Bernanke is living in CPI fantasy land

To paraphrase Twain: “There are three kinds of lies: lies, damned lies, and the statistics Ben Bernanke uses to screw with the economy.” Ben’s myopic devotion to the Consumer Price Index (CPI) is more than doddering academic idiocy, it’s outright cruelty for those on a fixed-income or trying to survive paycheck to paycheck.

Our friend, the esteemed academician, Mr. Bernanke is ignoring real commodity prices for several reasons. 1) ignoring the real cost of living allows Uncle Same to screw retirees by avoiding a Social Security cost of living increase 2) it’s his excuse to keep printing money to shore up the TBTF bank’s depleted balance sheets 3) it allows him to keep up the pressure on the yuan/dollar peg 4) it shows how the DOW is kicking inflation’s ass YOY.

Of course housing prices are in the gutter, and Mr. Bernanke would like “to stablilize” real-estate, not that he gives a rat’s ass for Joe Sixpack’s underwater mortgage, but because the big banks need higher prices in the fraud-closure market.

We all know that the “dual mandates” of the Fed (a. stable prices and b. full employment) are just euphemisms for 1) increasing loan values for the banks and 2) personal income from which the banks can continue sucking loan payments.

Following the proud tradition of Alan Greenspan, The Bernank decides what “is best for the economy” and then invents numbers to justify himself.

The CPI should include stuff you buy everyday, right? Yeah, that’d be common sense, but who are we kidding?

Here’s the real story on prices of stuff that matters to you everyday:

(graph from Casey Research):

Anyone care to play, “One of these things is not like the others…”?


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