It is outrageous to suggest people should have their savings in equities.  That is fine up to a point for younger people who already have an emergency cash reserve.  But people at or nearing retirement age should avoid volatile investments like equities in favor of more secure instruments like bonds and CDs.  Any financial adviser will tell you this.

Bernanke is advising seniors to take unwise risks, and penalizing savers who do not.

Neither CPI nor the AIER numbers measure inflation.  They are measuring prices, which can be an indicator or result of inflation.

Actual inflation would be the amount the money supply has increased beyond that necessary to replace worn out currency and keep pace with growth.  Why no one does these calculations is a mystery (it should be a core function of the Fed), but my guess is it is closer to 20% over the last two years.  It just hasn’t shown up in prices yet because of the shell game the FRB is playing with “quantitative easing” (buying bonds with no money – I tried this on gasoline, it doesn’t work at all).

Inflation is fairly low right now, particularly given the growth in the money supply.

The reason for this is primarily because the new money isn’t actually out in circulation but is sitting in banks, at the FEDs insistence, so that they maintain certain ratios of cash, assets, and liabilities.

It is not necessarily the price level one should look at, but the cost of living.

The rapid technological increase of the past 20 years have made achieving a relatively good standard of living available to most Americans (which is leaps and bounds above 99.9% of other countries).

Gas and food are going up, but ones ability to connect to the world of news and entertainment is getting cheaper by the day, electronics and home necessities are also cheaper.

The problem isn’t with today’s inflation, but tomorrow’s.

America’s debt becomes unsustainable once interest rates go up a few percentage points.

But therein lies an error in your logic: yes news and entertainment are getting cheaper to procure, as are electronics and home appliances (very few of them are actual necessities).  
Energy (either for transportation or utilities) and food are necessities though (and our society has gotten very divorced from reality when it fails to consider that those, and shelter/clothing are things that can become hard for some to come by) — and either the lower rungs of society get pinched (and then don’t buy the other things because their income is diverted towards food and gas — what happens to those industries then?) or somebody has to buy the necessary things for them in order for them to afford to buy the other stuff (which is a big problem).
And as the prices go up the pinch and the groups falling into the “pay for it” category grow.

Necessities, such as food, are much cheaper than they were 30 years ago. The price might go up, but the share of income that the average family has to devote to it is more than half of what it once was. This is primarily due to the corn economy that was introduced 35 years or so ago and is why people are so fat these days.

The big problem is that the US has borrowed so much money that it will be extremely difficult to either refinance that debt or issue new debt….which would be catastrophic.