Dow Jones Industrial Average Is A Ponzi Scheme
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