Governor Perry Says Fed Should Open Its Books

We have been asking the question for some years now, and the question is, "How does the Federal Reserve actually buy U.S. Treasury bonds?"  I mean really....if they truly have $2 trillion dollars sitting in their checkbook to buy IOU's from the Treasury, thereby allowing the U.S. Government to continue its spending binge...why wouldn't the Federal Reserve just gift the money to the Federal Government so they could balance their books and this whole debt ceiling debacle could have been avoided?

Of course the answer to the question is that the Federal Reserve doesn't have the money sitting around.  It's all just a shuffling of numbers...a mythical creation of zeroes.  And we consumers are so lost on how currency actually works and how interest rates are actually set and how Treasury bonds are actually sold...that we just dismiss the whole discussion and just assume that someone a lot smarter than us has the whole thing figured out.  But what if they don't?  What if it's all really just an illusion of smoke and mirrors?

So what would happen if the Federal Reserve was forced to open its accounting books and become completely transparent?  It might not be good for "faith and confidence" of our financial system...in the same way as it wasn't good for Bernie Maddoff and his investors to finally have his books opened.

With that as a backdrop, today's headline has Republican Presidential contender Rick Perry, Governor of Texas, asking for the Federal Reserve to open its books.

“I got in trouble about talking about the Federal Reserve. ... I got lectured about that yesterday,” the Republican said during the storied Politics and Eggs breakfast at Saint Anselm College here.

He was referring to remarks he made Monday night in Iowa that Bernanke would be committing a “treasonous” act if he adopted another round of so-called quantitative easing — the buying of Treasury bonds to pump more cash into the economy.

“There have been a number of politicians who have stood up and really questioned the transparency of the Federal Reserve,” Perry said. “They should open their books up. They should be transparent so that the people of the United States know what they are doing and how they are doing. If they would simply open up and be transparent ... until they do that, there will continue to be questions about their activity and what their true goal is for the United States.”

See it here; http://www.washingtonpost.com/politics/rick-perry-says-fed-should-open-its-books/2011/08/17/gIQACbQELJ_story.html

Interesting!!  What is their TRUE GOAL for the U.S.?  What if we discovered that their true goal was to bankrupt the U.S. and force our entire financial system to be under the control of the International Monetary Fund (IMF)...which would set the stage for a one world currency?

Do you get the feeling that Toto is now sniffing around the curtain that is hiding the mighty Wizard of Oz??