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.
http://sovereign-investor.com/2012/02/03/the-feds-measure-of-inflation-is-essentially-meaningless/
http://sovereign-investor.com/files/
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.
http://sovereign-investor.com/2012/02/03/
http://sovereign-investor.com/files/
I find it amusing that the banks from what I understand have now become the biggest investor in oil and that there are so many trillions of dollars missing and or unaccounted for. I think you may find the real inflationary issue in oil prices and what we are paying for a gallon of gas and that the inflation in said gas prices have been the hidden tax of inflation as we here in America spend so much of our money for the crude stuff that folks in the land of Chavez called Venezuela are only paying a paltry 12 cents a gallon and isn't it the baneful effect of money printed out of thin air and laundered through wall-street that the banking cartels that we just bailed out and or what banks have gone under and have been monopolized by the central banking cartels who have made out like bandits buying for pennies what use to be many dollar stocks who our federal trade commission is suppose to protect we the people from such acts of monopolization as such banks continue to loan money to the INC and or person-hoods who are not competitive but being given the money they need to put any and all competition out of business and that Mussolini would be proud and the communist are set to render the psyche of the entire world to their "STANDARDS" as we here in America continue to be dumb down by the same powers that "Norman Dodd" and said Reese / Cox committee and said tax exempt foundations prevail and tell us all the lies of history and rewrite history the way they see fit etc etc as the truth is the enemy of the state are all in bed together now and that our nation will soon be under the control of the federal reserves favorite corporations and their dictator and or that we as technocratic state of mind have been rendered to the same "STANDARDS" of robots and or slaves to that elite class believing we are still a free society living under such UNIFORMITY and STANDARDS (communism in the bag)unable to think for ourselves but capable of taking orders from headquarters from and for a carrot and stick authorized few. to wit per Thomas Jefferson
ReplyDelete"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
I also have noticed that there are plenty of apartment complexes going up in all our small communities and that the banks are foreclosing at break neck speed and that agenda 21 seems to coming right along as we are being herded toward our inevitable end if we do not wake and prevent the BIG LIE by using "common law" to reclaim our land and resources what rightfully belong to the many and not the few. I now understand how our native Indians felt to some degree; to wit
Before our white brothers arrived to make us civilized men,
we didn't have any kind of prison. Because of this, we had no delinquents.
Without a prison, there can be no delinquents.
We had no locks nor keys and therefore among us there were no thieves.
When someone was so poor that he couldn't afford a horse, a tent or a blanket,
he would, in that case, receive it all as a gift.
We were too uncivilized to give great importance to private property.
We didn't know any kind of money and consequently, the value of a human being
was not determined by his wealth.
We had no written laws laid down, no lawyers, no politicians,
therefore we were not able to cheat and swindle one another.
We were really in bad shape before the white men arrived and I don't know
how to explain how we were able to manage without these fundamental things
that (so they tell us) are so necessary for a civilized society.
John (Fire) Lame Deer
Sioux Lakota - 1903-1976