Bernanke: Rising stockmarket = economic growth

Forget high unemployment.

Forget falling dollar.

This is what the Federal Reserve Chairman had to say in today's op/ed in WaPo. Guambat may have cut and pasted and re-arranged the statement, but these are all direct quotes:

What the Fed did and why: supporting the recovery and sustaining price stability

The Federal Reserve's objectives - its dual mandate, set by Congress - are to promote a high level of employment and low, stable inflation.

Two years have passed since the worst financial crisis since the 1930s dealt a body blow to the world economy.

Among the Fed's responses was a dramatic easing of monetary policy - reducing short-term interest rates nearly to zero. The Fed also purchased more than a trillion dollars' worth of Treasury securities and U.S.-backed mortgage-related securities, which helped reduce longer-term interest rates, such as those for mortgages and corporate bonds.

The FOMC decided this week that, with unemployment high and inflation very low, further support to the economy is needed. The FOMC intends to buy an additional $600 billion of longer-term Treasury securities by mid-2011.

This approach eased financial conditions in the past and, so far, looks to be effective again.

Stock prices rose and long-term interest rates fell.

Easier financial conditions will promote economic growth. For example, lower mortgage rates will make housing more affordable.

And higher stock prices will boost consumer wealth.

Lower corporate bond rates will encourage investment.

Dear Reader: what the Fed is doing is printing bogus bills. As fast as it can.

And, like his predecessor, who invented this shill (or, if not invented it, adopted it wholesale into the main tool of US monetary policy), as long as stock prices go up, stuff direct action to temper high unemployment and low inflation.

This policy will not, by any linkage or mechanical transmission, lower employment any time soon, if at all. It will, however, most assuredly, debase the currency.

And history tells us the only certain result of a debased currency is staggering inflation.

Hell of hyperinflation

a hyperinflation can be stopped easily. No outside help is needed and stabilisation at least can be achieved without much reform. All the government has to do is make a credible promise that it will not revert to the printing press and that it will balance its budget.

The hyperinflation is driven by corrupt and inefficient public bodies, packed with government cronies, that demand foreign currency from the central bank to buy fuel or fertiliser from abroad. They siphon off wealth and come back for more.

Bingo!, and Alabama goes to the dogs

11 charged in Alabama federal corruption case

The suspects are four Alabama state legislators; three lobbyists; two business owners and one of their employees; and an employee of the Alabama legislature, said Assistant Attorney General Lanny Breuer and Assistant FBI Director Kevin Perkins.

According to the indictment, McGregor owned a controlling interest in Macon County Greyhound Park Inc., also known as Victoryland, in Macon County, Alabama, and Jefferson Country Racing Association in Jefferson County, Alabama, as well as ownership interest in other entertainment and gambling facilities in Alabama that offered or sought to offer electronic bingo gambling machines to the public.

The suspects were charged in connection with their alleged roles in a conspiracy to bribe and offer to bribe legislators for their votes and influence on proposed legislation, the federal officials said. The charges include conspiracy, federal program bribery, extortion, money laundering, honest services mail and wire fraud, obstruction of justice and making a false statement, the Justice Department said.

Bob Riley calls gambling a cancer on Alabama

Gov. Bob Riley condemned gambling as a cancer that threatens the state’s economic vitality. “I think gambling is bad for Alabama. Nothing is more corrupting to the people than to have that money coming in to influence elections and legislation.”

He said he was “disappointed but not surprised” when the Department of Justice released an indictment Monday accusing a pair of casino magnates, four state senators and several lobbyists of a scheme to buy and sell votes for a bill that would have expanded gambling in Alabama.

Riley, who successfully opposed the bill and later called it “the most corrupt legislation ever considered” by the state Senate, has waged an aggressive and controversial war on gambling for nearly two years. The second-term Republican has deployed state troopers to seize electronic bingo devices that look and play like slot machines — which are illegal in Alabama — and shut down the casinos that housed them.

Riley, who is term-limited from seeking re-election and will leave office in January, said he had not read the indictment and emphasized that the investigation was being conducted independently of his administration. But, he said, proceeds from illegal gambling contributed to a culture of corruption in Montgomery.

“Anytime you have organized gambling that has that amount of money and was using it in the way that evidently they did, it should be frightening to everyone,” Riley said. “The potential for corruption is enhanced by the sheer amount of money that was being used all over the state.”

Alabama officials snared in FBI corruption raid

The indictment was met with deep suspicion in some quarters. Proponents of legalized gambling, most of whom are Democrats, said they saw behind the probe the political machinations of gambling opponents, including Riley, a Republican. That the charges came within a month of the November elections also troubled some.

"Anyone who loves democracy and freedom should be concerned with the timing of these indictments," said Ron Sparks, the Democratic candidate for governor. "Waiting to announce indictments after the election would have had no impact on the cause of justice."

Electronic bingo games, which have flashing lights and sound effects similar to slot machines, were a rapidly growing business until Riley formed a task force to shut them down.

The task force raided bingo halls, seized machines and won court battles that resulted in the closure of all privately operated electronic bingo casinos. Three operated by the Poarch Creek Indians, who aren't under state control, have thrived amid the shutdowns.

State legislators tried to pass bills in 2009 and 2010 to allow the games to operate, but both bills failed. Behind the scenes, federal prosecutors said, operators of the two largest private casinos and teams of lobbyists were offering millions in campaign contributions, benefit concerts by country music artists, free polling and hidden $1 million-a-year payments for votes.

Ronnie Gilley, developer of the Country Crossing casino in Dothan, and Milton McGregor, owner of VictoryLand casino in Shorter and a financial backer of Country Crossing, were indicted along with three of their lobbyists and state Sens. Harri Anne Smith of Slocomb, James Preuitt of Talladega, Larry Means of Attalla and Quinton Ross Jr. of Montgomery. All four voted for an unsuccessful bill to legalize the machines.

Bingo in Tennessee

Corruption around "charity" bingo dominated state headlines in the 1980s, climaxing with a huge sting called "Operation Rocky Top" that led to convictions of more than 50 people, including a legislator, a judge and other public officials.

Investigators found money-skimming, payoffs, bribery and the sale of charters in the all-cash halls.

The five-year federal/state probe and ensuing state Supreme Court ruling that bingo gambling violated the state constitution ended bingo-for-profit in the state.

Now, some veterans' groups want the legislature to set in motion bingo's return to raise money.