The more people on food stamps, the more money JP Morgan makes from its relationship with SNAP.
Every time someone uses this food stamp debt card, JP Morgan gets a cut of the profits.
It should be noted that the rise in food prices is also a rise in profits for JP Morgan.
This means that 14.86% of the US population is now on food stamps (total US population according to the US population clock on census.gov).
In the video posted below, JP Morgan executive Christopher Paton admits that this is “a very important business to JP Morgan” and that it is doing very well.
However, one thing to keep in mind with respect to the grocers is that if food stamps participants become an ever larger presence in grocery stores, and SNAP’s monthly benefit doesn’t increase enough to offset rising food prices, it could create some downward pricing pressure for companies like Safeway and Kroger, thereby hurting margins.
But doesn’t this give JP Morgan an incentive to keep the number of Americans enrolled in the food stamp program as high as possible.
In the end, JP Morgan and Goldman
Sachs will own every inch of real estate and every hard asset on the planet.
At the center of this Armageddon
are the banks on the dole from the Federal Reserve: JP Morgan (and its
investment arm, Morgan Stanley), Goldman Sachs, Bank of America, Citibank and
Wells Fargo, all of whom trade derivatives worth more than the GDP of the
entire world.
Its official JP Morgan is beginning to take on the old Goldman persona.
In the interview Paton says that 40% of food stamp recipients are currently working, and he seems convinced that there could be further “growth” in that segment.
A place where tens of millions of the unemployed and the working poor crawl over to Wal Mart and the dollar store every month to use the food stamp debit cards provided to them by JP Morgan.
It turns out that JP Morgan also provides child support debit cards in 15 US states and they also provide unemployment insurance benefit debit cards in seven states.
Apparently states have found that they can save millions of dollars by “outsourcing” the provision of these benefits to big financial firms like JP Morgan.
When you do this, there is a very good chance that you are going to be helped by a JP Morgan call center employee in India.
That’s right – it turns out that JP Morgan is saving money by “outsourcing” food stamp customer service calls to India.
When ABC News asked JP Morgan about this, the company would not tell ABC News which states have customer service calls sent to India and which states have them handled inside the United States.
The company refused to say which states had calls routed to India and which ones had calls stay domestically.
Once we were back up and running, we released another extensive report in February 2011 titled “Analysis of the Global Insurrection Against Neo Liberal Economic Domination and the Coming American Rebellion – We Are Egypt [Revolution Roundup #3].. “If you think what’s happening in Egypt won’t happen within the United States, you’ve been watching too much TV.
Just try to imagine the irony – a formerly middle class American that has lost a job to outsourcing calls up to get help with food stamp benefits only to be answered by a call center employee in India.
It has just been announced that JP Morgan has admitted that they wrongly foreclosed on over a dozen military families and that they have been overcharging “thousands” of other military families on their mortgages.
It is a really bad public relations move to mess with military families.
JP Morgan has also been one of the primary financial institutions involved in the foreclosure “robo signing” scandal.
We remember the days not too long ago when Goldman Sachs (NYSE:GS) was labeled the greediest firm on Wall Street.
The biggest Wall Street financial institutions had no trouble begging for bailouts from the US government during the financial crisis, but when the American people have needed a little grace and mercy from them they have been less than helpful.
Sure enough, after we spent another three months organizing people to Occupy Wall Street, we ended up back at that park in Manhattan across from the Federal Reserve building and Stock Exchange – exactly where we were on our last depressing night at home and had a humiliating failure in our first attempt at occupation.
So what do you think about how the big Wall Street banks have been behaving.
The group of organizations and people that made up Bloombergville were a driving force in making Occupy Wall Street successful.
However, with 14.86% of the US population on food stamps, it does put more pressure on the Fed to not tighten monetary policy.
Byron Stough is a business journalist based in San Francisco, California. Byron has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Byron spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.
