Psaki keeps denying that the Biden Handlers are responsible for the largest rate of inflation since the 1940’s. Routinely she grins and says it is because companies are ripping off people with incomparable profits! So I decided to take a gander:
1) BP Oil – year end 9/30/21 revenue was up 45% over 2020 which was down 35% from 2019. 2019 was $282.6 billion, and 2021 was $217.5 billion. Net change = -23%.
2) Proctor & Gamble – gross profit for 2019 was $32.9 billion and for 2021 was $39 billion an increase of 18% over 2 years.
3) Kraft-Heinz – apparently their financials were misstated to appear ‘overly rosy’ between 2015 and 2018 and are subject to fines…and regulatory restatement. $In January 2021 a $2.7 billion debt reduction was approved.
4) Exxon-Mobile – 2019 earnings were $14 billion while earnings for the first 9 months of 2021 were $14 billion with anticipated year end to reach $16-$19 billion a potential increase of 14%-35%. They made record debt repayments, began a massive share repurchase program, and secured 3 million barrels from the US Reserve.
5) JP Morgan Chase – in 2019 had revenue of $115.6 billion compared to total anticipated for 2021 of $121.6 – an increase of 5% over 2 years. A $30 billion share buyback was authorized for 2021.
Share Buybacks are, like everything else, good and bad depending on the circumstances. While it increases the dividend/distribution payout to shareholders, it depletes cash reserves for expansion. There is also the fatal flaw that the buyback manipulates the metrics used to calculate executive compensation and bonuses making the move more attractive for a select few while not dispersing the payout to shareholders. It is therefore considered a means of ‘stock manipulation’.
In a chart provided by Harvard, an analysis in 2018 of buybacks to dividend payout revealed that the US companies were the ONLY ones to NOT return the reaped dividends to the shareholders.
For example, a review of ”Insider Trading” for JP Morgan Chase reveals a selloff beginning in the 2nd quarter 2020 and continuing thru the 2nd quarter 2021.
But this practice has been ongoing since the 1980’s, ramping up over the last decade, while it reaped massive profits for the elite, inflation was never an outcome.
Psaki’s college education is disputable given that despite having a Wikipedia presence since 2013, her backstroke degree in swimming was suddenly altered in 2021 to state her degree was in English and months later upgraded to claim her degree was also in sociology. English majors typically go on to be teachers or writers – but Psaki immediately was picked up for ‘politics’ – more than odd given a swimming degree hardly qualifies as a political operative. But then there appear to be no pictures of her as a swimmer, nor as a graduate.
Kindof like AOC graduating from Boston College despite no pics or intellect to support the claim.
The John Kerry affair(s)? may have been squelched after rising early 2000, but Psaki stating she travelled alone with Kerry to France 25 times seems a bit unusual given Kerry was running for president of the US – not France. But then a list of Kerry’s employees and interns leaves NO mention of Psaki at all…. perhaps she wasn’t actually on the ‘payroll’.
Anywho – Psaki’s knowledge of economics is sorely vacant. By contrast Kayleigh McEnany graduated from Georgetown majoring in international politics, studied abroad at Oxford and spent three years as producer of the Mike Huckabee show, ultimately graduating with a law degree from Harvard..
While corporate profits definitely trended higher in 2021, the impetus was the 2020 pandemic recession which also saw massive unemployment and bankruptcies. But those profits do not match the gluttonous price increases that took effect just as Biden took office including: food up 30% to 300%, gas up 200%, building materials up 31%, steel up 95%, housing up 35% to 50%.
THE TRUE ROOT CAUSE OF OUR CURRENT INFLATION? We are subsidizing China. Our corporate Behemoths are establishing a new Chinese Consumerism obsession – but until the Chinese consumer can afford their ‘pricing’, the US and Europe are functioning as Subsidy TaxPayers thru exponential price increases. This FAKE INFLATION has NOTHING to do with supply and demand, and everything to do with the creation of a NEW Economy with 1.5 billion potential consumers!!
And the Shipping container Debacle! That’s China too! My next BLOG POST.