Stock market is a Ponzi scheme? This alters entire engine of economy – Lee Camp

Liu has written a book ‘The Ponzi Factor’ – “so dangerous that financial websites, finance shows and blogs…want nothing to do with him and banned him from their comment section,” Camp said introducing the guest on his show.

The author revealed “how our stock market is the dictionary definition of a Ponzi scheme – frauds that end with a lot of people getting royally screwed.”

Lee Camp: What do people think the stock market is? Most people think they’re investing in a company and they get a small piece of the dividends, the profit, that’s the money they get from it. But that’s not really true, is it?

Tan Liu: No, it’s not. Those are usually the people who don’t actually read the documents in terms of what the stockholders are really entitled to. Basically, as you can see on CNBC in Jim Cramer shows, what they focus on is earnings and growth of the company. Why are they focusing on that? That’s because they’re trying to predict or …foresee whatever the stock price is going to be by earnings and growth.

The issue, of course, is profits from stocks and what makes a stock price move is not the earnings and growth. It is actually money from another investor. Now, is there a connection at all with respect to the earnings and growth and this price movement? Yeah, it is called a speculative connection: it is not a legal one, it is not a logical one, it is not a definitive or mathematical one. It is pure speculation.

What else is a speculative connection? A Ponzi scheme. I can speculate, a Madoff scam, when people will stop entering with more money. Speculative connections don’t mean anything, but the thing is that is actually what CNBC, what school and academic institutions and Jim Cramer focus on.

LC: When your stock goes up, you buy something for $20, it is now worth $200, all that money is not coming from the company’s profit, rarely, if ever, it is coming from other people willing to buy that stock from you for that price. But that is kind of the definition of a Ponzi scheme: all the money coming in is from new investors. And if they stop putting that money in, it all collapses, right?

TL: You are absolutely right. It is the purest definition of a Ponzi scheme. First of all, there’s a name for this process of buying and selling at that profit. It is called capital gains. Basically, you buy low and sell high. That process itself is the definition of a Ponzi scheme. I didn’t make up the definition. It is not my opinion that it is a Ponzi scheme.

By definition, the SEC defines there is three aspects of it. One, it is an investment scenario. Two, the investment profits come from other investors. Three, the investors think the profits come from somewhere else. And what we can clearly observe every single day, every single moment, the stocks are trading, is in the event where the stock seller, an investor, sells it to another investor, taking some capital gains profit if you’re lucky.

So we have an investment scenario. We have profits that come from other investors. And those investors who are selling it, according to CNBC, according Jim Cramer, they think the money’s come from somewhere else, like the growth of the underlying company. We have an event that we can witness every single day and we have a definition of a Ponzi scheme: the event matches a definition.  Therefore, it is a Ponzi scheme.


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Russian stock market brushes off US sanctions, trading near all-time high

The ruble-traded MOEX reached 2,358 points this week, which is very close to an all-time high of 2,376.96 seen in February. The dollar-traded RTS index is still over 10 percent down from the February highs, but has also been recovering.

Analysts are pointing at the good signs in the Russian economy and growing price in crude oil.  “The victorious march in the market goes on. In my opinion, this happens because of the influx of new investors in shares following the good situation in commodities and stable macroeconomic indicators,” said Freedom Finance analyst Georgy Vashchenko in a note. “If the trend does not break, MOEX can reach record high 2,400 points.

The US rating agencies are also remaining positive about the Russian economy. In February, S&P upgraded the Russian sovereign rating back into investment grade at BBB and has not revised it since then. Moody’s said on April 19 that Russia can weather the new sanctions. On Wednesday, it added that Russian corporate liquidity “remains strong.”

On Thursday, Brent oil reached $80 per barrel for the first time since 2014. While Russia has been trying to wean its economy from crude dependence, most of the country’s revenues still come from oil and gas. The ruble remains weak compared to the all-time highs, which means larger oil revenues in foreign currency allow Russia to replenish its ruble-based budget.

For more stories on economy & finance visit RT’s business section

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Washington Post Uses Stock Downturn to Blast Trump and Tax Cuts

Stock markets have been stumbling and volatile since late January. But to hear The Washington Post tell it, that means the tax cuts failed to do what President Donald Trump said they’d do.

“The tax cuts were supposed to be ‘rocket fuel’ for the economy. Since they passed, the markets are down,” declared the April 3, headline. The analysis that followed was from Philip Bump, the Post’s national correspondent.

But the connection the headline tried to make was misleading, since stock markets are “not the economy” — a point Bump buried until the next to last paragraph of his article.

That didn’t stop him from trying to link the two to make the tax cuts and Trump look bad.

Bump wrote that three major stock market indexes are all down since Dec. 22 (S&P down 2.9 percent, DJIA down 2.6 percent and Nasdaq down 0.3 percent).

“Why does that date matter? Because it’s the day that President Trump signed the tax cut bill into law — a bill that, according to him would supercharge the U.S. economy,” he continued.

Then Bump cited a November Trump speech where he praised the market increases and claimed the tax cuts “will be rocket fuel” for the U.S. economy.

“Trump’s favorite measure for the health of the economy over the course of 2017 was those same markets, which seemed as though they were never again going to go down. Until they did — about 40 days after that rocket-fuel bill was signed into law. In early February, the markets sank, kicking off what has been a prolonged stretch of volatility,” Bump mocked.

He acknowledged that stocks rose between Trump’s inauguration and the tax cut’s passage (providing simple percentages of 19.9 percent, 15.4 percent and 20.2 percent) — but Bump didn’t acknowledge those gains were huge or that they were partly driven by anticipation of tax cuts (additional factors included better global growth and strong corporate earnings).

Even the broadcasts networks referred to the market rally as a “Trump rally,” in late 2016 and early 2017. ABC World News Tonight with David Muir admitted on Nov. 30, 2017, that the Dow Jones Industrial Average hit another record high and had been driven by “optimism” about a tax cut package.

Bump also omitted reasons for the market’s recent drops including fears of a trade war with China, and Facebook’s tumble due to outrage over the company’s use of personal information

The story also omitted information about other economic measures, even though Trump’s “rocket fuel” comment referenced the broad economy, not just the stock market.

The OECD increased its estimates for global and U.S. economic growth in March, partially crediting the tax cuts with the higher forecast. In January, the International Monetary Fund also expected stronger economic growth, in part, because of those tax cuts.

Gross Domestic Product came in above expectations in the fourth quarter, and Reuters reported that “analysts believe the economy will hit the Trump administration’s 3 percent annual growth target this year.”

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Trade war would exacerbate biggest stock market crash in memory – Jim Rogers

“The next bear market is going to be the worst in my lifetime, just because of the debt, but if we also have a trade war, it’s going to be worse than a disaster,” the legendary investor told Bloomberg. “I’m extremely concerned. I’ve read enough history and been through enough markets to know that trade wars are usually a disaster.”

The comment comes amid growing expectations of a large-scale trade conflict, as US President Donald Trump plans to announce new measures against China. Within days, the White House may impose tariffs on Chinese technology and telecoms commodity imports valued at up to $60 billion. Beijing is reportedly preparing to introduce mirror measures.

“China’s a huge buyer of American agriculture, so of course that’s the obvious place to hit back because that hurts Mr. Trump the worst. It’s not Americans, it’s Trump. Trump and his guys, those are the ones they have to hit,” Rogers said.

The businessman is reportedly seeking investment opportunities emerging markets, such as Russia, China and Vietnam. Rogers says he purchased short-term local Russian government bonds earlier this week. Citing stability of the ruble and high interest rates, the investor has also bought shares of Russian payment service Qiwi and Rosinter Restaurants Holding.

“I’d rather invest in Russia than in Germany; I’d rather invest in Japan or China than in America,” the analyst added. “America is at an all-time high, and no other nation in the history of the world has ever been this in debt.”

For more stories on economy & finance visit RT’s business section

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Man Had 'AR-15-Styled Rifle,' Bump Stock Outside Indianapolis Hotel Before Women's March: Report

A 22-year-old man living in the U.S. illegally has been charged with a federal crime after police in Indianapolis, Indiana, found him in possession of guns on two occasions in January, The Indianapolis Star reported Sunday.

Police responding to a Jan. 20 call from security at the Hyatt Regency hotel in downtown Indianapolis saw Ahmed Alaklouk was in possession of a firearm described by the Star as “an AR-15-styled rifle,” which he reportedly told police was “fully tricked out.” 

Alaklouk, described as as a Tunisian native and Saudi Arabian citizen in federal court documents obtained by the Star, had been renting a room at the Hyatt when hotel security contacted the Indianapolis Metropolitan Police Department around 3 a.m. after they saw several weapons in his parked truck. There were six handguns in the backseat and an assault-style rifle in the front seat, according to the Star.

Police reportedly told Alaklouk to keep his firearms in a hotel safe and out of sight in his truck to avoid a potential break-in. Officers said the rifle had been modified to function like an AR-15 and was equipped with a scope, bipod and bump stock, reported the Star.

Federal law prohibits people in the U.S. illegally from possessing guns and ammunition, prompting federal prosecutors to file a federal gun charge against Alaklouk on Wednesday. U.S. Department of Homeland Security placed an immigration detainer in Marion County Jail for Alaklouk so he may be held in custody while federal agents obtain a warrant to begin deportation proceedings, the Star reported.

A bump stock, shown here in a Utah gun shop in October 2017, attaches to a semi-automatic rifle to increase its firing rate. (George Frey / Reuters)A bump stock, shown here in a Utah gun shop in October 2017, attaches to a semi-automatic rifle to increase its firing rate. (George Frey / Reuters)

Hotel security reportedly contacted police a second time around 7:45 a.m. when they found Alaklouk’s rifle in the front seat of his truck again and were concerned about his hotel room overlooking the area where thousands of Women’s March participants were expected to gather hours later.

Police and hotel security then removed Alaklouk and two other unidentified men from the hotel, according to the Star.

AR-15-style rifles are often the weapon of choice for mass shooters, including the suspected gunman in last month’s deadly shooting at a high school in Parkland, Florida.

Bump stocks are a type of gun modification that allow semi-automatic weapons to fire like automatic weapons. Stephen Paddock had outfitted his rifle with a bump stock, which enabled him to fire hundreds of rounds into a crowd of concertgoers at a music festival in Las Vegas last year.

The hotel’s general manager, Joe Pinto, confirmed the incident Monday in a statement emailed to HuffPost.

“At Hyatt Regency Indianapolis, the safety of our guests and colleagues is a top priority,” Pinto wrote. “On January 20, hotel security was alerted to firearms in a vehicle parked in the garage. The police department was in touch with the vehicle owner to notify him of the policy violation, which requires firearms to be unloaded and stored in a locked container, and the guest left the property soon after.”

A week later, police responded to another firearm-related incident involving Alaklouk roughly four miles west of the hotel. A woman called 911 after Alaklouk pointed his rifle at her and her father and threatened to kill them over a business disagreement at Alaklouk’s store, Medo Tire Shop, according to the Star.

Charges were filed against Alaklouk on behalf of the state on Jan. 31 in Marion Superior Court in Indianapolis. He is being charged with two felony counts of criminal confinement, two felony counts of intimidation, one felony count of unlawful possession of a firearm and a battery misdemeanor. 

A representative for the Indianapolis Metropolitan Police Department confirmed Alaklouk was arrested, but did not provide additional comment. Jennifer Lukemeyer, Alaklouk’s attorney in the criminal case, declined to comment.

Read the full report on The Indianapolis Star.


For more news videos visit Yahoo View.

  • This article originally appeared on HuffPost.

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Washington State Passes Bump Stock Ban- America Will Not Comply

First Veneuela, then the United States. Gun confiscation is always the prelude to genocide. History speaks will America listen. Washgton and other states have passed laws against bump stocks and this is the beginning. Will America cave in and give up the 2nd Amendment. The following report answers that question


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Megabank Warns Recent Stock Crash was Only an “Appetizer” to “Main Course” of a Major Crash



“The new law will create inflation whenever the trusts want inflation. From now on depressions will be scientifically created.”
~Congressman Charles A. Lindbergh, after the passage of the Federal Reserve act 1913.

As Morgan Stanley rakes in record-breaking billion dollar profits, their outlook on the rest of the market is bleak and according to the megabank, the recent crash in the stock market was just a taste of things to come.

“Appetizer, not the main course,” is how the bank’s strategists led by London-based Andrew Sheets described the correction of late January to early February. Although higher bond yields proved tough for equity investors to digest, the key metric of inflation-adjusted yields didn’t break out of their range for the past five years, they said in a note Monday, according to Bloomberg.

“Our cycle models suggest that [developed markets] remain in the late stages of a late-cycle environment,” said Sheets. “Rising equities, rising inflation, tightening policy, higher commodity prices and higher volatility are (in our view) a pretty normal pattern if that view is correct.”

Earlier this month, a series of market corrections sent stocks down 10% in a single day for the first time in two years. Although it was brief, the correction, according to Morgan Stanley is just the beginning. And, the megabank is not alone in their assessment.

With the market stable for now and the Dow having recouped about half of its recent losses despite Tuesday’s 255-point slide, it’s time to plan for the next scary plunge, USA Today reported.

“People should take this as a reminder of how markets behave,” says Brad Bernstein, senior vice president of wealth management at UBS Financial in Philadelphia, referring to the 10% drop that stung investors during nine worrisome days. “They have been spoiled by a long period of low volatility and no market corrections.”

To top off the ominous warning from the bankers, the president of the Federal Reserve in Texas has sounded panic this week over the level of US debt.

As ZeroHedge reports:

Nearly a decade after the US unleashed its biggest debt-issuance binge in history, doubling the US debt from $10 trillion to $20 trillion under president Obama, which was only made possible thanks to the Fed’s monetization of $4 trillion in deficits (and debt issuance), the Fed is starting to get nervous about the (un)sustainability of the US debt.

The Federal Reserve should continue to raise U.S. interest rates this year in response to faster economic growth fueled by recent tax cuts as well as a stronger global economy, Dallas Federal Reserve Bank President Robert Kaplan said on Wednesday.

“While addressing this issue involves difficult political considerations and policy choices, the U.S. may need to more actively consider policy actions that would moderate the path of projected U.S. government debt growth,” Kaplan said.

Ironically enough, the Federal Reserve has said very little over the last decade as the federal debt skyrocketed by $10 trillion. Indeed, under Trump’s new budget, the debt is on track to increase another $10 trillion in the next decade.

What’s more, as these elite money changers funnel the wealth upward from the masses using programs like quantitative easing, they are systematically destroying the US dollar through inflation and hedges against foreign countries who are moving away from it to avoid US imperialism.

When the day of reckoning comes, Americans will be left footing the bill and holding worthless paper.

This is the reason cryptocurrencies provide so much value and why they are a threat to the establishment. They take the power of a centralized form of monetary control and decentralize it.

The monetary system is set up to empower those who control it. This is why we are seeing so many attacks on the crypto world and it is also why we are seeing the money changers hedging their bets that crypto is the future.

While the outlook may seem bleak, those who pay attention and plan for the worst while hoping for the best will use this an opportunity to flourish.

As former Congressman Ron Paul recently said“I think our stature in the world and our empire will end, and that’s when, hopefully, the doors will be open and [people will] say, ‘Hey, maybe these libertarians have some answers to this.’”

Now may be a good time to get your answers ready.

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Why Jim Carrey Dumped His Facebook Stock, Deleted His Page & Is Calling For A Facebook Boycott

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Facebook has been under fire all year as a new change to their algorithm will again take pages and businesses out of the newsfeed and replace them with more ‘friends’ posts. A move that apparently users asked for even though Facebook has provided no proof of that.

In fact, Facebook is the only one set to gain from this move as now businesses will have to pay even more to reach an audience they worked so hard to build. Further, users will no longer see any of the content they took the time and energy to say they wanted to see.

This leaves Facebook in the midst of a transition that will likely bury themselves as they are making their platform less useful to users. You see, users decided how they wanted to use Facebook when they began sharing and putting information out that they saw from brands they love. Yet, Facebook feels it knows what users want more, and is now taking that all away.

I have called this  Facebook’s start to their own downfall. They’ve chosen constant growth and profit over user experience, instead of a sustainable business model that also aligns with its users. And users can see this, in fact, they are upset that they don’t know how Facebook works nor how to control what they want to see.

Now Facebook has come under attack again as a tweet coming from the conscious mind of Jim Carrey states he will be dumping his Facebook stock and deleting his Facebook page because he feels it’s unacceptable that Facebook profited off of Russian advertisements in Facebook about the US election.

Russian Ad Buying On Facebook

Of course Jim is referring to the information that came out about Russian ad purchasing on Facebook during the 2016 US election. Facebook and Twitter had revealed that Kremlin-linked groups were buying advertisements on both social media platforms during the 2016 presidential election. The ads appeared to push voters away from Hillary Clinton and instead towards Donald Trump, Jill Stein, or Bernie Sanders.

Whether or not you agree that this made a difference in the election, which it likely did not, some are not happy about it.

It’s unclear whether or not Jim is unhappy with Trump’s election or if he more so is trying to hold Facebook accountable for its unconscious actions in allowing another country to create advertisements that could sway voter decisions, but nonetheless he has something to say.

“We must encourage more oversight by the owners of these social media platforms,” Carrey stated in a CNBC statement. “This easy access has to be more responsibly handled. What we need now are activist investors to send a message that responsible oversight is needed. What the world needs now is capitalism with a conscience.” 

Why Would Russia Do This?

If you have been following what is happening outside of mainstream news when it comes to the election, you may have noticed that the media went pretty silent about the incredible level of corruption and election manipulation Hillary and the DNC were involved in.

From a bigger picture perspective, Hillary is part of a Deep State regime that has been in power for a very long time. Obama, Bush’s, Clinton, etc. Much of the intelligence we got here at CE during the election pointed towards a divide happening within the Deep State that was pushing out the Clinton’s.

You’ll notice that the Russian ads did not pick one party over another, but instead simply pushed Clinton out. Which makes sense when you consider the divide that is taking place and the move towards ending a deeper side of the corruption that exists within politics. Sure, this is still a corrupt move, and they didn’t put a saint in power, but if you were to do the research, you’d understand Hillary was much more of a poor choice and corrupt individual than any other candidate running… by a long shot.

So based on reflection, perhaps Russia is on the side of helping to pull a piece of the Deep State out of a long time held position.

The Challenge With Media Today

But in a different sense this goes back to an entirely different thing. We must learn to become more critical in our thinking and take responsibility for ourselves and our actions. Just because we see an ad, doesn’t mean we need to be swayed by it.

In fact, that’s a big problem with much of media today. It is manipulative in that it pushes a very clear agenda on the population, yet the population en mass has not yet chosen to stay present and take the time to see through the drama to get to the facts. Even most alternative media is like this. This is an important lesson for us all.

As creators of conscious media here at Collective Evolution, we do not use emotion, anger, fear, or manipulation tactics to present information. We simply provide it for what it is, challenge users to think deeper about it and focus on a big picture understanding. This allows readers and video watchers to make up their own mind, challenge their current ways of thinking all without manipulatively trying to make it happen through fear and panic.

Now of course you may be wondering our stance on Trump. We don’t choose political sides. We understand that politics is not where we will solve human challenges. It’s a game we play that uses fear, lies, and panic to get people to believe in a illusory idea of democracy, which doesn’t truly exist.

We feel Trump is simply a step towards shaking up old regimes that have been in power for a long time, all while bringing out many of the challenges and shadows humanity has within itself surrounding, division, racism, sexism and so forth. Our full analysis on Trump’s POTUS position is here.

If you want to boycott Facebook yet still get Collective Evolution content, join our email list or visit our site directly daily.

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