C) Why “just lend dollars” doesn’t fix it

Course Curriculum: 1973 as the Economic Regime Break (US • Canada • Global) · 4:09

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Lyrics

[Verse 1]
Back in seventy-three, the world was changing fast
Gold convertibility couldn't last
When foreign nations came knocking at our door
Saying "Trade our dollars for the gold you store"

[Chorus]
You can't just lend dollars, it won't solve the pain
Different flow channel but the problem's the same
Capital account or trade account route
Those dollar claims will still cash out
Stock problem, stock problem, lending can't repair
More dollars flowing means more claims out there

[Verse 2]
Treasury said "We'll lend instead of trade"
Thought they found a clever financial grade
But every dollar that we send their way
Creates a claim that they can cash someday

[Chorus]
You can't just lend dollars, it won't solve the pain
Different flow channel but the problem's the same
Capital account or trade account route
Those dollar claims will still cash out
Stock problem, stock problem, lending can't repair
More dollars flowing means more claims out there

[Bridge]
Flow versus stock, you've got to understand
It's not about the pathway, it's about demand
Foreign dollar claims keep growing every year
Under gold standard, that's what Nixon feared

[Verse 3]
Whether goods or loans cross the border line
Every dollar claim could form a waiting line
At the Treasury window demanding precious gold
That's the story that history told

[Chorus]
You can't just lend dollars, it won't solve the pain
Different flow channel but the problem's the same
Capital account or trade account route
Those dollar claims will still cash out
Stock problem, stock problem, lending can't repair
More dollars flowing means more claims out there

[Outro]
So remember this lesson from seventy-three
Lending dollars won't set the system free
The break was coming, clear as day
Flow can't fix what stock gave away

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