Published On: Thu, Jul 18th, 2013

A Correspondence with World Bank Whistleblower Karen Hudes. Justified Optimism ? The First Order of Business.

Christof Lehmann (nsnbc),- There are few who doubt that World Bank whistleblower Karen Hudes is one courageous woman. Hudes, who worked 20 years in the World Bank´s legal department, reported corruption by a conglomerate or megabank, which according to Hudes is responsible for corruption in the Bretton Woods institutions. A cartel which effectively has the U.S. Federal Government under arrest, and which is likely to maneuver the world into a global currency war and a breakdown of the world financial system and trade.

Moreover, the Trans-Atlantic Alliance may be endangered, which is not necessarily perceived as a negative development by everyone. While not everyone agrees with Karen Hudes basic premises, and while very few would doubt her courage, many doubt there is a reason for her apparent optimism. I asked Karen Hudes questions, which many undoubtedly have been asking themselves.  

karen-world-bank-320x239The case Karen Hudes is becoming increasingly Kafkaresqe, and the Kafka novel “The Castle” comes to mind. So where is Karen Hudes getting her optimism from ? One must admit that it was an almost Herculean achievement to be reinstated as World Bank Counsel after being fired for reporting corruption.

But then again, Hudes was prevented in taking part in the last day of the 2013 World Bank spring meetings, after a security guard from Allied Barton, which is owned by the conglomerate which Hudes is up against, had her arrested. Hudes was arraigned to the Superior Court at the District of Colombia, a federal court, on the non federal offense of trespassing.

In Hudes´ case it was not the long arm of the law, but the long arm of lawlessness, of a cartel that considers itself above the law, that had the final say with regard to her participation in the last meeting of the 2013 World Bank spring meetings in April.

Exposing that group is clearly the first order of business. Asked about other progress, Hudes states, that “exposing that group is clearly the first order of business“, and Karen Hudes has done just that, with some success in independent media such as nsnbc international. Hudes has been on INN World Report, a radio show hosted by Thomas Kiley, and she has been on Coast to Coast, another syndicated radio show. Also the Russian TV channel Russia Today, RT, has had Karen Hudes on the air.

nsnbc no media monkeyThe question is, will she and her message succeed at reaching critical mass, and for that to happen, she would have to appear on one of the U.S.´s mainstream media which are owned by the same cartel that Hudes opposes. Her case elicits, why it is important that “we the people”, which is you who is reading this article, begin becoming independent on corporate media and begin supporting those media who are truly independent.

That is, those who are truly independent, and not those, who are branding themselves as independent while in fact being the mouth piece for either the one or the other minority faction of one of the two major parties in the USA, who are maintaining the status quo. Or “independent media who happen to be funded by foundations like the Ford Foundation or George Soros Open Society Foundation and their likes.

World Bank as Microcosm. Karen Hudes describes the World Bank as a microcosm that convenes the stakeholders, saying:

“The U.S. Congress is one of the stakeholders, and they are requiring the elimination of retaliation against whistleblowers as a condition for contributing to the World Bank capital increase. This is after the World bank stonewalled the GAI inquiry into corruption requested by Senators Lugar, Lehay and Bayh, and after the Parliament of the United Kingdom published how the Securities and Exchange Commission (SEC) stonewalled the Serious Fraud Office´s inquiry into the SEC”. 

Karen Hudes describes her progress, saying that some of the U.S. Governors are now involved, and:

“I have recently spoken with the office of Governor Terry Branstad, of of the Co-Chairs of the Governors Council”.

“I have also asked the counties to help get the Governors off the dime. Will this occur in time ? I have asked the television station that interviewed me to help me, and they have contacted Canada´s Parliament”.

“In this day and age of the internet, my money is on the stakeholder analysis, that the rule of law will prevail. Let us approach the issue from another perspective. If you were a member of the ´super entity`, would you think it possible to continue the cover-up after all of this has happened ? I am getting a lot of help — we shall see if I am getting enough!”

Running in a Hamster Wheel ? Karen Hudes´answer brings us back to the need for strengthening truly independent media. After all, most Senators and Governors are very much aware of which issues they have to address in order not to be loosing voter confidence.

Considering the lack of independent media which can reach a critical mass, I asked if she does not think whether the segment of the public which can be reached by independent media needs objective progress reports, or alternatively, a realistic assessment of what should be manifesting to make progress, Karen Hudes replied:

“I have always asked whether I am simply running in a hamster wheel, or whether there is any progress, and I try to figure out what sign I would look for to see to determine the progress. The biggest indicator now of progress is the interest from the media in the story. I will let you know when the story of the World Bank whistleblowers becomes irrelevant, or beside the fact”. 

Many people have told me that the issues we are working on are the right ones, and that our approach is the only one that will prevent the poorest from being harmed in a meltdown of the international financial system.  If this is a widely shared belief, that is one indicator.  Another indicator is if the World Bank whistleblowers stay together.  We have done and are doing that.  

Karen Hudes, along with other World Bank whistleblowers from among other India and some African countries, have been fighting the corruption at the Bretton Woods institutions and the deep systemic problems with the Bretton Woods system per se since 2007.

Naturally, the fact that independent media have begun picking up on the story and are getting up to speed is a positive development, which not only helps inform the public; as Hudes herself states, it increases the whistleblowers credibility and, on might add, it opens the way to increased pressure from the side of the public, on their Governors and Congressmen.  Hudes continued:

I have been calling and speaking with a number of Governors’ offices, and with their representatives in Washington, and also their chiefs of staff.  This morning, one governor’s office asked me to speak with their Secretary of Finance.  One Governor’s office assured me that their Governor was discussing the issues I raised during their weekly meeting on major issues and at the end of that week, the Governor signed legislation placing the state militia directly under the Governor’s control, although Governors who do that are given national security letters. The Governors are all required under blue sky securities laws to protect bondholders of the World Bank’s $180 billion in bonds”.

I asked Karen Hudes, if she believes, that sending faxes to 50 governors will have any positive effect, and told her that I did not ask this question to denigrate her work. My concern, I said, was more based in the fact that overestimating one´s own strength is one of the most dangerous strategic mistakes. Karen Hudes said:

What will have a positive effect is if the cover up of corruption ends.  There are a number of issues facing the Governors, including the impending permanent backwardation in gold, which will interrupt world trade”.

“One of the television stations that interviewed me forwarded my disclosures and the stakeholder analysis to the members of Canada’s Senate, and I informed the UK Parliament and the US Congress about this, and also informed some US citizens and taxpayers”.

“There are over 50,000 hits on the RTTV podcast, and over 30,000 hits on the podcast of that television station. The RTTV broadcast helped.  Another TV station informed me they had 30,000 hits on their podcast of my disclosures”. 

If the counties also raise these issues, as well as US citizens, the Governors will act.  The Board members of the National Association of Counties are now considering this matter”.
Have you gotten any responses that indicate that no action will be taken – or does a lack of response indicate that ?  

“There are coalitions at work, and most of the action is taking place behind the scenes.  As an example, look at the issues now raised by the European governments about the NSA spying. Why do they raise the issue now, and not earlier, when they were blackmailed for firing Paul Wolfowitz, using information from the same New York madam who was used as a reason for firing then New York State Governor Elliot Spitzer?

The stakeholder analysis predicts that if the US does not end the corruption, the transAtlantic alliance will not last.  This is what you are now seeing.

The Department of Defense is aware of this analysis and this risk, and can read the same tea leaves as I can.  It took me four times to send this information to the US Department of Defense and the UK military attache in Washington.

Someone did not want this information to go through.  Has the US been so emasculated by the “super-entity” that it will allow its most important alliance with Europe to be lost?

That is the simple question which I asked in the email that was being censored.  The stakeholder analysis answers clearly that if I succeeded in getting a country to openly report the corruption, that there was a   95% likelihood that rule of law would prevail.

The UK and EU Parliaments published my testimony, the European Institute of Technology published the description of the super entity, and you and Lars have fleshed out all of the details.  We are squarely on track for rule of law.  

For many people worldwide, and with the recent developments within the BRICS countries, and with a European Union, which is increasingly becoming divided between a British – French – led faction and a German – led faction, it is likely that that also the number of policymakers and decision makers who are asking themselves the questions whether salvaging the Bretton Woods system or the Trans-Atlantic Alliance would be beneficial for long-term developments, stability and peace is growing.

One can read in-between the lines, that Karen Hudes would like the Bretton Woods system to continue, and if the stakeholder analysis is correct, it eventually might. Not wanting to discuss the inherent value or risks of saving the giant on clay feet, Karen Hudes was asked:

 How does the establishment of the council of governors relate to corruption at the World Bank ? <

“It gives me a handle to show the Board of Executive Directors that they have a counterpart.  I called the office of Governor Terry Branstad of Iowa, one of the Council’s co-chairs and reported this fact, and then informed the Chair of the Development Committee.  Do you want to publish all of these details?  I doubt your readership would like to know this level of “whodunit”  Is this to assure yourself that the rule of law will prevail?  Why not just report the struggle and the dynamics, and the rest will take care of itself”.  
“They are charged with maintaining order in this Executive Order, which many people consider to be unconstitutional”.
“The International Organization of Securities Commissions is also aware of the ongoing obligation of the World Bank’s oversight agencies to end the corruption on the capital markets”.
Asked, who and what in the institutions Karen Hudes mentions is aware of the ongoing obligation of the World Bank´s oversight agencies, and what effect she presumes that this awareness has in terms of realpolitics, Karen Hudes replied:
Whether or not citizens demand accountability is the driving force.  When the pendulum will swing from secret societies to rule of law is when the people taking cover behind inaction start worrying whether there will be consequences for their inaction and whether they will be blamed for their inaction.  Do you want me to send you the emails I have sent to the INTOSAI and the IOSCO? 

Again, without necessarily wanting to discuss the inherent value or risks tied to salvaging the Bretton Woods institutions and agreements, or without wanting to enter into a dialog about whether the world actually would be a safer place if the Bretton Woods System, Trans-Atlantic Alliance, and NATO were to fall apart, what the case of World Bank whistleblower Karen Hudes boils down to is this.

Karen Hudes, as well as truth speakers worldwide, are confronted by a super entity, a cartel, that controls almost all western mainstream media. Karen Hudes´case, whether one agrees with her basic premise, that Bretton Woods and its institutions, the Trans-Atlantic Partnership and NATO are worth salvaging, or that it even would be safe to salvage them, the deepest value of her case may be that it shows an urgent need to counter corporate cartel´s and governments information and media monopolies.  Karen Hudes said:

“I am also reminding the mainstream press of its duty to the public and not its shareholders. The Guardian banned me from commenting, and now I am warning them of their legal obligations”. 

I replied, that it was good that she was “reminding them”, but that I believe, that an annual check from the US DoD is more efficient that her “reminder”, and I asked what her intention with reminding them was? Karen Hudes replied:

“It is not that the Mainstream Media (MSM) gets annual checks from the United States Department of Defense. It is that the ´super entity` owns these companies”.

Karen Hudes´statement is a truth that needs modification. State-owned media, including the British BBC do receive large sums of funds from the U.S. DoD. The Pentagon´s motto is Global, Full Spectrum Dominance”, not Global, Full Spectrum Dominance minus state-owned media”.

However, Karen Hudes is making a valid point in that Western MSM are controlled by the same cartel that stands for the corruption of the World Bank and other Bretton Woods institutions, and through them, for much of the usurpation of nations and people worldwide.

We began our correspondence with Karen Hudes stating, that “exposing that group is clearly the first order of business”, and I could not agree more. Karen Hudes will be featured in an upcoming, Italian documentary film by Primafilm, and nsnbc international will announce the premier to our readers.

The truth is out there. Somewhere, in between, in limbo, waiting for our readers to do what I did years ago. To throw away the television, to stop paying for newspapers just to have the privilege of paying for being propagandized.

Especially now, when you can get a free subscription for nsnbc international at the bottom of our website. Karen Hudes is one optimistic woman, and her optimism may be realistic if you start doing something to support her in breaking the monopoly on information.

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About the Author

- Dr. Christof Lehmann is the founder and editor of nsnbc. He is a psychologist and independent political consultant on conflict and conflict resolution and a wide range of other political issues. His work with traumatized victims of conflict has led him to also pursue the work as political consultant. He is a lifelong activist for peace and justice, human rights, Palestinians rights to self-determination in Palestine, and he is working on the establishment of international institutions for the prosecution of all war crimes, also those committed by privileged nations. On 28 August 2011 he started his blog nsnbc, appalled by misrepresentations of the aggression against Libya and Syria. In March 2013 he turned nsnbc into a daily, independent, international on-line newspaper. He can be contacted at nsnbc international at nsnbc.wordpress@gmail.com

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