Video: Grayson vs. Alvarez -- Audit The Fed Congressional Hearings
Editor's Note: I am re-posting this Grayson clip from last year, in conjunction with the story from Dylan Ratigan on a 'rigged stock market.'
The original text is below.
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By far the most entertaining and cogent portion from today's hearing on Ron Paul's HR 1207, as Alan Grayson questions Fed general counsel Scott Alvarez. Turn up the volume because the questioning starts immediately.
My commentary:
- Grayson is also rightfully curious about alleged JP Morgan front-running on trades on behalf of the Fed's monstrous portfolio.
- Just what are they doing on their prop desk while the handle the Fed's order flow?
- Federal Reserve manipulation of the gold market is part of Grayson's focus.
- Does the PPT really exist (yes it does) and how often is it called into service by the Fed and Treasury to support markets. The President's Working Group On Capital Markets needs some transparency as well.
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Transcribed portion:
- Grayson: I would like to know whether it is within the Federal Reserve's legal authority to try to manipulate the stock market or the futures market.
- Federal Reserve Counsel Alvarez: I don't believe the Federal Reserve tries to manipulate the stock market.
- Grayson: Does the Federal Reserve actually possess all the gold that's listed on their balance sheet?
- Scott Alvarez: Yes.
- Alan Grayson: Who actually executes the trades for the Federal Reserve in the markets?
- Scott Alvarez: The Federal Reserve Bank of New York, which executes trades through Primary Dealers.
- Alan Grayson: Can you name one Primary Dealer?
- Scott Alvarez: JP Morgan Chase
- Alan Grayson: Do you mind if we have a GAO audit to see if there has been front-running or insider trading by them? Do you mind? Is that ok with you?
- Scott Alvarez: I am not sure...
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Dylan Ratigan:
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