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Is inflation caused by corporate greed? March 28, 2022 [UNSUBSCRIBE]( | [WEBSITE]( [Altucher Confidential] “Only monopolies are allowed to have high profit margins. Consider that Walmart has a 2% profit margin and Merck, a pharmaceutical company, has a 27% margin. Wonder why that is? It’s simple.” [HERO IMAGE] Inflation, Greed, and Crypto By Chris Campbell Attention Fname! Before You Read Any Further…, [Read more here...]( Hey, it’s James. Before you read any further in today’s issue, an urgent situation needs your immediate attention. If you don’t plan on claiming this upgrade to your Altucher’s Investment Network subscription, you’re missing out on a huge opportunity. Right now is your chance to grab one of the biggest (and most valuable) upgrades our company has ever made to a newsletter. I’m taking Altucher’s Investment Network to an entirely new level and I’d hate to see you left behind. [To see how to claim your upgrade, just click here now.]( Is inflation caused by corporate greed? It’s a popular question these days. A few influential politicians, like AOC and Elizabeth Warren, have claimed it’s a major cause for the inflation we’re seeing today. This has caused thousands of TikTok influencers to repeat this sentiment to their followers. But is it true? James, for one, doesn’t buy it. In fact, someone posed the same question to him recently online. Today, we’ll dive into James’ response… and what he thinks right now about inflation, greed, the Fed, and why he’s bullish on crypto. First things first… The Price of Profit Is inflation caused by corporate greed? “Never,” says James. “This is a myth recently stated by AOC. It's an understandable myth and has strong populist underpinnings but it's not true.” The price of profit, says James, is efficiency. Compare, for example, cars made in Russia in the 1980s with cars made in the U.S.: “Cars made in Russia did not require efficiency in the production process,” says James, “because there was no competition. Hence, the cars there were horrible and would break down constantly.” Let’s bring it closer to home and look at retail. If your local grocer could make more profits simply by raising prices, they would do it all the time, right? “But,” says James, “then Walmart came along. Because Walmart figured out how to deliver large amounts of goods to urban areas very cheaply, they were able to undercut all the competition in price. The increase in inefficiency caused Walmart to lower their profit margins to almost 1%, squeezing out any less efficient retailer that tried to survive by raising profit margins.” Only monopolies are allowed to have high profit margins. Consider that Walmart has a 2% profit margin and Merck, a pharmaceutical company, has a 27% margin. Wonder why that is? It’s simple. It’s because pharma is much more regulated by the government than basic retail. Socialism is defined by more government control over the economy. Socialism also tends toward monopolies. Another question: Prepare yourself NOW for a CRASH A massive market crash could imminent. [This new must-see presentation]( explains exactly how and WHEN it could happen… You’ll learn 5 CRITICAL steps every American should take to help protect themselves. And details a strategy we believe has the power to 10X your money while the market tanks. So there is NO time to sit by and wait for it to happen. [Click here to watch this video now]( while you still have a chance. Because if and when this next crash hits… It will be FAST and it will be BLOODY. How Does the Fed Stop Inflation? “The Fed TRIES to stop inflation,” James writes, “by raising the interest rates by which they lend money to banks. Then the banks have to raise things like mortgage rates, causing fewer people to buy houses.” Moreover, it becomes more expensive for banks to get people to keep money in savings accounts so they raise the interest rate in savings accounts. James: “If the interest rate in savings accounts rises enough then people would prefer leaving their money there instead of speculating on the stock market or real estate or other opportunities. They would have the ‘opportunity cost’ of not putting the money in a safe savings account while the risk of the stock market got greater. This slows down the economy.” However, rates have to go up higher than inflation usually in order for the Fed to stop inflation. The Fed is not even remotely close to doing that. A 1% interest rate in your savings account will not dissuade anyone from investing in the stock market or real estate. The Federal Reserve is not necessarily right, says James. It's hard to predict the future. “I do think they did a good thing in 2009 and 2020 and helped stabilize a freefalling economy,” James writes. “Maybe the worst decision they ever made was raising rates in 1929 to stop speculation on the stock market. This led to the infamous Black Friday crash in 1929 and the Great Depression that followed.” TL;DR There's inflation now, but: - it's not because of corporate greed - some of it is transitory but hopefully it does not become permanent (e.g. lumber) - some of it is monetary but there is also great demand for the dollar at the moment. So as long as we reduce the money printing before demand weakens, the monetary inflation should be ok. - we are far from any hyperinflation scenario - the fears about war will also reduce any overheating of the economy, stemming inflation. - Stagflation could be a worry if the supply chain disruptions don't go away. What is James Doing? (And Crypto) What James is doing right now to hedge against all of this: 1.] buy stocks of good, growing companies (dont' be too speculative though. Make sure they are good companies). 2.] Buy hard assets like land. 3.] And I am also bullish on cryptocurrencies in general. As you may know, James and I have been knee-deep in cryptocurrencies for years. And we believe a massive catalyst is coming for crypto — as soon as this year. [Click here to see WHY James and I are so bullish on crypto — despite the geopolitical mess — and discover our latest cryptocurrency research.]( Until tomorrow, [Chris Campbell] Chris Campbell For Altucher Confidential America’s #1 Futurist George Gilder’s 2021 Prediction Will Stun You Click here for more...“We’re headed for a potential [$16.8 trillion reboot]( he says. This “reboot” could create the largest wealth generation in decades. And it has nothing to do with politics, the coronavirus, or the Fed. 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