AP: Consumer Inflation Moderates in April
In paragraph 14 of this "story" the writer gets to the truth about inflation. Well, the government will never give us the truth about inflation...but inflation isn't moderating, it is double what it was ONE year ago:
Through the first four months of this year, consumer inflation is rising at an annual rate of 4.8 percent, almost double the 2.5 percent increase for all of 2006. The acceleration has occurred in large part because of higher costs for food and energy.
Excluding food and energy from "inflation figures" is ridiculous. Down may as well be up, yes should mean no, and we should stop at green lights. The rising costs of food and energy, two items we MUST all buy EVERY day, affect how much money we can spend on "ex food and energy" items. We, the consumers of this increasingly desperate nation, account for 70% of GDP annually. If we don't have the money to spend on "the other stuff" because we're spending it all on food and energy...we won't have much of an economy. Last month, consumer credit rose $13.5 billion, an annualized increase of 6.7 percent, after an upwardly revised increase of $5.5 billion in February. Revolving credit rose $4.6 billion, largely a result of higher gasoline prices. It appears we don't even have the money now to pay for gasoline, let alone the "other stuff".
I'll get off my soapbox now and let the charts do the rest of the talking. Please click on them to enlarge.
Silver Resistance: 13.16 / 13.24 / 13.32
Silver Support: 13.10 / 13.03 / 12.92
_______________________________All prices SPOT
Gold Resistance: 672 / 674 / 678
Gold Support: 668 / 666 / 664