The Federal Reserve began releasing quarterly financial results on Monday, in an effort to increase transparency at a time many Republicans are demanding more accountability from the U.S. central bank. The Fed previously published financial statements annually. Its decision to report more frequently responds to demands for more openness and provides a reminder to taxpayers that it has been a significant source of income for the government. Its release of unaudited first- and second-quarter results detailed a sharp rise to $46.447 billion in its payments to the Treasury, from $40.456 billion in the first six months of 2011. "This enhancement to the (Fed) Board's previous financial reporting procedures will provide greater transparency by communicating financial information on a more frequent basis and in greater detail," the central bank said. – Reuters
Dominant Social Theme: Finally, the Fed takes steps to address critics and create a more efficient and honest facility.
Free-Market Analysis: We are to believe that the Federal Reserve's openness marks a great step forward in ... what? The problem with the Fed is that it is a monopoly central bank printing money-from-nothing and thus causing ruinous booms and terrible busts.
We're living through one such bust now. How is the Fed's transparency as regards any of this going to help with the fundamental problem of Money Power?
That's the kind of question Congressman Ron Paul (R-Tex) might be asking, as he is behind the "audit the Fed" movement.
But the questionable "transparency" the Fed is offering us is nothing but a ruse, a feeble palliative designed to provide talking points for those who want to dodge the real issue: Modern monopoly central banking doesn't work, can't work, won't ever work. Central planning of any kind doesn't work. Nobody is capable of predicting the future with any kind of accuracy. It's why the Soviet Union fell apart.
Chances of a thorough audit are fairly slim, anyway. A bill to get it done would have to pass the Senate and then President Barack Obama would have to sign it. Here's some more from the Reuters article:..................
.............Then there is this from a CNN article on the issue, "Audit the Fed? Bernanke fights back against Ron Paul" ... "Current law also protects the Federal Reserve from audits that reveal transactions with foreign central banks and governments, the reserves of its member banks and discussions among its employees about these issues."