world bank insider blows whistle on corruption_ federal reserve may 2013

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  • 7/27/2019 World Bank Insider Blows Whistle on Corruption_ Federal Reserve May 2013

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    Wednesday, 22 May 2013 10:28

    World Bank Insider Blows Whistle on

    Corruption, Federal ReserveWritten 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 studypublished in the PLOS ONEjournal 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 worlds resources are being dominated by this group, she explained, adding that the corrupt power

    grabbers have managed to dominate the media as well. Theyre 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 Banks 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 thats 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.

    http://www.thenewamerican.com/economy/economics/itemlist/user/68-alexnewmanhttp://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0025995#s3http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0025995#s3http://www.thenewamerican.com/media/k2/items/cache/a2e4a9e87512c1db9bdf53c4bfc14071_XL.jpghttp://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0025995#s3http://www.thenewamerican.com/economy/economics/itemlist/user/68-alexnewman
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    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 isowned by essentially a cartel of private banks. This is a story about

    how the international financial system was secretly gamed, mostly by central banks theyre 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 beenmanipulating gold

    prices, she added, echoing widespread concerns that The New American hasdocumented 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 were talking about from the Zurich study thats the Federal Reserve; it has some other pieces to it,

    but thats 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 powerfulBank for International Settlements serves as the club of these private central

    bankers, Hudes continued. Now, are people going to want interest on their countrys debts to continue to be paid to

    that groupwhen they find out the secret tricks that that group has been doing? Dont forget how theyve enriched

    themselves extraordinarily and how theyve 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. Its 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 ProfessorCarroll Quigley, who served as President Bill Clintons 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

    http://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/markets/item/15116-after-gold-crash-experts-point-to-central-bank-manipulationhttp://www.thenewamerican.com/economy/markets/item/15116-after-gold-crash-experts-point-to-central-bank-manipulationhttp://www.thenewamerican.com/economy/markets/item/15116-after-gold-crash-experts-point-to-central-bank-manipulationhttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/economics/item/4500-basel-iii-and-sound-bankinghttp://www.thenewamerican.com/economy/economics/item/4500-basel-iii-and-sound-bankinghttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/markets/item/15116-after-gold-crash-experts-point-to-central-bank-manipulationhttp://www.thenewamerican.com/economy/markets/item/15116-after-gold-crash-experts-point-to-central-bank-manipulationhttp://www.thenewamericanmedia.com/is-gold-in-fort-knox-real-ron-paul-wants-to-know/http://en.wikipedia.org/wiki/Carroll_Quigleyhttp://en.wikipedia.org/wiki/Carroll_Quigleyhttp://en.wikipedia.org/wiki/Tragedy_And_Hopehttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/markets/item/15116-after-gold-crash-experts-point-to-central-bank-manipulationhttp://www.thenewamerican.com/economy/markets/item/15116-after-gold-crash-experts-point-to-central-bank-manipulationhttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/economics/item/4500-basel-iii-and-sound-bankinghttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/markets/item/4581-fed-manipulations-in-the-crosshairshttp://www.thenewamerican.com/economy/markets/item/15116-after-gold-crash-experts-point-to-central-bank-manipulationhttp://www.thenewamericanmedia.com/is-gold-in-fort-knox-real-ron-paul-wants-to-know/http://en.wikipedia.org/wiki/Carroll_Quigleyhttp://en.wikipedia.org/wiki/Tragedy_And_Hope
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    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 Americas 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.

    Were going to have a cleaned-up financial system, thats where it is going, but in the meantime, people who didnt

    know how the system was gamed are going to find out, she said. Were going to have a different kind of

    international financial system.... Itll be a new kind of world where people know whats going on no more backroom

    deals; thats not going to keep happening. Were going to have a different kind of media if people dont want to be

    dominated and controlled, which I dont 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 forThe New American, is currently based in Europe. He can be reached at

    [email protected]

    http://www.thenewamerican.com/economy/economics/item/15473-world-bank-

    insider-blows-whistle-on-corruption-federal-reserve

    http://www.thenewamerican.com/economy/economics/item/15042-arizona-legislature-approves-gold-and-silver-as-moneymailto:[email protected]://www.thenewamerican.com/economy/economics/item/15473-world-bank-insider-blows-whistle-on-corruption-federal-reservehttp://www.thenewamerican.com/economy/economics/item/15473-world-bank-insider-blows-whistle-on-corruption-federal-reservehttp://www.thenewamerican.com/economy/economics/item/15042-arizona-legislature-approves-gold-and-silver-as-moneymailto:[email protected]://www.thenewamerican.com/economy/economics/item/15473-world-bank-insider-blows-whistle-on-corruption-federal-reservehttp://www.thenewamerican.com/economy/economics/item/15473-world-bank-insider-blows-whistle-on-corruption-federal-reserve
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    World Bank Insider Blows Whistle on Corruption, Federal

    Reserve

    Alex Newman

    thenewamerican.com

    May 26, 2013

    A former insider at the World Bank, ex-Senior Counsel Karen Hudes, says the global financialsystem 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 shetried 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 thePLOS ONEjournal 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 theinternational economy from behind the scenes. What is really going on is that the worldsresources are being dominated by this group, she explained, adding that the corrupt power

    grabbers have managed to dominate the media as well. Theyre being allowed to do it.

    According to the peer-reviewed paper, which presented the first global investigation ofownership 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 thatraises important issues for policymakers and researchers. Of course, the implications are

    enormous for citizens as well.

    Read more

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    GAO Report: Federal Reserve Is Riddled With Corruption

    And Conflicts Of Interest

    Daily Bail

    October 25, 2011

    WASHINGTON, Oct. 19 A new audit of the Federal Reserve released today detailed

    widespread conflicts of interest involving directors of its regional banks.

    The most powerful entity in the United States is riddled with conflicts of interest, Sen. Bernie

    Sanders (I-Vt.) said after reviewing the Government Accountability Office report. The study

    required by a Sanders Amendment to last years Wall Street reform law examined Fed practicesnever before subjected to such independent, expert scrutiny.

    The GAO detailed instance after instance of top executives of corporations

    and financial institutions using their influence as Federal Reserve directors to financially benefittheir firms, and, in at least one instance, themselves. Clearly it is unacceptable for so few

    people to wield so much unchecked power, Sanders said. Not only do they run the banks, theyrun the institutions that regulate the banks.

    Sanders said he will work with leading economists to develop legislation to restructure the Fed

    and bar the banking industry from picking Fed directors. This is exactly the kind of outrageous

    behavior by the big banks and Wall Street that is infuriating so many Americans, Sanders said.

    Read full article here

    http://www.infowars.com/gao-report-federal-reserve-is-riddled-with-corruption-and-conflicts-of-interest/

    GAO Report: Federal Reserve Is Riddled WithCorruption And Conflicts Of Interest, StephenFriedman Is Targeted

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    Source - Sen. Bernie Sanders

    WASHINGTON, Oct. 19 - A new audit of the Federal Reserve released today detailed

    widespread conflicts of interest involving directors of its regional banks.

    "The most powerful entity in the United States is riddled with conflicts of interest," Sen.

    Bernie Sanders (I-Vt.) said after reviewing theGovernment Accountability Officereport.

    The study required by a Sanders Amendment to last year's Wall Street reform law

    examined Fed practices never before subjected to such independent, expert scrutiny.

    The GAO detailed instance after instance of top executives of corporations and financial

    institutions using their influence as Federal Reserve directors to financially benefit their

    firms, and, in at least one instance, themselves. "Clearly it is unacceptable for so few

    people to wield so much unchecked power," Sanders said. "Not only do they run thebanks, they run the institutions that regulate the banks."

    Sanders said he will work with leading economists to develop legislation to restructure

    the Fed and bar the banking industry from picking Fed directors. "This is exactly the

    kind of outrageous behavior by the big banks and Wall Street that is infuriating so many

    Americans," Sanders said.

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    The corporate affiliations of Fed directors from such banking and industry giants as

    General Electric, JP Morgan Chase, and Lehman Brothers pose "reputational risks" to

    the Federal Reserve System, the report said. Giving the banking industry the power to

    both elect and serve as Fed directors creates "an appearance of a conflict of interest," the

    report added.

    The 108-page report found that at least 18 specific current and former Fed board

    members were affiliated with banks and companies that received emergency loans from

    the Federal Reserve during the financial crisis.

    In the dry and understated language of auditors, the report noted that there are no

    restrictions in Fed rules on directors communicating concerns about their respective

    banks to the staff of the Federal Reserve. It also said many directors own stock or work

    directly for banks that are supervised and regulated by the Federal Reserve. The rules,

    which the Fed has kept secret, let directors tied to banks participate in decisions

    involving how much interest to charge financial institutions and how much credit to

    provide healthy banks and institutions in "hazardous" condition. Even when situations

    arise that run afoul of Fed's conflict rules and waivers are granted, the GAO said the

    waivers are kept hidden from the public.

    The report by the non-partisan research arm of Congress did not name but

    unambiguously described several individual cases involving Fed directors that createdthe appearance of a conflict of interest, including:

    Stephen Friedman - In 2008, the New York Fed approved an application from

    Goldman Sachs to become a bank holding company giving it access to cheap Fed loans.

    During the same period, Friedman, chairman of the New York Fed, sat on the Goldman

    Sachs board of directors and owned Goldman stock, something the Fed's rules

    prohibited. He received a waiver in late 2008 that was not made public. After Friedman

    received the waiver, he continued to purchase stock in Goldman from November 2008

    through January of 2009 unbeknownst to the Fed, according to the GAO.

    Jeffrey Immelt - The Federal Reserve Bank of New York consulted with General

    Electric on the creation of the Commercial Paper Funding Facility. The Fed later

    provided $16 billion in financing for GE under the emergency lending program while

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    Immelt, GE's CEO, served as a director on the board of the Federal Reserve Bank of New

    York.

    Jamie Dimon - The CEO of JP Morgan Chase served on the board of the Federal

    Reserve Bank of New York at the same time that his bank received emergency loans from

    the Fed totalling $390 billion, and was used by the Fed as a clearing bank for the Fed's

    emergency lending programs. In 2008, the Fed provided JP Morgan Chase with $29

    billion in financing to acquire Bear Stearns. At the time, Dimon persuaded the Fed to

    provide JP Morgan Chase with an 18-month exemption from risk-based leverage and

    capital requirements. He also convinced the Fed to take risky mortgage-related assets off

    of Bear Stearns balance sheet before JP Morgan Chase acquired this troubled investment

    bank.

    In another disturbing finding, the GAO said that on Sept. 19, 2008,William Dudley,

    who is now the New York Fed president, was granted a waiver to let him keep

    investments in AIG and General Electric at the same time AIG and GE were given bailout

    funds. One reason the Fed did not make Dudley sell his holdings, according to the audit,

    was that it might have created the appearance of a conflict of interest.

    To Sanders, the conclusion is simple. "No one who works for a firm receiving direct

    financial assistance from the Fed should be allowed to sit on the Fed's board of directorsor be employed by the Fed," he said.

    To read a more detailed analysis of the GAO report prepared for Sen. Sanders, clickhere.

    http://www.sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS

    %20REPORT%20ON%20THE%20GAO%20AUDIT%20ON%20MAJOR

    %20CONFLICTS%20OF%20INTEREST%20AT%20THE%20FEDERAL

    %20RESERVE1.pdf

    To read the full GAO report, clickhere.

    http://www.sanders.senate.gov/imo/media/doc/d1218%20(2).pdf

    http://dailybail.com/home/gao-report-federal-reserve-is-riddled-with-corruption-and-co.html

    http://sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS%20REPORT%20ON%20THE%20GAO%20AUDIT%20ON%20MAJOR%20CONFLICTS%20OF%20INTEREST%20AT%20THE%20FEDERAL%20RESERVE1.pdfhttp://www.sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS%20REPORT%20ON%20THE%20GAO%20AUDIT%20ON%20MAJOR%20CONFLICTS%20OF%20INTEREST%20AT%20THE%20FEDERAL%20RESERVE1.pdfhttp://www.sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS%20REPORT%20ON%20THE%20GAO%20AUDIT%20ON%20MAJOR%20CONFLICTS%20OF%20INTEREST%20AT%20THE%20FEDERAL%20RESERVE1.pdfhttp://www.sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS%20REPORT%20ON%20THE%20GAO%20AUDIT%20ON%20MAJOR%20CONFLICTS%20OF%20INTEREST%20AT%20THE%20FEDERAL%20RESERVE1.pdfhttp://www.sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS%20REPORT%20ON%20THE%20GAO%20AUDIT%20ON%20MAJOR%20CONFLICTS%20OF%20INTEREST%20AT%20THE%20FEDERAL%20RESERVE1.pdfhttp://sanders.senate.gov/imo/media/doc/d1218%20(2).pdfhttp://www.sanders.senate.gov/imo/media/doc/d1218%20(2).pdfhttp://dailybail.com/home/gao-report-federal-reserve-is-riddled-with-corruption-and-co.htmlhttp://dailybail.com/home/gao-report-federal-reserve-is-riddled-with-corruption-and-co.htmlhttp://sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS%20REPORT%20ON%20THE%20GAO%20AUDIT%20ON%20MAJOR%20CONFLICTS%20OF%20INTEREST%20AT%20THE%20FEDERAL%20RESERVE1.pdfhttp://www.sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS%20REPORT%20ON%20THE%20GAO%20AUDIT%20ON%20MAJOR%20CONFLICTS%20OF%20INTEREST%20AT%20THE%20FEDERAL%20RESERVE1.pdfhttp://www.sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS%20REPORT%20ON%20THE%20GAO%20AUDIT%20ON%20MAJOR%20CONFLICTS%20OF%20INTEREST%20AT%20THE%20FEDERAL%20RESERVE1.pdfhttp://www.sanders.senate.gov/imo/media/doc/101911%20-%20THE%20SANDERS%20REPORT%20ON%20THE%20GAO%20AUDIT%20ON%20MAJOR%20CONFLICTS%20OF%20INTEREST%20AT%20THE%20FEDERAL%20RESERVE1.pdfhttp://sanders.senate.gov/imo/media/doc/d1218%20(2).pdfhttp://www.sanders.senate.gov/imo/media/doc/d1218%20(2).pdfhttp://dailybail.com/home/gao-report-federal-reserve-is-riddled-with-corruption-and-co.htmlhttp://dailybail.com/home/gao-report-federal-reserve-is-riddled-with-corruption-and-co.html