By August 25, 2015 8 Comments Read More →

It’s a Ponzi Scheme -The Real Reason Global Markets are Crashing

Stock Market CrashIsaac Davis, Staff Writer
Waking Times

The economy is collapsing and the stock market is crashing… again. Is this crash the big one, or is it just another hiccup on the slow road to certain doom? Should we stampede, or should we continue to graze?

“The bubbles must continue until morale improves.”Max Keiser

For those who’ve shouldered the responsibilty of understanding how our government and econonomy truly work, this new, latest economic collapse, is not in any way unexpected, but rather a predictable certainty in a long train of abuses by government and Wall Street. You see, the economic system is designed to fail. Collapse is in its DNA.

At its core, our fiat-based, reserve-currency, derivates-driven, interest rate-manipulated economy is a criminal enterprise that is explicitly designed to fail at offering human kind an equitable, just and common-sensical way to facilitate exchange. However, it is very well designed to transfer wealth from the middle class to the wealthiest of the world’s elite in crisis after financial crisis until the whole thing collapses. It is engineered to implode.

To most, it may appear to be failing, but in reality, the crash of the stock market and the instant vaporization of trillions of fiat dollars of wealth is a built-in feature of the greatest heist in human history. The economy is a Ponzi scheme; a well-known, very calculated method of extracting wealth from others. It can be done on a small scale, or it can be scaled up to rob entire nations, entire civilizations even, or, as we see developing right now, perhaps even an entire planet’s worth of wealth.

For simplicity, here’s how Wikipedia defines it:

A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator.” [1]

In other words, to play the game you pitch in money and then tell other people to play the game with you. When enough new people pitch in, the earlier people are paid out with money pitched in by the newer people, and everyone is then told that the company is a great success, the evidence for this being that people are getting paid. More people buy in in order to be part of the success, and the scheme metsastizes.

An Italian criminal born in 1882, Charles Ponzi is the sub-genious of the Ponzi scheme. His story is an exaggerated version of the typical ‘crime doesn’t pay,’ tale, where a crafty criminal dies penniless after winning big, losing big, and spending much of his life in jail. The allure of living in luxury with quick money taken from others is too great a prize for some:

“In the 1920’s, Ponzi promised investors a whopping 50% return in 45 days, or 100% in 90 days on of all things, international postal coupons, which he never actually purchased. He earned $15 million and became a millionaire in only six months. When Ponzi was caught one year later, investors received a mere $5 million back. He was charged with 86 counts of mail fraud and sentenced to 5 years. During his time in federal prison, he was prosecuted again in Massachusetts, but Ponzi claimed double jeopardy and his case went to the Supreme Court. He was then sentenced to seven to nine years in state prison. After Ponzi was released, he launched another scheme, where he sold real estate that was literally underwater. Not surprisingly, the namesake schemer was jailed yet again, and ultimately died penniless in Brazil, working as a translator.” [2]

In recent years Wall Street billionaire Bernie Madoff conned $65 or so billion dollars from investors in what is the largest Ponzi scheme on record to date, although that does not figure into account that the global economy itself is a Ponzi scheme, a tremendous fake.

In a scam like this, there is never any value created by the company, there is no legitimate product or service, and there is no legitimate profit. When new people stop signing up, or too many people want out at the same time, the money flow seizes up and the enusing crash exposes the scam for what it was… theft.

“To avoid having too many investors reclaim their “profits,” Ponzi schemes encourage them to stay in the game and earn even more money. The “investing strategies” used are vague and/or secretive, which schemers claim is to protect their business. Then all they need to do is tell investors how much they are making periodically, without actually providing any real returns.” [3]

The art and craft involved in managing a good Ponzi scheme is in how well the perpetrators can position themselves for the inevitable crash and bust before it actually happens.

READ: The Gods of Money

While things are going relatively well for all in the economy, the financial elite spend their time and money buying up land, industry, war materials, yachts and anything else you can imagine. When the economy finally cracks completely, they are prepared to survive, and perhaps hoping to usher in a new world, maybe of the kind envisioned by the Georgia Guidestones

Financial analyst Max Keiser has for a long time been one of the most rabid voices exposing the financial criminals who are working to plunder and pillage human race. Here he explains a Ponzi scheme in the context of modern derivatives banking and what would happen to many of the world’s major banks if the market manipulation ceased and our economy was given the chance to function without the interference of criminals.

So, is this crash the big one? It could be. It might be. Time will tell, but the con-artists behind the magic curtain are out of tricks to keep all of this afloat for very much longer. Quantitative easing doesn’t even work anymore, so who knows what tricks the central bankers will try to pul out of their sleeves. Better be prepared for it at some point, anyhow.

Fortunately, though, many people around this world are moving into more sustainable ways of living, more sustainable ways of being, and more equitable ways of trading with one another. At the same time, many people are waking up to the realization that the corruption in the economy is the cornerstone of ‘the matrix‘ and must go. Something major must change in our culture, and while the spectre of economic collapse is frightening, it is also a sign that a major opportunity for the liberation of human kind is close at hand.

In the mean time, we are being scammed, and Charles Ponzi would be proud of the work he’s inspired.

Read more articles from Isaac Davis.


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About the Author

Isaac Davis is an outspoken advocate of liberty and an honest society from the top down. He is a contributing writer for Follow him on Facebook, here.

This article is offered under Creative Commons license. It’s okay to republish it anywhere as long as attribution bio is included and all links remain intact.

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  • hon788

    Always have the volume off with cnbc, if you have the discipline.

  • Linda MacLeod Goodman

    This site apparently censors comments. Nice.

    • Linda MacLeod Goodman

      Oh sure, post my comment below AFTER I post the one above. ha ha

  • BDBinc

    The reason is simple the artificial markets are being crashed.
    If you were wall st, created an artificial Market made up of made up stock prices, owned a super computer and program you could be the one crashing your market too and making money on it.
    Its artificial made up market of Bulls*t it moves as the owners of wall st ( banksters)want it to move.

    • “…we can force people…America is strong enough, our banks are tough enough, we can just bring the hammer down and force people to do what we want to do.
      – John Kerry

  • BDBinc

    The market has no DNA ,the wealth transfer created by the artificial price changes are not a “fail”. That is the stock markets artificial computer program’s purpose, it is our purpose to see the truth of the Wall st scam .
    Careful believing Keiser he may well be controlled opposition.
    The stock market is certainly false, fully controlled and artificial.
    Designed to create and transfer wealth.

    Yip the whole economy is fake and fully controlled by the money lenders whom the corporation(govt) borrow money from with interest and exchange that for you(a tax paying debt slave) you are security for the govt loan(your work ) So you see slavery did not end the govt just told you it did.

    • “Controlled Opposition” yep, the best way to shit on anything is to demonize it. Who can you trust?

      If money is worthless and a fiat currency then we are only wrestling with the construct, the construct itself is value. The bankers are only managing the perception of value through the conduit called “currency.” They conned people into believing worthless instrument have value as a method of trade for real goods. The contracts enforce holdings. Attack the legitimacy gained through criminal means (currency of no value) and they fall. The people that believe it are the enforcers. The market is a lottery where just enough people win to keep the game going.

      You know who else tried to extricate themselves from the “International Bankers.” It brought the full weight of the Allies against him and 70 years of constant demonization to cover up their crimes. They even resorted to ludicrous stories of alliances with hostile Aliens and dark occult forces.

      • BDBinc

        “Whoever controls the volume of money in our country is absolute master of all industry and commerce…and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” James Garfield

        The people are not the enforcers.
        Wall st’s stock market is artificial, not a market a computer program and a super computer.
        The banking cabal creates and profits off wars, controlled opposition is used, an “enemy” appears (a made up boogieman ).

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