From Richard Russell in Dow Theory Letters:

The Fed created $2 trillion of assets and debts to rescue banks from their incredible stupidity and almost certain bankruptcy. American taxpayers, to whom the Fed is beholden, have no idea how the money was spent and who the money went to, and they want to know who and why.

The Fed's answer is that US citizens have no right to question or audit the Fed. The arrogant (or frightened?) Fed is resisting all requests for an accounting or an audit.

On his second day in office, President Obama, in a letter to ALL agencies wrote, "Transparency promotes accountability" because "information maintained by the federal government is a national asset. My administration is committed to creating an unprecedented level of openness in government."

So why not audit these arrogant or terrified bastards at the Fed? What are they hiding? What are the "dangerous secrets" behind the Fed's reluctance to reveal its activities?

I hate secrecy -- unless it's necessary to protect the US in time of war. Behind secrecy is almost always evil or corruption. Case in point, VP Cheney screaming that it is "outrageous" to investigate the CIA's torturing ("enhanced interrogation") of prisoners.

"Enhanced interrogation," "quantitative easing," when the government resorts to euphemisms, you know that there is evil or something the government wants to hide behind the expressions.

Crux Note: Learn more about the excellent Dow Theory Letters here.

More from Richard Russell:

The absolute best thing you'll read about gold this month

Richard Russell: Rally is well within the confines of a bear market

Richard Russell: The major development we need for a real market bottom