Alan Grayson Grills Fed Lawyer on Market Manipulation

September 25th, 2009 3:57 pm  |  by  |  Published in Bailouts, congress, Economics, Federal Reserve, Market Regulation, Money  |  8 Responses

Alan Grayson grilled Federal Reserve General Counsel relentlessly today during the Financial Services Committee’s hearing on Ron Paul’s bill to audit the Federal Reserve (HR.1207). I almost felt bad for the diminutive lawyer. I’m disappointed that Bernanke himself was not available for the hearing, but the testimony and questioning of Tom Woods was quite interesting and revealing.

More later, but for now watch Grayson hammer on the Fed lawyer. To see more highlights from the hearing see this article.

Responses

  1. George Dewey says:

    September 25th, 2009 at 8:21 pm (#)

    I thought it was interesting Barney Frank took the time to "scold" Tom Woods for his assertion that opponents of Auditing the Fed are "bought and paid for" by the Fed.

    Tom stuck to his guns for a while, seemingly gathering some more steam, but Frank failed to let him get in a word edgewise. Tom barely even had time to graciously concede the point, as Mr. Frank was so interested in talking over him and getting his point across.

  2. Ken says:

    September 25th, 2009 at 8:50 pm (#)

    If you listen carefully, here are the points the Fed lawyer was repeatedly trying to evade:
    1) The Fed is playing favorites with politically connected institutions and does not want the public to know, 2) The Fed does manipulate stock and futures markets, and allows favored parties to front-run the moves, 3) The Fed may physically "possess" the gold on its balance sheet, but has secretly leased or otherwise encumbered much of it.

    This is why Grayson needed to be so pointed in his questioning, and why we need HR 1207.

  3. George Dewey says:

    September 25th, 2009 at 8:54 pm (#)

    Yes, he let it slip that it goes through the Federal Reserve Bank of New York and then through "dealers" and it didn't get past Alan. He jumped on it! That was great!

    And, yes, he slit his throat when he said he would comply with a GAO audit, as opposed to the current independent audit.

    That was fantastic how Alan got him up against the ropes and shook him up, causing him to let slip much more than he wanted to volunteer.

    I saw a funny post that someone said Grayson went "Brooklyn style" on him. Good stuff.

  4. George Dewey says:

    September 25th, 2009 at 8:55 pm (#)

    My second paragraph / sentence was in reference to the Gold audit, specifically. Sorry.

  5. Ron Paul’s HR1207 Hearing Highlights and Thoughts :: Liberty Maven says:

    September 25th, 2009 at 6:02 pm (#)

    [...] I selected a few highlights from todays hearing and made them available on Youtube. I’ve included all of the times Dr. Paul spoke and added a few others. You can watch these clips below. Also, not included below, but posted earlier, don’t miss Alan Grayson grilling the Fed lawyer like an overdone salmon. [...]

  6. Vern McKinley says:

    September 27th, 2009 at 10:46 am (#)

    I think Tom should have defended the statement rather than saying it was an unfortunate rhetorical flourish. It is very clear that many that signed the letter questioning HR 1207 had benefited from the Fed's largess and they should disclose same. The same was the case over the years re: Fannie and Freddie. They sprinkled around grant money to all manner of analysts in the real estate industry that the business model was the best for all.

  7. Tom says:

    September 27th, 2009 at 4:02 pm (#)

    The Federal Reserve Bank of New York, eh!!! That's were Prescott Bush came from; that's where Timmy Geithner came from. Lets keep pushing; this can of worms cannot continue to ruin this country by their own greed.

  8. CaB says:

    September 28th, 2009 at 6:22 pm (#)

    I'm really hoping this Zero Hedge post about a smoking gun document regarding fed's manipulation of gold is making the rounds today. I've been following the manipulation theories with interest for years and I'd really like to see the Fed dissolved and anyone and everyone still living and responsible go to jail (note that Alan Greenspan was cc'd on the memo).
    http://www.zerohedge.com/article/smoking-gun-fed-