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HS 181 – World Bank Corruption with Karen Hudes

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Karen Hudes World Bank

Karen Hudes studied law at Yale Law School and economics at the University of Amsterdam. She worked in the US Export Import Bank of the US from 1980-1985 and in the Legal Department of the World Bank from 1986-2007. She established the Non-governmental Organization Committee of the International Law Section of the American Bar Association and the Committee on Multilateralism and the Accountability of International Organizations of the American Branch of the International Law Association.

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In 1999 Karen reported the corrupt take-over of the second largest bank in the Philippines. The Bank’s Country Director in the Philippines reassigned Karen when she asked him to sign a letter warning the Philippines’ government that the Bank could not disburse its loan. Two days after informing the Board’s Audit Committee of the cover-up in the Philippines, Karen was reprimanded and placed on probation. The Chair of the World Bank’s Audit Committee requested an inquiry into the World Bank’s Institutional Integrity Department. The Senate Committee on Foreign Relations followed up with three letters to the World Bank. The World Bank forged documents and fired Karen in contempt of Congress.

In 2007 Karen advised the US Treasury Department and US Congress that the US would lose its right to appoint the President of the World Bank if the current American President of the World Bank did not play by the rules. The 66 year old Gentlemen’s Agreement that Europe would appoint the Managing Director of the IMF and US would appoint the World Bank President ended in 2010.

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Start of Interview with Karen Hudes

Jason Hartman: It’s my pleasure to welcome Karen Hudes to the show. She studied law at Yale Law School and Economics at the University of Amsterdam, and had a very long tenure at the World Bank, about 21 years in fact. And she has a tremendous amount of experience. She is working with a group of whistle blowers on various issues, and I think you’ll find her experience and what she has to say today very, very interesting. Karen, welcome. How are you?

Karen Hudes: I’m fine. Thank you so much for having me Jason.

Jason Hartman: The pleasure is all mine. Where are you located today, just out of curiosity?

Karen Hudes: I’m right out of Washington DC.

Jason Hartman: Oh, right near the beltway where I call it the new bail out capital of the world.

Karen Hudes: I live right down the block from where Larry Summers used to live.

Jason Hartman: Oh wow. Very interesting. Well, you’re in the thick of it. You definitely are. Tell us a little bit about your very long tenure at the World Bank, and you actually retired a little bit early, didn’t you?

Karen Hudes: Yes I did. I went to the senate committee of foreign relations and told them that there was corruption at the World Bank, and Senator Lugar wrote three letters to the World Bank saying don’t fire this lady. And they promptly fired me much to my chagrin and surprise.
Jason Hartman: Well can you imagine that they don’t like you saying that the organization for which you work has corruption going on, right?

Karen Hudes: Well actually, I didn’t just go right straight to the US congress. It took me ten years. I did what a lawyer is supposed to do when they work for an organization that has bombs on the capital markets. The World Bank has 180 billion dollars’ worth of bombs. So I went up the corporate ladder, I went to the audit committee and then I went to the US treasury for about two or three years trying very strenuously at all of those levels to get things straightened out. And I just went to the US congress as I was obligated to do, as a lawyer working for an organization that has bombs publicly traded.

Jason Hartman: Yeah because in other words, what you mean there is that you couldn’t just come out and do things recklessly because it could collapse those bombs, right?

Karen Hudes: Well, also you remember just a couple days ago, president Obama was criticizing Eric Snowden for jumping the gun and not giving all of the institutions a chance to do their job. Nobody can criticize me, because I did exactly… I played by the book all the way.

Jason Hartman: Wow, it’s amazing. So what kind of corruption did you become aware of?

Karen Hudes: That’s a very, very important question. At the time, when I first started blowing the whistle, see the worst thing about a cover up is that it snowballs. And what I was first blowing the whistle on was corruption at the end of the East Asia financial crisis in 2000 when in the Philippines there was a president, Joseph Estrada who was corrupt. And I was working on a banking sector loan, the second largest bank in the Philippines. One of the borrowers was Philippine National Airlines, which was in default on its loans. And the man who owned the Philippine National Airline bought stock from the employees in Philippine National Bank, and then the conditions in the loan couldn’t be met. So I went to the man who was in charge of that project in the Philippines and I told him that he had to write a letter to the government telling the government that the World Bank could not disperse the rest of the loan. And instead he had me reassigned.

Now, I had been working together with the chief justice of the Philippines at the time, Hilario Davide. And I stayed in touch with him through the thick and thin of this. What happened on that loan was we ended up canceling the loan for 200 million dollars and then there was Japanese financing – that got canceled for 200 million dollars, and the people who had their money on deposit in Philippine National Bank had a run on the bank. So Philippine Deposit Insurance Corporation had to bail out that bank for 500 million dollars.

Jason Hartman: Basically their equivalent of our FDIC, right?

Karen Hudes: That’s right. And so that was 900 million dollars’ worth of problem loan, and at the end of a project the World Bank writes an evaluation, and the evaluation said that we could not have foreseen that this was going to happen. So I went to the evaluation department and I said…

Jason Hartman: Sounds like the way Moody’s rated a lot of that toxic debt that we just dealt with, right?

Karen Hudes: That’s right. I went to that group and I said, “You’re lying to the board. You can’t do that. You have to correct that.” And they didn’t, and they tried to fire me and I didn’t like that. I studied in Holland, so together with the man who represented the Dutch government, we went to see Jim Wolfensohn who was the president of the World Bank at the time. We said there’s corruption in the Philippines and you’re lying to the board. And Jim Wolfensohn said oh don’t worry, I’ll fix that. And his idea of fixing that was to tell my boss that I had been up there to complain about him.

Jason Hartman: Unbelievable. It does snowball just like you said. In this case, with this bit of corruption, and I know there are many examples and hopefully we’ll get time to share a few others, but what was the motivation for this? Who profited? As Deep Throat says, “follow the money”. Where was the profit in seeing this bank bailout and the 900 million dollar loss?

Karen Hudes: Okay, this I didn’t know at the time. It’s just that by sticking to the problem I found out and the answer to that question is that there is a corrupt group that’s very powerful and they thought that they were so powerful that they thought that they could act with impunity. And one of the things that that group has done, and I know who they are now, at the time I didn’t. If I’d known who they were and how powerful they were, I probably never would have started.

Jason Hartman: Are you going to give the name of this group?

Karen Hudes: Yes. And I’ll tell you exactly who they are and what they’re doing because we have stopped them. We have stopped them in their tracts. This group is responsible for corrupting the United States government. And they are the ones that own all of the major financial institutions, they own the federal reserve board. They don’t have that much money, I mean they have a lot of money but their power is ten times more than their money would account for.

Jason Hartman: Are you going to say the Rothschild…

Karen Hudes: That group is there, but it’s more than that. Because this syndicate predates the Rothschilds. There was a corrupt group in the United Kingdom that teamed up with the Jesuits in the Vatican before the Rockefellers ever came on the scene.

Jason Hartman: What year are you talking about, to give us some perspective?

Karen Hudes: About 1200. This group has been corrupting everybody since 1200.

Jason Hartman: Wow.

Karen Hudes: And they never thought that people were going to find out who they were because they thought that they were so powerful. And one of the really good things about the World Bank is it’s a knowledge bank. And there’s a very, very accurate political analysis tool that was actually developed in the defense industry. And this political scientist, Jacek Kugler, came to the World Bank in 2004. And I modeled rule of law with him and this model has been predicting ever since I testified in the UK parliament and the European parliament that we were going to have rule of law. That all of the people in the world were going to work together to eradicate this corruption, and that’s exactly what we’ve done, and that’s exactly what’s happened.

Jason Hartman: So, good for you. You scored a win. Does the group have a name? Before the Rothschilds… what’s the name of this group?

Karen Hudes: Well I think the Jesuits would be where this started. But there’s the Knights Templar from Malta, and there’s a whole… it’s a conglomerate. It’s not any one place. But they’ve been teaming up to do this.

Jason Hartman: Right. One thing I want to ask you, and I really think it would help the listeners clarify some things. There are three organizations that are kind of… I don’t think people really understand what they do or what their role is. Can you just give a brief explanation of what is the World Bank’s role, what is the role of the IMF or the International Monetary Fund, and what is the roll of the Council on Foreign Relations? You worked for one group for 21 years and you dealt with the other two pretty extensively it sounds like.

Karen Hudes: Yes. Well, at the end of World War II this institution World Bank IMF, they’re called the Bretton Woods Institution, named for the Ski resort in New Hampshire where they were set up.

Jason Hartman: And the famous Bretton Woods meetings, of course.

Karen Hudes: Yes, that’s right. And they were set up, there’s the agenda that was above the table and then there was the agenda that was hidden. And I didn’t know anything about the agenda that was hidden until after I got involved in trying to clean up this corruption. But what was above the table and what is there and what will help us going forward is the fact that the World Bank is a cooperative. At the time it was set up by 44 countries, but it’s now grown to be 188 of them.

And one of the people that was at that original conference was a Dutch lawyer named Aron Broches. And Aron Broches was an old man by the time I got to know him in the mid-90s, and he gave me the operation manual for the World Bank. He said that the legal department is in a very important strategic position in the World Bank and IMF because what you have is, they looked at how it is in the United Nations where it was one country, one vote and that doesn’t work. It just doesn’t work. So what they did was they tried to weight the votes in accordance with economic power in the institution. And in the beginning they had a board of 12 executive directors. That number has grown to 25 now.

The seventh biggest economies each get their own executive director, the United States, Russia, China, the United Kingdom, France, Germany, Saudi Arabia… and then the rest of the countries get grouped in what they call constituencies. So what you have is you have a forum where you can actually work out what the problems are in a very deliberate way. It’s convening the parties before a war. The main reason that the World Bank was set up and the IMF was set up, was to prevent a future war. Because a lot of wars happened because of economic imbalances. And there’s no place to work them out.

And this very accurate stake holder analysis rule of law started predicting, and that was the reason that I didn’t walk away from the problem. Because it’s very, very accurate and it was predicting that if the US would play by the rules, that if this corruption would be stamped out, that the United States and Europe would continue to govern in what they call a post, well a lot of people call it different things, but like a coalition. But it also predicted that if the corruption continued there would be a terrible currency war, and that the Asian economies which are growing and are gaining in strength, that there would be a currency war and that those economies would come up very fast.

It’s in the United States interest, security interest, to fight this corruption. So in 2008 I spoke to Chuck Hagel about this. And when he became the secretary of defense, and don’t forget, it was Barack Obama who appointed Chuck Hagel to this, so I went to the defense department and I said who knows about the stake holder analysis, and I went to the inspector general’s office. And the next weekend that person contacted me on LinkedIn and I have been in touch with them now for about 5 or so months. And we’ve been working the problem through. We’ve been involving the governors, I started involving all the state attorney’s general in this corruption problem back in 2011, I’ve now involved…

Jason Hartman: Yeah, tell the listeners what your position was at the World Bank. What did you actually do? You were a lawyer, you worked in the legal department right?

Karen Hudes: That’s right, and I was also interviewed for the job of general counsel and when the executive search firm asked me why are the general counsels all getting fired left and right, I said it’s a very easy answer. It’s because there’s corruption and the board is very angry that the corruption is not being resolved, and ti’s the legal department whose job it is, working with the board to stamp out this corruption. So since I was fired I have been writing and meeting with all of the different countries, the executive directors, I’ve been testifying in the UK and European Parliament. And we’ve been talking about the stake holder analysis and the fact that we will ultimately prevail if we just stick to it. And that’s exactly where we are. And we have prevailed, but the corrupt people have bought up all the media and refuse to tell the people what’s happened.

Jason Hartman: So when you say we have prevailed, to whom are you referring?

Karen Hudes: It’s 188 ministers of finance. And right now where the matter stands is I have now written to the people who are I charge of putting items on the agenda of the general assembly, and I’ve told them to put this item on the general assembly. The fact that this corruption is finished and that all the people of the world need to know this. So we’re ending the corrupt with a flourish, I would say. That’s who we are.

Jason Hartman: I’ve just got to ask you, someone in your position doing this, aren’t you concerned about your safety, or well, first the safety issue.

Karen Hudes: Yeah, because these guys play tough.

Jason Hartman: I’m sure they do. I have no doubt about that. These very powerful forces would benefit by you going away, wouldn’t they?

Karen Hudes: Yes, but the way I’ve been doing this, first of all, I started out being totally ignorant of the problem or the danger and people didn’t think I was going to get this far, so in the early part it wasn’t that dangerous. I was just sort of flailing around helplessly. Not really helplessly, what I was doing was I was laying the foundation. So for example, one of the pieces of evidence that I had was a very detailed chronology of exactly who did what to whom. Don’t forget I was going to the senate committee on foreign relations which was chaired by Joe Biden and had Senators Barack Obama and Hillary Clinton on it and senator Lugar. So this was my coalition in the US congress.

And I’ve worked with all of the different committees, the banking committee, the committee on appropriations, I’ve worked with the house. There is hardly a representative in US congress that has not been involved one way or another. And the US Congress when they gave money to the World Bank put a big condition on there. They said we’re not going to spruce a penny until the whistle blowers are made whole. So we’ve got the US Congress four square behind us.

But anyway, was I afraid? When I started to realize what was going on, I’d been helped all along the way any number of people, and don’t forget that I’m just one of a group so there was no way by doing anything to me that the problem was going to go away. This group was going to continue. And one of the people that has been extremely helpful is a guy named Larry Garrison, who’s my PR guy. And people knew that if anything happened to me, and he stuck with me, if anything happened to me this was going to be big news.

Jason Hartman: That Garrison… that just sounds so reminiscent of the JFK assassination. Wasn’t the DA’s name Garrison or something like that?

Karen Hudes: Oh, I could spend the whole rest of the time talking about the Kennedy assassination because a good friend of mine actually was involved in suing Lyndon Baines Johnson, who was going to go to jail until after the assassination, and there’s papers on that.

Jason Hartman: Yeah, but didn’t… ah let’s not get off on this tangent. Maybe we’ll do a while other show about it, but didn’t Kennedy, wasn’t he one of the people pushing to end the Federal Reserve? That’s what I’ve read.

Karen Hudes: Absolutely.

Jason Hartman: You don’t want to say that kind of stuff when you’re in power because there are a lot of people bigger than the president of the United States.

Karen Hudes: This goes back to Lincoln. This goes back to so many of the early founders of our country.

Jason Hartman: Well, Lincoln was under a different central bank. We’ve had three central banks in the US, but we didn’t have the Federal Reserve in its current form under Lincoln obviously.

Karen Hudes: And when the debt was coming due this is when the squeeze was being put on these presidents. No, this was not a little problem. But we have it licked now, actually.

Jason Hartman: Well, really? We have it licked? We don’t have the problem of central banks licked…

Karen Hudes: I’ll tell you what you have. This business about central banks, a lot of people like to make it very complicated, but it really is not all that complicated. You can have real money, like coins, like silver and gold or you can have paper money. And it was always the intention of the founders of this country that we would have real money. And it was a lot of effort on the part of the central bankers to get us off track, and it’s very easy to get back on track. So for example, North Dakota has its own state bank. Virginia has recognized silver and gold as legal tender, and any amount of other states are about to do that. There are any number of organizations that are now issuing currency that’s backed by commodities, it doesn’t have to be gold.

Jason Hartman: And there is even bitcoin, which is basically a mathematical equation.

Karen Hudes: Yes. So it’s a very easy thing to move away from this paper currency. And you don’t even have to abolish the paper currency, you just give people a choice. And who would rather be paid with paper or with real currency?

Jason Hartman: Look Karen, we all know what would happen. Immediately people would flock away from the fiat money. That’s why they have legal tender laws, to force us into this box that we have to use their fiat currencies. It’s of course ridiculous, but that’s what governments do.

Karen Hudes: Well, what has happened now is that you’ve got the bricks countries, Brazil, Russia, India, China, and South Africa that have moved away from the fiat currencies. And so the world is now not stuck to the dollar anymore, so things are going to move very, very fast. And this powerful group is powerless to prevent it.

Jason Hartman: Well, I don’t know if they are. They influence the largest military on earth…

Karen Hudes: Okay, well let me tell you where we are with the military.

Jason Hartman: I don’t have any worries about the US losing its position of having the reserve currency of the world. I think that is here to stay for a lot longer than some people think. We may disagree on that, but go ahead.

Karen Hudes: I’ll tell you why they are vulnerable. They’re vulnerable because they have done so many terrible things, and there’s a cover up and there are enough people that know about what they’ve done and the cover up. And so the fact that they have bought all of the media is not going to protect them because more than 70% of the American public has learned to distrust their captive media.

So they are terribly vulnerable. All that has to happen is people have to listen to what’s going on and their neighbors who know what’s going on have to tell them. And they’re vulnerable. They’ve been breaking the law, and they’re not going to continue to break the law. That’s all and they’re finished.

Jason Hartman: Well…

Karen Hudes: I went to the army, I went to the defense department when I wrote to the general assembly. Because what’s happened with Germany, Germany asked for its gold back from the Federal Reserve and the Federal Reserve said no. That’s an act of war. Now what Germany has done in the last couple of days, is they’ve said they’re not going to share intelligence information anymore with the United States. And I wrote to the defense department, I said I have been warning you about this, and there is a very easy way in the national security interest to prevent this from continuing. This is very dangerous, this is very bad. And if you back me, and I am telling everybody that you’re backing me and if you’re not backing me I want you to say you’re not.

So that’s where we are now. If the defense department says that what I’m saying is incorrect and they’re not backing me, then we have a problem and if they are backing me, we have no problem. And people can find out. That’s all. So the army is not supporting the Federal Reserve. The army is supporting rule of law, they’re supporting me.

Jason Hartman: I hope you’re right.

Karen Hudes: That’s what I said, because the last thing I said was heaven help us all if I’m wrong.

Jason Hartman: Look, when it comes down to that, and I want to go back onto the topic at hand here a little bit more, but history has shown unfortunately over and over and over again, that people with the ability to inflict violence, people with weapons, will generally speaking follow orders even if it means attacking their own fellow citizens and doing really, really ugly things.

Karen Hudes: That’s right. And so what I have done as far as that goes, I have all bases covered here. There’s a group inside the department of defense which teams up with the homeland security and ten governors, and I’ve been in touch with them. They’re under assistant secretary of defense Peter Verga. I’ve been in touch with him. Every time the media starts trying to incite violence either through false flags or crazy false reporting, I’ve gone back to this group and said you’d better correct the record and stop inciting violence. Because we do not want violence. There’s no reason for violence. We just simply follow the rules we simply tell our citizens what’s going on.

And I have had any number of interviews, and a lot of citizens know this, and as a matter of fact today I just got an email from somebody that said you’ve been telling us that you’ve been in touch with that group and the Homeland Security group that’s supposed to keep peace, and I don’t see any sign of that. So I plastered that all over and forwarded that to the department of defense and I sent it to all 188 members of the World Bank. And I said it’s time for us to get our story straight. So that’s where we are. It’s time for us to get our story straight. Is the army backing rule of law or is the army ripping off the American people? Where are they? I think they’re with the American people. I don’t think they’re with the rip of artists.

Jason Hartman: I hope you’re right.

Karen Hudes: That’s what I hope too.

Jason Hartman: Most definitely. So, when I asked you about the three organizations, the IMF, the World Bank, and the CFR (the council on foreign relations), you talked about the two but I don’t think you touched on the council on foreign relations. And they seem like they’re cloaked in mystery, that group. I had G Edward Griffin on the show, and I’m sure you know who he is. He wrote The Creature from Jekyll Island.

Karen Hudes: Yeah, and I’ve read that. It’s a great book.

Jason Hartman: It’s fascinating. It’s very comprehensive and very well done. He’s been on the show a couple of times and he really thinks that the point that needs to be influenced is the CFR. They are the ones that are really, really kind of running things. Do you have thoughts on the CFR and maybe you can tell the audience a little bit about what it is they do and your interactions with them.

Karen Hudes: Yes. The Council on Foreign Relations is the hinge between the United States and the United Kingdom. A lot of people think that with the revolutionary war that the United States won its independence. They don’t know about the flow of funds where there were reparations paid and that the money that people are paying on their taxes are actually going back to the Vatican. It’s a rude awakening. It sounds almost impossible, and believe me I didn’t want to believe this. I thought it was crazy when I first heard that. But it happens unfortunately not to be crazy.

And The Council on Foreign Relations is the group that, it’s almost like the Masons or any of these other secret societies where there are layers of secrecy. And the people at the very top get to know the whole story, and the people down at the bottom are sort of hangers on and get to bask in the glory of the people. What it is, is it’s people that are hogging information to try to gain power. And the reason why I am so convinced that this problem is over is because we have exposed this.

These secret societies, it’s like cockroaches. They have nowhere to go and hide. We know what they’re doing. A lot of people know what they’re doing, and we are holding them to account. And they have got to explain to everybody what it is that they thought they were doing. This makes absolutely no sense whatsoever and it’s not going to continue.

Jason Hartman: If you think it’s really not going to continue, what does the end of this secretive control of our economy, what does it mean? What will it look like and when will it end?

Karen Hudes: Well a lot of this depends on how actively the people who are listening to your program take this news. Are they going to deny it? Are they going to say that I’m making absolutely no sense and go on about their business, or are they going to try to figure out what’s actually the case, to go on my website which is www.kahudes.net and read all of the articles and the proof and the background information? Are they going to make it their business to be citizens? If they are, then this is going to be a wonderful story.

Because what’s going to happen is we are simply, seamlessly going to drive out that lousy money which is making everybody miserable, with good money. And we can do it very simply and very expeditiously. And then we can go on about our business, and one of the things that we are going to do, is we are going to keep a lot of the money that we have been sending off to the Vatican.

We’ve had this wacky accounting where what we do… remember what happened with the post office where we were prefunding all the pensions in the post office and we were issuing bonds to try to finance those pensions? That’s for the interest of the bankers. We don’t have to do that. We can keep that money in our communities. We can use it. And as an economist, what happens when you keep money in your own community with jobs in your community, is it has a multiplier effect. So think of a patient that has had their blood removed and they’re anemic. We are going to keep our blood and we’re going to be stronger. And how is this going to happen? It’s going to happen because we’re all going to recognize that what I’m saying is correct, and we’re all going to start picking these donations of our life blood in our country and we’re going to keep it and we’re going to grow from it, and we’re going to get stronger again. And that’s how it’s going to happen.

Jason Hartman: Yeah, well that’s a very good point. The great thing about this is I remember doing seminars back in 2004-2005 talking about these kinds of items and explaining inflation to people and explaining how the government makes us all poor by spending recklessly and then debasing the debt to foreign countries like China and Japan. And making its own citizens poor at the same time by doing that. And back then people kind of, their eyes rolled back in their head, they didn’t seem to get it or pay attention. There were always a few in the audience. But nowadays, people understand this stuff, and I credit Ron Paul with a lot of that. The word is out. The common guy on the street understands a lot of this stuff now. And just 8 years ago that was not the case, just anecdotally in my opinion.

Karen Hudes: It’s just people like to make things complicated. So everybody goes to sleep and they can continue ripping everybody off, but it’s not that complicated. It’s really very straight forward. Is paper money or is gold and silver money? Which is money? That’s really very basic, and it’s not hard to understand. But one of the things that I think we’re going to have to start really learning about is who are our friends and who are our enemies and what is our enemy? Because we’ve been misled deliberately. We’ve been kept apart, we’ve been democrats/republicans or Catholics/protestants…

Jason Hartman: All these false little divisions.

Karen Hudes: And these are all just to manipulate us.

Jason Hartman: I know it is, yeah.

Karen Hudes: And it’s the same thing when you talk about these countries. Are they our enemies? I can tell you. If these countries were our enemies we would have been left in the lurch. It’s only because these countries want us to learn about these mistakes and correct them that we have a chance.

Jason Hartman: Well, you look at the terrorism threat. If they wanted to get us, don’t you think they could have gotten us by now many, many times over? It just seems to me like it’s overplayed.

Karen Hudes: It’s divide and conquer. It’s the old game of divide and conquer. So I can give you a very good example of how I’ve been trying to get things been kept apart, we’ve been democrats/republicans or catholics/protestants…

Jason Hartman: All these false little divisions.

Karen Hudes: And these are all just to manipulate us.

Jason Hartman: I know it is, yeah.

Karen Hudes: And it’s the same thing when you talk about these countries. Are they our enemies? I can tell you. If these countries were our enemies we would have been left in the lurch. It’s only because these countries want us to learn about these mistakes and correct them that we have a chance.

Jason Hartman: Well, you look at the terrorism threat. If they wanted to get us, don’t you think they could have gotten us by now many, many times over? It just seems to me like it’s overplayed.

Karen Hudes: It’s divide and conquer. It’s the old game of divide and conquer. So I can give you a very good example of how I’ve been trying to get things back on track. There was something called the government accountability office inquiry into corruption at the World Bank. That was asked for by senators Luger, Leahy, and Bayh in 2008. And the World Bank refused to let GAO do that inquiry.
So then in 2010 I called up the organizing for America, that’s Barack Obama’s fundraising group. And I said, you’re going to get bipartisan support if you try to fight this corruption. So the person I spoke to said I’ll get back to you in a month, Karen. And he did. He said yeah Karen, go for it. And that’s when I went to senator Luger’s office and senator Luger then published a report that said that GAO had withdrawn the inquiry into corruption at the World Bank because the World Bank wouldn’t cooperate.

So that was bipartisan support and there has been a lot of bipartisan support on this. We’re not going to fight this corruption by looking at people who are outside our group and finding them suspicious. And this business about Muslims being bad, I can tell you they have been very, very good. They’re the ones who know that you shouldn’t have user [00:33:26] interest.

Jason Hartman: They don’t believe in debt.

Karen Hudes: They’ve got it right. So I can tell you that we are going to have to do some serious sense mending. We as a country, and the American people didn’t know about it, but we as a country have gone to the leaders of other countries that were trying to protect their people and keep their economies growing and we have murdered their leaders so that we could plunder their countries. We have to do some very serious soul searching on this. Because you can say, well we didn’t know about it. It wasn’t our fault. But that’s a little bit of a cop-out. You have to take responsibility for being a citizen and for being informed. We have some serious soul searching to do.

Jason Hartman: No doubt about it. So just on a more practical level, as it applies to people listening, how do you see the future economically? You have your undergrad is economics, and law was your masters.

Karen Hudes: Well I went and studied in Holland and went and got something called a Master of MPhil which is like a PHD without a thesis at the university of Amsterdam. So yeah, I’m an economist. And I can say that I don’t have a crystal ball, but what I do know is that this corruption and this secret society dominated elite approach to economics is gone. It’s dead. And we are now in a totally different scenario where it’s going to be up to us. If we want to have our children learn real skills so that they can help create an economy that’s vibrant and growing, we’re going to keep a lot of the money that went syphoned off outside our country because of this corruption, we’re going to keep it and we’re going to grow with it. So I would say the sky is the limit. We are going to be living in a world of abundance.

Jason Hartman: So that is wonderful to hear. When do you think there will be a turning point? The dollar isn’t going away tomorrow. When is that going to happen and is the future inflationary or deflationary, or just stable?

Karen Hudes: Well the big issue is the flow of information because we have got a lot on our plate. First of all, there’s something called gold backwardation. What that means is that people are losing confidence in paper currency and gold is being hoarded and people are not going to be selling their gold for paper currency pretty soon. On the 7th of July, that’s when gold leasing stopped because people were afraid that they weren’t going to get their gold back at the end of the leasing term.

So the answer to your question is that there may be some serious hiccups along the way. It all depends on how seriously people respond to this information and how accountable they are as citizens. If they take what I’m telling them as not really very convincing and they don’t bother to do their homework, then this can really get out of hand. We can go to hell in a hand basket. What happens if there is gold backwardation, is that you stop being able to have international trade. And if you look at any of the goods that you buy, they have foreign components in there. Imagine that you can’t assemble cars anymore…

Jason Hartman: Oh it would be impossible.

Karen Hudes: It would make what happened in the 1930s look like it was nothing. So we have got to take this very, very seriously. We have got to overcome the fact that our media has been bought by these crooks. We’ve got to learn how to share information, learn from the information, and act to hold our governments accountable. And when I say governments, I mean your local sheriff, I mean your local counties. Because I went to the national association of counties and I said you had better get your governors in line with this. We are all moving in the right direction at the right time to meet this challenge.

Jason Hartman: Well I love when Obama really started on the gun control kick. A lot of these sheriffs in various counties said, we’re not going to force any such federal laws – make them if you want… but that’s just great to see because it shows that this whole command and control concept of the economy or of society in general, it shows resistance to that, and I think that’s great. We have the internet but they’re starting to put restrictions on that, and the spying and the monitoring.

Karen Hudes: Well that’s why it’s so important to be serious about this…

Jason Hartman: Well the window is open. I agree. We’ve got the exploit that.

Karen Hudes: There’s some people in Holland who I’ve been speaking to who know exactly what’s going on, and they say that the whole fate of the world depends on the American people because we have our second amendment. He said in Holland if I walk down the street with a knife I could be arrested. So we in the rest of the world are counting on the American citizens.

Jason Hartman: That’s what one of my Canadian friends says. He believes that with technology the window is closing so quickly because now the government has technology to control populations forever, like indefinite. It gives them such a leg up.

Karen Hudes: Exactly. The point is that they blew it, and the word got out, and we won. Too bad guys. We won.

Jason Hartman: Well, I don’t agree. We haven’t won yet. And freedom has not won yet.

Karen Hudes: Here’s the point. Here’s how you know whether we’ve won. Just pay very careful attention to what the department of defense says to the executive directors at the World Bank, because I told them that the department of defense was backing me. If they’re not backing me, they have to tell the executive directors.

I said I’m copying the department of defense on this email, I sent it today, and that’s why I’m so grateful that you’ve given me this email today. I said you just ask the executive directors whether the department of defense is backing me or not. And it’s not because I’m grandiose – I’m not grandiose. I am talking about a whole group of whistle blowers and I’m talking about rule of law in the entire world. And is the department of defense standing for the security interest of this country or are they standing for corruption? That’s all. And it’s a very simple, crisp question and it should be a simple crisp answer.

Jason Hartman: Well, the website is kahudes.net. I just wanted to spell that out for our listeners. I assume A is your middle initial, Karen, or is that just the first two letters of Karen?

Karen Hudes: Yes, that’s right.

Jason Hartman: Okay so, KA and your last name, HUDES dot net. Not a dot com, dot net. So what else would you like people to know, just to wrap it up? The call to action, you’ve said it many times so I think the listeners got that. But just any more information or any more resources that you want to give out.

Karen Hudes: Well, I just want to thank your listeners for listening and stay tuned. Get active and be your own news collector. Don’t just sit there and read the printed paper. You already know that it’s not going to tell you what’s going on.

Jason Hartman: The alternative media is where it’s at. Just the stuff you see on the major television news networks, it’s just so corporatized. And it’s just full of agenda.

Karen Hudes: Exactly. And be good to your kids. They’re your future. Help them to think critically, that they’re not just learning by memorizing, that they’re asking questions, that they’re not taking simple answers because they want to know who’s telling them what it is and why that person’s telling them what it is. Let them learn to sift through different versions so that they can answer questions.

Jason Hartman: Good stuff. Well Karen, thank you so much for joining us today and keep getting the word out, okay?

Karen Hudes: Thanks for having me, Jason.

Narrator: Thank you for joining us today for the Holistic Survival Show. Protecting the people, places and profits you care about in uncertain times. Be sure to listen to our Creating Wealth Show, which focuses on exploiting the financial and wealth creation opportunities in today’s economy. Learn more at www.JasonHartman.com or search “Jason Hartman” on iTunes. This show is produced by the Hartman Media Company, offering very general guidelines and information. Opinions of guests are their own, and none of the content should be considered individual advice. If you require personalized advice, please consult an appropriate professional. Information deemed reliable, but not guaranteed.

Transcribed by Ralph

The Holistic Survival Team

Episode: 181

Guest: Karen Hudes

iTunes: Stream Episode

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