Biden: Greed Is Causing Inflation!

Welcome to a world of hyperinflation: everyone gets pillaged and the producers are scapegoated. [Gilder's Daily Prophecy] December 15, 2021 [UNSUBSCRIBE]( | [ARCHIVES]( Don’t Buy Any Crypto Until You Read This New Book! not… I repeat… [Do NOT buy a single cryptocurrency until you read this new book](. This could be the biggest opportunity of your life, but only if you act now. [Click here to see how to claim a copy of The Big Book of Crypto](. Biden: Greed Is Causing Inflation! [Jeffrey Tucker]Dear Daily Prophecy Reader, You know who seems to be dictating national economic messaging now? The lefty/woke rag called Salon. On December 1, 2021, it published an article called “What’s Really Causing Inflation: Corporate Greed” by the ideological goofball Robert Reich. The whole piece was inadvertently hilarious, a classic coming together of monetary ignorance, left-wing ideology, and an attempt to give cover to the Biden administration. Their view is that there would not be any inflation if there were genuine market competition. One company would raise a price and other companies would step up to undercut the high price, bringing it back down again. That’s basic price theory, and it works exactly that way in absence of other factors, such as oceans of newly printed money flooding markets. They tried to prove their point by reference to Coca-Cola, as if there is no competition to drinking that one drink. No competition in what to drink they say! Coke is a vicious corporate monopoly with only one competitor: Pepsi. So dig this fancy theorizing. Or consider another major consumer product oligopoly: PepsiCo (the parent company of Frito-Lay, Gatorade, Quaker, Tropicana, and other brands), and Coca Cola. In April, PepsiCo announced it was increasing prices, blaming "higher costs for some ingredients, freight and labor." Rubbish. The company recorded $3 billion in operating profits and increased its projections for the rest of the year, and expects to send $5.8 billion in dividends to shareholders in 2021. If PepsiCo faced tough competition it could never have gotten away with this. But it doesn't. In fact, it appears to have colluded with its chief competitor, Coca-Cola – which, oddly, announced price increases at about the same time as PepsiCo, and has increased its profit margins to 28.9%. In this theory, inflation is a complete myth. There is really no such thing. Those high prices are just something you experience as high prices, but the real cause is nothing but a plot by the private sector. It goes something like this. The media notices some prices rising and makes a big deal out of it. Corporations see an opportunity and whamo pow, sock it to the consumers who are too stupid to switch products. Or something like that. These people have all fallen prey to “Modern Monetary Theory” -- probably the craziest, crankinest theory of money ever to be invented. In this view, there is absolutely no downside ever to creating a new dollar for every new debt issued by government. This can go on forever without any downside. As it turns out, there is a downside. And that is astonishingly obvious to everyone now. The Biden administration now has a problem. They need to find a scapegoat for inflation. After the usual prattle about supply chains (thank the lockdowns!), they go for the second great culprit: greed! Jen Psaki Says It Sure enough, in a press conference yesterday, the Biden spokesperson, who increasingly acts like the real president, flat-out said it. She said the increasing prices of meat are entirely due to a vicious corporate meat cartel that is stealing from the American people. The FDA is investigating and warning against increasing prices “during a pandemic.” She further, and very strangely, implied that there is something not real about inflation. She said “the way that Americans digest inflation is through price increases.” I have no idea what that means, but I suspect that it means something about how inflation is one thing and price increases are another. They want to focus on the price increases and they will blame the private sector. Remember when I predicted that they would impose de facto price controls? That’s what they are doing, but not through legislation or even presidential proclamation. They will do this through bureaucratic investigation and harassment. When it comes down to it, this administration is happy to destroy businesses of any size rather than accept responsibility for the rising inflation. So while Psaki blasted the meat companies, and also took a swipe at energy companies, absolutely no one is going to be spared the wrath of the administration during this hyperinflation. They will go after every service provider, every wholesaler, every retailer, every hotel, restaurant, and you name it. It’s going to be an all-out war on inflation, not of the “Whip Inflation Now” variety which was about boosting people’s morale. This is likely going to be about police state tactics. You think they had a hard time getting rid of or otherwise controlling a virus? Just wait until you see them try to get rid of or control inflation. Economic law is as ferocious a beast as cell biology. They will use the same brutal methods with even less success. Tragically, this gang has power for another year -- and really another two years. They can do tremendous damage in that time. Breaking: Ex-Pentagon Insider’s Disturbing Message for America He warned about the 2008 financial crisis a full two years in advance. He’s predicted everything from the coronavirus crash, the election of Donald Trump, Brexit, and more. And he just went live with a disturbing new warning for America. One that could have devastating consequences for anyone that’s still holding stocks, cryptocurrencies, or cash on [1/12/2021](. If you have money in the markets, or you are worried about America’s financial future… You need to [heed his message]( now….because once this crisis hits it will already be too late. [Click here to learn more]( It’s 2008 Again This whole thing proves that the left in this country is dead from the neck up. Back in 2008, when the housing bubble popped and nearly brought the world’s financial system down with it, they also blamed “greed” even though it should have been obvious that this too was a consequence of terrible monetary policy. Oh and you can even go back to the dot com bust of 2000 and find themselves saying the same thing. Or go back further in time to the S&L crisis of 1986. It was the exact same script. Greed, greed, greed. It’s all they have left. Weimar-style Invoicing This whole theory that price increases are merely greed at work is quite wicked. Plus it has absolutely nothing to do with reality. I will end by sharing an email just sent out by a major book bindery. This company is like many starting today. They will no longer invoice at fixed prices. Now they will invoice at prevailing prices, whatever they are. This is extremely bad for business, but it has to be. Please read and weep: Please know supply chain issues are forcing us to address our approach to handling escalating prices and the diminishing availability of key materials for the print process. For the many of us who have worked in this field for decades, we recognize the current environment is a wild anomaly relative to historical norms, impacting many core materials, from paper, to glue, to laminate, to cloth, etc. The print paper market challenges are compounded by a long-term trend of mill closures and conversion to more profitable products (e.g., corrugated). True to the models in our economics textbooks – the inversion of the supply/demand balance has led to dramatically escalating prices, quotas, allocations, late deliveries etc., which are further exacerbated by a shortage of labor and freight carriers, impacting our ability to deliver books to you in a timely manner. Due to these issues, we are forced to tighten our procedures around materials pricing. The simple fact is that inventory buffers are dramatically reduced, and the cadence of price increases has accelerated to hitherto unseen back-to-back increases. The end result is that absent a stricter pricing policy, we end up selling you paper in the form of books at a price that is below our cost. Accordingly, we have instituted a practice of invoicing work at the prevailing price of paper at the time of order receipt. A confirming quote will be provided to you after receipt of your order notifying you of such changes. As guidance we suggest that we brace ourselves for as much as 10% increases in paper pricing. Paper can often run to 50% of the cost of a job so prepare yourself for potentially ~5% increase in price. Many have asked us when we see the paper market in particular correcting. At this point the general consensus is that 2022 will likely continue the trends of 2021. There is no quick fix to adding paper-making capacity, and as of yet the mills have not shown any interest in converting back to print paper making from other products. Please know that our sourcing operations are looking to every corner of the globe to access paper more quickly and more economically – but the truth is that there just is not enough paper to meet the current demand and therefore we all have to pay higher prices and suffer the wait for availability. There we have it. In the USA, billing practices can no longer keep up with inflation! Welcome to a world of hyperinflation: everyone gets pillaged and the producers are scapegoated. The producers are just like superspreaders of a virus. They deserve demonization and even death. Regards, [Jeffrey Tucker] Jeffrey Tucker [Click here to learn more]( [Three founders Publishing]( To end your Gilder's Daily Prophecy e-mail subscription and associated external offers sent from Gilder's Daily Prophecy, feel free to [click here](. If you are having trouble receiving your Gilder's Daily Prophecy subscription, you can ensure its arrival in your mailbox by [whitelisting Gilder's Daily Prophecy](. 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