UBS economist "greedflation"

Investment Analysis Clubs Macro Economic Trends and Risks
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One of the first things I noticed changing at RS, before the pay cuts, was the prices being juiced. The cost to the store of items stayed the same, but the retail price was being juiced 20% or more.

America’s latest inflation wave is all about corporations ‘using excuses’ and ‘cover’ to increase profits, says top UBS economist (msn.com)

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I remember saying this three years ago when all the “inflation” talk started. Start the rumor. Start the internet meme. Then jack up prices and tell people: “Hey, it’s not ME! It’s that damned inflation. I have to raise prices!”

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Are you saying you think that inflation is a rumor?

DB2

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Nothing I said indicates that. Think wide. Have a nice day :wink:

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Well, that’s good.

DB2

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https://www.bloomberg.com/news/articles/2022-08-25/us-corporate-profits-soar-taking-margins-to-widest-since-1950

US Corporate Profits Soar With Margins at Widest Since 1950

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What could go wrong?

Who me worry?

Not the time to be long. Yesterday’s common price gouging is today’s hangover as we wake up.

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I don’t think the issue is whether inflation exists, but rather what is contributing to it.

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The central cause China is no longer exporting a deflationary pressure in goods and services. China no longer can create economies of scale.

Inflation does not really resolve until the US/Mexico truly begin to create economies of scale in manufacturing.

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Interesting tidbit on the “news” a couple nights ago, as the fentanyl body count builds, chatter about sanctions being put on China, as the source of the chemical precursors to fentanyl. The report went on, that the chemicals are then shipped to Mexico, where the final product is produced.

OK, if China is deserving of sanctions for producing the chemicals, what about Mexico, where the dope is produced?

Seems all the hate directed at China is not about “human rights”, or “fentanyl”, or “covid”, the official excuses.

Steve

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Hmmm. Maybe better border security?

DB2

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This is our problem as our people use the drugs

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Send the users to either China or Mexico–so they are not a US problem.

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Maybe the difference is that in Mexico it is criminal enterprises doing it and the authorities, though weak, attempt to stop it. But in China, it is official government policy to allow “bad stuff” to get to the west to show how decadent and weak western capitalism is.

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