Many Americans by now know that the mainstream media is little more than a propaganda tool of the banks and government, and they rarely if ever report on actual data that could deter from their agenda of ensuring the public believes everything is fine. This has been true in many facets, whether it is the whitewashing of the actual unemployment rate, or by having the President go on air and call anyone who doesn’t believe in a strong economy as being delusional.
Yet the economy in America today rests upon too shaky pillars of both consumer and government spending. And despite the media’s continuous attempts to say buy stocks because the consumer is doing fine, the newest CPI report out on May 17 shatters this rhetoric by showing a rise in prices of over .3% in just the last month, and the highest move since 2013.
The index for all items less food and energy increased 0.2 percent in April after increasing 0.1 percent in March. The shelter index rose 0.3 percent in April following a 0.2 percent rise the prior month. The indexes for rent and for owners’ equivalent rent both increased 0.3 percent, while the index for lodging away from home declined for the second straight month, falling 0.4 percent. The medical care index rose 0.3 percent in April, with the index for prescription drugs rising 0.7 percent and the hospital services index advancing 0.3 percent, but the physicians’ services index declining 0.1 percent. The motor vehicle insurance index rose 1.2 percent in April, and the index for airline fares advanced 1.1 percent after declining in March. The recreation index rose 0.3 percent in April, as did the index for education, and the indexes for alcoholic beverages, tobacco, and personal care all posted slight increases.
Gas prices according to CPI data, are up over 20% in the last 2 months – the biggest spike since June 2009… – Zerohedge
The moves in both higher inflation, and a decline in consumer spending, have been validated by major retailers like Macy’s, JC Penneys, and Nordstroms who have all announced layoffs, store closures, and lower earnings in just the past month.
When a government chooses to tax its people out of the market, either by direct taxes, inflation, or schemes like Obamacare, it cannot expect these same people to be able to afford to spend like they did when they were not burdened by onerous obligations. And with the Fed now forced to monetize nearly all of the government’s new debt borrowing, price inflation will only go higher in the coming months, and the ability for consumers to spend will subsequently continue to decline.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com,Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.