Federal Reserve Emphasizes Transparency, As If It Matters

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.

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