Kissinger: Including me. I thought that getting 23 intellectuals together would be a disaster.
President: I thought this was a way for us to force the Congress (which proposed the idea) and the economists to share the responsibility.
Heath: I didn't realize it was the Senate's idea.
President: I thought I should bring them in. We have to get any public support. I don't know how it will stick when we make proposals, but it is okay now.
Heath: You are holding the line on the budget.
President: Yes, I will have to do some vetoing, but if I can keep it under $300 billion it would have a good psychological impact.
Heath: To keep it low in inflation times would be remarkable. That would let Burns ease up?
President: Yes. He took some action last week and the market had one good day.
Heath: My brokers said they decided an easement wasn't really coming and that is why the response failed.
President: The problem is the lag in reaction time. It takes the wisdom of Solomon to see what's happening.
Heath: They always know afterwards.
President: Burns is independent. How do you do it?
Heath: We have no Burns. But the Governor of the Bank of England has an impact on money supply.
President: Does the Government control him?
Heath: In the last resort he could be directed, but it never has been done and the Governor probably would resign.
President: Any direct effort to influence Burns would be strongly opposed.
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