Monthly Archives: June 2017

Police arrest Texas man suspected of running illegal gambling rooms – World Casino Directory

Posted: June 29, 2017 at 11:51 am

Police in central Texas conducted a raid on Monday that resulted in the arrest of a local man suspected of being the mastermind behind illegal gambling operations that could have been bringing in up to $9.6 million a year.

According to a report from local television broadcaster KXAN-TV, the arrest of Chong Pak at his home in the small Austin suburb of Hutto followed an investigation that began in late-January while the 53-year-old has subsequently been charged with money laundering and engaging in organized crime, which carry a maximum penalty of life in prison along with a fine of $10,000.

The broadcaster reported that the raid by the Austin Police Department and Williamson County SWAT also resulted in the seizure of $724,736 in cash, which is believed to be income Pak illicitly amassed as a result of his illegal gambling operations, as well as three vehicles valued at around $94,550 and gold and silver ingots thought to be worth approximately $7,500.

KXAN-TV reported that Pak is suspected of being the proprietor behind six to eight illegal gambling rooms offering a selection of leased eight-liner machines, which are similar to more traditional video slots, while the ongoing crackdown has moreover resulted in the subsequent arrests of at least nine other suspects.

Troy Officer from the Austin Police Departments organized crime unit reportedly declared that there are about 80 illegal gaming rooms in the Austin area located in warehouses, homes and storefronts and that just one of these small operations could earn a proprietor at least $1.2 million a year.

Anyone who says these game rooms are a victimless crime and people are willingly taking part in this, have no idea what the ultimate pocket is for the illegal activity, Officer told KXAN-TV before adding that the cash found at Paks home most likely represents just a drop in the bucket.

Officer additionally stated that the areas illegal gaming rooms are a breeding ground for robbery and violent crimes while their proceeds are often utilized to fund illicit activities including drugs trafficking and terrorism.

We may not get you today [and] we may not get you tomorrow but we will get you [and] we will put you in jail and we will come after your money and take what you covet most about doing these operations; your illegal games, Officer warned other illegal operators via the broadcaster.

Police arrest Texas man suspected of running illegal gambling rooms was last modified: June 29th, 2017 by Adam Morgan

austinillegal gambling operationschong paktroy officer

More:

Police arrest Texas man suspected of running illegal gambling rooms - World Casino Directory

Posted in Victimless Crimes | Comments Off on Police arrest Texas man suspected of running illegal gambling rooms – World Casino Directory

Calgary police ask for help in identifying potential victims of sexual … – CBC.ca

Posted: at 11:51 am

Calgary police say they've apprehended 11 youth who were being sexually exploited so far this year and helped another 11 adults exit the sex trade.

The statistics for the first half of 2017 are not up significantly from the same time last year, but Staff Sgt. Jason Walker said the numbers only scratch the surface of what's actually going on in the city.

"These activities are beyond under-reported. They are, by their very nature, intentionally suppressed and hidden," Walker said Wednesday in a release.

"Victims are often reluctant to self-identify or seek helpand, in some cases, research indicates that many cannot self-identify, as they are vulnerable and limited in their capacity to recognize that they are in fact being trafficked and sexually exploited to begin with."

He said human trafficking and sexual exploitation remainhigh priorities for the Calgary Police Service (CPS).

In the summer, especially,with more people outdoors and in public places, police are nowasking the public for assistance in "recognizing potential signs" of victims being exploited.

Police said victims often don't speak English, are kept isolated or guarded when in public and may be coached by others when they are responding to questions.

Victims may also be unaware of what city they are in and be scared to seek help because they fear it will bring harm to themselves or their families. They may even try to protect their traffickers from being detected, as they develop loyalties toward them as a coping mechanism.

"The illicit elements of the sex trade are not victimless crimes," Walker said.

Traffickers cannot claim ignorance of an exploited victim's age to avoid being charged with child sexual exploitation, he added.

For adults looking to exit the sex trade, theCPS Prostitution Exit Initiativeoffers immediate help and is available by calling 403-428-8585.

Anyone with information about human trafficking activity is asked to call police at 403-266-1234.

Read more:

Calgary police ask for help in identifying potential victims of sexual ... - CBC.ca

Posted in Victimless Crimes | Comments Off on Calgary police ask for help in identifying potential victims of sexual … – CBC.ca

Benefits cheat who claimed she was virtually unable to walk – Mirror – Mirror.co.uk

Posted: at 11:51 am

A benefits cheat who claimed she "was virtually unable to walk" was caught out when investigators discovered she was a drummer in a marching band.

Rhona Vessey told the Department for Work and Pensions she "could only walk 20 metres without getting out of breath" and "felt anxious if people looked at her".

The 50-year-old, who in one year fraudulently claimed 6,251.04 in disability benefits, also said she often "could not carry a shopping bag" because of her physical impairments.

Investigators carried out undercover surveillance on Vessey after receiving a tip-off and on three occasions watched as she banged a drum with a marching band.

Vessey, of Little Eaton, Derbyshire, admitted one count of fraud and was handed a ten-week community order at Southern Derbyshire Magistrates' Court on Tuesday.

District Judge Jonathan Taaffe said: "This is not a victimless crime because there is no bottomless pit of money that people can fraudulently claim from.

"You claimed benefits you were not entitled to and the reality is that society and the courts take a serious view on crimes like this.

"You made the claim and then participated in marching activities with others."

Prosecutor Lynn Bickley said: "We say this was a claim that was dishonest from the outset.

"She made the claim saying she was virtually unable to walk, needed attention to her leg three times during the day and prolonged attention during the night.

"In her claim she said she could only walk between 20 and 50 metres without getting out of breath.

"She said often she could not go outside her front door, or go to shops and supermarkets on her own.

"She said she could often not use shopping bags and felt anxious if people looked at her when she was outside.

"But information was received that she was a member of a marching band and regularly took part in lengthy and complex marching routines."

Miss Bickley said investigators for the DWP went to investigate on Vessey and used secret cameras to catch her playing in the Derby Midshipmen Band, reports the Derby Telegraph.

She said: "The result of the surveillance was that on three occasions she was observed marching in the band with a drum strapped to her shoulder and there were no limitations on her mobility."

Judge Taaffe ordered that she pay 85 costs, an 85 victim surcharge and handed her a ten-week curfew, confining her to her address between 7pm and 7am each day.

Peter Jones, defending, said Vessey had lost her husband "relatively recently" and is currently jointly claiming employment support allowance with her new partner.

He said: "This is a lady that feels great shame that she before the court."

Read more:

Benefits cheat who claimed she was virtually unable to walk - Mirror - Mirror.co.uk

Posted in Victimless Crimes | Comments Off on Benefits cheat who claimed she was virtually unable to walk – Mirror – Mirror.co.uk

These Three Movies Will Help You Understand the Republican Health Care Bill – Slate Magazine (blog)

Posted: at 11:51 am

Fiction.

Columbia Pictures

The Republican health care bill has stalled in the Senate, at least until after the July 4th recess, and for people who live in states with Republican senators, the delay poses a rare opportunity to reach out and let the senate know exactly how they feel about the AHCA. But before picking up the phone, Slates chosen three movies that will help you understand the Republican health care plan backwards and forwards. Check these movies out and youll be an AHCA expert in no time, ready to talk rings around anyone answering the phone at your senators office. Take a look, and get ready to learn to speak Republican!

Its true that you wont find many wonkish health care policy details in F.W. Murnaus 1922 silent masterpiece. But as a primer in the small government philosophy that underlies the Republican partys signature legislation, Count Orloks vampiric reign of terror is at least as instructive as an Ayn Rand novel. Give it a watch to get pumped up before dialing your senator, and remember: Republicans cant enter your house unless you invite them.

You might think that Werner Herzogs 1979 remake of Murnaus film would have just as little to say about effectively lobbying against Trumpcare as the original version. But have you considered that, in many ways, the Republican health care plan resembles the sort of legislation that might be drafted by a political party that was created to serve the interests of vampires? Whos got his finger on the political pulse now?

Yes, I am literally saying that the people who support the AHCA are vampiresand not, like, sexy teenage vampires, but the German Expressionist kind, the ugliest vampires there ever were. Will watching three different films about the same vampire prepare you to call your senators and beg them not to pass a bill that will cause your fellow citizens to suffer and possibly die, just as surely as they would if Count Orlok were drinking their precious blood? I mean, at this point, what harm could it do?

More here:

These Three Movies Will Help You Understand the Republican Health Care Bill - Slate Magazine (blog)

Posted in Ayn Rand | Comments Off on These Three Movies Will Help You Understand the Republican Health Care Bill – Slate Magazine (blog)

The least of these – Ashland Daily Press

Posted: at 11:51 am

In Matthew 25: 31-46, Jesus talks about compassion for the least of these. He identifies them as the hungry, the thirsty, the stranger, the naked, the sick and the imprisoned. He says that when time is fulfilled, the goats and sheep will be separated. The sheep are those who show compassion. The goats are those who do not. In the end, the goats will go away into eternal punishment (in today's language, they'd roast in Hell) but the sheep will enter into eternal life.

Jesus makes it very clear where he stands. Central to life in the Christian Church must be compassion for our fellow human beings. When I look at some of the people in our present U. S. Congress who are trying to pass a new health care bill that will hurt millions of poor, disabled, addicted, and elderly people, I wonder if they know that they are acting like a bunch of goats.

Oh, I'm sure some champion the notion of personal responsibility. While being responsible is a good thing, they say that if you are among the hungry, the thirsty, the strangers, the naked, the sick, or the imprisoned, it's your own fault. Yet this is not the message of Jesus. It's the philosophy of a mid-20th Century lady named Ayn Rand who thought that the talented few should be protected not the least of these. Its a notion that ought not be in the vocabulary of the Christian Church.

In my Christian bones, I believe that what is being contemplated in the new health bill is immoral. I wonder how our representatives in Congress would respond to the question: Are you a sheep or a goat?

Link:

The least of these - Ashland Daily Press

Posted in Ayn Rand | Comments Off on The least of these – Ashland Daily Press

‘Part-Time Genius’ takes encyclopedic adventures into weird, wild stuff – The Daily Dot

Posted: at 11:51 am

Will Pearson andMangesh Hattikudur founded an online empire worth millions on the heels of a campus magazine. Their project boiled down the interesting wormholes of college lectures, offered a curious and fun dorm-roomtone, and eventuallythe duo realized that this approach would make for killer audio.

Seventeen years after launching Mental Flossout of a Duke University dorm room, theyve joinedup with the crew at HowStuffWorks to launch a podcast. With a nod toward those transcendent, stoned conversations you used to have, and a sincere love of nerdy knowledge, the hosts are naturals.

Part-Time Genius, launched this month, offers the weird thoughts and analysisthat made Mental Floss successful, and does soin a format that feels natural and fun in your ears. Listening to the longtime friends discuss why Ayn Rand is a political rockstar or how tax havens became a thing is like hearing your dorm neighbors chat, laugh, and argue through the wall.

Those conversations at night were just so much funthey werent pretentious, they were just super interesting, Hattikudur tells the Daily Dot. Youd have someone whos an economics major relaying the most fascinating topics about why econ is interesting, why beer was sold in six packs, or why Miller Lite is actually a really interesting craft brew.

Apparently beer was sold in six packs because it was the perfect weight for women to carry.

The podcast works as a standalone experience, lacking a throughline between episodes.I was fascinated by studieson how humans can feed 10 billion people or how to live without sleep; I wasted my time while listening to Pearson and Hattikudur discuss the ultimate superhero animalwhich is the point.

Pearson saysthat just like with Mental Floss, theyre buildinga database of episodes that listeners can scroll through years from now, cherry-pickinginteresting topics.

I love the idea of being able to create a show where something that the guys did for Stuff You Should Know five years ago is still being discovered today, says Pearson, referring to another HowStuffWorks podcast. And that was really appealing to us for being able to create this really fun archive that people could dig into once they discovered a show.

Other show topics include: the enduring survival of rats, how boy scouts conquered the U.S., degrees of cleanliness, and a deep dive into what the most American place in the country actually is.At its best, the series takes topics youve never considered and makes them into essential and engaging lectures.

Pearson and Hattikudurlikewise deliver strong guest experts, many of whom are alumni of Mental Floss. Its a whos who of internet culture: guests include YouTube sensationSimone Giertz, Saturday Night Lives Streeter Seidell, and best-selling author John Green. In each episode, guests compete for the coveted Part-Time Geniusaward: a handwritten note of praise from the hostsaddressed to the winners mom or boss.

In addition to these gueststars, the show also spotlights fanswho have day jobs tangentially related to the topic du jour, sayZumba instructors or architects, who come on to ask trivia questions. This segment can be inane, but I appreciate that it brings the listener back from an encyclopedic journey to a fun, informal aside.

How Stuff Works is a network consistently ranking in the top five of overall podcast listener metrics, and is pushing for more podcast market dominance. In addition to bringing on Pearson and Hattikudur, its recently also hired the founder of Cracked.com, Jack OBrien, who will be launching HowStuffWorks first West Coast Studios and spearheading the networks expansion into comedy.

The launch of Part-Time Genius marks the 14th podcast series in the HowStuffWorks network, which was founded nearly 20 years ago in 1998. The podcast joins the ranks of notable shows likeStuff You Should Know,Stuff Mom Never Told You,andStuff You Missed in History Class. This spring HowStuffWorks debutedFoodStuff and released the second season of The Stuff of Lifethe company says its reaching nearly 30 million unique visitors a month.

We joined HowStuffWorks as well because of their plans for the future, Pearson says. The company will be launching additional shows and the opportunity to play a role in how those take shape and how those launch will be a lot of fun as well I think youll see over the next six-to-12 months.

HowStuffWorks is a quirky network for the nerdiest of nerds, and Part-Time Genius fits right in.

Go here to read the rest:

'Part-Time Genius' takes encyclopedic adventures into weird, wild stuff - The Daily Dot

Posted in Ayn Rand | Comments Off on ‘Part-Time Genius’ takes encyclopedic adventures into weird, wild stuff – The Daily Dot

The T-word – New Times SLO

Posted: at 11:51 am

Our college professor sons were up from San Diego, and, as is our practice, we sat on the back porch drinking and discussing the current state of affairs. After a while, I noticed one word entering the conversation so often that it was beginning to chafe. I stood up and shouted, "Enough! Enough of the T-word. I hereby banish its use!"

It was futile, of course, you can't get away from it now. As the racist Alabama governor, George Wallace, famously said about Southern bigotry, "Segregation now, segregation tomorrow, segregation forever." Just substitute Trump and you get the picture in the Disunited States today.

It's not just the frequency of the moniker that troubles me. It's the fact that ascribing all present and coming woes to one man misses the point.

See, here's the thing: Donald Trump is not really running this show. He is a narcissistic, ignorant blowhard, who ran for president as a goof. He was as startled as anyone when America's electorate threw a pre-kindergarten tantrum ("This'll show the grownups! Nyah nyah!") and put him in the White House.

When someone ostensibly in charge isn't up to the job, it means that someone else takes over (see: George W. Bush and Dick Cheney).

In the case of Trump, many people are pulling the strings, from the captains of industryespecially the death/weapons and air pollution industriesto every Republican in Congress, most notably Senate Majority Leader Mitch McConnell and Speaker of the House Paul Ryan.

And wethe press, the populaceseem unaware of this. We gape, with near stupefaction, at the orange-haired clown in the center ring, oblivious to the fact that others are controlling his freakishly fascinating and appalling actions. We don't notice that those same manipulators have sent people prowling beneath the bleachers to pick our pockets as we gawk at the ostensible main attraction.

It's long past time that we give them the credit they are due.

Let's begin with McConnell, this era's Dick Cheney and the most powerful man in Washington for the past six years.

McConnell is happy as a pig in slop at what Trump is doing and so are his 51 stooges in the Senate.

Comedian Jon Stewart used to mock McConnell, portraying the chinless Kentuckian as a slow-talking tortoise. But there is nothing amusing about this particular land-dwelling reptile, whose shell conceals a cornucopia of sinister tricks.

This is the man who chose to nullify the American people's right to choose their president when he spent six years derailing the man they said they wanted to lead them, Barack Obama. This is the guy who had such little respect for America's political institutions that he denied the people a Supreme Court Justice for a year because he feared that a jurist chosen by the man who represented the people would be beyond his control.

McConnell won that last battle and eventually got Trump to rubber-stamp his choice for the court, a guy who will join the GOP's other corporatist judges to ensure that money remains the deciding factor in politics until your grandchildren have grandchildren. This court is about to put its seal of approval on gerrymandering that will keep Republicans in power indefinitely. McConnell (not Trump, despite appearances) may get another pick soon as well.

Almost as bad are the 51 other members of the U.S. Senate, who do whatever McConnell tells them to do. They are supposed to represent the citizens of Maine or Wisconsin or Arizona or Georgia. They don't, and if you scrunched all 51 of them together you wouldn't get a single backbone.

One GOP senator, Dean Heller of Nevada, is hinting that he is going to oppose the repeal of the Affordable Care Act on the grounds that it is too cruel (other GOP senators oppose the bill because it isn't cruel enough). But Heller's coyness comes with fine print: He opposes the bill "in its present form." When the time comes, he will do as Uncle Mitch tells him to do, as have such other "mavericks" such as Susan Collins of Maine and John McCain of Arizona.

With a Senate divided 52-48, any three Republicans could have given the country a Supreme Court justice 18 months ago and could stop today's Republican efforts to harm the poor and middle-class people in their states who get sick. All they have to do is stand up to McConnell.

The far-right House of Representatives is led by Ryan, who, it turns out, is an Ayn Rand cultist: "government is bad so I'll go to Washington and see if I can destroy it." When the House voted to overturn the Affordable Care Act and deprive millions of Americans of medical care, Ryan gushed that he had been working on limiting health care for 20 years. He was so excited he was drooling.

Like McConnell, Ryan has puppets in the House, some of them from around here, like Kevin McCarthy of Bakersfield and Devin Nunes in the Central Valley.

Behind these people are America's titans of industry, the corporate hierarchy, who are supposed to look out for their fellow citizens but don't. There are so many foxes in the country's henhouse that the chickens don't stand a chance.

So we have military warlords whispering (flatteringly, to be sure) in Trump's ear that the world needs more weapons, and, presto, a multi-billion-dollar arms sale to Saudi Arabia goes through and the military gleefully explodes what some deranged general called "the mother of all bombs" in the Middle East. These men and women could easily, and may, persuade Trump to use The Bomb.

There are too many others to mention. People in charge of environmental protection who don't believe the environment needs protecting; people in charge of peoples' health who worry only about the health of Big Pharma's bottom line; those in charge of education who disdain public schools.

None of them care whether your grandchildren will have bad lungs from polluted air, or whether you have a job to take care of your family, or whether you can send grandma to get her teeth fixed, or whether your kid misses school because he is sick.

To them, the Constitution and traditions of this country are abstract and out-of-date.

To repeat: It's not Trump who is running the country. It is all these people and organizations who are taking us to ruin, using the pliable and easily manipulated Trump as their front-man.

We need to acknowledge that and somehow hold them accountable, if we hope to change it.

Bob Cuddy wants to drain the swamp from Arroyo Grande. Send comments through the editor at clanham@newtimesslo.com or write a letter to the editor at letters@newtimesslo.com.

The rest is here:

The T-word - New Times SLO

Posted in Ayn Rand | Comments Off on The T-word – New Times SLO

‘The literal definition of fake news’: late-night hosts on Trump’s Time cover – The Guardian

Posted: at 11:50 am

This would be the saddest thing Ive ever heard if it wasnt the funniest thing Ive ever heard ... Seth Meyers Photograph: YouTube

Late-night hosts on Wednesday took aim at Trumps fake Time magazine cover and the GOPs hugely unpopular healthcare legislation, the vote for which was delayed on Tuesday after failing to receive enough support from Republican senators.

Samantha Bee, of Full Frontal, began: Last week, Mitch McConnell and his gang of 12 finally unveiled their super-secret Obamacare repeal bill. Guess what the big secret was?

Bee went on to slam the bill, which includes huge cuts to Medicaid. Its called trickle-down, she said. Poor people will still get access to the antibiotics that rich people shed in their urine. It turns out, 13 rich white guys alone in a room isnt how good legislation happens. Its how Suicide Squad happens. But while Suicide Squad destroys your will to live, this bill destroys your ability to live.

Most people like Medicaid, including Republican people. Who the hell asked you to gut it by sending it to the states and capping its growth rate? she asked. Medicaid is the reason we dont have gangs of elderly people roaming the streets, robbing us of our soft food and sharing their thoughts about Asian people. Allowing states to cap Medicaid benefits also threatens the expensive long-term care that was so very important to Republicans back when it was keeping Terry Schiavo alive.

Bee then tore into Paul Ryan, who said hed been dreaming about the legislation since drinking out of a keg in college. While most college guys in the 90s were fantasizing about Pamela Anderson, Bee joked, Paul Ryan was jerking it to thoughts of poor people losing healthcare to pay for tax cuts. Easy there, cowboy! You might not be covered for carpal tunnel and blindness.

Amazingly, Mitch McConnells annotated copy of Atlas Shrugged wasnt greeted with unfettered senatorial rapture, Bee said. But dont put your sharpies and poster board away yet.

Stephen Colbert took aim at the legislation as well, a new version of which could be voted on after the Fourth of July recess.

The Senate Trumpcare bill suffered some setbacks this week because theres one major flaw to the legislation, he began. I dont want to get too wonky, but its a hot pile of garbage.

Yesterday, Senate majority leader and man trying to keep a bird from escaping his mouth Mitch McConnell announced that voting on the bill would be delayed until after the Fourth of July. Its a smart move. You dont want to strip people of healthcare until after the holiday that mixes booze and explosives.

Colbert continued: While theyve pulled the bill, Republicans say theyre going to come back with something better. And theres a lot of blame to go around. Today, the New York Times said Donald Trump faltered in his role as a closer. Usually, hes a great closer. Just look at his casinos. But you cant. Theyre gone.

The host then discussed the Times report, which detailed some of the internal efforts to get the bill passed. One Republican senator said the president did not have a grasp of some of the basic elements of the Senate plan, Colbert said, before beginning his impersonation of the president. Whoa, slow down. Slow down. Start from the beginning. Whats a Senate? And, follow-up question, whats a plan?

Trump claims he does understand the plan, Colbert continued, tweeting: Some of the fake news media likes to say that I am not totally engaged in healthcare. Wrong, I know the subject well and want victory for US.

He totally understands healthcare, Colbert quipped. He thinks you can win it.

Seth Meyers of NBC addressed healthcare legislation and the Washington Post report saying the president hangs a fake Time Magazine cover in many of his resorts and hotels.

This week the CBO projected that the GOP healthcare bill could leave 22 million more people uninsured, he began. So what has Trump been up to? Well, yesterday, he got up bright and early to retweet four different stories in a row from Fox & Friends attacking the Russia investigation and the Democrats.

Meyers continued: One of the stories Trump retweeted was a link to a monologue from Fox host Sean Hannity, whose surgery to have those bolts removed from his neck was apparently successful.

Trump is so obsessed with praise from the media that according to the Washington Post, he keeps this framed Time magazine cover hanging in several of his golf clubs, Meyers said. Cool cover, flattering photo. Just one problem. The Time cover is a fake. Thats right, Trump hung a fake Time Magazine cover with his face on it in his private golf club. That is the literal definition of fake news. This would be the saddest thing Ive ever heard if it wasnt the funniest thing Ive ever heard.

Continued here:

'The literal definition of fake news': late-night hosts on Trump's Time cover - The Guardian

Posted in Atlas Shrugged | Comments Off on ‘The literal definition of fake news’: late-night hosts on Trump’s Time cover – The Guardian

WATCH: Sam Bee brutalizes Paul Ryan for ‘jerking it to poor people … – Raw Story

Posted: at 11:50 am

Sam Bee on Wednesday railed into the GOP healthcare plan in a five-minute blitz that hit Paul Ryan, Mitch McConnell and even Ayn Rand.

Bee torched conservatives for cutting healthcare coverage for poor, working and sick Americans, pleading, dont kill Medicaid, its only 52 years old! It just joined curves and is learning to dance like nobodys watching!

She then turned to Speaker of the House Paul Ryan (R-WI), playing a video of the GOP leader bragging hes been dreaming of sending Medicaid back to the states [and] capping its growth rate, adding hes been dreaming of this since you and I were drinking at a keg.

Yes, while most college guys in the 90s were fantasizing about Pamela Anderson, Paul Ryan was jerking it to thoughts of poor people losing healthcare to pay for tax cuts, Bee said.

She then turned to Ryans comrade in the Senate, Mitch McConnell (R-KY) for his thinly-annotated copy of Atlas Shrugged.

Watch the video below, via TBS:

Excerpt from:

WATCH: Sam Bee brutalizes Paul Ryan for 'jerking it to poor people ... - Raw Story

Posted in Atlas Shrugged | Comments Off on WATCH: Sam Bee brutalizes Paul Ryan for ‘jerking it to poor people … – Raw Story

The central bank fetish – Capital & Conflict

Posted: at 11:50 am

The markets central bank fetish is getting out of hand. The money manipulators were out in force yesterday. Their words moved markets all around the world.

Nothing else seems to matter these days, so lets delve into whats going on.

Bank of England (BoE) governor Mark Carney told markets last week that it wasnt time to raise rates yet. This week he said hed have to remove some stimulus.

The pound surged a per cent on the change in potential policy. But then the BoE PR team was out in force telling the markets they had it wrong. Carney wasnt going to raise rates imminently.

Meanwhile the BoEs chief economist put a date on the interest rate increases the second half of the year. Thats supposedly a bit of a scandal, as it puts his boss, the governor, into a corner. If Carney does vote to raise rates in the second half of the year, his economist appears to be running the show.

Yes, office politics and PR teams now run UK monetary policy. The former BoE Monetary Policy Committee (MPC) member Kristin Forbes said so in her explanation for quitting the committee. In a speech to the London Business School she explained that the central bankers were too worried about the press to conduct proper monetary policy.

Central bankers around the world have accepted a far larger mandate than controlling inflation. Theyre now responsible for monetary policy, bank stability, unemployment, financial market stability, bank regulation, the stockmarket level and money itself. You can probably throw in exchange rates too. Not to mention the political issues that go with each of these.

The massive expansion in the role of central banking was supposed to make things more efficient and centralised. But it creates huge conflicts of interest and paradoxes. For example, what if meeting one goal comes at the expense of another? What if combating inflation means financial instability? When the central bank is faced with tough choices that cause problems within one of its spheres of influence, it can now be framed for incompetence.

Its not just in the UK that all this is happening. There must be an enormous jobs boom going on at central bank PR teams. Each time their governors, chairpersons and presidents open their mouths, the markets move and then the PR team comes out to clarify.

Its getting downright bizarre. For example, the comments from European Central Bank (ECB) president Mario Draghi which sent markets spinning were these:

As the economy continues to recover, a constant policy stance will become more accommodative, and the central bank can accompany the recovery by adjusting the parameters of its policy instruments not in order to tighten the policy stance, but to keep it broadly unchanged.

That gave investors a fright. The euro had its biggest move all year. The ECBs vice president promptly showed up on CNN to say the market had misunderstood the comments. They implied no change in policy.

Draghi is arguing that a change in monetary policy is not necessarily a change in monetary policy. Doing something can actually mean doing nothing.

Dont you see?

If we put on our central banking hat, it might make sense. If inflation rises, then increasing interest rates at the same speed keeps the real interest rate stable. The real rate is the interest rate minus inflation.

Despite the fact that Draghi said, even if he does do something, it will still be nothing, the market reacted. In the understatement of the century, the ECBs chief economist said markets are particularly sensitive to any perceived change in the future course of monetary policy.

Draghi may have a point though. When the Federal Reserve increased rates, the stockmarket reacted in the way youd expect from a rate cut. When Goldman Sachs chief economist tried to make sense of this, he concluded that the increase in rates was actually pushing the market higher because it wasnt big enough to count as a real increase.

Not only are the PR reps obfuscating in force, so are the economists.

The central bank fetish dominates markets. While it continues, its hard to see how a drop in markets could occur. Central bankers have the powers, the mandate and the infinite budget to offset any problem I can come up with. That implies a steady boom in asset prices, which you can take advantage of.

But it also puts us in some sort of weird doldrums. Its the stability of the world described in Atlas Shrugged, whatever you think of the book and its philosophy.

Central bankers have destroyed financial markets as a mechanism for accountability, risk pricing, capital efficiency and anything else. Financial markets have become a government welfare system run by central bankers. Investments are just a pool of pension funds which must be kept afloat by pumping stock prices.

The question is whether this imposed stability really is stable. The economist Hyman Minsky said that stability begets instability.

Lets go back to the resigning BoE MPC member who highlighted the BoEs PR paranoia. The central bank has too many roles. Some of which can conceivably conflict. Perhaps this is where our answer lies.

At the moment, the various indicators that central bankers have to control are pulling in opposite directions. Inflation falls when the financial sector is in trouble, so the BoE can rescue and print money without worrying about inflation. Inflation rises as the financial systems health improves, so the BoE can tighten policy without fear of sabotaging the banks.

But these relationships need not persist. Perhaps the BoE will some day be forced to choose between its mandates. It will have to sacrifice inflation, the stockmarket or the banks. And then our stability ends.

Like some sort of circus, the authorities are keeping the markets distracted from the bigger questions. The latest act was bank stress tests in the US and an analysis of financial stability by the BoE.

Every now and then regulators around the world pretend to run a health check on their banks. Why? To look busy. And reassure everyone.

These test and reports are usually meaningless. But theyve opened the door to something else less innocent.

Back when a Mr Cowperthwaite was in charge of the Hong Kong economy, he refused to collect statistics. This stopped the central planners and economic meddlers in their tracks because they didnt have the data to justify their schemes. You cant regulate what you dont know anything about. Hong Kong boomed under the unique way of imposing free markets.

The regulators and central banks constant analysis of banks is an example of the opposite phenomenon. They have some much information, they cant help but meddle.

In the UK, the BoE decided to call upon banks to raise more than 11 billion as a capital buffer. The idea is to put money away for a rainy day. The rain being consumer credit defaults in this case.

This is an interesting turn of events. Central bankers are trying to run banks actively now. And the bankers arent happy about it. The increase in capital means they can lend less, or return less to shareholders. It also smells like backdoor monetary policy. By restricting bank lending, the BoE is reducing the economys money supply indirectly. We await the PR teams response on this.

Over in the US, the results of the second segment of the bank stress tests are out. All but one bank passed the first test with flying colours. Their stocks reacted accordingly.

The second test focused on the banks desire to pay profits out to shareholders. Such intentions must now be approved by the authorities as not endangering a banks financial stability because a payout to shareholders reduces capital. Again, this is regulators running bank business decisions. More symptoms of an Atlas Shrugged world.

The margin for error in the stress tests was large, with banks running far more safely than regulators decided was the bare minimum. The banks promptly decided to return funds to shareholders in the immediate wake of the stress test release. The $100 billion payout of the six biggest banks is close to 100% of their profits. In other words, they only had to behave until the report card came out.

At the heart of whats going on here lies an old question. Are banks businesses or utilities? They run a public function the money supply by providing the debt which creates money. The central bank is just the first step in the process. Banks control most of it. Having private institutions running a public function creates the problems we have now.

The debate is that we should choose between two options. Either banks should become proper utilities and controlled as such, or money shouldnt be a public function.

Until next time,

Nick Hubble Capital & Conflict

Category: Central Banks

Read the rest here:

The central bank fetish - Capital & Conflict

Posted in Atlas Shrugged | Comments Off on The central bank fetish – Capital & Conflict