Paul asks Fed: Are you in the gold market?

Submitted by cpowell on Tue, 2009-09-29 02:38. Section: Daily Dispatches

10:30p ET Monday, September 28, 2009

Dear Friend of GATA and Gold:

During last Friday's hearing of the House Financial Services Committee on his legislation to audit the Federal Reserve System, U.S. Rep. Ron Paul asked the Fed's general counsel, Scott G. Alvarez, whether the Fed has ever been involved in the gold market. Four days earlier GATA had disclosed the Fed's admission that it has records of its "gold swap arrangements" with "foreign banks" that it wants to conceal from the public:

http://www.gata.org/node/7819

Replying to Paul, Alvarez affected to have no expertise in the matter of intervention in the gold market but added that he could get Paul such information. Paul replied that one purpose of his audit legislation is to determine whether the U.S. government is intervening in the gold market, as by using other governments as intermediaries.

That surely is one reason for the Fed's hysterical opposition to Paul's bill. Let's hope that Paul followed up by asking for the gold intervention information Alvarez affected not to have.

You can watch the exchange between Paul and Alvarez at YouTube here:

http://www.youtube.com/watch?v=EikzqO0-BhM&NR=1

The section involving gold begins at about 5 minutes and 30 seconds into the video.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.