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Wednesday, 22 May 2013 10:28
http://thenewamerican.com/economy/economics/item/15473-world-bank-insider-blows-whistle-on-corruption-federal-reserve
World Bank Insider Blows Whistle on Corruption, Federal Reserve
Written by Alex Newman
A former insider at the World Bank, ex-Senior Counsel Karen Hudes, says the
global financial system is dominated by a small group of corrupt, power-hungry
figures centered around the privately owned U.S. Federal Reserve. The network
has seized control of the media to cover up its crimes, too, she explained. In
an interview with The New American, Hudes said that when she tried to blow the
whistle on multiple problems at the World Bank, she was fired for her efforts.
Now, along with a network of fellow whistleblowers, Hudes is determined to
expose and end the corruption. And she is confident of success.
Citing an explosive 2011 Swiss study published in the PLOS ONE journal on the
“network of global corporate control,” Hudes pointed out that a small group of
entities — mostly financial institutions and especially central banks — exert a
massive amount of influence over the international economy from behind the
scenes. “What is really going on is that the world’s resources are being
dominated by this group,” she explained, adding that the “corrupt power
grabbers” have managed to dominate the media as well. “They’re being allowed to
do it.”
According to the peer-reviewed paper, which presented the first global
investigation of ownership architecture in the international economy,
transnational corporations form a “giant bow-tie structure.” A large portion of
control, meanwhile, “flows to a small tightly-knit core of financial
institutions.” The researchers described the core as an “economic
‘super-entity’” that raises important issues for policymakers and researchers.
Of course, the implications are enormous for citizens as well.
Hudes, an attorney who spent some two decades working in the World Bank’s legal
department, has observed the machinations of the network up close. “I realized
we were now dealing with something known as state capture, which is where the
institutions of government are co-opted by the group that’s corrupt,” she told
The New American in a phone interview. “The pillars of the U.S. government —
some of them — are dysfunctional because of state capture; this is a big story,
this is a big cover up.”
At the heart of the network, Hudes said, are 147 financial institutions and
central banks — especially the Federal Reserve, which was created by Congress
but is owned by essentially a cartel of private banks. “This is a story about
how the international financial system was secretly gamed, mostly by central
banks — they’re the ones we are talking about,” she explained. “The central
bankers have been gaming the system. I would say that this is a power grab.”
The Fed in particular is at the very center of the network and the coverup,
Hudes continued, citing a policy and oversight body that includes top government
and Fed officials. Central bankers have also been manipulating gold prices, she
added, echoing widespread concerns that The New American has documented
extensively. Indeed, even the inaccurate World Bank financial statements that
Hudes has been trying to expose are linked to the U.S. central bank, she said.
“The group that we’re talking about from the Zurich study — that’s the Federal
Reserve; it has some other pieces to it, but that’s the Federal Reserve,” Hudes
explained. “So the Federal Reserve secretly dominated the world economy using
secret, interlocking corporate directorates, and terrorizing anybody who managed
to figure out that they were having any kind of role, and putting people in very
important positions so that they could get a free pass.”
The shadowy but immensely powerful Bank for International Settlements serves as
“the club of these private central bankers,” Hudes continued. “Now, are people
going to want interest on their country’s debts to continue to be paid to that
group when they find out the secret tricks that that group has been doing? Don’t
forget how they’ve enriched themselves extraordinarily and how they’ve taken
taxpayer money for the bailout.”
As far as intervening in the gold price, Hudes said it was an effort by the
powerful network and its central banks to “hold onto its paper currency” — a
suspicion shared by many analysts and even senior government officials. The
World Bank whistleblower also said that contrary to official claims, she did not
believe there was any gold being held in Fort Knox. Even congressmen and foreign
governments have tried to find out if the precious metals were still there, but
they met with little success. Hudes, however, believes the scam will eventually
come undone.
“This is like crooks trying to figure out where they can go hide. It’s a mafia,”
she said. “These culprits that have grabbed all this economic power have
succeeded in infiltrating both sides of the issue, so you will find people who
are supposedly trying to fight corruption who are just there to spread
disinformation and as a placeholder to trip up anybody who manages to get their
act together.… Those thugs think that if they can keep the world ignorant, they
can bleed it longer.”
Of course, the major corruption at the highest levels of government and business
is not a new phenomenon. Georgetown University historian and Professor Carroll
Quigley, who served as President Bill Clinton’s mentor, for example, wrote about
the scheme in his 1966 book Tragedy And Hope: A History Of The World In Our
Time. The heavyweight academic, who was allowed to review documents belonging to
the top echelons of the global establishment, even explained how the corrupt
system would work — remarkably similar to what Hudes describes.
"The powers of financial capitalism had a far-reaching aim, nothing less than to
create a world system of financial control in private hands able to dominate the
political system of each country and the economy of the world as a whole,” wrote
Prof. Quigley, who agreed with the goals but not the secrecy. “This system was
to be controlled in a feudalist fashion by the central banks of the world acting
in concert by secret agreements arrived at in frequent private meetings and
conferences. The apex of the system was to be the Bank for International
Settlements in Basel, Switzerland, a private bank owned and controlled by the
world's central banks which were themselves private corporations."
But it is not going to happen, Hudes said — at least not if she has something do
to with it. While the media are dominated by the “power grabber” network, Hudes
has been working with foreign governments, reporters, U.S. officials, state
governments, and a broad coalition of fellow whistleblowers to blow the entire
scam wide open. There has been quite a bit of interest, too, particularly among
foreign governments and state officials in the United States.
Citing the wisdom of America’s Founding Fathers in creating a federal system of
government with multiple layers of checks and balances, Hudes said she was
confident that the network would eventually be exposed and subjected to the rule
of law, stopping the secret corruption. If and when that happens — even if it
may be disorderly — Hudes says precious metals will once again play a role in
imposing discipline on the monetary system. The rule of law would also be
restored, she said, and the public will demand a proper press to stay informed.
“We’re going to have a cleaned-up financial system, that’s where it is going,
but in the meantime, people who didn’t know how the system was gamed are going
to find out,” she said. “We’re going to have a different kind of international
financial system.... It’ll be a new kind of world where people know what’s going
on — no more backroom deals; that’s not going to keep happening. We’re going to
have a different kind of media if people don’t want to be dominated and
controlled, which I don’t think they do.”
While Hudes sounded upbeat, she recognizes that the world is facing serious
danger right now — there are even plans in place to impose martial law in the
United States, she said. The next steps will be critical for humanity. As such,
Hudes argues, it is crucial that the people of the world find out about the
lawlessness, corruption, and thievery that are going on at the highest levels —
and put a stop to it once and for all. The consequences of inaction would be
disastrous.
Photo of World Bank headquarters in Washington, D.C.
Alex Newman, a foreign correspondent for The New American, is currently based in
Europe. He can be reached at anewman@thenewamerican.com.
---
“This is like crooks trying to figure out where they can go hide. It’s a mafia,”
she said. “These culprits that have grabbed all this economic power have
succeeded in infiltrating both sides of the issue, so you will find people who
are supposedly trying to fight corruption who are just there to spread
disinformation and as a placeholder to trip up anybody who manages to get their
act together.… Those thugs think that if they can keep the world ignorant, they
can bleed it longer.”
Of course, the major corruption at the highest levels of government and business
is not a new phenomenon. Georgetown University historian and Professor Carroll
Quigley, who served as President Bill Clinton’s mentor, for example, wrote about
the scheme in his 1966 book Tragedy And Hope: A History Of The World In Our
Time. The heavyweight academic, who was allowed to review documents belonging to
the top echelons of the global establishment, even explained how the corrupt
system would work — remarkably similar to what Hudes describes.
"The powers of financial capitalism had a far-reaching aim, nothing less than to
create a world system of financial control in private hands able to dominate the
political system of each country and the economy of the world as a whole,” wrote
Prof. Quigley, who agreed with the goals but not the secrecy. “This system was
to be controlled in a feudalist fashion by the central banks of the world acting
in concert by secret agreements arrived at in frequent private meetings and
conferences. The apex of the system was to be the Bank for International
Settlements in Basel, Switzerland, a private bank owned and controlled by the
world's central banks which were themselves private corporations."
But it is not going to happen, Hudes said — at least not if she has something do
to with it. While the media are dominated by the “power grabber” network, Hudes
has been working with foreign governments, reporters, U.S. officials, state
governments, and a broad coalition of fellow whistleblowers to blow the entire
scam wide open. There has been quite a bit of interest, too, particularly among
foreign governments and state officials in the United States.
Citing the wisdom of America’s Founding Fathers in creating a federal system of
government with multiple layers of checks and balances, Hudes said she was
confident that the network would eventually be exposed and subjected to the rule
of law, stopping the secret corruption. If and when that happens — even if it
may be disorderly — Hudes says precious metals will once again play a role in
imposing discipline on the monetary system. The rule of law would also be
restored, she said, and the public will demand a proper press to stay informed.
“We’re going to have a cleaned-up financial system, that’s where it is going,
but in the meantime, people who didn’t know how the system was gamed are going
to find out,” she said. “We’re going to have a different kind of international
financial system.... It’ll be a new kind of world where people know what’s going
on — no more backroom deals; that’s not going to keep happening. We’re going to
have a different kind of media if people don’t want to be dominated and
controlled, which I don’t think they do.”
While Hudes sounded upbeat, she recognizes that the world is facing serious
danger right now — there are even plans in place to impose martial law in the
United States, she said. The next steps will be critical for humanity. As such,
Hudes argues, it is crucial that the people of the world find out about the
lawlessness, corruption, and thievery that are going on at the highest levels —
and put a stop to it once and for all. The consequences of inaction would be
disastrous.
Photo of World Bank headquarters in Washington, D.C.
Alex Newman, a foreign correspondent for The New American, is currently based in
Europe. He can be reached at anewman@thenewamerican.com.