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Federal Reserve Inspector General Unable to Answer Basic Questions on Where the Trillions Went

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12

May 13, 2009 – Comments (6) | RELATED TICKERS: SWHC , RGR , GLD

REPOST taken from http://www.nakedcapitalism.com/

 

Rep. Alan Grayson asks Inspector General Coleman of the Federal Reserve some very basic questions of about various Fed programs and activities and gets nowhere. And the worse is that the IG isn't stonewalling, but instead is clearly completely clueless. Watching the video, you get the impression that Coleman can't name a program beyond the TALF.

But there is a possibly more important issue at stake. The interview is with the Inspector General of the Federal Reserve Board of Governors. The programs are actually at the Federal Reserve Bank of New York. For reasons I cannot fathom, the Board of Governors is subject to Freedom of Information Act requests, while the Fed of New York has been able to rebuff them.

So I take Coleman's inability to answer key questions to be a feature, not a bug. The Fed of New York probably can answer Congressional questions, is taking care to limit what it conveys to the Board so as to keep the information from Congress and the public. Note in the questioning the emphasis on "high level reviews".

 

6 Comments – Post Your Own

#1) On May 13, 2009 at 12:19 AM, abitare (49.90) wrote:

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#2) On May 13, 2009 at 12:19 AM, abitare (49.90) wrote:

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#3) On May 13, 2009 at 12:21 AM, portefeuille (99.44) wrote:

see this post

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#4) On May 13, 2009 at 12:36 AM, whereaminow (46.24) wrote:

LOL, I think this is the 4th or 5th time it's been posted, and that is a good thing. More people are seeing things with their own eyes.  I think if we added up all the rec's from Grayson's Grilling, it would be one of the top videos in Fool history.

David in Qatar

 

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#5) On May 13, 2009 at 6:29 PM, jegr5347 (< 20) wrote:

This congressman is an idiot. An IG's job is not to second guess or investigage every strategic decisions made by the Fed to leverage monetary policy. Investigations are made when there is a suspicion of wrongdoing. Mere implementation of monetary policy under the Federal Reserve Act, whether you agree or disagree with the ideology, does not merit the IG's involvement in the absence of wrongdoing. If this Congressman would just take the time to read the Fed's meeting minutes and go to their website, he would not come accross like a bufoon.

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#6) On May 14, 2009 at 5:50 PM, goldtracker (< 20) wrote:

I find this particularly disturbing. And I think a lot of other people do too. I just wish more of the American public cared. I think there is so much smoke and mirrors going on that are distracting most from this kind of stuff. That and the MSM is in the pocket of DC.

You know foreign countries like China are looking at this and are doing what they can to get out of the dollar. Shouldn't be any wonder that China has been building up their gold reserves and is pushing the IMF to sell some more gold so that they can buy it with all those dollar reserves they've got.

People wonder why gold remains so high and its ineptitude like this that answer the question. Looking at the ExactPrice widget I see gold is at $926.60 right now. Even silver is up. My guess they will remain up until inflation sets in from printing all that money to make up for that missing trillions.

I liked what Peter Grandich had to say about this: "I must say this news and some follow-up research I’ve done in the wee hours scares the living daylight out of me. I’ve been in the trenches for 25 years. I remember the mood immediately after the 1987 stock market crash, sadly after 911 and other terrible events but in all honesty, this display of ineptness and bewilderment by the person in charge of watching the people in charge of the printing press, has taken me to new lows of confidence in my government and our future."

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