Bernanke thinks "zero interest rates forever" is appropriate because he has a "subdued outlook for inflation in the medium run."

And that's where the PCEPI comes in. It stands for Personal Consumption Expenditures Price Index. And it's what the Fed uses to measure inflation.

The PCEPI tracks the price of some goods, just like the Consumer Price Index (CPI). But there's a big difference. The PCEPI assumes that consumers switch spending from higher priced goods to those that are stable or falling. For example, if the price of steak goes up, the PCEPI assumes you will start eating ground beef. So it replaces steak for ground beef in its basket of goods. Isn't that a nice trick? No wonder inflation is always low for the Fed. A Long History of lies. The Fed has become quite an expert in creating this illusion of low inflation.

In 1980, it changed the way it calculated the CPI. The new methodology made the new CPI rise at less than half the original measure. If the Fed was using the original methodology, the official
inflation would be much higher today.

And it gets worse. Tinkering with the CPI wasn't enough for the Fed. So it created the PCEPI in 2000. Because of the substitution effect I mentioned above, this index rises at about one-third less
than the CPI.

The Fed's official inflation is a big lie. That's like adjusting your clock just to make it look like you're not late for a meeting. Or tinkering with the balance just to make it look like you lost a few pounds, when in fact you gained.

Inflation should be used to measure the loss of purchasing power, and the resulting decline in standard of living. But by replacing goods that rise in price for cheaper ones, the Fed is able to keep the official measure of inflation low, despite the dollar's clear loss of purchasing power.

So here's a question for you...If you suddenly have to start eating ground beef because you can no longer afford steak, doesn't that really mean your standard of living is declining?

The Fed's measure of inflation is essentially meaningless.

IMO, this is all part of the "spartanization" of the US economy and population to be nothing more than suppliers for the MIC/Fed/WB/UBS/NWO, etc. AND still be the biggest "target" in the world, so if it comes to 'that', we are toast, while the super-rich absconders sit in the sun in the Caymans with their ill-gotten gains and watch us be destroyed perhaps as Iran has threatened.