World Bank Whistle-blower. Confidence in the Dollar as an International Currency Is Waning. The End of Bretton Woods?


Karen Hudes (nsnbc),- The failure of the press to report accounting scandals at the World Bank involving the U.S. Treasury Department, the Federal reserve, U.S. Congress, and the federal courts is eroding confidence in the dollar as international currency.

Legislation in U.S.. states to recognize gold and silver bullion coins as legal tender and requests by countries to repatriate their gold held by the Federal Reserve are exposing financial institutions who control the media and the Federal Reserve.

Convertibility of Dollar into Gold

The German Federal Bank, Bundesbank, announced on January 16, 2012 that Germany is repatriating 300 tons of gold from the New York Federal Reserve. The U.S. took gold for “safe keeping” from more than 60 countries at the end of World War II. Germany´s announcement followed three months after the Federal Reserve refused Germany´s request for a physical inspection of vaults in which Germany´s gold was stored. Instead, the U.S. Treasury Inspector General´s Office published a paper audit. (1

The Federal Reserve´s refusal to return German gold before the end of seven years prompted four Swiss parliament members in March to propose legislation to repatriate Switzerland´s gold reserves. The Netherlands´Christian Democratic Party is also calling for repatriation of Dutch gold held in foreign vaults.

There is a bill in the Texas legislature to allow state pension plans to invest directly in physical gold. Utah, Missouri and Idaho already have laws recognizing gold and silver bullion coins as legal tender, Arizona´s law is awaiting signature, and a dozen more states have introduced similar bills. (2

The Federal Reserve is an entity owned by private banks to serve as the central bank for the United States of America. In 1934 the Federal Reserve banks transferred ownership of their gold to the U.S. Treasury in exchange for gold certificate credits on the books of the Treasury.

Since then, the U.S. dollars that are issued in the form of Federal Reserve Notes are backed solely by the full faith credit of the U.S. In 1971 the U.S. informed the International Monetary Fund (IMF) that it would no longer buy and sell gold to settle international transactions.

This resulted in the 1973 decision of the European Community countries and the U.S. to introduce a joint float of European currencies against the U.S. dollar. Nevertheless, the U.S. dollar maintained its role as “international currency”.


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