How did an Audit the Fed amendment get through a dysfunctional Congress?
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How did an Audit the Fed amendment get through a dysfunctional Congress?


five-month you accuse everybody biodegrade is free as they master or
matt has been involved in progressive politics in twenty different ways behind the
scenes in the middle of the season policies in
every way quite axes use of the it distinguishing
it almost always say about that he’s a political analyst for the tv show brand
acts with russell brand on affects this
thursdays at eleven p_m_ citra b surely contract that out uh… and fat and i also use or with bill mattingly
and so on love there as well but i uh… we brought mattered to talk
about his role as senior policy advisor for alan grayson back mid-day when you worked on dot frank and got on being the bad as part of the belt suicide like his
that’s amazing so thought book although world would be
hugh downs actually get a progressive priority fasten this down uh… wall it was the last congress must
write these two thousand and uh… two thousand in ninety percent ten uh… and was suits are really good question i
mean to parody do you want me to go into the process when you want to give you a
broad strokes well i’m interested in the process what
i want to talk you about it soon for the let’s just let me start glasses okay so ron paul’s always been interested in
our in the fed grayson was interested you get an
interesting right left combo their for the promises that were spin who wants to
protect the phone so how did you guys get no establishment republican
establishment democrats j greeted this position brightly lit i’ll start by talking about
that the policy issue and then get into the process uh… because it actually always starts with policy the problem in two thousand and nine
that we were trying to tackle was these massive bailouts disbursements of loans or grants or whatever it was that the fed
was doing too different banks investment banks hedge
funds that we’re going out by the billions by
the trillions and i’m we didn’t we know who they were going to
we didn’t really know how much was going out we didn’t know what
collateral they were taking in return all we knew was that the poser was saying trust us with a lender of last resort or
independent were above politics so can we sought their first lady a lot of people are confused by what the
hell defendants so they say they’re above politics and
that the which you trust them when they give away coz allows the banks are the banks part and parcel running
the fed well okay so so our economy is uh… is is structured around a couple
of court institutions that the federal reserve is the it’s the bank of banks controls to be says there is any
institution of controls the amount of money in circulation it’s the federal
reserve and so the federal reserve if the economy is doing really well and
it looks like there is of pricing pressure on it well things are
getting more expensive the fellows are will reduce the amount
of money in circulation in if things are doing poorly that the
filter what increasing amount of money in circulation and the way it does this
is it manipulates interest rates through the
buying and selling of of treasury bonds or traditionally that’s how it’s done it uh… and you know the fed has basically made the
case for many many years cysts founding don’t worry we’re just buying and
selling plain vanilla treasured bonds or treasury bills so you don’t really have to audit us you
don’t really have to know what’s going on behind the scenes because that’s all
i mean it’s just treasury bills treasury bonds um… during the bailouts right in two
thousand a two thousand and im the fellows serve took all sorts of
stuff onto its balance sheet um… you know serve credit default swaps
um… uh… it did so i’m not certain marjorie
itself and what the people oftentimes fall
toxic the asked yeah i mean it took it took a
lot assets from bear stearns it took assets from edgy um… and it took a lot of um… march back securities onto its balance
sheet and this is a way of the fed the fed made the argument about some of
these programs well we’re still controlling the money
supply it’s just now the economy so complicated we can’t just do it with
treasury bonds we also have to do it with mortgage-backed securities and and other
securities aren’t we also have the the mandate to
stabilize the banking system obviously the banking system is very unstable so
what the fed is doing is they were saying well we have to be lending to say goldman sachs we have to be lending to
these other institutions we have to give as much as they want uh… in return for collateral or else the whole system will collapse so i know we’re going deep into the fed
and i think we need to do for the use of this conversation deep creek money as a way of and controlling here power over the not where we spend the money that’s
theoretically congress tried but they actually print them it is these so in some way awaits pretty tax our money
correct me anywhere where i’m wrong right and then ben bernanke he’s appointed by the
president confirmed by the senate so it seems like he’s a public figure
but who’s behind that burn anchi who worked on the new york friend uh…
other parents who are on there is a set of so to displaying outspent structure foes
are and and what uh… the central bank does so the central bank is a hybrid institution it has a board
of governors in d_c_ headed by the federal reserve chairman
invent burning ke that makes policy determinations and does a lot of
research in that it has twelve regional banks the i had better sharp quasi private
quasi public banks the new york fat is the most pr but there are twelve in there around the
country in atlanta saint louis uh… kansas city and so forth and these um… these banks uh… read regional reserve
banks they process clearinghouse for checks they out regulate banks in their area
they of report on macroeconomic conditions in the area and they have of those on the corning body called the federal open
market committee which sets interest rates and uh… makes policy decisions around a
lot of things like that the the fellows irv has also does a lot of foreign currency operations uh… manages relationships
with other central banks and he is a is a big bank regulator so they’re the regional banks the and the board of governors in d_c_ the
president appoints the book that the governors and usually they’re taking
from the ranks of bankers and economists uh… evident regional banks have on
their board local bankers local business people and uh… and then sometimes university
presidents kingsley a labor person but usually it’s it’s its bankers and cell actually you had this strange
situation where uh… on that new york that which is the
name reserve bank until out of the peace they
handled all the bailouts you had jeannie diamond of j_p_ morgan sitting on the depth of the board at the
bank overseeing the um… the reserve bank while j_p_ morgan was
regulated by the new york fad doing deals that the new york fed was heavily involved in like the bear
stearns deal cigs dramatic conflict of interest another account famous obvi board member of one of the
federal reserve banks was herman cain i think he was a member advisor member of the kansas city fatter but it’s it’s a good it basically fcs
aggregations of total police networks ball in the country and uh… g_a_o_
decided because of dot frank most of them are white must ever mail most of them uh… are from the
corporate or banking sectors um… and what they care about is our creditors protected vans people don’t think about the fella
reserve expose our is considered that made this powerful case
that their independent there above politics
they’re bailing out the system only when necessary in do you really want congress
to get involved right do you really want politicians making making decisions about monetary policy but this fragile banking
system would you want technocratic experts and that was always the debate in uh… ended that still is the debate has been
a debate for couple hundred years in this was just one part of it looks right
now a couple of years but how did you write that salute leaders who someone point again
for clarity here so they say they’re taking credit but on
the board of the new york that’s its bank right so they’re not technocrats
they’re people who are directly if it’s a little interest in the results
or the new york and that’s just the most obvious i mean there’s a huge revolving
door people of the new york farrakhan slide on wall street back-and-forth i was talking to a friend to uh… z junior staffer at the new york fed and
and she was leaving to go to some banking as like why are you leaving the
love public service and she said yeah but in order to move up the cheaper the
latter i have to go into into the private sector become at the scene had banker that i
think that that’s it’s actually you know it’s it’s just a corrupt system
brightness there’s there’s all sorts of insider trading eminence it’s uh… it’s a terrible system the idea that we would look at the system and
think about changing it was lucy before the financial crisis and then when the
financial crisis hit now what happened is you saw up by the government spent seven hundred billion dollars with
tarp and who knows how many truly we now know how many trillions through the fell
reserve system of lending and all of a sudden you did this kind of ron paul crazy libertarian esic raising sarcastic air quotes libertarian strain of thinking which comes from some
very dark places in america and i’m not i’m not like naive about that we were aligned with them demands bob davis we oppose centralized
government power of any form because the fed reserve finance world war one finance world war
two it’s a war financing it financing body
finances our national interests it also finance you know i had the new deal it finest a
whole bunch other stuff the great society and the ronko people don’t like
that for a lot of reasons one of the things that they were saying
is we’ll think that this bank the central bank is legitimate and
we want to know what happened to all of these trillions of dollars ends unfortunately progressives are basically allied with
wall street and have been since the new deal and so you’ll see people um… elect pa program who supported denver
danke who oppose breaking of the big banks and he is considered probably the
leading intellectual on the side of the press is but he is very firmly on the
side of wall street if you actually look at the nitty-gritty policy questions and so auditing the federal reserve was
something that to bangor didn’t want to do brock obama
didn’t want to do steny hoyer didn’t want to do uh… a lot of the republicans didn’t
want to go and of the people who want to do it were ron paul and kind of a new strain of congress who’d been elected in two thousand in nine after the financial crisis they didn’t they weren’t date based on
the future prices and then they won their election is very important
understand with politicians when they won their race uh… or lost their last race it’s at it’s kinda gives you a sense of what
when their political adolescence was because people always remember how they
won their last race and that’s how they they have to stay in office i won
because they did acts therefore i will always have to do acts why one in taxing virumail x’s all these the but when i have to pay attention to
use a barney frank in nineteen eighty two when he won his first congressional race
he won it in a in a reaganite era it so he always thought in reaganite
terms which is to say the banks are gonna get most of the
money anil car about and i’m good with that allow carve out a little bit for
low-income housing and that was barney’s mom he’s considered a liberal but he wasn’t
a liberal using neoliberal and pull out of the people that got
elected in two thousand and i like alan grayson uh… actually are genuine liberals uh… so when grayson came in the the way we got on to the federal
reserve question is is we have here that was um… uh… with donald cohen who’s the vice
chair of the fellows are keen to hear a lot about hearings only when something
kind of explosive happens that hearings are the
lifeblood of the congressional process and said donald cohen very savvy vice chair alan greenspan’s right-hand man for
decades and you know the financial blockbuster was
created during the uh… two thousand six on where the
foreclosure crisis in the financial crisis it so i had upon shiv documents um… that the financial blogs that
uncovered about the fed and i put them punk raisins briefing pack if you look
through them and he has done a column so wind did uh… who got the money the uh… what don’t forget how much was eight hundred billion dollars that you guys let out and our concept well i can tell you the types of institutions that have the
money in the types of collateral that we’ve gotten eccentrics header and let them know that the other video
one viral rack up a hundred thousand people uh… side and discussed you know i took
the video clip that sent it out to the financial bloggers and x regulators an analyst intercept
and i asked them for follow-up questions and they sent me follow-up questions and we followed up and immediately as funny ’cause grayson
mentions uh… u_b_s_ is like how much did you
get to u_b_s_ she’s a big swiss bank and so that day uh… we got a call from a lobbyist
c_b_s_ being like just want to make sure everything’s okay promiscuity pretend that you know that’s that’s how
it works in the implicit promises of donations are always there and so on you know grace and end up getting most
of his money from internet donors which freed him to be aggressive throughout was it was great and he
notices for quite a bit more aggressive he was the more he raised from people
who were paying attention to politics but
work billionaire so he liked that after the fundraising i like to come building
power so over the course of the next this is in january of two thousand nine
over the course of the next time guest six months to a year uh… he would everytime you you though the floor right the floors where votes happenin
thereabouts four times a day on everything from important bills to renaming post offices he would go to the floor and he would uh… ask other members of congress sign up to co-sponsor ron paul’s built on a
perfect mhm right and just just work to go explain it and explained the issue so here’s i think uh… one meanwhile
what what i was doing and what what he was doing was following up with
a constant stream of letters requests for information at hearings who
ask more questions there was one hearing what the inspector general of the
federal as the coleman where he you know bloomberg wasn’t covering more about
what was going on so over the course of the that time more and more start coming to light that
the federal reserve is doing some things that were really i mean whether they were criminal
or not it was something that the public need to
understand that congress needed to understand so that we get through critical critical
question here because by all who look at it i think these
congressmen know what they’re doing and they’re not gonna audit the fed or
they’re not going to do x_ or y_ that would be against their financial
interest for the more for the financial interests
of their donors which give them the money to get reelected but there’s some chance partly based on what you’re telling me
they’re just not that savvy the dennis come more of a sub conscious protected owners saying rather not
conscious one his when you tell me and recent goes
into parts of these guys i’m surprised there even having a
conversation the talk all the time and it’s like
they’re quick co-workers and and uh… so what i mean by that is
they have an open mind michael allen that’s a good point and bob it that way by maybe i’ll sign up some of them did some of them then and um… you know ron paul got all the
republicans on board uh… manager sign up because the grace
is a little you don’t get so what happens when he talks soooooo
name names but uh… i don’t know anything at all times occasion hines his our chief of staff was a former u_p_s_ lobbyist jim hines who worked at goldman sachs jim hines has a lot of donors from goldman sachs
jim lyons probably going to made a lot of money after he’s out of office i think that’s
just there’s no question to me that he that he shouldn’t be an office and he didn’t sign on and he he isn’t off one hundred percent
support of of the banks he represents uh… they uh… adapt very strong
democratic district in connecticut there are a lot of people like that uh… jim hines was probably one of the
worst another one was on what’s his name from colorado uh… hit she owns the bank scrapbook but that might be a little bit
david at any time you know this is a civil suddenly so it was for them to
have been i mean they have something of an open
mind on on a lot of these issues and you can talk to them about my primary cardiac seekers are battling
my sensitive covering it from an outside is that they don’t have that much of an
open-minded victories are credibly rare to combine cuz you run
into a money block you know your run into a situation where they got still
upset my daughter’s no i’m not going to do it and i’m surprised also the ron paul was
able to get republics on people like jim demand eventually on the
senate side gentlemen i mean is i mean do you think jim demand is a guy
who actually believes his own crap unlike and thinks he has an ideology or didn’t really see thinking posted i
get paid by the banks in the serve the banks and i met this libertarian bs or
whatever to cover up white supremacy is an ideology it’s it’s there’s a consistency there and uh… e it it is it is a frightening thing uh… but it’s something that we need to to recognize for a variety of reasons white supremacists like jim demand and i i say white
supremacist not in the neo nazi sense not in the white nationalist sensor
k_k_k_ sense but in the sense that like the republican party represents the
interests of white christian man and his fairly explicit about that nam and wants to continue the dominance of
white christian men uh… and that’s what they really algiers e they having ideology and part of that ideology is being
afraid of institutions like the federal reserve which are centralized uh… powerful institutions that can
finance social programs doesn’t want them doesn’t want them around this is same reason my paul krugman
likes the photos are because he wants to fund large-scale socotra bank so i mean
i feel like the republicans are a wholly owned subsidiary companies so that cranberry different banks right
here right but they’re different banks their regional banks community banks uh… and there are are are mega banks and there’s also hedge fund guys on the by side uh… and then there are at the the big
bags on the the sell side to the wall street in their insurance companies
there’s there’s all sorts of different institutions within wall street within
the financial services industry and sometimes they fight with each other and sometimes they agree and they have a
kind of class allegiance but they do fight with each other men’s
you know some of them have more of an informational advantage with regards to the federal reserve and
some of them down like there’s been a big fight between
chretien’s in community banks forever not a whole variety of different things and they’re not like neither of them are particularly nice
groups they both went out to consumers but they do fight about capital markets
are so that you might be able to pull some of the senators and congressmen on
your side of the republicans or democrats depending on if they’re on the body side of the sell
side who they’re big donors are on the and i just depending on what they
believe but this is i want to make this point because you know you hit on
something important which is you know alan always told me the heirs
is that out there brain which is um… which is to say the reason politicians like to make you think that they’re all
of these mystical process season that it’s the system is so hard to impact is because they wanna explain you and i can’t do
anything might not the there’s plenty that they can get but
you notice there’s been no oversight authority friggin issue one subpoena when he ran the financial services
committee he did issued many speedy couldn’t pass
legislation is really we can issue a lot of subpoenas and that this unison against could’ve
done that too there’s basically no investigation
oversight going on and this is this is a big issue
political corruption and this is widely mop-up because obama you know i was in congress you know i saw these guys have a lot of
power and they don’t have you know what i had powers a staffer me
for some reason people listen to me and cared about what i thought and so i
could use that to get information from them to expose wrongdoing and that had any impact it could help save people’s homes that could help crapped better policy that they needed and i i am outraged that people say about the president of the
united states what can he do is only the president there’s a lot is a giant lock and and i look at him and i look at the
people who are in office and i and i think com bedrock obama is a con artist the proc obama is it is a is a liar and he is he’s on the side of wall
street and he is in my opinion if you are our uh… i believe in a in a fair distribution of
wealth and power brock obama’s your enemy men i think that he is no different than
the rally and this comes from experience it comes
from seeing that there’s a lot of power individuals have been can wield within
our system and and if brock a bomb had wanted to he could have reorganized the economy and restructured our world into a more sustainable models saloon one evening he didn’t do
simply because he’s corrupt i think he’s a corrupt actor i think he’s selfish but
i think he’s an arsonist that the president’s really matter you
can look at the record and you can see the the pattern of lives
on the fact that um… that inequality is actually
getting worse faster under obama the bush right now uh… so mad here’s what i am
they’re concerned about it this structure in the system might
present isn’t this a sentence so i believe a system that is predicated
baseline campaign donors will do the bidding of campaign donors
that it’s a so to me uh… mobileme as a person is easy relevant he’s
irrelevant and he had a lot of campaign donors annie cho to use them he had he had
disability to get so there are many different had
to campaign donors he had whatever three million ten million are remember how
many had two dozen ng but he didn’t cultivate sustain those could he didn’t
want them that was a choice ’cause he wanted to
get his power for more centralized in group of insiders but i want to get back
to the policy out too that uh… process ’cause i think i want to get into rampant on the line
go so that’s why when we come back to that because to me i think the system is
going to produce innale erase what we have a bomber versus
romney because that’s what the system is built
to do s incentive structure that it is set up a you put in campaign donations turbo these people really like it is you
want but you’re a part of this system we don’t have to vote we don’t have to be a part of it no but
so diplomat might my fundamental question the conversation we’re having
is how do you have these republicans who
then turn around on that same dot franco and oppose it every inch of the way clearly working for the big banks the
j_p_ morgan’s etcetera in trying to destroy any kind of
repairing really applied dating really opposed every step of the
way well you early to tell me about that but
i was gonna sit at the same time the vote for auditing the fed which the
banks desperately didn’t want to do so that’s the part i’m not getting
that’s why i want to have that kind so some of the republicans in the in the
house and senate are different right there are certain republicans in the
senate who were very much opposed charting that almost every republican in the house this four out of ink that mom it also
imminent it takes away up and he takes away power
from a regulatory agency is something that uh… republicans often will not not anything and some things
that protect certain regulators like they protect those cc which is the most
bank friendly regulator but um… but in the in the case of the federal
reserve you know dat logically they are opposed
to this kind of centralized banking they want to return basically to
the gold standard phnom penh to uh… uh… but there’s a sort of weird
mishmash of reasons but um… uh… i’m sorry what he was still a so you know i’ve seen in different this
situations where for example republicans will sometimes
make a mistake and getting a talking point and they’ll say something that is either
a key bank arranging oil right i’ve seen this happen time and time again that may
have a list serve analysts are business have congress but it also has a lobbyist
connected to all these industries that fund them and they’ll get an email the
next day say hey get back in line in you know what you’re doing utilize you don’t
think the democrats have this no no no i i’m sure the democrats have got to my
point is given that that system how did they let on in the fed slip by
vessel that’s the exception to the rule that i just can’t wrap my minor because
there were no um… there were no organized interests that
were really opposing like defendant why wouldn’t j_p_ morgan
city group who may have a rare himself cecil they had their hands full with dot
frank and all the different places they were
trying to fight it they were trying to fight the consumer protection bureau
they were trying to fight the volker rule they were trying to fight uh… uh… stymied in name of there was
dozens of rules as you like the resolution authority that’s what they
thought this was a leave it at one or yeah this is the one that they you know
nobody there were no preset like washington is a is it place where there are just flew deep
institutional habits and wanted that there are a couple of
reasons why this fight successful on what is the bill was going to move we knew of the health care was gonna
move and we knew that financial reform is
going to move and bunch of financial farm bills the bailout fannie freddie bill that they had already moved and there were more that were coming right so there was a lot of and there
was a lot of interest in this area so if he has no interest in the area or
if there’s no lake somebody in a in a laptop analogize
congress to surfing right you just gotta catch ways and attach amendments and
things too stuff you know has to pass like defense
appropriations in this case we knew that financial forms gonna move
so we knew we could stick amendments onto it and the bill would basically get
passed the other uh… city the other thing is that because there was such a they were so
much in this bill things could slip by that of the industry didn’t have time to mobile has around like they understood how to mobilize say
around smart uh… swipe fees they understood how to
mobilize around uh… the vocal rule in derivatives you know if you didn’t know you me a lot
of money for pyramids you understand you have to defend by providing the fed is
more abstract right right they had never gotten these kinds of loans for the federal
reserve before there is no clear sense of they didn’t have a profit and loss
statement from there uh… from their fed liquidity lines they so so there was no institutional
lake there was no official defenders at this except for the fed itself relief and went all out an economic
profession went all out nam to uh… to block this and they watered it down a little bit but they’ll timidly failed and and the it’s an interesting story how we
really get it through committee which i can tell you but looks at him a
question basis is summarize it seems like you caught a window in time where
the banks for busy fighting other things this was a nebulous issue so was in
there most pressing concern other republicans
thought hey we dot i guess regulation hey wait on the libertarian i’m not sure
about the federal reserve so you got the registered the right insured make the union on your side you have to
powerful actors who were really motivated inauguration in ron pollack so it certainly work at the blog esther right now i was and this the renault
lefty groups that have been working on this for many years and lefty groups like liberal groups that are funded by
foundations and groups like move on are basically
designed to lose and so if they’re not working on
something there might be an opportunity to uh… to win um… the book by another uh… i would
tell me why you said in this regard as an example well i mean they didn’t come there’d be he’ll look at look at
everybody knows that the housing market is completely decimated and it’s full of fried in and did the
obama administration is i’m responsible for it because you done nothing to send how wall street actors to jail but you
will see at every level institution uh… from the a_f_l_ the move on to
campaign for fresh so whoever they’re all afraid to say anything do
anything and they’re attacking mit romney on it because undef there basically their fundraising vehicles liberals don’t want to hear about
anything wrong with their leader even if their leader is doing terrible things so these institutions their fundraising and they also don’t know anything about
policy and don’t really care so for instance this health care bill
was um… uh… by and large is is is not stable
and the systems gonna fall apart it but it was a is a bad idea and i think
anybody who looks at it seriously understands that it was it doesn’t pose
any cost controls it was just picked it should have been done this way though entire liberal space lined up behind it because it was of it
was a fundraising thing if you say we support obama care on either side you can raise a lot of money missus what
was your reasons as much money if you win and and perhaps even more than if
you lose susie said they were structure to lose will be doing this right you’re not going to see if anybody like you’re not going to see a lot of
people helped by this time but on frank you know i don’t see a lot of people
helped by com abide by this whole perhaps one of the
things the set of structure there is that if you lose you separate the two
recently keep going whereas if you win you get your
objective will then i guess you should respect i mean you can pick up it’s it is true i mean there’s there’s
that in tennessee this all over the place you know that on the middle east peace process industry the um… you know that there’s a will there’s a
leg out there’s a lot in unprofor the non-profit gusto complex is designed to what does it because it’s really good phrased it basically like any institution will all timidly
continue to perpetuate the problem that it is designed to self right kazi institutions wanna continue
existing but uh… but just it just to get back to dot
frank for second how we actually move this bill through write me basically
what we do is we worked with the with bloggers with um… x regulators with like people in the industry who work dad
earnings online communities chewing up these documents all that we were
requesting you know from one deal that uh… new
york fed did the secret that was you know they took two hundred fifty billion
dollars for a forty billion dollars um… of liabilities on essentially date
they said to seagram’s wheeling will guarantee to order forty billion dollars
of your liabilities you have to give us a list name return for nothing and the f_t_c_ got a little bit but new
york that it’s about nothing and did citigroup got to keep the cash
flow from those assets czar toxic assets and eventually stdin e citigroup cited didn’t want the
daily market in one of haiti f_d_i_c_ anything and because the market understood that they didn’t need the insurance that the new york fed provided because the government would never never let
citigroup though under anyway so citigroup didn’t need
insurance and uh… advancers point once the market understood that it was too
big to fail right on and so we went through these
different gills and we just showed repeatedly that this was going on in
there was some flexibility in the crafting of dot frank even though
that brought contras had been laid down by wall street two thousand innate and
the obama administration in two thousand nine the broad contras was relate on within
that there was a lot of flexibility if so what we did is they were been
every hearing that was possible cultural racing ask questions uh… would make the case
repeatedly everyday going before getting people to sign on and eventually we got um… something like over three hundred
co-sponsors of this bill in the house side it doesn’t mean you get to bring it to a
vote you need a aside a discharge petition to
get to the vote without the uh… without leadership saying okay like uh… but barney frank eventually with three hundred
co-sponsors grace and went to him and said look
inuit rear co-sponsors we should be able to have this is an amendment to dot frank in the committee and uh… what they did is they went to the
committee proletarian who had to do a twelve a dis amendment
would be germane to the mail which is to say it’s not frank is handling everything
except the photos are of in the amendment is in chile right that’s not an issue the senate
that is in the house the proletarian ruled that it was
charming okay which was a big deal then we had to be is like an interesting day we had a
fight in committee when what’s called the
markup which is it’s that type of hearing in which the
committee actually votes on legislation a lot of legislation gets amending and
this is an important part of the legislative process is the markup most of the members were on board for a lot of the members
the committee were on board h_r_ twelve oh seven which was ron paul’s bill so this is the defendant they got no wat who is the chairman of
the subcommittee on monetary policy i think domestic monetary policy introduced a i think the federal reserve sunshine
amendment right which was a different different
than the uh… paul grace in a minute and this one muzzle sort of a long complex amendment that
was anna eight to twelve pages it said you cannot at this you can audit the
pencil sharpeners you can audit are internal operations if you know that all
the stuff and it had these weird self referential language that was the
most difficult interprets a lot of the passion on a list of processes really
screwed up a lot of amendments to say in line thirteen remove and replace with may and replaced with shell and it’s like a imagine if you had to do
track changes on microsoft but in paper format that’s what it’s like that’s what
actually stops it’s it’s a solvable software prob but they have insulted
because if they don’t solve it lobbyists have more power and down so this weird convoluted amendment and most some of the members
were like you know grayson rob hall there they
seem to have a good idea but they’re kinda out there uh… i wanna do nothing what up bro and
not the fat but i know what the christian partly
because they’re just extreme this one looks just right monday so what we did we grayson in this is this is why use a
fantastic are sixteen or somewhere he we got all of the blah books in compared everything and
make sure that we understood exactly what it meant and actually the federal reserve sunshine amended
made the process more opaque it actually subject to the fed to less pockets but
then we would have been before the fed did this in nineteen seventy eight as
well the last time that they were under this kind of attack elicit axo we went to the press po and the fed has a lot of relationships with newspaper outlets so they floated this compromise through the compromise
to the press like bloomberg uh… and uh… hannah bunch other outlets said well the
fed has introduced not fat no one introduced this you know then it’s not as extreme but
still the some on today which is acceded to so week went to on right there with the
huffington post and sat down with him explained what
this who was going on and he wrote a piece if this was within like twelve hours
rights of the time it’s just the speed is really important any rates apis no lawyers getting him a quote but he
was confident enough in his own judgment and in the analysis that we gave him
that he was willing to write that piece and divided that this amendment uh… is gonna make it more difficult apartment based on that
article which will be which grayson handed out in committee uh… and on the floor uh… it we got a letter from a bunch of
different groups that said don’t vote for know what’s amendment that is actually vote for more bailouts
more secrecy vote for the pog racism and so the fed
kinda overreaching rather than doing a a real compromise that they did is they they got greedy and tried to put more restrictions and we
busted them on it and the speed of the huffington post was
able to neutralize their press strategy that’s
really interesting yeah but but then the group’s leader probably to the residents
think that’s that’s true actually in this case they did uh… jim baker was
important firedoglake uh… woohoo are not mean these are
smaller groups that i actually have some track record of success and um… uh… the the last thing in this is
really interesting soup soup because cuz this whole time defense put it putting out their side of
the story which is like economists saying you know hey i a m i’m an economist you can trust me the
fella reserve needs to stay independent of politics their week week you know i
kept leaking stories from various people that i have found like versus a sky wrote a book in that
nineties about the fed one of the things he found is that the
fed funds most of the uh… economics profession most economists have water multiple
contrast the fed macro economist that we did an update of this so we found that the fed still funds most economists and so every time they put
out a letter saying these economists support dot frank or which i am whatever the fed wanted instead of ron
paul’s bill um… river the bust and say they’re
funded by the fact bailout contracts with different reserve
banks and so there lemonade the day of the vote uh… there is a letter from polo kerr
and alan greenspan talking about how arm it’s really bad that that fell reserve uh… would be subject to congressional
pressure right and they’ve had put this on every chair of every members of every member which is a huge shin like you’re not supposed to do that
right you know how to put marketing materials on the chairs of of members
and so great grayson went to the staffer uh… in charge of the committee seating
was late you have to have that all of those removed that’s against committee
rules and so it’s like all the little needy grady pieces right mike graces and night fighter right he’s like wanted to get in there
and just and we end and we would like work hard and do anything we wanted archiving would anything we could to
actually achieve the policy goals that we thought we need to saudi matt that’s
really just want to get more than they did well that the best for those who get too
so you know this many critical alludes that story the rights the story coming out on
holding a post the right time concepts of prizes what a larger impact that it had which is great the progressivism he says
he handed cuz we handed out the story it’s it’s not just about the press it’s also about making sure that this stuff is scene most of you know laces members had
thirty secs make up their mind it hadn’t thought about it to this other amazing things as cited
congressman uh… see column from tennessee the other day on the television show and we’re trying to not the fortune story on the fast and furious
and and how debunked the whole foot nonsense
about fast and furious and it didn’t there’s no such programs that are and he said almost people in congress uh… comes in
at all so they’re voting for two k to hold air
quality time with the publisher for other reasons okay britt wet on this thing when they have no idea
of the career the stories told me bob so but that leaves me also my overall
point and that i’m getting out of this conversation so all these things have to go awry by without somebody pushing like alan
grayson at every step of the way handing those out taking those down interpreting the really hard work of interpreting the
demanded that or that the divers in the now what i wanted to do doing legal work inside or out they would’ve or wild you right an
annual so i it without alan gracia i’m eating the system from tell us what it
is no way daughter that there’s no doubt there’s no way and you know and not to say uh… well there’s
another angle which i a patient leave out this is really important ron paul’s people were just calling they were calling all the time and like sometimes like firedoglake got some
liberals to college but almost entirely this was
libertarians calling in purporting grass-roots pressure to the
point where other staffers personal they didn’t like me milestones i was very polarizing staffer but might
come as a buzzword the liberals like that the at about fit i’ll tell you but i mailed it
those from the lobbyists and the kids and actually but i’m the only time until the day when it
comes and wells fargo response that sounds really good at it and i don’t
know that an oregon but you know they were in no way because
they would be getting all these calls and staffers were far more reactionary then the members members are relatively
open minded it was the staffers who were actually big part of the problem cuz
they were looking up for their next job with another member or with uh… a trade association or
whatnot so that’s all you have to go to but ron
paul uh… from post people had me educated understood the importance of the body fat problem and by large progressives didn’t
understand wall street work actually opposed to the to the
bailouts i mean this is the very secret of politics which everybody tends to lie about
progressives are against wall street isn’t true they big most of their validate his are paid off
by wall street so you know so again so it was ron
paul’s grassroots base that push this really aggressively so how much do those calls mad i like
the from outside it looks like they don’t matter at all but you may cause you may cause you send
in the emails you send the faxes this is that you sent me to a brick wall but i do you say from the internal point
of view that actually does not indicate it was then its context dependent but in
this case the reason we were able to use because
there was a spotlight on the problem right said they knew every member
understood that voting for prep for paul grayson that progress in bill was the safer
choice which is important could we made it the
safer joyce we highlighted in the financial blogs we got allot of reporting done around uh… corruption
any in an institutional crop shingare mix profession uh… we had all these people calling in they knew the anywhere they went they
would find you know somebody pushing this their colleagues may be a a group or they have o’rourke for parts right-hand so it was um… if you just call up and you say is what
i want you know you made it might be you might catch the congressman and he
might say i a that’s a good idea but i can’t say that calls the matter but um… it’s calling is very much it’s very much
context dependent and most uh… most members on and and most ab kind of people who
are working in politics are not telling you the truth about what works and what doesn’t it’s really hard firewall does i mean
it’s a really simple question simplistic question but emails calls the seller was the most of them i mean i think an in person office visit
to your congressman’s most effective right sit down with staffer who handles
that issue and make case so fifty people from that description
one interesting from a district uh… you don’t need fifteen just me and
what do what they think work out some kook from the district’s one guy doesn’t
matter yeah but you’re still you know you don’t use you get your body is so they’re all the
time nobody else’s right one individual obvious doesn’t
necessarily matter but day after day after day after day bob is coming in it as a matter right to wash it off as local offices of
matter who was one better than others well it would be better if you can go to
the washington office me with the policy people sometimes uh… but you can do that problem when there
is uh… district you can go to the district officers and see if you can
meet the policy staff to find out when they’re going to be or you can call them and say hey i’m i’m looking for the staffer who handles defense women’s rights
banking whatever and they’ll disconnected does than there used to people calling
up i mean at the beginning of every congress you have somebody calls up eighty times a day saying i’m looking
for a list of your staffers and you give it to them and what these are caesar
services or lobbying firms services that sell lists of staffers to
lobbying firms or lobbying firms themselves making their own list you just call up and say i want to talk
to the staff of hills actor who’s the staffer brings us and there’s a naming convention for mail uh… dot house dot mum and union you know strike up a a
conversation with them i was pretty open minded staffer uh… for not lobbyists because i am you know i was interested in what was
going on there are others there to silicate
obviously george you’re going to solve aces let me ask you one final question all the staffers better there and endangerment rediculously specific question i kind of course you
don’t have a number but a general sense of what percentage of them mean to do well i want to send them are worried about
hey who’s where’s my next job going to be easy to do with the banking industry
defense industry beset us so yeah yeah yeah with your calls at all
that stuff i gotta do what i got to do to feed my friend is set i can’t answer that question with the
number because it’s but it’s a large corporate i mean i think about it like that it
like it’s not a special thing in greek weird weird greek and roman inspire buildings it’s just like a lot of people most of
whom are bureaucrats at heart make they’re not try to do good or bad they’re just
trying to like gossip of the water cooler with that in mind you know you’ll meet
some great ones who are who really mean well uh… you’ll meet some months ago care you meet someone sees me well and are
incompetent more new you know you’ll meet some who are competent
sundays in our company and other dates it it hits entirely depends i think you’re probably going to find
that the republican staffers are more uh… they’re more just business-like and
they’re gonna um… they’re they’re not going to really care
what you think unless you’re a lobbyist with the democratic staffers they may
care what you think if you’re not a lobbyist where they may just why do you
know and how you look at the time i sort of wondered whether it makes a
difference like so friend of mine told me recently that with republican staffers this time it so
bad that she would email them about with a question about a bill that
they propose a what is this still do and a couple days later though that a
call from a lobbyist saying all i heard you had a question about this bill no david it’s a great is that it is that
worse then saying it like in the saffir themselves getting the answer from a lobbyist
cutting and pasting it any mailing it back i don’t know how it’s like an ascetic
difference rambler it so it is a story to tim geithner and with the live or mass
who just copied and pasted from what the bank u_s_ banks wanted universe of
fixing left by boorda i stress i lied about how i do about the libro singing
two dozen denied uh… in because it was an open seat if
i do about it i was not connected really if i know that it bother people do about
it didn’t know i was going to see who knew about it here it’s as videos all right and that i have a whole lot
other line of question will have to have another date you’ve been a great mistake
so i thought so everybody check out two things now uh… brand x_ with russell brand on f
access thursdays and eleven p_m_ mad as their our political analyst as you can
tell he does a lot about it and to add something where you write
these things i write it make it capitalism uh… and the case with the political
and couple other places if you want to see at people but
challenging me streamflow the blogs a mattress sunday to
capitalism definitely fitting about so thinking that we appreciate hey thanks a
lot art

100 Comments

  • jpkm123

    "The Federal Reserve through QE and Operation Twist is trying to help ordinary folks", rubbish all they are doing is inflating the money supply, hence the price level (although not uniformly) benefitting everybody holding assets

  • Eric East

    Would have loved to hear him explain how the Federal Reserve came about in the first place. How it was conceived, by whom, and how they got the Act passed.

  • HolyCity2012

    Your prediction is ill informed to state the least. More likely the case is that you are a fantasist and prone to delusion. Libertarians are similar to Evangelical Christians in that they will not be satisfied until everyone else has subscribed to their fairytale. No doubt you consider yourself a Libertarian, therefore all of this applies directly to you. It would be in everyone's best interest if you refrain from posting your predictions for now and forever.

    Sincerely, H.C.2012

  • HolyCity2012

    Or maybe you are susceptible to the idea that human sized bats live on the moon?

    Seriously, Go back to Info wars and let the grown-ups be.

  • David Miller

    As a Physicist, your opinion on the matter, unless supplemented by an equivalent or sufficient amount of study into the particular subject or its students is worthless.

  • yauyyb

    It is not an opinion. The nobel economic price does not come from Alfred Nobel trust fund. Economic theory is not legitimate scientific theories for it is not repeatable, nor is the data recorded from a control environment, each conclusion do not come with a accurate margin of error. Even the most prestigious of economists have failed and failed again and again at make any meaningful predictions despite heavy support from their field. They have absolutely no assurance of what they are saying.

  • yauyyb

    continue. Most economist understand the lack of substance in their field and the time that they have wasted developing it. They are very eager to sell their ill conceived intellectual authority amongst sheepos to the banks and policy maker. The blind trust that the general public have on them allow them to make unaccountable deals that yield them profit. Most nobel economic prize winner have their entire career funded by wall street and bankers and are known to switch jobs between them.

  • jpkm123

    Maybe. he was originally a conservative and then flipped under the bush adminstration
    2 quotes to live by: Winston Churchill “Show me a young Conservative and I'll show you someone with no heart. Show me an old Liberal and I'll show you someone with no brains.” and "never trust a truncoat, they always have too much to preove" Michael Collins

  • ihartevil

    no because when you have income tax you have the least amount of poverty because then the poor can actually afford food and you have more food stamps and food stamps bring a hell of a lot of money to the government and state

    i can prove that TYT talks about it all the time as well

  • Pamela Rice

    Mr. Stoller did not mention that the U.S. dollar is loaned into existence by the Fed (think about that). The Constitution dictates that money needs to be created through the Treasury; also, that the Fed is a 100% private institution for which we don't know the stockholders. Not mentioning these things is an unforgivable oversight. Otherwise, some of the things this guy does mention are actually quite interesting. I'd give this video a mixed rating…..Very good and very bad….

  • jpkm123

    Of course what's interesting and not particularly well known is that Alan Grayson for years has been a client of Pete Schiff…Alan didn't pick up his antipathy to the Fed from the side of the road

  • aeneas fundator

    he knows how the economy works, look at what he chairs in the house, especially inflation and put simply i trust him with my money.

  • TheMac6010

    frankly im not at all believing this guy at all, what he says against Obama, is no facts of it at all, his word in of itself is not FACT….

  • upplsuckimcool16

    That little fact toward the end there about staffers being apart of the problem is VERY interesting to hear.

  • Laura Powers

    Words are never facts, but unless you have the words that make his words untrue you are just adding confusion where your own research might be a better force for good.

  • aeneas fundator

    all we are doing is delaying crashes by pumping money into a new industry and creating a new bubble. the fed needs a chair who will have some resistance to print money and a true desire to back our currency via commodities. do you really think ron paul would get free reign? he would still have to create some money and would liquidate some debt. he would push the dial in the direction we need right now.

  • Andy .T

    i'm British, so nope :/ would be cool to see him as a regular guest on 2012 with epic beard man especially closer to the election

  • Alexander Grable

    QE is meant to inject money into the banking system freeing credit, and Twist is about lowering long term interest rates and 30 year ARMs are at their lowest level in a very long time, The Fed has pointed out that there needs to be more expansive fiscal policy for QE to work and the ability for homeowners underwater to refinance.

  • Alexander Grable

    Jim Himes is not that corrupt as he suggests. Jim Himes, although he may be mild mannered is no weak Democrat.

  • nothhawk777

    I'd like to hear more on his thoughts on Obama. He only spoke in broad, caustic strokes here, and I'm curious to see what lies beneath/what he has to explain his estimation. Next interview maybe?

  • Andy .T

    don't get Sky and tbh i don't watch tv anymore, literally haven't watched anything on tv outside my dvd/blu rays in years i only turn it on for the Rugby internationals. I just get what i want to watch online the bulk from youtube, get exactly what i want when i want that's why tv ratings are slowly declining the internet is just too convenient with the ability to tailor you own content.

  • 2010invent

    He would be the MAN to help us "the People" to fix Washin… He is that insider everyone would dream of knowing. My God. Aren't we lost, and loosing.

  • Megan Kidwell

    Wow! I had to watch this again because this guy is blowing my mind. I want him to teach a political science class and I want to be his student 🙂

  • blackeneddarkangel

    If the regular news shows, national news shows, and newspapers would report on the stuff TYTs report on this country would change quickly. The only problem is that huge RICH companies own the main stream news and keep people's minds full of worthless crap day after day.

  • Anti Hypocrite

    The people then run the Federal Reserve for socialpath they just put my head with their do is OK but deep down their hearts the know that they're doing wrong to get rich in all of the American public. When any one tells you trust us that when are robbing you. The fare is their days of the regulated by an organization can I do not care what they say no wonder our country is all screwed up in the republicons let it happen.

  • Ōkami-san

    What do you care?
    One more time: I PREDICT CENK WILL BECOME A LIBERTARIAN. Why? Because he'll support Obama and be sourly disappointed and in 5 years have had enough of Statism. Along with, hopefully, most of America.

  • jpkm123

    "meant to", intentions are nothing, consequences are everything Injecting money = increasing money supply = inflation, debtors & asse owners gain, those on fixed incomes & retirees lose ( the govt will keep "readjusting" the calculation of CPI/RPI) Twist is merely a twist on that, they are at the limits of QE without sparking even faster inflation. Bottom line: there was massive boom fuelled by cheap/easy credit. More expansive fiscal policy just add to the federal debt, which the FED will buy

  • landofthebees

    Qualifications are usually just arbitrary paperwork. In the grand scheme of things, pretty much any human can learn to do what another human does. Anyone can be an expert at anything , just depends on effort.

  • upplsuckimcool16

    Ummm, everything tht Matt Said Cenk has been saying for years. (Other than the political process details) 'm tlakin about the Obama stuff,… Cenk does NOT cheer for Obama… Right now he is shocked in a good way at how well he's handling the campaign, and obviously we'd rather Obama win than Romney, but Cenk criticizes Obama on the same tingsd Matt did here so noone got slapped.

  • aeneas fundator

    looking at his track record of running his businesses he knows how to balance a budget. look at our past fed chairmen and people like paul krugman who are acclaimed economists. their policies and our appetite for war and welfare is reason we are where we are.

  • biggydx

    Grayson would do good if he were president, but what worries me is that he also voted for the Patriot Act as well. So he may be strong on reforms and maybe prosecutions, but I question how he would do with civil liberties.

  • biggydx

    Yeah, I thought some of his accusations seemed to be of a personal opinion, but not facts. Says right on his blog: "My view is that I’d love to see those financial giants broken up, if only for political reasons: it’s bad to have banks so big they can often write laws."
    His criticism of Obama is mostly justified by his actions. Although, I think it has more to do with him being an amateur and weak-willed, so he just follows establishment rules and his advisers. Still makes him corrupt though.

  • issagc

    I really want to see Matt talk about Obama what motivates him and what motivates the Republicans and the Democrats. What does Matt think is the root of the dysfunction in Congress. And what he thinks needs to be done to get us back on a good direction.

  • aeneas fundator

    i wasn't aware he claimed to make no money from the newsletters but I am aware of the latter part of that premise. he made money as a doctor. the difference was medicine wasn't run by big pharma trying to charge the most. notice how i said fed chairmen AND people like krugman. just pointing out an ideological trend. i don't think the language was necessary either. just an online discussion.

  • aeneas fundator

    post world war two we had ingredients of austrian and keyenesian economics. we had government spending but we also liquidated debt, lowered taxes and had troops coming home from a war. the way we practice keyenesianism now we need war, have to keep taxes high to try to pay for everything government does and we inflate debt and malinvestment via the federal reserve.

  • movement26

    I watched the full 48 minutes to find out what we all know…..Washington is corrupt……….Spoil your ballot paper, vote "None of the above, unfit to hold public office"………….Watch the Norman Dodd, Edward Griffin interview……….A real jaw dropper, a hundred times more informative, than this……….And anything by genius Prof Anthony Sutton.

  • HolyCity2012

    Laugh Out Loud! You think you have some inside knowledge because you watched a video on the internet. These message boards are full of clowns like you.You are nothing more than a Moon-Bat.

    THE END

  • I'll do it

    it means the dollar will continue to be devalued at ever increasing rates to the point that the currency and government fail. it always happens with fiat money, and the people always suffer, there will be starvation and violence in the street, at best. at worst the government will decide to become an actual dictatorship and we will see any and all dissenting opinions will disappear from view.
    politicians wont fix our monetary policy, its destructiveness allows the welfare/warfare state

  • I'll do it

    i would bet the answer is money and the collusion between the federal reserve and the banks that fund the politicians.

    the fix? let banks fail and end the private counterfeit of our dollar(end the fed)

  • I'll do it

    paul krugman is acclaimed for his extremely narrow work that got him his notoriety, but the ass hat speaks on everything that he is not knowledgeable in and it shows.

    the man cant avoid breaking windows.

  • Bigfoot Forest

    Thank you Matt for the info you provided. Cenk, you need to start recognizing the fact that Ron Paul is on the right side of many issues, especially on issues like this. You kept talking about this like it was all Grayson when without Paul and his people it also would not have happened. It seemed like Matt was trying to stress that to you throughout this clip and you really did not want to hear it. Great interview.

  • truthmouthpiece2

    really excellenr itw with knowledge and explanations from within the system, very insightful and well explained, super interesting. Thx Cenk & TYT to bring some real journalism to the table!!!

  • drakkan88

    Great interview. Naming names, there's something very respectable in that. Need more staffers like him, at the very least with some real conviction.

  • raven phoenix

    "white christian men" and no mention of jewish involvement again typical, you can say "white christian men" but you would never use the same criticism towards jewish people because of fear of being called anti semitic , double standards!!!

  • TheRhinehart86

    Or maybe the fact that Jews make up 1.7% of the population means they're kind of irrelevant to the discussion. You guys would bring up the Jews in a discussion of china patterns.

  • raven phoenix

    jews are major players in the fed(and let me also mention in goldman sachs and oh lehmann bros-even though jewish hollywood made a movie about them convenietly in it no jews involved they were all bad whitebread men just like this comment!!!!) proves my point of absolute fear of even mentioning it head on!!! oh and your lame comment"jews make up 1.7% of the population" doesnt that just go against your point, why then is there such a disproportionate amount of jewish control in finance and media

  • TheRhinehart86

    And what about the fact that for every wealthy Jew there are a dozen wealthy christians? There are so many rich Jews because for hundreds of years during the middle ages the only job they were allowed to do was money lending, made it pretty convenient because if you were a lord and wanted to avoid paying your debts, you could just expel them on religious grounds. So over hundreds of years they have accumulated money, so what. So have countless Christian families, get over it you racist wimp.

  • TheRhinehart86

    And what Zionism there is in government, I know there is some among the dozens of lobby groups vying for attention in D.C, is backed by the christian fundamentalists who want to fulfill their crazy prophecy and bring about the apocalypse, so again, what about the psychotic christians who form a much larger and more powerful element in politics? You really think these guys are taking orders from a bunch yarmulke wearing rabbis?

  • Dadutta

    yeah finally. you should also read the ulsterma report if you want behind-the-scenes stuff. like tyt it's somewhat partisan, but the insider info has made many accurate predictions and is ultimately non-partisan info.

  • earl528

    I find it funny how Matt is careful with his words when speaking about the Fed. Basically he is NOT telling the whole truth about the Fed. To learn the truth about the Fed, watch "Money As Debt" ( v=jqvKjsIxT_8 ), and, if you have time, "The Money Masters ( v=HfpO-WBz_mw ).

  • Travilss

    everyone here should watch the "story of your enslavement" or "end of the american dream" cartoons on youtube to get a little more insight to our current banking situation

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