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Live Blogging The House Hearing On Ron Paul's Bill (HR 1207) To Audit The Federal Reserve (Testimony Begins @ 9 AM EST)

And you think you've waited a long time for this day.  Dr. Ron Paul has waited an entire 30-year career to have this moment.  Let's establish a few preliminary facts.  The hearings before the House Financial Services Committee chaired by Barney Frank will begin at 9 am, eastern time.  Please read the following carefully.


  • HR 1207 To Audit the Fed has 295 co-sponsors, guaranteeing passage from the House.
  • Congressman Paul had never previously had more than 16 co-sponsors for similar bills he has introduced virtually every session since he arrived in Congress.
  • The bill itself is 3 pages in length, beautiful in its simplicity.  The stimulus bill was several thousand pages.
  • There are 2 scheduled witness: Scott Alvarez, General Counsel for the Federal Reserve's Board of Governors, and Dr. Thomas Woods, jr. economist from The Mises Institute and disciple of the free-market Austrian School of Economics.
  • The phone number for the office of Fed general counsel Alvarez is 202-452-3583.
  • Since Alzarez does NOT want you to know what the Fed does with YOUR MONEY, we think you should call his office repeatedly today and tell his assistant just how you feel about her rat bastard boss, and Fed transparency.  His number again is 202-452-3583.
  • His number again, is 202-452-3583.
  • Dr. Paul's son, Dr. Rand Paul is running for the U.S. Senate in Kentucky.  You may visit his website HERE.  Make a donation for truth if you are able.

We'll see you here at 9 AM.

The hearing has begun...Our notes are inside...refresh the story every few minutes to see updates.

Opening statements:

Barney Frank: Hey Ron Paul isn't the only one who wants a Fed audit...I've wanted it for awhile...and anyone who says otherwise, is just plain stupid.

Ron Paul: We've been fighting for this for many years...and nothing happened...but now I'm Mr. popular and everyone loves me...where were you fools last Fall when I was running for President...American people are the difference this time...look forward to a positive hearing..

Melvin Watt:  Damn, this bill is popular...my constituents won't stop bugging me about it...3 issues...by the way, where are the doughnuts?...of course we don't want control of monetary policy...

Spencer Bacchus:  You fools better not invoke regulation 13:3...I've said bailout 3 times in 60 seconds...the Fed OWNS all the damn debt...they are buying (monetizing) more than 50% of all the debt offered...one gov't agency bailing out another...who is going to bail out the US government...?

BF:  Interrupts...you're wasting time for your whole side Bacchus...

Hensarling:  "This is not your father's Federal Reserve...their powers must be constrained...serial institutional bailouts are not good...Ron Paul is god, basically, and the rest of you should recognize it..."

Grayson: The Fed needs to be accountable to the American people...this is not a left-rght issue...it's an American issue...this bill was first introduced in 1983, when I was still in school...Ron Paul never gives up...

Jenkins: I love accountability...if anyone says otherwise, they're a Commie...

Frank:  Nothing in here about 13:3

Alvarez Speaks: (I thought it was a female at first...work on the voice, Alvarez)..."We're already very transparent...we DON'T NEED THIS STINKIN' BILL...you people are crazy...we're giving you more info than we've ever given anyone...we give Congress plenty of details except...and GAO is already up our Tucchus with their audits...14 audits underway...voice getting higher again...really, you clowns just want to control monetary policy, and we aren't going to give you that chance...markets will crash...you are all evil...where are the doughnuts..?...your audit will chill internal debate...and no one will borrow at the discount window anymore...stop crashing our party...

Frank: Did the Bush-Paulson criminal regime agree with your treatment and approach to the AIG bailout and Bear Stearns bailout...you used 13:3 with Bush's support...did you feel that your independence was under threat by that behavior..?...

Ron Paul: "How did you fools become the arbiters of 'public interest'...?"

Ron Paul: "What exactly are you hiding?"

Alvarez: "Stop asking so many quetions..."

Watt:  "I know absolutely NOTHING about the internet...http, colon, dot, underscore, html, umm, umm, umm...the difference between a CPA audit and a GAO audit, I presume GAO doesn't require numbers..."

Alvarez:  "GAO audits really are a pain in the ass, and now you fools want to get involved with an actual audit of the numbers...that's not fair or cool at all, bros..."

RECESS for a House vote

Since Alzarez does NOT want you to know what the Fed does with YOUR MONEY, we think you should call his office repeatedly today and tell his assistant just how you feel about her rat bastard boss, and Fed transparency.  His number again is 202-452-3583.

Hearings RESUME

Unknow Rep: "Like a bad doctor who hides info from his patient...wht the hell are you guys hiding?"..."What about these foreign central bank swaps...are these CB's then required to buy Treasuries...helping us fund our debt...?..."

Alvarez:  "We provide updates on our website, damnit, stop asking abou this....as far as our balance sheet, you have no idea..."

Moore: "Tell us about the freaking collateral...HAVE YOU LOST MONEY?"

Alvarez:  "The collateral is basically all trash, but we haven't lost a dime...as far as you know..."

Brad Sherman:  "When you push TARP 2 on Congress, telling us that otherwise we'll be eating rats in the street, should we fall for your lies again...?

Sherman:  "Tell me about the damn collateral...what is legal under 13:3...?"

Ron Paul:  "Time to talk about the Fed's mandate...and failure...stable dollar, stable prices, full employment...nothing but FAILURE...this doesn't make any sense...we need more oversight and transparency, NOT more power to the Fed!"

Ron Paul: "These deal with foreign central banks...we have to know about this...it's our responsibility...the Fed should not be destroying the dollar...you are a government unto yourselves!"

Unknown Fed apologist: "Why the bait and switch with Congress on TARP...supposed to remove assets but instead you decided to inject capital instead"

Alvarez: "That was Paulson and Treasury who made that decision...not us..."

Garrett:  "We already have the authority to second-guess the FED, do we not...?...So what you're saying is that we can second guess you as long as we don't have all the facts..."

Garrett:  " Are the Fed governors truly independent...?..."

Alvarez:  "If you audit us then it will squelch deate and discussion among Fed Governors...ooh, scary."

Foster: "I'm concerned about Fed archiving...are you destroying documents...?..."

Alvarez:  "Not that you know of..."

Michell Bachman:  "Let's talk about the Bloomberg case...FOIA request for transparency..."


Editor's note:  F YOU, Alvarez!  Stop fighting our search for truth...you cannot stop the people

Bachmann:  "Your discount window excuse (that banks won't use it for fear of stigma)...I'm not buying it"

Editor's Note:  Bachmann doesn't know finance.

Barney Frank:  Fed official have appeard before us 28 times in the past 12 months...so in fairness, they do make themselves available for testimony...

Wilson: "Give me some history on the Fed...some background...how many banks in the Fed?...how are the FED governors approved...?

Alvarez:  "They have 14 year terms..."

Wilson: "Back to Ms. Bachmann's Qs on 13:3...what does it take to enact 13:3...what type of exigent circumstances need to exist?...did this occur with Bear Stearns?...Describe the process involving 13:3 and Bear."

Alvarez:  "13:3 needs 5 votes to be put into place...we convened a board meeting..."

Wilson:  "Was there a meeting about 13:3 and Lehman?"

Alvarez:  "oh, hell yeah, we were meeting about Lehman..."

Hensarling: "Let's talk more about the discount window and the STIGMA...what might we be missing here because there was no stigma for TARP participants...?..."

Editor's Note:  Hensarling is extremely impressive...

Alvarez:  "Blah, Blah, Blah...TARP was different than the discount window issue..."

Hensarling:  "Let's tak more about when you choose to enact 13:3..."

Alvarez:  "Whenever we want to..."

Hensarling: "Before giving AIG all that money, why not get Resolution Authority so that you could negotiate instead of paying PAR?

Alvarez: "We couldn't..."

Barney Frank leaves to go vote...

Ron Paul: "I'm back from voting and you're lucky because I now have lots of time and Qs..."

Ron Paul:  "Let's talk about the Fed's involvement in GOLD MARKETS as well as teh CB currency SWAP agreements..."

Grayson: " Has the Federal Reserve ever tried to manipulate the stock market?..."

Alvarez:  "Not that I'm aware..."

Grayson: "Is it within the Fed's legal authority to manipulate the markets?"


Grayson: "That's not what I said...YES or NO?"

Grayson: "Does the Fed actually possess all teh GOLD on their balance sheet"

Alvarez: "I believe so..."


Grayson: "Who executes the Fed's trades...is there front-running of these trades...or insider trading...?

Alvarez: "Primary broker dealers..."

Alvarez: " JP Morgan"

Grayson: "Shouldn't we be allowed to aduit this?"



Royce: "Let's talk about the issue of Moral Hazard"

Alvarez: " We have it under control...trust us..."

Royce: "Volcker is King...why are you not paying attention to what he says about boom-bust cycles and increased Moral Hazard?"


Realtively boring discussion with unknown Congressman...

Now, a 2nd boring discussion in a row...Grayson was phenomenal...Does the Fed influence the stock market?...a question we have all wanted answered for so long...does the the PPT work to boost stock prices?  His questions about possible front-running of Fed trades by JP Morgan and other broker-dealers were unexpected by me...He hit the guy with a hammer, and then kept hitting...i can't wait to get that portion of video...

ALVAREZ is now gone...

From MISES we now have Thomas Woods, jr...he is reading his opening statement...wow, this guy is good...great delivery...excellent use of sarcasm...he just took a nice swipe at Goldman...mentions that 75% of American people support an AUDIT OF THE FED...

Watt: He's not happy AT ALL about the sarcasm displayed by Woods...this is getting snippy...he thinks Woods was political but he completely misses the point...Woods is anti-political and anti-Fed...

Ron Paul: "Let's talk about Fed secrecy and its effect on policy...does the secrecy encourage confidence or is it the opposite...does Fed secrecy hurt confidence?"

Woods:  "Without a doubt it hurts confidence...and then he provides several examples..."

Now in a much longer, philosophical discussion of the Fed, secrecy, policy...plus a nice mention of how the FED owns the economics profession...

Barney Frank:  He takes a shot at Woods for the sarcasm and attempts again to demonstrate that he BARNEY FRANK, has supported an audit of the Fed since the time of Christ and even before...WOW, he just spent 90 seconds talking about how he should get credit...this is the 2nd time he has tried to demonstrate his support...this is getting extremely snippy...this will be another great video clip...now an interruption about audience props...i wonder what it was...some kind of sign...

Michelle Bachmann:  Wonders why and how the FED could possibly be fighting transparency...why is the FED panicked, she wonders?...

Woods: He won't speculate with any concrete examples...but he hints that they must be doing some really questionable things...but he makes the correct point that "how are we supposed to know, since they won't tell us?"

Bachmann: "I am concerned with the Fed's balance sheet, teh overnight loans, the collateral...it makes a lot of us very nervous..."

Bachmann: "Would it be prudent for Congress to tighten up 13:3 and limit their scope of possible action...would this be prudent?...i was shocked when I finally read 13:3 after TARP was passed...i think it's frightening to learn how powerful the FED's potential scope of behavior..."

BRAD SHERMAN's TURN:  Discussing 13:3...says that ALVAREZ's testimony was SCARY...any loan in any amount would be allowed under 13:3 just as long as the FED board was comfortable with the terms of the loan..."are these trillions in loans really safe and secure...what is the collateral...?"

The hearings have now concluded...the final 5 minutes were a free discussion between Sherman, Paul and Woods...really good stuff but impossible to transcribe...

Thanks for following along...

Hope you enjoyed the show...


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Reader Comments (58)

Awesome preview. Time for the sunshine to begin. It's 7 AM, do you know where your money is? Already called Alvarez's office and left voicemail. Fuck the Fed!
Sep 25, 2009 at 4:53 AM | Unregistered CommenterEvil Henry Paulson
The hearings have started...
Sep 25, 2009 at 9:16 AM | Registered CommenterDailyBail
Very well prefaced DB!

Let the games begin!
Sep 25, 2009 at 9:25 AM | Unregistered CommenterWil Martindale
Sunshine is the best disinfectant; may it shine brightly on the g-d Fed! Audit those thieving bastards now! And no, I am not a Republican or a conservative. I'm a social liberal who loves the Constitution and LOATHES THE FEDERAL RESERVE. Audit that bitch NOW! If Congress doesn't support Ron Paul's bill, then we'll know without a doubt that we're right--the FED is the cause of all our financial woes and is corrupt and controlling to the core. AUDIT THE FEDERAL RESERVE!
Sep 25, 2009 at 9:27 AM | Unregistered CommenterJuliB55
The comments are inside the story...adding them every 2 to 3 minutes...refresh the story to see the new comments...
Sep 25, 2009 at 9:30 AM | Registered CommenterDailyBail
Great work here, Daily Bail.
Sep 25, 2009 at 9:34 AM | Unregistered CommenterJames H
I left my message for Alvarez. He has his answering machine turned on.
Sep 25, 2009 at 9:41 AM | Unregistered CommenterJuliB55
Did someone say doughnuts? I love doughnuts.
Sep 25, 2009 at 9:48 AM | Unregistered CommenterJames H
doughnuts...frank's staff stole the freakin' doughnuts...
Sep 25, 2009 at 9:53 AM | Registered CommenterDailyBail
Mel Watt just spent 1 minute and 38 seconds reading out the Fed's web site, starting with "http," moving on to "colon," and then, "ummm [cocks head sideways] uhhh double back slash." Yes, he did. He read the frigging web address, from "http" to "dot com." Awesome.
Sep 25, 2009 at 10:03 AM | Unregistered CommenterJames H
that internet address reading by Watt is by far the funniest moment so far...now pardon me while i go and get some damn doughnuts...
Sep 25, 2009 at 10:06 AM | Registered CommenterDailyBail
Since Alzarez does NOT want you to know what the Fed does with YOUR MONEY, we think you should call his office repeatedly today and tell his assistant just how you feel about her rat bastard boss, and Fed transparency. His number again is 202-452-3583.
Sep 25, 2009 at 10:09 AM | Registered CommenterDailyBail
I cannot get the live hearing on my computer. Barney Frank's website screwed me. Is there another way to get to it? (I have a mac.)
Sep 25, 2009 at 10:29 AM | Unregistered CommenterSonic Ninja Kitty
Someone try to help SNK, please...i have no time between typing and looking for doughnuts...

Sep 25, 2009 at 10:34 AM | Registered CommenterDailyBail
Thank you for these updates but I have a question...is the language used being manipulated by the author? I have watched many a hearings and have never seen the type of language used in this txt in those hearings.

For liberty minded news and topics check out my show on www.BoldVoices.TV channel 8 - LiberTV
Sep 25, 2009 at 10:37 AM | Unregistered CommenterQubano
@Sonic Ninja Kitty:

The only stream i have been able to find is this one below, i also cannot access due to my connection at work blocking the page.

Sep 25, 2009 at 10:39 AM | Unregistered CommenterQubano
Thank you for these updates but I have a question...is the language used being manipulated by the author? I have watched many a hearings and have never seen the type of language used in this txt in those hearings.

Yes...I am using some liberty in translation...I can't type fast enough to get it exactly...this is how LIVE-BLOGGING works...summaries...

Sherman is on...awesome...the Sherminator...
Sep 25, 2009 at 10:39 AM | Registered CommenterDailyBail
Thank you DB--but it's OK--I'll read it later anyway.

Sep 25, 2009 at 10:40 AM | Unregistered CommenterSonic Ninja Kitty

Yes...I am using some liberty in translation...I can't type fast enough to get it exactly...this is how LIVE-BLOGGING works...summaries...

Thank you for the explanation...you would not do well as a court reporter ;)

Keep up the great work!
Sep 25, 2009 at 10:45 AM | Unregistered CommenterQubano
I was thinking the same thing Qubano, but DBs translation is more entertaining.
Sep 25, 2009 at 10:45 AM | Unregistered Commenterdana
Thank you Qubano--appreciate it, but I can't get it through there. I guess I wont' be allowed to mock Watt!
Sep 25, 2009 at 10:46 AM | Unregistered CommenterSonic Ninja Kitty
In answering questions I can not help but notice that both Geithner and Alvarez have eerily similar body language and mannerisms ... As if watching Alvarez is a glimpse into the future of what Geithner would look like year down the road.
Sep 25, 2009 at 10:47 AM | Unregistered Commenterspanky

"I was thinking the same thing Qubano, but DBs translation is more entertaining."

I have to agree with you Dana...but still wish I could watch LIVE!

@Sonic Ninja Kitty

I'm sorry that you cannot access the live stream...hopefully it helps to know you are not alone!!!
Sep 25, 2009 at 10:52 AM | Unregistered CommenterQubano
i make my share of snarky comments and bad jokes...but you may trust that I am getting the gist of the discussion...and i am reporting it fairly...
Sep 25, 2009 at 10:55 AM | Registered CommenterDailyBail
What program are people using for the live stream? I'm using VLC and the sound is terrible.
Sep 25, 2009 at 10:58 AM | Unregistered CommenterMos
i can barely hear anything either, my volume is at max
Sep 25, 2009 at 11:04 AM | Unregistered Commentercarlos
my volume is fuzzy but quite audible...no problem with volume...sorry you folks are having trouble with the House audio...
Sep 25, 2009 at 11:07 AM | Registered CommenterDailyBail
Who is "Wilson"? He's asking Alvarez about the structure of the Fed Reserve system. Umm, so tell me again how these uhhh "governors" are selected and is there....Is there one for each member bank, or... uhhh..... now how many Fed Reserve banks are there?... now when you guys -- gals ---er ... what IS the make-up of your board? JHChrist!, Alvarezz is counting on his fingers how many men and women there are on the Board. Where's Mel Watt? Somebody needs to read that web address to Mr. Wilson again. Amazing.
Sep 25, 2009 at 11:16 AM | Unregistered CommenterJames H
About the sound--that is just your government at work for you. That mike system probably cost $80 billion.
Sep 25, 2009 at 11:18 AM | Unregistered CommenterSonic Ninja Kitty

Sep 25, 2009 at 11:21 AM | Unregistered CommenterJames H
gold market question dang .......
Sep 25, 2009 at 11:24 AM | Unregistered Commenterspanky
Wow, Royce just brought up von Mises and ABCT (Austrian Business Cycle Theory). There goes another one of those flying pigs...
Sep 25, 2009 at 11:33 AM | Unregistered CommenterJames H
I was sipping my coffee just as Grayson started his follow-up to "Does the Fed manipulate the stock market?" Nearly lost a monitor. This was beautiful. Alvarez (a lawyer, who's well aware of what perjury means) pauses for a LONG............time before he starts claiming the question is ovely broad. Total deer in the headlights moment. I think Alvarez just inadvertantly admitted that the Fed is somehow manipulating the stock market. Was he thinking in terms of strategic rate cuts, primary dealer purchases, foreign central banks...? It was pretty weird. Grayson's best performance. Ever.
Sep 25, 2009 at 11:37 AM | Unregistered CommenterJames H
your're right...was very interesting....extremely interesting...by far was the best part of hearings so far...Grayson is so much better than anyone else...it's not even close...
Sep 25, 2009 at 11:40 AM | Registered CommenterDailyBail
and Alvarez just mentioned William Greider's book,,,secrets of the temple...
Sep 25, 2009 at 11:41 AM | Registered CommenterDailyBail
Tom Woods. Whoo hoo! Ideological street fighter par excellance.
Sep 25, 2009 at 11:51 AM | Unregistered CommenterJames H
Geez, JamesH, watch out for that coffee-through-the-nose thing!

Here's a list of House Financial Services Committee members: http://financialservices.house.gov/who.html
Find your rep or just go down the list contacting as many as you can and tell him/her to get this bill to the House floor unamended--that you want it passed as is, on it's own merits, and you don't want it attached to some other bill. We want a stand alone vote.
Sep 25, 2009 at 11:54 AM | Unregistered CommenterSonic Ninja Kitty
Woods and Paul---omg I wish I could see this part! This could be the beginning of the dismantling of an empire.

(ps--read Meltdown--it is excellent!)
Sep 25, 2009 at 12:09 PM | Unregistered CommenterSonic Ninja Kitty
What was the guy next to Woods holding up? Looked like a $10,000 bill or something. Also, nice Anti-War.com sticker right behind his head.
Sep 25, 2009 at 12:10 PM | Unregistered CommenterJames H
It's over...the final 5 minutes evolved into a pretty long-winded but excellent discussion of all the issues....Sherman, Paul and Woods were freely discussing the issues...it was nice but impossible to transcribe...
Sep 25, 2009 at 12:32 PM | Registered CommenterDailyBail

Not sure what was being held up...i had my head down typing the whole 3 hours,,,i saw very little in terms of actual video...
Sep 25, 2009 at 12:34 PM | Registered CommenterDailyBail
Thank you very much for your effort and the information. I can only hope something good comes out of this. Please visit my Show page on Channel 8 of www.BoldVoice.TV - LiberTV

Host of LiberTV
Sep 25, 2009 at 12:37 PM | Unregistered CommenterQubano
Thank you, DB. This was excellent!!
Sep 25, 2009 at 12:38 PM | Unregistered CommenterSonic Ninja Kitty
Qubano...you should have me on your show to discuss the issues...
Sep 25, 2009 at 12:43 PM | Registered CommenterDailyBail
You are welcome SNK...it was fun...
Sep 25, 2009 at 12:44 PM | Registered CommenterDailyBail
Great work DB!

@ dana

Thanks for not texting me updates while I was in class. You are a horrible sister. :)
Sep 25, 2009 at 12:47 PM | Unregistered Commenterallie
The editor from Bloomberg who wrote the WSJ editorial was on Ratigan's show this morning...

So some of you might enjoy taking a look at that video...I'm sure it was outstanding...I'll post a link when it becomes available..
Sep 25, 2009 at 12:57 PM | Registered CommenterDailyBail
Was jsut sent this clip from someone on Ratigan's staff from this morning's show...it's DR with Michael Moore...haven't watched it yet...
Sep 25, 2009 at 1:44 PM | Registered CommenterDailyBail

Please contact me Qubano@boldvoices.tv or call my show number 253 243 3480 and make sure to leave a msg. This goes for any one that would be interested in taking part in a show or mine on www.boldvoices.tv channel 8 - LiberTV

Host of LiberTV
Sep 25, 2009 at 1:53 PM | Unregistered CommenterQubano

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