During global conflicts, corporations and wealthy individuals exploit market volatility through price gouging, insider trading, and strategic investments to maximize profits while ordinary citizens bear the costs of rising prices, creating a phenomenon called 'warflation' that disproportionately benefits the wealthy while increasing expenses for everyday necessities.
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Congratulations everyone. In just 60 days the Iran war is estimated to have cost the American people 72 billion dollars. Well, not all Americans. Some have been making more than ever. This is warflation. For most Americans prices for necessities are up across the country. The World Bank's global supply chain stress index is flirting with its pandemic peak and gas is now up 50% since the war began. United Airlines, the toothpaste maker Colgate-Palmolive, and 3M, the manufacturer of posted notes and Scotch tape, are all raising their prices to shield their profit margins.
[music] Travel especially is more expensive than ever as airlines have cut 9.3 million seats over the next four months and prices are up 20% since February alone. So for most of us the prices of everyday necessities are rising, but for some that's a golden opportunity. Welcome to the newest greedflation crisis where the wealthy use war as a cover-up [music] to raise prices, buy up resources, and consolidate their investments, stretching the K-shaped economy to unprecedented extremes, and using insider information to do it. The most sure-fire strategy is for investors to just [music] cross their fingers and pray that this all ends soon. Literally, the start of the war saw the S&P 500 drop 8% amid the ensuing global chaos and uncertainty, but [music] since then the stock market has more than erased its losses. This rebound is explained in part due to investors' certainty that Trump would back out of the war before any [music] long-term damage occurs. In other words, they're banking on the fact that Trump always chickens out. This is not anything new to the 1%. During the Iraq war markets saw an initial period of volatility followed by a 30% increase in the next 12 months after the invasion. Corporations are well aware of this financial strategy. This boost to the stock market has helped other aspects of the financial sector as well.
It's led to an increase in trading, helping Wall Street investors trying to [music] capitalize on the market's volatility. I mean, thank god there's a war and your economic livelihoods are at stake, otherwise they wouldn't be able to do that. Now banks are reporting record profits [music] for Q1 for a total of 47 billion dollars across the six largest US banks, up 18% from just last year. Now technically anyone could take advantage of this market volatility, [music] but you know what everyone can't do?
Invest in a drone company two weeks after the war started and then get your father to immediately sign a deal with the Air Force to purchase from the company that you just invested in.
However, the Trump brothers can. That's right. Shortly after they announced they were backing a Florida-based startup called PowerUs, the US Air Force announced that they would be buying drones from that company, which I'm sure is just a [music] coincidence and not at all another example of the wealthy hoarding even more for themselves, even if it means everything gets more expensive [music] for the rest of us.
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