Joe Biden 'Engaged In A Bribery Scheme With A Foreign National'
Greedflation is real, corporations just don't want you to believe it.
There have been a lot of recent articles on the subject of Greedflation, I even posted findings by the Canadian National Farmers Union that proved that raw materials were not the cause of rising prices like so many companies told us was the case in order to justify their greed. A lot of people here pushed back on the data, claiming that the data was being manipulated or that it was all "government funded think tanks" that pushed this false narrative of Greedflation. Well if you aren't going to listen to the farmers, maybe you will listen to an economist and global strategist at one of the world's largest investment banks.
after four decades of working in finance, he’s never seen anything like the “unprecedented” and “astonishing” levels of corporate Greedflation in this economic cycle.
To his point, a January study from the Federal Reserve Bank of Kansas City found that “markup growth”—the increase in the ratio between the price a firm charges and its cost of production—was a far more important factor driving inflation in 2021 than it has been throughout economic history.
Note that this is not to say that it's the only factor. We can all agree that a large part of this is the rapid rate of inflation, but companies across the board have just been using it as an excuse to raise prices higher than they should be.
Typically, higher commodity prices and labor costs squeeze corporate margins, especially if the economy is slowing. But Edwards pointed to data released by the Bureau of Economic Analysis (BEA) last week that showed profit margins still near a record high relative to costs in the fourth quarter.
He's also advocating for government price controls to help "fix capitalism", which I'm sure a lot of you anti-government folks are strongly against but remember, this isn't a leftist opinion piece, this is coming from someone who benefits from capitalism and wants to see it continue to thrive.
“The end of Greedflation must surely come. Otherwise, we may be looking at the end of capitalism,” he warned. “This is a big issue for policymakers that simply cannot be ignored any longer.”
And considering that we just saw another bank failure in the US, perhaps we should be listening.
There was also this recent article from the Wallstreet journal (this is a non-paywalled version) that states similar findings
According to economists at the ECB, businesses have been padding their profits. That, they said, was a bigger factor in fuelling inflation during the second half of last year than rising wages were.
And as evidenced from a construction materials maker
“We are in that inflationary environment already for almost two years now…We have done the pricing in a very proactive way, so that our results aren’t suffering. On the contrary, they are improving the margins.”
Another economist did the math. Corporations globally are profiting from the record inflation that we have been seeing as fallout of the pandemic, and they are doing it intentionally because that can get away with it.
But economists at insurance company Allianz have calculated that about 10% of the rise reflects the search for higher profits. They suggest that is possible because key parts of the food-supply chain are dominated by a small number of firms. “There is not enough competition in the food sector, especially in distribution," said their chief economist.
Even a German retailer is calling companies out
Germany’s largest retailer, Edeka, has complained about the pricing behaviour of its suppliers of branded goods and has stopped stocking some of their products. “We call on the branded-products industry to live up to its responsibility and stop artificially driving up inflation,” said Edeka’s CEO Markus Mosa.
P&G seven admitted that their record profits were due to higher prices
Procter & Gamble said it had boosted its profit margins in the first three months of the year, thanks in large part to higher prices. It warned that there were limits to how far it could push that tactic before consumers switched to cheaper alternatives.
So go ahead and blame the government for printing money and bailing out banks, but don't think for one second that corporations aren't in on this too.
Fake Elon Musk Coin, Scams Raise Ire of Regulators...
Animals Dying in Droves. What Are They Telling Us?
Trump Won't Put on Defense at Rape Trial...
Journalist testifies how he kissed and pushed her against Mar-a-Lago wall while pregnant Melania in another room...
Next Criminal Charge Practically on the Calendar...
Special counsel sat in on Pence testimony...
Judge Throws Out The Don's Lawsuit Against NYTIMES, Orders Him to Pay Legal Fees...
Prosecutors near decision in Hunter Biden case...
Russia Says Putin 'Survives Assassination Attempt'...
Drone Attack on Kremlin? 'Residence Targeted'...
Inconsistencies in Story... REAL OR... FALSE FLAG?
Ukraine Denies Involvement...
NATO warns: Undersea pipelines, cables could now be targeted...
"No choice but to physically eliminate Zelensky" Dmitry Medvedev Russia Security Council
This store just opened in Vancouver selling fentanyl free cocaine, heroine and mdma.
Nature’s Quantum Secret: Link Discovered Between Photosynthesis and “Fifth State of Matter”
No comments:
Post a Comment