I have stated that the basis of our economic system is a fraud that extracts from the masses for the benefit of a few. We created a stock market that allows a select few to make an inordinate amount of money even as they produce nothing of useful value. This author explains the fraud in a manner everyone can understand.
The Huge Fraud Behind Our Stock Market
It is clear that if one looks at the stock market objectively, it is nothing more than legalized gambling. It is a fraud. Tan Liu, the author of the book “The Ponzi Factor,” points out that the stock market meets the legal definition of a Ponzi Scheme as defined by the SEC.
I recently wrote the article “The foundation of America’s economic system is now an inhumane fraud” where I pointed out the following.
Most financial companies make money not by investing in companies for the sole purpose of making money from the success of their products and services but for merely moving paper and money around. Their investments produce nothing useful for society. They generate money off of the backs of others having formed companies, others who have created products and services. … But our indoctrination has taught us that those with capital are more valuable to society. …
It is said that capitalism affords the efficient allocation of resources. That may be the case in theory. The reality is it has failed to do that as it has allocated resources to the lease deserving internally. For the economic system in the aggregate, it has allocated them stupidly. …
Only when Americans understand the corrosive nature of the internals of our economy, will they force a change. When they realize that the economic system isn’t divine, but human-made will they engage to change the parameters to fix it in a manner that gives all equal access to success.
Nothing said in the post is refutable, One must then ask, how can we transition to an economy that is based on real value as opposed to a game designed to enrich a few? We must first learn and understand the truth.
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Look, when you’re making a claim, you’ve got to make sure your terminology is correct or you hurt the trustworthiness of the underlying argument.
The stock market may be a lot of negative things, but it is simply not a Ponzi Scheme. That term is a very specific type of fraud where a company lies about creating profits for investors and covers that fact up by paying old investors with the money from new ones.
The stock market isn’t a Ponzi Scheme. Every dollar invested is actually there – people actually put money in and out, and the money invested goes up by about 7% a year on average.
I agree with so many of the points in the article but naysayers will use the ridiculous Ponzi scheme claim to discredit the rest of the insights here.
Don’t use specific terms unless they actually match, not just if they have some tangential overlap.