Unemployment Might Hit 4.5%, Representing Another 1.5 Million Job Losses
Cristal M Clark
The Fed keeps fucking about and I guess we are all going to find out now aren’t we? The Fed keeps hiking interest rates and the prediction is that by years end here in the United States due to the Fed’s ill advised rate hikes in an effort to correct inflation, another 1.5 million individuals might be out of work.
Pathetic.
This is not inflation, this is what is known as Greedflation. I am sure you have seen the word bouncing around social media these days.
The way it’s working is when costs go up, so do profits right? Have you ever wondered about that at all? It’s not supposed to actually work that way you know. Capitalism is not supposed to work like that, but look around you, that is precicley what is happening. All over the world including the US economies are struggling to keep up with ridiculous inflation while corporations are seeing all time record profits. Yes this is where the Fed here in the United States should fucking pay attention, CORPORATIONS ARE SEEING RECORD PROFITS.
A economist at one of the world’s oldest and greatest investment banks SocGen is actually talking about Greedflation and is warning that the days of capitalism might be long gone. SocGen by the way is one of the select banks considered to be “systemically important” by the Financial Stability Board, the G20’s international body dedicated to safeguarding the global financial system. So when one of these guys has something to say, we should probably, pay attention.
Albert Edwards chimed in about Greedflation recently and it was pretty scathing to be honest.
“Corporations, particularly in developed economies have used rising raw material costs amid the pandemic and the war in Ukraine as an “excuse” to raise prices and expand profit margins to new heights.”
After four decades of working in finance, Albert Edwards said that he had never seen anything like the “unprecedented” and “astonishing” levels of corporate Greedflation in this economic cycle. Back in January one study from the Federal Reserve Bank of Kansas City found that “markup growth” which is the 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.
Most of the time with inflation we see higher commodity prices and labor costs that tend to squeeze corporate margins, especially if the economy is slowing. But that is not what is happening right now. Albert said that he assumed margins would have “declined sharply” at the end of last year as the economy slowed, but instead, “How wrong I was!”
Albert left a little warning for the world and let’s see if anyone is listening:
“He fears the “super-normal profit margins” of corporations in the U.S. and abroad could eventually “inflame social unrest” if consumers continue to struggle with inflation.
“The end of Greedflation must surely come. Otherwise, we may be looking at the end of capitalism. This is a big issue for policymakers that simply cannot be ignored any longer.”
Which means, that raising interest rates is not going to fix inflation because it is simply not inflation, it’s Greedflation, and the Fed here in the US is a complete idiot for failing to see that.
Cristal M Clark
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