oil exports to various consumer countries and a total embargo on oil deliveries to the United States as a "principal hostile country".[19] The embargo was thus variously extended to Western Europe and Japan.
1973 oil crisis - Wikipedia, the free encyclopedia
Wrong. Nixon decoupled the US dollar from any hard elements (gold, silver, diamonds) and turned our currency into a free-floating currency.
Yet that is not what caused the Oil crisis in 1973..
I never said it was related. He did that already in 1970-1971. Pay attention.