Bernanke in WaPo: 'Stock prices higher, people spend more'

Today, in an OpEd in the Washington Post, Bernanke finally came clean about the true intentions of QE2.

"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 when investors began to anticipate the most recent action. Easier financial conditions will promote economic growth. For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance. Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion."

This is explicit. Lower rates haven't increased home buying (tough to qualify/want a mortgage when you are jobless, banks aren't actually lending, home prices are obviously being falsely supported, etc) so that can't be the goal. Lower corporate bond rates are almost impossible at this point, so that can't be the main idea.

No, no, its obviously an attempt to boost the stock market at all costs at the expense of the dollar's reserve currency status, the respect of both our allies and our enemies, the purchasing power of the middle class, etc, etc, etc.

The S&P is up approx 15% since the beginning of September. Meanwhile, the commodity index is up 17%. This should make clear to any and all sentient human beings that this is a dollar devaluation that will hit most painfully for the already unemployed and the middle class. $8/gallon gasoline does not spur economic growth or the American consumer to again spend frivolously.

Meanwhile, leaders from countries around the world are becoming louder and louder in their demands that the US abandon its current policy on the dollar. (Brazil, China, South Korea, etc).