lecture twelve, development

Nixon motivation to go off 'gold standard' driven by domestic policy. the 'discipline' put on it by the condition of convertibility was largely theoretical; others were willing to abide by it. there was a concern about holding dollars in the late 60s, but no one was willing to initiate the run.

SDRs was a counter-proposal, but US didn't let it happen, properly.

'Closing the Gold Window' is a good book about Nixon's decision to abandon the 'gold standard.'

the engineering of the 'Oil Shock' story is a bit problematic; it seems a bit of a stretch, given that (a) US never took opportunities to screw over Europe; (b) US capitalists/finance invested in Europe, they would be greatly damaged

when Europe goes into crisis, US does everything it can do to help (Aaron Major's research)

Atlantic alliance was not grounded on 'threat of USSR' – has to do with interpenetration of economies, and other factors. the thesis of intense interstate competition in the advanced world is not right—or, died with WWII

questions about whether the American ruling-class benefits from the dollar being the international currency. there's a hazard that goes along with Nixon wanting the dollar, which is that the dollar was seen as foundational to US hegemony.

the jacking up of oil prices as an expression of 'competition'--the least efficient producers need the price rise to benefit, because of the high costs of expansion.

major structural shift is the change in balance of forces in US, which seems important to explaining the high temporal concentration. one reason that the IMF of the 50s isn't the IMF of the 70s is b/c of influence of 'planning.'

theory of money: central banks control money supply (monetarists—a regulating institution) vs. central bank have to accommodate decisions of private banks (Marxists, post-Keynesians, etc.--an accomodating institution)

no Volcker shock, no debt crisis. ISI doesn't need to collapse, even if it isn't particularly strong—it's the shock of raising interest rates to 19%, of course.

financialization by '85

period between 1815 – 1870s is a period of 'global peace'; but it doesn't mean that military violence ceases, it's all turned inwards (and this is documented—state-building). and once they have built their States, imperialism commences.