The discussion turns to the administration's Phase II economic policy.
President Nixon: [Unclear.] It'll start coming in. I hope for old George Shultz∇'s sake it does. He's hanging on to the last. He said we were doing the right thing. Too bad we couldn't do this. He's right: They were doing the right thing. I think it's going to come anyway. That's what I think we have going for us. You see, I am not of the view that this new policy is what they think it is.
Charles Colson∇: No.
President Nixon: Bah. This new policy was necessary from a psychological standpoint on the economy. Point one. Second: the new policy in our terms was very important, from a leadership standpoint.
Bob Haldeman∇: Presidential leadership.
President Nixon: [Unclear] based on [unclear] and [unclear] handled the jail break. I mean, maybe that's leadership. Anyway, that's what they need.
Colson: And there's a third point.
President Nixon: It's a balls thing. It's a balls thing.
Colson: That's right. And there's a third point and that is that when the good results start coming in, it's because of what you did.
President Nixon: Holy shit. That's right. [Unclear] because of the economy.
Haldeman: It's not true that it is, but people will think that's what it is.
Colson: If--”if--”if--”
President Nixon: If any good results, Chuck, we're going to brag.
Colson: You get all the benefits. And if there'd been good results before it would have been, --œWell, we would have had these a year ago if the President had done something about it.-- I mean, it would--”anything that comes in now--”
President Nixon: You guys made a very good point.
Haldeman: That's the advantage of the [unclear] to the, to the--”
Colson: Yeah. Well, it is and it's the advantage to being upfront. And if prices come down, it's because you [unclear]--”
President Nixon: Internationally, of course, you see, despite the nitpicking from abroad. Let them nitpick us a little, but internationally, there are damned little constituents that you'll find abroad. But we have got--”we really needed it there. You needed a new bargaining relation. The United States has been a patsy [unclear].
Haldeman: Well, then, let's [unclear] alone.
President Nixon: [Unclear.]
Colson: Well, that giving-away-all-the-chips line, God, that's [unclear]!
President Nixon: People remember that, don't they?
Colson: Oh [unclear].
Mixed voices.