April 12, 2023     ₿lockheight: 785,099


Pinko politicians and corporate media teaming up to gaslight the public.

Now that inflation is here to the point where the government can no longer pretend it isn’t, the junior partner in Canada’s ruling Liberal/Socialist coalition has been busily pillorying grocery store CEO’s for their  “$1 million dollars per day in excess profits” .

Now the Canadian corporate media, is joining the chorus, chiming in with a survey that purports to show how

“Canadians think grocery chain price gouging is the main reason food prices have been rising in Canada. “

According to the survey, 31% of Canadians think that – but as it typical with corporate media agitprop, it is framed as though this is the prevailing sentiment.

Which came first? The perception that grocery stores cause inflation? Or politicians and the corporate press brainwashing the public with this messaging until a growing number of them come to believe it?

Grocery stores have pretty thin margins. In a case like Loblaws (Singh’s scapegoat of choice) it’s about 30% gross, and net is 3.7% based on last quarter’s figures. 

And while consumer staples tend to hold up better during recessions and tough economic times, they are typically boring, stodgy and unglamorous.

They don’t “moon” during up-cycles, and nobody gets lauded for owning or allocating to them – but some of the more seasoned and responsible fiduciaries (like pension funds and labour unions) do tend to allocate to them because they are: solid, predictable, and actually pay a steady dividend.

Where’s the crime in that?

Apparently it’s in running a solid business that can maintain their shareholders, including those labour unions and pension funds – and just as importantly, do it without laying off employees. Even worse, it seems, is that they able to do so without needing government bailouts and special legislation in order to survive like their counterparts in the Canadian media.

Why grocery stores?

Two years ago we were sticking “Support our front-line workers” signs on our lawns. Now we are telling everybody that they all work for evil, price gouging corporations.

If Jagmeet Singh wanted to demonize an industry that unambiguously profiteered off the misery of society throughout these challenging times, could he have possibly come up with a better candidate?

Loblaws’ gross margins have been declining over the past year, despite the inflation driven rise in the top line. Contrast with Pfizer, whose gross margins and net profits literally exploded under worldwide vaccine mandates that effectively made their product compulsory, despite the mounting evidence that they were never adequately tested, never actually worked, and not even safe.

Pfizer’s gross margins are 65%, more than double Loblaws. Their top line revenues were $100 billion USD for 2022, giving them a $65 billion gross profit.

In other words:

  • Loblaws operating profit margin = 3%
  • Pfizer’s operating profit margin = 36%
  • Loblaws net income was $438 million on roughly $13B total revenues (CAD)
  • Pfizer’s net income (profits) was $36 Billion on $100 Billion Revenues (USD)

Maybe Singh should be picking on Big Pharma instead?

The real reason for inflation

Of course, we live in a pharmatocracy now, and blaming grocery store chains for cost inflation is straight out of the Marxist-Leninist playbook. Keynes was apparently quoting Lenin when he wrote the famous “best way to destroy the capitalist system was to debauch the currency” passage. We’ve all seen that one a million times, including Keynes’ comment on it that,

“The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

At first glance one might think Jagmeet Singh is among those who can’t diagnose it. But I doubt that. Lesser known lines from that same Keynes passage exposed the ruse of demonizing those whose concerns are able to withstand government induced inflation:

“By this method [the State] not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth.


Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become “profiteers,” who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat.


As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.”

Lenin’s passage was never sourced beyond Keynes’ commentary on it. It is possibly apocryphal, albeit authored by a Marxist nonetheless, since it turns out Keynes was a commie anyway.

To get to the true root cause of inflation, we find it in the words of Milton Friedman:

“Inflation is always and everywhere, a monetary phenomenon. It’s always and everywhere, a result of too much money, of a more rapid increase in the quantity of money than an output.”

You look at the money supply. Here is Canada’s long term chart:

Source: TradingEconomics / StatsCan

In slightly under my lifetime, Canada’s gross M2 went from $38 billion in 1968 to $1.8 Trillion in 2020, that took 52 years.

Then when 2020 hits, we see the angle of the slope accelerates. M2 money supply moves from $1.8 Trillion to $2.4 Trillion, adding a full 33% onto the money supply in under two years.

Source: Ycharts

The graph exemplifies the old adage of “gradually, then suddenly”. At some point, inexplicably, inflation hits. Gee, I wonder where that came from?

If politicians or media pundits are blaming businesses (whose supply chain costs are skyrocketing) for inflation, you are either listening to somebody who is profoundly ignorant, deliberately deceptive, or both.

In my next piece I’m going to explain why when the economic denominator (the currency) is elastic and infinite, you get misery, poverty and ultimately a communist dictatorship;  why CBDCs are simply the next logical step toward this outcome and how an inelastic, fixed economic denominator (like Bitcoin), fixes all this and creates a virtuous feedback loop of prosperity and abundance. Join the Bombthrower mailing list to get that next piece.

If you aren’t on my premium Bitcoin Capitalist newsletter service, then you missed me calling the bottom back in January, when BTC was about $14,000 USD cheaper.  The new cycle is here and as soon as my new site is online I’m raising the price of The Bitcoin Capitalist. You can lock in your price today and keep the old rate after the hike. 

About the author 

Mark E. Jeftovic

Mark E. Jeftovic is the founder of Bombthrower Media and CEO of easyDNS.com, a company he co-founded in 1998 which has been operating along the lines described within these pages.

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  1. Yep and instead of learning from history the clown world doubles down on clown show shit.

    All they had to do was put the printed money into peoples pockets and poof no inflation, but noooo they decide to put it in the richest rich's pockets where it does only them any good. Also taking care of people before shareholder profits is hardly marxist leninist. Single best way to let your readers know u have joined clown world is to say stupid shit like that Mark

  2. Kiss my ass you greedy mother f**ker. While many starve you dine… If we had a capitalist system rather than socialism for the wealthiest I might agree, but the small businesses, the little guy, the "joe's and Jane's are getting crushed. Covid policy, along with taxes and regulatory policy killed small business in the US while Wally World and the cock sucker Bezos cleaned up.

    I have no problem with profiting when legally obtained on a level playing field, but most profits are not…FTX, SVB, South Africa and its waring and slave profits, genocide in the USA, and slavery which is the most profitable capitalist design yet. Oh yes, least not WAR!

    The fat cats….";wringing their hands and salivating about their profits and POWER"with a shit-eating grin….yea…profit!

    1. Not sure who you’re directing that at. But you aren’t wrong.
      The thing is, when the public buys into politicians declaring war on greedy corporations, it’s always the small businesses who get mauled in the process. Always.
      That’s why it’s necessary to shoot down the very concept that there is such thing as “excess” profits at all.

      Most mega-corps aren’t businesses at all, they’re quasi monopolies.

  3. Am I the only one who recognizes that the US with its anti socialism meme is contradictory? The entire country is socialism for the rich. Their vaunted military is a 100% socialist endeavor. They scream of the evils of socialism and then bail out their banks w public money. A country that is actually the thing it purports to fear the most, what's that called? All the US oligarchs are there because of public money handed to them by the gov. I still disagree about excess profits because Bezos definitely proves there are excess profits for some. Agree that its the small business who will eat it as they don't have excess profits to run lobby campaigns for more handouts. Fuck the US. Its a death cult masquerading as a country. Go Russia go China

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