Dow Jones Industrial Average Is A Ponzi Scheme — SRSrocco Report

Unfortunately, Americans invested in the broader stock markets have no idea they are invested in the Greatest Ponzi Scheme in history.  The Dow Jones Average is by far, one of the most inflated stock indexes in the market.  This was discussed in the article Dow Jones Reports Worst Revenues Since 2010, Dow Rises to 20,000 (LOL).

I discussed with Alton Hill at Future Money Trends why the Dow Jones Index will collapse in the future:

The Dow Jones Index behaves like a Ponzi Scheme because it follows many of its characteristics.  Here is a definition of a Ponzi Scheme from Investopedia:

A Ponzi scheme is an investment fraud where clients are promised a large profit at little to no risk. Companies that engage in a Ponzi scheme focus all of their energy into attracting new clients to make investments. This new income is used to pay original investors their returns, marked as a profit from a legitimate transaction. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.

The important part in the text above is highlighted in red.  For example, the top Dow Jones companies borrowing money to buy back their shares or pay dividend is a derivative of a Ponzi Scheme.  Furthermore, the buying of stocks by Central Banks is another characteristic of a Ponzi Scheme when the “FLOW RUNS OUT.”  Because investors are not buying enough stocks, the Central Banks had to step in to prop up the markets.

During the interview, I discussed why the disintegrating U.S. and global oil industry will pull the rug from underneath the STOCK, BOND and REAL ESTATE markets.

TOPICS IN THIS INTERVIEW:
03:05 Steve Feelings about the Economy and Potential Looming Risks
08:30 Oil Industry and its Debt Today
11:30 Steve Prediction about the Gas Price per barrel
16:20 Insights on the Research that Led to this Information
19:45 Fighting the Crisis with Physical Precious Metals
23:50 Getting More Information from Steve

You can also check out the interview here: Dow Jones Industrial Average Is A Ponzi Scheme — SRSrocco Report.

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9 Comments on "Dow Jones Industrial Average Is A Ponzi Scheme — SRSrocco Report"

  1. “Dow Jones Industrial Index Is A Ponzi Scheme”

    the federal reserve fiat debt dollar is the ponzi scheme. everything that uses the dollar is entrained in that ponzi. the dji, tax rates, the federal budget, mortgage loans, retirement funds, business models, china’s expansion to take advantage of dollar spending – all of it, everything, anything attached to the dollar, is caught up in the ponzi.

    when the ponzi fails, the asset confiscations will begin. that was the plan all along. “If the American people ever allow private banks to control the issue of their currency, first by inflation [of the money held by the “global elite” “international financiers” “deep state”], then by deflation [of the money held by the citizens], the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.”
    Thomas Jefferson

  2. I’m in stocks because i am sure i’ll be able to sell before millions of other participants in a market with NO buyers as soon as the iou spectrum blows up. And then i will buy lots of physical gold and silver with my $.

    /s

    http://www.acting-man.com/blog/media/2013/05/Venezuela-stock-market-2.png

  3. DisappearingCulture | February 17, 2017 at 11:32 am | Reply

    “Furthermore, the buying of stocks by Central Banks is another characteristic of a Ponzi Scheme when the “FLOW RUNS OUT.” Because investors are not buying enough stocks, the Central Banks had to step in to prop up the markets.

    I haven’t listened yet, but while I guess or believe the plunge protection team has bought some stocks to prop up the index, or maybe equal shares across the entire index [like S & P 500], if there is evidence it is being shunned by mainstream financial media.

  4. I don’t think your used car analogy is applicable. Basically, you are saying that because less oil is harvested from each barrel needed to extract it, then the economy can’t grow, no matter what. This is a different kind of growth destruction which boomerangs to cause demand destruction which causes price to drop.

    In traditional “economic theory” it was a drop in demand which occurred first, which then caused a drop in price.

    One may argue that the build up of debt is the cause of the economic slowdown, but that is only part of the problem because even if there were no debt, without oil, you can’t grow an economy.

  5. What’s a joke about the Dow is that if you have an underperforming company, they just get rid of it. Only 1 company of original 12 still in Dow. Bankrupt Dow components just tossed aside. It’s a joke.

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