AMERICA FACES "The Dollar Crisis" - Gary L Alexander - October 1971

Gary L Alexander

The inside story of why the richest nation on earth is suffering financial woes. For 40 years, (1931 to 1971) the American dollar reigned supreme in world trade and finance. From 1945 to 1958, the dollar was considered better than gold to most developing economies. But by 1958 it was becoming evident that the dollar was weakening. The United States, a war-time haven for three fourths of the world's gold, began changing the earmarks of the gold buried in the Federal Reserve Bank in New York City, and in Fort Knox, Kentucky, from "USA" to "France," "Germany" and other nations. Ten years later, in 1968, claims on U. S. gold were running into the millions of dollars per day. More than $12 billion (half) of the U. S. gold was drained between 1958 and 1968, and much of that came in the last hectic months before March 1968, when the U. S. temporarily closed the gold window. - Information Supplied By: Herbert W Armstrong Library