World Bank Whistleblower: The Federal Reserve Has Secretly Gamed the Global Financial System

A small group of entities — 147 financial institutions and central banks — exert a massive amount of influence over the international economy from behind the scenes. This “economic ‘super-entity’”controls the institutions of government and at the very center of this network is the Federal Reserve.

So says a former Senior Counsel at the World Bank in edited excerpts from an article* written by Alex Newman (www.thenewamerican.com) entitled World Bank Insider Blows Whistle on Corruption, Federal Reserve. (A HAT TIP to SeniorD for bringing this enlightening revelation to our attention send your article recommendations to me for posting consideration.)

[The following article is presented by  Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]

Newman goes on to say in further edited excerpts:

In an interview with The New American, the former insider, Karen Hudes, cites an explosive 2011 Swiss study published in the PLOS ONE journal [which reveals that] a small group of entities — 147 financial institutions and central banks — exert a massive amount of influence over the international economy from behind the scenes – a “network of global corporate control”. The researchers describe the core as an “economic ‘super-entity’” that raises important issues for policymakers and researchers and enormous implications for citizens as well.

State Capture

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. This is a story about how the international financial system has been 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 Federal Reserve in particular (created by Congress but essentially owned by a cartel of private banks) 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…“The Federal Reserve secretly dominates the world economy by:

• using secret, interlocking corporate directorates,
• terrorizing anybody who manages 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”…

“This is like crooks trying to figure out where they can go hide. It’s a mafia…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, [saying:]

“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…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.”

[If] Hudes has something do to with it, however, it is not going to happen.. 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, [going on to say:]

“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…[and that] 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.

[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

*http://www.thenewamerican.com/economy/economics/item/15473-world-bank-insider-blows-whistle-on-corruption-federal-reserve (Copyright © 2012 Shaper Neo Demo. All Rights Reserved; Alex Newman, a foreign correspondent for The New American, is currently based in Europe. He can be reached at anewman@thenewamerican.com. This email address is being protected from spambots. You need JavaScript enabled to view it.)

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