UPDATE 27. March 2020: Fencing With the Black Nobility & Government
UPDATE 22. April 2014 - Karen Hudes – RT’s “Whistleblower” Who Believes World Bank Controlled By Second Species
The World Bank: Rejecting “The Rule of Law”
“The proverb, ‘What you don’t know can’t hurt you”, originated in 1576 as, ‘So long as I know it not, it hurteth mee not.’ But the opposite is true. Unpleasant hidden truths do the most harm. The best way to fight corruption is to expose it. Think of the World Bank as ENRON.” … Karen Hudes
By Karen Hudes (with Jim Fetzer) - 27. March 2013
When, thanks to Mark Novitsky, a federal whistleblower, I learned that Karen Hudes, who earned her J.D. at Yale, our most distinguished School of Law, and an M.Phil. in economics at the University of Amsterdam, which is also a formidable institution, had been removed from her position as Senior Counsel for the World Bank because of her efforts to expose corruption and reaffirm the rule of law in the form of appropriate standards of accounting, I was dumbfounded.
What initially appear to be obscure issues of international finance, moreover, have the potential to sever ties between us and our NATO allies and weaken the national security of the United States. The stakes involved are therefore extremely high for every American citizen.
During the World Bank and IMF Annual Meetings last October, with her encouragement, the Development Committee informed President Jim Yong Kim of the need for “a more open, transparent and accountable World Bank Group.” The reasons that motivated that request included the following series of disturbing developments:
- The World Bank has disregarded the Joint Economic Committee’s 2005 inquiry into the World Bank’s “corporate governance irregularities” and “accounting problems”;
- The World Bank has failed to follow the Joint Economic Committee’s advice that professional financial and accounting employees be given independent access to the World Bank’s Board and its Audit Committee;
- The World Bank has failed to protect Hudes against retaliation for challenges of illegality or other misconduct through external arbitration pursuant to the 2005 Lugar-Leahy amendment, which could threaten its mission;
- The World Bank has stonewalled Senator Lugar’s and Congressman Van Hollen’s four requests for the advice of the executive search firm following Hudes’ disclosure of internal control lapses;
- The World Bank has refused to comply with the Government Accountability Office inquiry into corruption requested by Senators Lugar, Leahy and Bayh for more than three years;
- Congress has reiterated its request for the GAO inquiry during hearings on the World Bank capital increase, with which it has yet to comply; and,
- Treasury Secretary Timothy Geithner misrepresented progress on World Bank reform in his 11/21/12 report to the Appropriations Committees pursuant to § 7082 of the Consolidated Appropriations Act of 2012.
The Crisis in Cyprus as a Mini-Model
The threat by EU bankers to loot savings accounts held in Cyprus has raised red flags all over the world. As The New York Times (25 March 2013) has reported,
LIMASSOL, CYPRUS — It is not just about rich Russians and Cypriot retirees. Also vitally at stake in this island country’s banking crisis is Cyprus’s credibility as a place for international companies to continue doing business.
Take Avid Life Media, the Canadian-owned operator of some of the world’s biggest online dating sites. Only a few weeks ago it set up an office here as a base for its international operations, attracted to Cyprus — as hundreds of other foreign businesses have been — because of its reputation for financial stability, a low corporate tax rate, a friendly banking environment and most of all, a strong rule of law.
Now imagine that was the case for the most important bank of all, which affects the world’s economy. Imagine that bank accounts were being looted world-wide and you will begin to appreciate the dimensions of the problem.
When I discovered that Karen Hudes’ reinstatement, which was being supported by the finance ministers of the nations of the world, was being blocked by its recently appointed president, Jim Yong Kim, who was formerly President of Dartmouth, I was further astonished, because I had encountered Kim before. He had supported the publication for an article by a member of the computer science faculty, Hany Farid, who claimed that the backyard photographs used to convict Lee Harvey Oswald in the public mind were authentic, which was profoundly disturbing.
Hany Farid and “the backyard photographs”
That is a claim that others had long since proven false. Jack White, the legendary JFK photo analyst, had testified to the House Select Committee on Assassinations (HSCA) when it had reinvestigated the deaths of JFK and of MLK in 1976-77 and had pointed out a dozen features that disqualify them. Oswald himself had told Capt. Will Fritz, the Dallas Homicide detective who interrogated him, that the photo he was shown had his face pasted on someone else’s body. Like other claims Oswald made at the time, subsequent research has proven that he was right.
The chin is not Lee Oswald’s chin, which was somewhat pointed, but a block chin; there is an insert line between the chin and his lower lip; and the finger tips of his right hand are cut off, for example. Even more interestingly, he realized that the two communist newspapers that Oswald was holding–The Militant and The Worker–had known dimensions and could serve as an internal rule to determine the height of the person who was holding them. Using that method, he was able to establish that he was about 5’6″ tall, when Oswald was about 5’10”–which meant that either someone who was too short to be Oswald had posed for the photos or that they had been introduced too large when they were faked. Either way, they could not possibly be authentic.
When I discovered that Hany Farid, who has a lab funded by the FBI, had published the claim that he had proven them to be authentic by showing that it was possible to replicate the shadow cast by the nose in one of them, I knew he was perpetrating a fraud on the public, because (1) there are four poses taken in different positions at different times, where it would have been virtually impossible for the nose shadow to remain constant from one to another; and (2) there are many other indications of fakery besides the shadow cast by the nose that prove fakery, where even if he had been right about the nose shadow, his conclusion of authenticity would have been wrong. He was violating a basic precept of science by not basing his reasoning upon all the available relevant evidence
So I wrote to President Kim to explain why Darmouth was committing a blunder in supporting Hany Farid’s claim, which I substantiated with multiple lines of proof. Dartmouth stood pat, however, and never took steps to correct the record, even though it was a matter of immense public interest and concern. I published an article about my experience with Kim in an article co-authored with Jim Marrs in OpEdNews, “The Dartmouth JFK-Photo Fiasco” (20 November 2009) and followed up by publishing my correspondence in “Blowing the Whistle on Dartmouth: Hany Farid in the nation’s service” (26 January 2010), which I regarded as a professional obligation.
It now appears to me that Kim may have been rewarded for his contribution to the public deception about the death of JFK by being appointed to the World Bank, just as Paul Wolfowitz appears to have been appointed by George W. Bush for his contributions to 9/11 and the “war on terror”. I have long believed that, in Washington, D.C., the bigger the liar, the further you go. I now believe that, when it comes to acting contrary to the public interest, the presidency of the World Bank may be another sign of compliance with corruption, as the experiences of Karen Hudes reflects. I regard us as kindred spirits insofar as “whistle blowing” seems to be coursing through our veins.
by Karen Hudes
The World Bank and its next door neighbor, the International Monetary Fund (IMF), stand at the crossroads of the international financial system. Both organizations are referred to as the “Bretton Woods” institutions, named for the site in New Hampshire where the founding conference of 44 countries was held in 1944. The Bretton Woods institutions were created to prevent the “beggar thy neighbor” policies responsible for World Wars I and II.
The World Bank’s membership has now grown to 188 countries. The World Bank and IMF share a Board of Governors comprising the Ministers of Finance of member countries. They each have resident Boards of 24 Directors; seven Directors are appointed by 7 countries with the largest economies and 17 Directors are appointed by groups or “constituencies” of the remaining member countries.
Because of its crucial role at the heart of the world’s financial system, problems at the World Bank are going to have consequences for the world’s financial system. I know “up close and personal” because I served as Senior Counsel for the World Bank for 21 years. My qualifications included a J.D. from Yale Law School and M.Phil. in economics from the University of Amsterdam. I know the institution inside and out. And I have been blowing the whistle on improper practices at the World Bank that threaten the world’s fiscal integrity.
Reporting Corruption up the Chain of Command
I worked in the Legal Department of the World Bank from 1986-2007. But in 2007, I was fired in retaliation for reporting corruption at the Bretton Woods institutions up the chain of command at the World Bank, through the US Treasury Department, and to the US Congress. My report was quite specific, namely: that the World Bank is out of compliance with the law, because its financial statements to the holders of its $135 billion in bonds, which are denominated in 52 currencies, are not in accord with Generally Acceptable Accounting Principles and Auditing Standards.
I never imagined how intractable the corruption at the World Bank was. A reliable stakeholder analysis, based on game theory modeling, shows that failure to adhere to the rule of law by the World Bank will bring about a world-wide currency war that will make what we lived through in 2008 pale by comparison. The stakeholder analysis began predicting success in bringing the World Bank into compliance after the European Parliament invited me to testify on May 25, 2011. My testimony included a chronology of the cover-up. President Kim has already prompted Germany to repatriate the equivalent of $36 billion in gold. As I told Sen. Harry Reid in 2008, “the greatest security risk to the US is in alienating its partners by acting as a hegemon”.
The Failure of Press Coverage
One reason it is so difficult to end the corrupt regime at the World Bank is because there has been virtually no press coverage. It is possible to conclude from this that democracy in the United States has been weakened by the reduction in the number of corporations who own the bulk of US media outlets (from 50 to 5 in less than twenty years.) Barclays Bank, JPMorgan Chase & Co, The Goldman Sachs Group along with a few others use interlocking corporate ownership to control 40 percent of total wealth and 60 percent of global revenues.
This concentration of power rests on disproportionate corporate investments of one percent of all corporations. Theorists at the Swiss Federal Institute of Technology in Zurich, using natural systems mathematical modeling and comprehensive data on the actual corporate ownership of 43,000 transnational corporations, discovered this concentration of power. When questions are raised about “who controls the world”, this one percent looks like a very promising candidate. The crux of the matter is that the corporations control the mass media and, through the mass media, control the politicians.
Although there have been occasional articles about these issues, where some of my commentaries about them have appeared in print, for the most part, interest in these questions from the public has been few and far between, where recent interviews with Deanna Spingola and with Jim Fetzer, who are alternative media radio hosts, have been the exception. Here are some links to our recent interviews:
- “Spingola Speaks” with Karen Hudes, 22 January 2013, HOUR 1
- “Spingola Speaks” with Karen Hudes, 22 January 2013, HOUR 2,
- “The Real Deal” with Karen Hudes, 6 March 2013, 1800-1930,
- “The Real Deal” with Karen Hudes, 20 March 2013, 1800-1830,
- “The Real Deal” with Karen Hudes, 21 March 2013, UPDATE,
- “The Real Deal” with Karen Hudes, 22 March 2013, 1800-1830,
[NOTE: Both interviews are followed by discussion with Mark Novitsky.]
The Early Years of the World Bank
The longest-serving General Counsel of the World Bank, Aaron Broches, helped to write the charters of the World Bank and IMF at the Bretton Woods conference in 1944. According to Broches, corruption intensified during former Secretary of Defense Robert McNamara’s presidency of the World Bank from 1968-81. In 2007, the Board fired another president from the Pentagon, Paul Wolfowitz, after Wolfowitz gave a 35% salary increase to his girlfriend at the World Bank, Shaha Riza.
The Europeans asked for an inquiry. The investigation headed by Paul Volcker, unfortunately, did not address the corruption. The Europeans reacted by calling for an end to the 66 years’ “Gentlemen’s Agreement” that the US appoints the President of the World Bank and the Europeans appoint the Managing Director of the IMF. Had the press reported my warnings to the authorities about the corruption, the US could have avoided substantial tarnish to its reputation and the loss of the Gentlemen’s Agreement.
My efforts to expose and correct the failure of the World Bank to adhere to standard accounting procedures has been enduring. In 2005, for example, the Dutch Government asked the Audit Committee to end a campaign of retaliation against me for reporting to the Executive Board about an inaccurate evaluation on a failed Banking Sector project in the Philippines. Then Senator Richard Lugar (R-IN) and the Senate Committee on Foreign Relations have written three letters to the World Bank on my behalf, asking for an end to the ongoing cover-up.
My Efforts to Expose Corruption
In 2007, I also met with Chris Armstrong in Senate Finance, Jayme Roth in Senator Bayh’s office, and Nicole Willet in Senator Clinton’s office. Senators Lugar, Leahy and Bayh began asking GAO to investigate the World Bank in 2008, and the Audit Committee is requiring an independent audit of the World Bank’s internal controls. The Audit Committee also referred my case to the Bank’s Institutional Integrity Department (INT). INT, which reports to the President of the World Bank, is used to intimidate staff. Paul Volcker ignored INT’s sinister role and simply recommended that whistleblower retaliation cases should be removed from INT’s mandate.
I met with the Ministry of Foreign Affairs of the Dutch Government on 24 September 2007. The Dutch are not happy with the Volcker Report and the ongoing cover-up. Moreover, previous Dutch Executive Directors, Herman Wijffels and Ad Melkert, disclosed that ‘third parties’ attempted to intimidate them and other members of the World Bank’s Board through shocking invasions of their private lives. The US violation of the safe-conduct normally accorded to diplomats is an egregious breach of honor. Article VII, Section 8 of the World Bank’s Articles provides immunities to Executive Directors, officers and staff.
Ben Heineman (who was a member of the Volcker Panel) spoke at the Yale Law School on October 5, 2007. On October 8, 2007, at the suggestion of minority staff on the Senate Foreign Relations Committee, I contacted Kenneth Peel at Treasury, to encourage the Bush Administration to end the cover-up on the Philippines Banking Sector Reform Loan and restore the rule of law to the Bank. But the upshot of my efforts to correct improper procedures was to have me removed from my position as Senior Counsel, which has had an intimidating effect.
The Crucial Year 2007
I wrote to the Dean of the School of Law at Yale, Robert Post, on 14 October 2007 to express my appreciation for his offer of assistance in exposing the scandal. I included an email that I had sent to The Wall Street Journal in an effort to correct the false impression it had conveyed about the Volcker Panel report, but it was to no avail. Here is what I wrote him:
I am a regular reader of your column, and wanted to set you straight about my next-door neighbor, Suzanne Folsom, and her role as Director of the World Bank’s Institutional Integrity Department. INT’s function under Ms. Folsom is not as you described in your column today. Ms. Folsom has continued to direct INT along the same lines as her predecessor Maarten de Jong: as a “goon squad” that intimidates any staff member who steps out of line and informs the Board of Directors about what is actually happening at the World Bank.
Until August 1, 2007 I was in-house counsel at the World Bank, and fulfilled my ethical obligations to report to the Audit Committee about a cover-up on a failed Banking project in the Philippines which resulted in the corrupt take-over of the second largest Bank in the Philippines, a $493 million bail-out from Philippines Deposit Insurance Corporation when depositors lost confidence in Philippines National Bank, the cancellation of $200 million from the World Bank’s associated loan to the Government of the Philippines, and the cancellation of $200 million in financing from Japan.
Instead of defending me, INT attacked me in a flawed report to the Audit Committee. I am not the only whistleblower whom INT has attacked. The Senate is fully aware of this scandal at the World Bank, which served as a poignant backdrop to Mr. Wolfowitz’ forced departure. The Europeans are withdrawing their funding from the World Bank in favor of the European Investment Bank as a result of these severe governance issues. Relevant documentation is attached to this email.
Because of AOL’s limitation on the size of files that may be attached to emails, I will forward other supporting documentation to you separately.
I sent The Wall Street Journal a set of the following, extremely important, documents, expecting that the cover-up would end. I did not anticipate that a small elite group who owned the press was stealing democracy from US citizens by censoring what could be published by the media.
- An annotated version of the World Bank’s Administrative Tribunal decision
- My memorandum to the Institutional Integrity Department
- A memo concerning rule of law at the World Bank
Here is another letter concerning the misrepresentation of the effects of the Volcker panel, which I sent on August 30, 2007:
Dear Mr. Heineman,
I have informed the Senate about the World Bank’s failure to prevent the corrupt take-over of Philippines National Bank during supervision of the Philippines Banking Sector Reform Loan and the flawed report of the Institutional Integrity Department (“INT”) to the Board’s Audit Committee on this serious matter. The Senate Foreign Relations Committee, concerned about the US reputation for probity, wrote to the World Bank three times requesting an end to the cover-up.
Ignoring recent legislation mandating whistleblower protections, the World Bank retaliated against me after I continued to report internal control lapses up the management chain. Both Messrs. Zoellick and Debevoise refused to provide the whistleblower protections that the Senate, in fulfilling its oversight responsibilities, had specifically requested on my behalf. Ana Palacio, the General Counsel, terminated my employment in the World Bank’s Legal Department on July 31, 2007 after sabotaging my transfer to the External Affairs Department, where I was to establish a global partnership involving the American Bar Association, the International Legal Assistance Consortium, the UNDP, the State Department, and the Center for International Legal Cooperation.
I have devoted my career to the World Bank, designed as a cornerstone of the global public commons when it was created at the end of World War II. Paul Volcker’s interim report failed to address INT ‘s sinister role in attacking whistleblowers, widely understood by staff and members of the Board alike. The documentation on my case leaves no doubt about INT’s lack of integrity, but there are other cases that provide serious indictments of INT as well. The Europeans have been withdrawing their support from the World Bank in favor of the European Investment Bank as a consequence of the failure of the US to play by the rules within the Bank.
A highly accurate stakeholder analysis has predicted that the Gentleman’s Agreement, whereby the US appoints the president of the World Bank and Europeans appoint the managing director of the IMF, will not continue if the US continues to circumvent the rule of law at the World Bank. I am forwarding a copy of this stakeholder analysis (see page 17 of attached Correspondence), which I have also provided to the Senate and State Department.
On July 23, at an open meeting of the Legal Department, Mr. Zoellick asked me whether the World Bank has a Sarbanes Oxley problem, and then asked me to help him solve it when I answered his question in the affirmative. I am requesting the Volcker Panel to carry out its mandate by ending the cover-up on the Philippines Banking Sector Reform Loan and resolving the associated internal control lapses and governance crisis within the World Bank.
Republicans and Democrats in Congress tried to expose the corruption to the American public by calling for an inquiry by the Government Accountability Office. When the very rich group that owns the media in the United States refused to cooperate with the GAO, both political parties remained divided. On May 19, 2008, Sen. Grassley’s aide in the Senate Finance Committee advised me to request Joe Biden, Barack Obama, and Hillary Clinton to end the cover-up, which I did in a letter to them of May 19, 2008:
Subject: Re: Multilateralism at the World Bank
Dear Senators Clinton, Obama and Mikulski and Congressman Van Hollen,
In response to lapses in internal controls at the World Bank, Senators Lugar, Leahy and Bayh have called for an audit by the Government Accountability Office. On May 14th Chris Armstrong [Senator Grassley's Aide on the Senate Finance Committee] asked me to inform you about a cover-up of the World Bank’s supervision mistakes and corruption in the Philippines Banking Sector Reform Loan.
I will be stopping by later today with additional documentation showing the US’ behavior as a hegemon at the World Bank:
* the US violated diplomatic immunities by investigating Executive Director’s bank accounts to intimidate them and prevent them from holding Paul Wolfowitz accountable for giving his girlfried Shaha Riza exhorbitant salary increases. (Eliot Spitzer was victim of a similar investigation.)
* the US gave narrow terms of reference to the Volcker Panel to exclude the Panel from investigating the goon squad behavior of the Institutional Integrity Department. INT attempted to intimidate me in order to perpetuate an incorrect evaluation of the Bank’s performance on the Philippines Banking Sector Reform Loan and cover-up the Bank’s supervision mistakes on that project. As a result, the Volcker Panel’s recommendations do not address internal control problems raised by INT’s lack of independence.
* the US has ignored appropriations legislation and letters from the Committee on Foreign Relations requiring whistleblower protections at the World Bank.
The US failure to respect the multilateral governance structure and its obligations under the Articles of Agreement creating the World Bank raise Constitutional law issues. In April 2010, the European Community renounced the Gentleman’s Agreement which had been in effect since 1945 whereby the US appoints the President of the World Bank.
During hearings on a capital increase for the World Bank, Senator Lugar had this to say about the World Bank’s continuing to stonewall the GAO inquiry:
“A few years ago, I joined then-Senator Biden, Senator Leahy, Senator Bayh, and others in asking the Government Accountability Office to conduct a review of the World Bank regarding its ability to fight corruption and to conduct environmental assessments. But, at that time, the GAO did not receive clearance from the World Bank to commence its work. What is delaying that review and what could be done to ensure that the GAO has the ability to carry out its work in this endeavor?” GAO is now facing $50 million in budget cuts.
Because they remain divided, both parties have continued to conceal the corruption from the American people, which I appealed to Sen. Harry Reid to end in this letter of 24 September 2008:
SEC and Federal Reserve
The World Bank’s Audit Committee appointed KPMG to audit the World Bank’s internal control over financial reporting. When KPMG did not follow Generally Accepted Audit Principles and Standards, the UK’s Serious Fraud Office called the US Securities and Exchange Commission.
The World Bank’s access to the capital markets is regulated by the Chairman of the SEC and the National Advisory Council on International Monetary and Financial Policies. I asked the Chairman of the Federal Reserve, Secretary of State, and other members of the NAC, “May the World Bank retaliate against persons who inform US Congress and the Board of Governors of the World Bank’s compliance issues?” and whether “KPMG [was] entitled to give false and misleading audit opinions to IBRD’s bondholders?”
The Ombudsman of the Federal Reserve acknowledged that “I further understand that you are concerned that these issues threaten the World Bank’s credit rating and the stability of the international financial system,” but claimed that my complaint did not fall within the Federal Reserve Board’s authority. I responded that, since Chairman Bernanke had not recused himself when I first wrote to him, “any belated attempts now are ineffectual.”
UK Fires Secretary of International Development
A UK whistleblower has also reported World Bank securities laws violations to the House of Lords, which has recommended that the UK reduce its contribution to the World Bank pending further study. On October 3, 2011, I informed Secretary Geithner of this fact during his testimony to the House Committee on Financial Services. The UK’s Financial Reporting Council is investigating KPMG’s failure to follow auditing standards. The UK replaced Andrew Mitchell as Secretary of International Development on September 4, 2012.
Another positive development is that the individual states also regulate the World Bank under blue sky laws. I have been informing the attorneys general, governors, and chief justices of the World Bank’s compliance issues. Congress is requiring the World Bank to make significant progress in protecting its whistleblowers before funds for the World Bank’s capital increase are disbursed under Section 7082 of the Consolidated Appropriations Act of 2012, signed into law on December 23, 2011.
The National Taxpayer’s Union has a petition about this corruption and initiated a blog about my efforts as a whistle blower about the World Bank. As I informed Congressional appropriations committees, “The Treasury Department should be sanctioned for its report to the Appropriations Committees dated November 21, 2012 on World Bank Reform pursuant to Section 7082 of the Consolidated Appropriations Act, 2012. The uncertified report is inaccurate in all material respects.”
Corruption in the Federal Courts
As the cover-up continued, I bought a World Bank bond and sued the World Bank and KPMG under the securities laws. I also sued the World Bank’s medical insurance administrator for disclosing the names of my doctors so that the World Bank could question my mental health and defame me. The Judge in the District Court dismissed my case, ignoring that the World Bank was not immune in lawsuits brought by bondholders.
My case in the Court of Appeals was assigned to the same panel that refused rights under the Constitution to prisoners in Guantanamo Bay. My computer was hacked to destroy my brief at midnight the day before a filing deadline in the Court of Appeals. I retrieved an earlier draft from the clouds and stayed up all night to file on time. On the way to the court I was disoriented by directed energy weaponry.
The Court of Appeals invalidated the filing on a minor technicality, but I managed to refile later in the day electronically. The Panel issued a hasty non-published opinion the day after I blogged that the Board of the World Bank would take over supervision of the litigation because the World Bank General Counsel was conflicted out.
- The Clerk disregarded my advice that the Board of Governors and I had settled the case. In response, Germany announced the repatriation of 674 tons of gold valued at $17.9 billion from the NY Federal Reserve.
- The Federal Reserve Board’s cover-up of this corruption caused a lowering of the US credit rating. The credit rating agencies are poised for a further downgrade in the US credit rating because voters are uninformed on this cover-up of corruption.
- Mitt Romney appointed Robert Zoellick, the former President of the World Bank, as his national security transition planning chief. In the final debate for the US presidency, Bob Schieffer did not ask Mitt Romney or Barack Obama what they intend to do to fight international corruption.
- I informed Chief Justice John Roberts, Jr. that the Conference of Chief Justices and the Board of Governors of the World Bank were waiting for the Judicial Conference to correct this mistake in the Court of Appeals.
Where things stand
Dr. Jim Yong Kim, President of the World Bank, has refused to tackle the corruption. He has even had me locked out of the World Bank’s headquarters. On March 19, 2013, I reported to the World Bank, informing Allied Barton’s security personnel that I was duly reinstated by the shareholders of the World Bank. Allied Barton illegally denied me a security badge. An Allied Barton officer raised his voice to me.
The World Bank, under Dr. Kim’s presidency, called the DC police on a legal officer of the World Bank whose reinstatement was necessary in order to qualify for the US contribution to the World Bank’s capital increase. Notwithstanding that the World Bank refused to confirm any request to the police in writing in an attempt to evade accountability, I left the premises at the request of the DC police. However, I did report to the 2nd District Precinct that the DC police had been derelict in their duties.
Republicans and Democrats in Congress have tried to expose the corruption to the American public by calling for an inquiry by the Government Accountability Office. Congress has attempted to fight the corruption by refusing to disburse the World Bank capital increase until there is substantial progress in eliminating the effects of retaliation against whistleblowers who disclosed illegality and corruption. The UK and EU Parliaments have also published testimony and held hearings on the corruption.
The World Bank has attempted to intimidate the World Bank’s Board members, which violates federal, state, and international securities laws. Fortunately, a team of whistleblowers disclosed this corruption and lawlessness to state governors, attorneys general, and chief justices of state supreme courts. State authorities, together with NATO and other allies, are attempting to prevent this corruption from lowering the US credit rating and causing a currency war between nations.
The situation in Cyprus appears to be growing increasingly more serious. The prospects for the World Bank itself are also increasingly in jeopardy, where Brazil, Russia, India, China and South Africa (the BRICS nations) are planning to create their own alternative World Bank. These consequences might well have been avoided had President Kim adhered to the principles of the rule of law, reinstated me and implemented appropriate accounting procedures. That he has done none of these, alas, remains a cause of grave concern, where his past performance in relation to JFK is anything but reassuring.
Karen Hudes, J.D., maintains the Law Offices of Karen Hudes in Washington, D.C. She served as Senior Counsel for the World Bank for 21 years and maintains a web site at www.kahudes.net
Short URL: https://www.veteranstoday.com/?p=244977
Reporters love nothing more than a source with important inside information about the secret operations of a powerful institution. For the public, the word “whistleblower” evokes the individual citizen putting themselves at risk to stop wrongdoing by an employer. It’s a powerful idea – one justifiably lauded both in fiction and fact, and protected and encouraged by a set of federal laws set up precisely to encourage such heroic behavior. But not all whistleblowers are created equal. In fact, there is a business model based entirely on former employees couching in the terminology of whistleblowing falsehoods motivated either by self-interest or paranoid delusion.
Meet Karen Hudes, whose bio says she worked as an attorney at the World Bank from 1986-2007, during which time, she says, she revealed conspiracies such as one she says involved a crony of then president of the Philippines illegally taking control of a bank in that country. Hudes says that these revelations eventually led to her firing. She now makes her career as an anti-bank activist billing herself as the “World Bank Whistleblower”. Using that as her brand, Hudes has been able to build a small but devoted following among consumers of the so-called alternative media. (Her name occasionally makes its way into more mainstream forums, such as in a recent speech by actor Edward James Olmos.)
For a news organization that is looking for ammunition in the war against banks but is not particularly concerned about accuracy, Karen Hudes presents the intriguing possibility of unfettered access to information about the unimaginable evils banks do behind closed doors. But this lack of concern about accuracy comes with a very obvious risk. What if the purported whistleblower making charges against their former employers also makes other statements which reveal that the “whistleblower” (to put it politely) is very obviously unreliable?
Hudes says that she was fired by the World Bank after her 21 years of work there because she spoke out about issues related to “massive, massive, massive corruption” which the World Bank wants kept quiet. Just how massive is this corruption? Hudes says that the US gold reserves have been stolen by the Jesuits under the direction of a person she calls “the Black Pope” and that the US gold now resides in the Vatican. Oh, and she says that the “Black Pope” is not a human, but is of what she calls “a second species”. As she recently explained on a podcast:
“There’s a second species on this planet. They’re not extraterrestrials. They’re very much with us. They made maps in the previous ice age. The remnants of their civilizations are all over the place – a lot of times along the coast. It’s submerged because the sea level has gone up by 400 meters. This group has large brains. They’re very distinct from homo sapiens. Their DNA is so different, that if the two species mated, their offspring would be infertile, and we know this because their DNA was just tested. They have skulls all over the place because they have been on earth with us. But after the ice age, there weren’t that many of them, so they’ve been hiding, and one of the places that’s they’ve been hiding is in the Vatican. That’s why the Vatican are wearing those miters. It turns out that that’s what the high priest wore in the early beginnings of Judaism. Moses was actually Akhenaten, who was a pharaoh. They know this because the papyra that was taken from one of the pyramids talks about this. The people who are doing archeology in Israel know this. And the reason is, not only is homo capensis (?) trying to keep human beings under control by divide and conquer using our money system, they’ve also been doing this with our religions – organized religions – trying to get human beings to hate people of different religious faiths so that they will kill each other off, so that the people who are manipulating human beings could … use us like cattle. That’s what’s been going on through our history.”
Hudes goes on in the interview to explain that she learned of the existence of this world-controlling, large-brained, non-human species from “a retired neurologist named Edward Spencer,” and that his views were confirmed to her by an unnamed email correspondent in Portugal who, she says, attended a meeting of large-headed hominids with inhuman blue eyes. Hudes also claims to be part of a network of whistleblowers from various financial institutions who have taken their concerns to the International Organization of Supreme Audit Institutions. Hudes and Spencer have also sent emails about this conspiracy to a long list of US military and government officials. (Another Hudes podcast interview on this subject is available here. More details about Hudes’ and Spencers’ beliefs are available here.)
Hudes has appeared several times on RT, where she’s billed as “the World Bank Whisteblower”, discussing everything from Obamacare to the government shutdown to the NSA. In those appearances, she fails to mention the “Black Pope” or large-brained hominids. Instead, she gives RT audiences what they expect: conspiracy theories involving bankers controlling the US and dire predictions of the economic collapse of the West.
In June 2013, Hudes was interviewed by Abby Martin in a segment of her RT program Breaking the Set. Although Martin’s introduction promised shocking revelations of World Bank corruption involving money laundering, no such revelations were forthcoming, only a series of unsupported charges.
In the interview, Hudes first claims that she knew of a scheme involving the theft of $180 billion dollars from the World Bank, that she reported this to her superiors there, and that she was fired for pursuing the matter in spite of intervention by several US senators on her behalf. Oddly, Hudes fails to take advantage of the opportunity to reveal details of this theft, which would surely be one of the biggest news stories of all time. Instead, Hudes starts down another path, claiming that 188 ministers of finance and the US Congress were involved in covering up the theft of $900 million dollars of funds designated for fighting poverty in the Philippines. She says that she’s part of an international network of World Bank whistleblowers who are trying to reveal a massive conspiracy of international bankers and prevent what she describes as “a currency war” ending in the collapse of the world financial system.
Martin then asks Hudes why “the corporate media” has failed to report on these “facts,” to which Hudes replies that it’s because the media is owned by a single conglomerate with an interest in maintaining the cover-up.
“They’re part of this scheme to rip off everyone, every single citizen on this planet. That’s what I’m talking about.” Hudes goes on to claim that her allegations have been confirmed by a study conducted by the Federal Institute of Technology in Zurich, although the findings she recounts don’t relate in any way to her charges. Instead, as she describes it, the study found that a small group of elite business leaders control 40% of the world’s assets. Based on this fact, Hudes says (in what charitably could be described as a non sequitur) paper money now has no value, and that “pretty soon, in a matter of weeks probably, the whole system is going to come to a screeching halt with something called ‘gold backwardization’.”
Rapidly changing the subject, Martin asks Hudes about banks controlling the US political system. Hudes says this is proved by the fact that former World Bank president Robert Zoellick worked for the 2012 Mitt Romney campaign and that, she says, the media failed to report this. She also says cryptically that she asked CBS to report on international corruption “and they said the public didn’t need to know.” The host wraps up the interview by asking Hudes why her “revelations” haven’t “incurred the wrath of the government” as have those of Edward Snowden. Hudes answers that she doesn’t know, but thinks that the government may be “using Eric Snowden (sic) to stir up the public.”
Subsequent to that bizarre interview, which lasted only 8 minutes, RT had Hudes back in October for a 24 minute in-depth interview on Sophie Shevardnadze’s program, giving Hudes an opportunity to flesh out her theories. (Video and transcript available here.) Unfortunately for everyone involved, this interview is notable for largely being so incoherent as to be virtually impossible to summarize.
SS: So, the government shutdown. Is the move on the part of the Republicans justified? Is fighting off Obamacare worth all this mess?
KH: I think there is something more going on behind the scenes. A lot more, actually.
SS: What do you mean?
KH: Well, there is terrible currency problem. We’re on the verge of the currency war. The Federal Reserve is printing dollars like there is no tomorrow, and if they keep going, the rest of the world is not going to accept them. As it is, the BRICS countries – Brazil, Russia, India, China and South Africa – have decided that they are going to finance the trade among these countries with assets and pay for the difference in gold. And this is the right move for them…
SS: But how is that connected with a shutdown though?
KH: The US Congress has been fighting with the presidency, because the presidency (sic) have been in total contempt, and the highest legal officer of the United States government has also been in contempt of Congress in fighting this international corruption that is ruining the dollar as an international reserve currency.
And on it goes… Hudes explains her theory of “gold backwardization.” It turns out that it refers to a two-step conspiracy theory falsely charging that 1) gold reserves no longer exist (or, in Hudes’ case, that the gold has been stolen by the “Black Pope” hominid and hidden in the Vatican), and 2) that banks are short-selling this purportedly non-existent gold to deflate the gold market. The assumptions behind this conspiracy theory are false, of course, but it doesn’t really matter. Central banks exist to manage the money supply in order to stabilize currencies and encourage steady economic growth. Conspiracy theorists and promoters of schemes involving speculation in precious metals have a different view of these things though. From their point of view, those actions are intrinsically part of a plan to drive down the price of gold, since, when currencies are stable and the stock market sound, gold speculation is less attractive. This is how gold standard true believers like Hudes and other RT economics experts come to believe that the normal pursuit of a good economy is part of an anti-gold conspiracy.
Hudes goes on:
“The mainstream media is completely owned and controlled by the same companies, private companies that own the Federal Reserve System… Congress people are all bribed by these corrupt forces and the American citizens have zero confidence in their Congress… I’m not siding with Democrats or Republicans, because both of those parties have been co-opted by these terrible corrupt forces I’m talking about.”
Considering that the views she expresses elsewhere are so idiosyncratic, Hudes’ RT persona is mostly indistinguishable from what they usually broadcast. I’ll leave it to readers to reach their own conclusions about what that means. I say “mostly” because, inevitably, the mask sometimes slips. In response to an oddly-framed question on Obamacare and fears of the collapse of the US economy, Hudes shares this:
SS: You know, I’ve also heard Obama supporters argue that the American Capitalism is on the verge of death in its present form, the way it is existing now, and the social injections, meaning the medical care and Obamacare, are needed as the only way to reform it or save it. Do you agree or disagree with that?
KH: The problem is not with the American citizens, they are a wonderful group, their values are good. It’s just that they are not given the tools that they need to have a just society. They are not given the basic information about what is really going on and who is benefiting from the economies that they are being told… they are being told that they have no money, they have taken an entire city, Detroit, and declared it bankrupt. When what’s actually happening is their tax dollars are not even staying in the society, their tax dollars are going by treaty to the United Kingdom, and then they are being transferred to the Vatican, to the bank of the Vatican. This is not a society that is going to be sustainable on any basis, for any reason.
Later, in response to a question about China, Hudes explains to her interviewer that China is controlled by the Jesuits. No large-brained hominids or Black Pope mentioned there, but some intriguing intimations of insanity on which the RT host somehow fails to follow up. Just another day at RT. Nothing out of the ordinary.
Fencing With the Black Nobility
Mar 27, 2020
The Black Nobility is on full display. So what? As one comment says, "I have a feeling that we are MUCH closer than anyone thinks to this inevitable change for the better." No matter the religion you believe, we're the very breath of God and divine creations. Our mind is directly connected to all and our Godly brain is unique. It's so important not to invoke religion. It's being used by very evil forces no matter how pure the intention. Here the Black Nobility said that a page with the graphic of The Black Nobility didn't exist. The Black Nobility is trying to erase the evidence that the Black Nobility exists. The existence of the Black Nobility can be seen each time it covers up its existence through censorship. Still I can carry on. This is because I get a lot of help. On December 1, 2019, (just after being poisoned with arsenic, Karen Hudes wrote: Dear Healer, This is Karen Hudes. I am using an email account that works (kind of) I spoke to [loved family member] about mind control and they appeared to listen. The attacks against me were so severe I passed out, and then my hearing was affected; I had a hard time hearing, it sounded far away and I also heard noises. This may be another turning point. I am worried about [loved family member.] Anything you can do to shield us is much appreciated. You can see in many ways the evidence that I am fencing with the Black Nobility: my posts get removed, the falsified counters is another example. Teleprompter: https://khudes.s3.amazonaws.com/dctvt...
•Mar 27, 2020
Each and every country and their government is secretly a corporation, including the government of the United States of America. I asked each of the Governors, the Adjutant Generals who are liaisons to the National Guard for the Governors in the USA, and the Secretaries of State of the 50 states, to deny that there is secret martial law. The Governors are hard pressed because people know that their titles to land and cars and other property are being withheld from them under war powers ever since 1937, and this corruption is not something that the Governors can continue evade. I told the Governors that I vote the US shares on the Board of Governors and Boards of Executive Directors of the World Bank and IMF because Jack Lew, Matthew McGuire, and Mark Sobel had broken the Articles of Agreement and had no further role to play in the Global Currency Reset. The Secretaries of the 50 states know full well that the US monetary gold reserves are in the Global Debt Facility and that the Global Debt Facility has liens against the Fed and the agents of the Network of Global Corporate Control. It is against the security interests of the United States to allow the Federal Reserve note to crash, thereby unilaterally surrendering our military. It is treasonous to punish our heroes Vice Admiral Tim Giardina and Major General Michael Carey, who refused to nuke Charleston South Carolina on October 7, 2013, and Captain Heather Cole, who refused to communicate a first strike command against Russia on March 16, 2015. Where are we? Is it uncharted territory? Not exactly. The power transition model is quite accurate. When Germany's and Japan's and Brazil's Executive Directors asked for me to be admitted to the Spring Meetings in 2015 so that the Minutes of the Board of Governors that had been adopted the previous day for the Global Currency Reset could be presented at the meeting, and I was nevertheless not admitted, this was a violation of the World Bank's Articles. The Secret Service tried to "paper over" my being locked out of the meeting by presenting me with a barring notice. This barring notice was signed by Martin Kraus, who had been fired the previous day by the Board of Executive Directors. It is not worth the paper it is written on. Has the Network of Global Corporate Control succeeded in stealing the world's monetary gold reserves? No. The liens against the Federal Reserve, and the 2 quadrillion in Treaty of Versailles Bonds are still there. The Minutes for the Global Currency Reset have been adopted, and by their terms they supersede the Minutes that are currently on the internet. Teleprompter: https://khudes.s3.amazonaws.com/dctvt...
Karen Hudes: Dollar To Crash And Be Replaced With New, Interest Free, Gold-Backed Currency
By Gregg Prescott - 05. November 2014
According to World Bank whistleblower Karen Hudes, the US dollar is set to crash and will be replaced with a new, interest free, gold-backed currency.
Hudes is a lawyer that worked in the World Bank legal department and has been recently reinstated by the 188 Ministers of Finance on the Board of Governors on the World Bank
In an interivew with Russia Today, Hudes stated, “there is 170,500 metric tons of gold deposited in a vault in the Bank of Hawaii, 130,500 metric tons in AMEX Hong Kong plus 150,000 metric tons in Development Bank of Singapore, for a total of 451,000 metric tons. There is an additional amount exceeding 100,000 metric tons in other American banks”.
In 1950, Ferdinand Marcos kept this gold in a secret trust fund for 50 years “so all the claims on the world’s wealth would be subject to the statute of limitations, which basically says that if somebody claims that they own something, but they haven’t been able to gain control of it for 50 years, then they’ve lost their claim. The purpose was so that all of the assets that were put in trust for humanity when the 50 year period ended, would be available for humanity without any competing claims. That 50 year period ended in 2005.”
The authorized signatory for the trust fund is Wolfgang Struck.
Hudes stated, “Considering that the paper currencies are in a precarious situation, we need to step up our game and to move quickly to bring the gold out of the trust fund for the benefit for the benefit of humanity before the collapse of the paper currencies. ”
What is the hold up?
According to Hudes, the mainstream media has been bought up by the banks, which is delaying the movement forward of information outside of the alternative news media. Outside of the alternative news, people can use social media outlets such as Twitter and Facebook to get the word out. “More people are learning about the fact that the banks are trying to prevent people from getting the wealth that they’re entitled to.”
Despite being reinstated, Hudes admitted that she is not able to go into the World Bank buildings because “the banking cartel has hired… owns a security firm which refuses to let me in, although I did manage to get into meeting on the 10th of October (2014), which is when I met with three delegations… the Swiss, the Russian and the German delegations and we discussed about how we were going to get the banks to follow the banking laws.”
“Numerous coalitions have formed, such as the BRICS (Brazil, Russia, India, China and South Africa) and the Group of 77 (which is actually 130 developing countries) to help releases these gold funds to humanity.”
In the United States, those citizens and local governments that understand that the banking cartel has done something called “state capture” to which Hudes says, “They managed to bribe and corrupt enough officials, that these officials would just, instead of doing their public duty, would serve the interests of the banking cartel.”
In the United States, Hudes has been working with “The County Executives of America” and stated that they “have accepted the share of the United States gold in this ‘Global Debt Facility’ on behalf of the citizens of the United States and we are now trying to replace the paper currencies that are issued by the Federal Reserve.” Hudes added that the new currency should be issued by the Treasury, not the Fed, and stated there will not be any interest (debt) on the new currency. In other words, charging interest will no longer be tolerated in ANY country once these funds are released.
“When Ferdinand Marcos put the gold in the Global Debt Facility, he arranged for institutions that would be there to ensure that the gold would benefit humanity when it came out and one of those institutions is the World Bank and the International Monetary Fund.”
Hudes stated that most of this gold is located in the Philippines and the US Military is guarding that area. Wolfgang Struck stated that some military helicopters were flying gold out of that area, so Hudes filed a claim with the Inspector General in Okinawa stating that the gold was insured by Lloyd’s of London and the Lincoln Insurance Company. The terms of Hudes’ claim included that “any gold that is stolen will be put back and that anybody that ordered the transport of that gold is going to be held accountable as well.”
What are the challenges?
Hudes stated there are several main challenges to overcome before the new currency is issued:
1. To quickly replace the currencies
2. The banks have bought up the main stream media and are misinforming the people regarding this situation
Hudes stated the Federal Reserve Notes “are going to crash and it’s not going to be possible to do anything systematically after that happens.”
The U.S. military would be affected as well. “If the paper currency crashes, there’s no way to pay for the military.”
Hudes’ email from Wolfgang Struck
On November 3rd, 2014, Hudes received an email from Wolfgang Struck stating:
This is interesting news in the sense that Karen Hudes is heading the demolition team that will replace the fractional reserve currencies, before their imminent collapse, in a peaceful transition through monetary agreements that the world does not know. It hurts to repeat the last sentence that follows: We will be watching with heightened interests as we do not have the slightest idea how that would be accomplished.
Hudes wrote back stating that “the world does know about the monetary agreements” adding that those in power are still buying into the false reality portrayed by the mainstream media.
The new currency
According to Hudes, the new currency will be like this:
“The gold will be pressed very thin and put between a plastic envelope which will act just like paper currency, except that the value of the gold will be equal to the stated value of the currency.” Regarding the price of gold, it will be calculated by “using historical baskets of good and services and also the major currencies at the time so that we will have an absolute equivalent in our currency of the true value of whatever it is that the currency is being used for. We’ll also have local currencies and we will no longer be controlled by our currencies or pay interests on country debt in a scam.”
“It’s a race. If we do not replace this fake, fractional paper currency with value, we’re going to go into another dark age. We’ve got a coalition that understands this very well and that coalition is much stronger than the banking cartel.”
Webcam video from November 3, 2014 03:24 PM
•Nov 3, 2014
Update on the release of gold from the Global Debt Facility to replace fractional reserve fiat currencies
Gregg Prescott, M.S.
One must ask if Federal Reserve’s 100 year charter ended, then why are they still allowed to continue doing business as “normal”?
I asked the above question on Karen’s YouTube channel and she responded, “Because their charter was for unlimited duration.”
In further research, I found that in the McFadden Act of 1927, Congress rechartered the Federal Reserve Banks into perpetuity, and so there is currently no “expiration date” or repeal date for the Federal Reserve.
Another question that arises is why did the World Bank reinstitute Hudes after all of the turmoil she’s caused for them?
Also, with the rash of bankster suicides, why is she allowed to speak out and what is the overall agenda?
I messaged Karen on Facebook and asked her these questions. This was her response:
“Because the World Bank was dominated by the banking cartel, and the countries took back control. I am protected by the US military, who know I am cleaning the traitors from their ranks. The overall agenda is to avoid the bankster-caused WWIII.”
For those with their ears to the ground, you already know about current systems where we can all live in abundance and prosperity without the need for money, including the Ubuntu system and the Venus Project. What Hudes is proposing would simply be a short-term transition until all forms of money are eliminated because as long as there is money, we’re ALL financial slaves to a broken system.
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Sending you all infinite Love & Light,