Global Currency War Looming. Corruption at the World Bank Unsettles the Gold Market
Christof Lehman (nsnbc),- A global currency war is looming as corruption at the World Bank unsettles the gold market. Retaliation in contempt of Congress, against World Bank whistleblower Karen Hudes who reported improper accounting at the World Bank has caused further turbulence in the gold markets and undermined confidence in securities regulation in the United States.
The risk of a currency war mounts as the impasse between the World Bank’s membership, the 50 states and Congress on one hand, and the megabank conglomerate, US Treasury Department, Federal Reserve, and Department of Justice on the other hand intensifies.
Hudes worked 20 years in the World Bank’s legal department and reported corruption by the very megabank and conglomerate which owns Allied Barton, the security contractor firm that illegally prevented Hudes reinstatement on explicit order of World Bank member countries.
Instead of being reinstated to begin helping solve serious corruption issues, Hudes was arrested in handcuffs and arraigned for a May 30th hearing in the District of Columbia Criminal Court to be prosecuted by Eric Holder’s Department of Justice. Hudes was charged with unlawful entry, which is not a federal offence.
The World Bank and International Monetary Fund were established at the Bretton Woods conference in 1944 by 44 countries to restore European economies following World War II, establish financial stability, and prevent future wars. Membership in the Bretton Woods organizations, as the World Bank and IMF are referred to, has since grown to 188 members.
After the reconstruction of Europe, the World Bank became the primary financier of projects in developing countries. With regard to many of the later members the World Bank, IMF and other of the Bretton Woods instututions have frequently been criticized for corruption and for the economic enslavement of developing countries. It became internationally known as instrument for neo-colonialism and imperialism.
In 1971 the US informed the 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 United States to introduce a joint float of European currencies against the US dollar.
In 2005 the Dutch Ministry of Foreign Affairs asked for an investigation by the World Bank Audit Committee into Hudes’ report of lapses in a financial sector project in the Philippines following the East Asia Financial Crisis. Apparently in retaliation, the Chair of the Audit Committee at the time, Pierre Duquesne, asked instead for an investigation into the Institutional Integrity Department. The Volcker Panel has been discredited.
Hudes alleged to US Congress and UK Parliament that KPMG prevented its audit team from learning about the World Bank’s failure to cooperate with a US Government Accountability Office inquiry into the corruption requested by Senators Lugar, Leahy and Bayh in 2008.
Hudes was fired in retaliation after Senator Lugar wrote to the World Bank concerning Hudes’ disclosures of improper accounting to the Senate Committee on Foreign Relations. The US Congress is requiring substantial reforms at the World Bank to eliminate the effects of retaliation before the US contribution to the World Bank capital increase can be disbursed under § 7082 of the Consolidated Appropriations Act, 2012 (Pub. L. 112-74).
Hudes disclosed to the US Congress that then Secretary of Treasury Geithner had misled the Senate and House Appropriations Committees.
Hudes who had purchased a bond could as a bondholder penetrate the World Bank´s immunity. The IMF/World Bank Development Committee settled Hudes’ bondholder case in the DC Circuit Court of Appeals in December. When the US Judicial Conference refused to recognize the settlement, Hudes informed Justice Roberts and the Chief Justices of State Supreme Courts that:
“A stakeholder analysis derived from accurate game theory modeling shows a clear fork in the road for the United States: rule of law and the transatlantic alliance or corruption and the ascendency of China.”
On April 19th, 2013, the World Bank/IMF Development Committee issued Hudes a security pass to attend the Spring Meetings. The following day the US Secret Service barred Hudes from the meetings.
In a letter to the Director of the US Secret Service that had been cleared in advance with the Chair of the Development Committee and Board of Executive Directors, Hudes informed Ms. Julia Pierson that:
“It would be unfortunate if the U.S. Secret Service again prevents me from attending the rest of the World Bank meetings when I am legally authorized to do so.”
On the final day of the Spring Meetings, a staff-member with no authority to defy the Board of Executive Directors or Board of Governors exceeded his authority and signed a Barring Notice.
EU – US Conflict. The 50 states in the US regulate the World Bank’s $180 billion of bonds under blue sky securities laws. The National Advisory Council on International Monetary and Financial Policies, consisting of the Secretary of the US Treasury, the Chairman of the Federal Reserve, together with the Chairman of the Securities and Exchange Commission regulate the World Bank’s compliance with federal securities laws.
The National Advisory Council accepted KPMG’s unqualified audit of the International Bank for Reconstruction and Development despite an inquiry in 2010 to the Securities and Exchange Commission from the United Kingdom´s Serious Fraud Office.
Germany asked to repatriate 300 tons of gold three months after the New York Federal Reserve refused Germany´s request for a physical inspection of vaults in which Germany´s gold was stored. The German government has been storing about half of its gold with the US Federal Reserve. Germany decided to bring home all its gold, but the Federal Reserve replied that this was impossible, and that it would need until 2020 to accomplish the transfer.
Consequently, the German government demanded to physically inventory the gold to determine its actual existence. The Federal Reserve denied Germany the audit, merely stating “security” and “no room for visitors” as reasons for their flat out refusal. Three teams of German auditors were subsequently shown, respectively, five “representative gold bars”, and suspiciously empty rooms with a minute portion of the German gold. The existence of the German gold could never be verified. Instead, the US Treasury offered a paper audit. Paper is, apparently patient, but GLD is not gold.
Risk for Secession and Civil War in the USA significantly increased. Demand for immediate delivery of gold has increased dramatically as confidence in the dollar is undermined. A dozen US states are also moving to recognize gold as legal tender and Texas is permitting its pensions to invest in gold.
On April 28, Governor Jan Brewer joined 14 other US states with state militia defenses, separate and apart from the National Guard. These state militia defenses are a direct preparation for an eventually looming secession or civil war, in which the states would defend their sovereignty against a criminally corrupt and impeachable Federal Government that attempts to use Federal military forces or the National Guard against the constituent states governments.
Recent attempts to disarm the population by banning assault rifles, or any magazines with a clip size that would be appropriate for combat situations, the purchase of billions of large caliber rounds by the Federal Department of Homeland Security and the massive push for the militarization of the Department of Homeland Security further indicate the United States propensity toward secession and civil war.
Global Consequences, the Risk for a Global Currency War and Conflict. Corruption undermines the international financial system, as the supply of gold bullion is diminished because persons who hold gold refuse to relinquish it for paper money. This trend is referred to as “permanent backwardation“. Permanent backwardation is almost impossible to stop once the trend has gained momentum. In today´s globalized economy a permanent backwardation would be equivalent with the global economy and trade coming to a literal stand still, where trade becomes possible only against gold or in the form of barter.
Resisting efforts of the World Bank’s member countries, the US Congress, and the 50 states to bring the World Bank into compliance on the capital markets weakens the dollar as an international currency.
On March 2nd, the Deputy Governor of the National Bank of China, Yi Gang was calling for the prevention of a global currency war saying:
China is fully prepared in terms of monetary policies and other mechanisms, to deal with a possible currency war, and China will take full account of the quantitative easing policy conducted by the central banks of some countries“.
On March 26th the BRICS nations (Brazil, Russia, India, China and South Africa) announced that they would establish their own development bank.
International economists and analysts have been predicting the end of the militarily enforced Petro Dollar as predominant global reserve currency for some years. An aggressive military posture of the United States in Asia, and US-led neo-colonialist projects with partially voluntary, and partially not so voluntary participation of some EU member states, from Ivory Coast to Libya, to Syria, Mali and the Central African Republic are not policies which encourage more confidence among the majority of EU and BRICS member states, that a currency war could be, or should be avoided.
With the USA literally in a state where its constituent states prepare for secession and where both state and federal government prepare for a civil war, confidence in the US dollar is slipping toward an all time low regardless whether congress is attempting to reign in the federal government to stop corruption. The illegal arrest of Karen Hudes at the World Bank, in defiance of the US Congress and World Bank member states is definitively not sending a signal that encourages confidence in the US dollar either.