The US Economy is a House of Cards and We Must Thank Federal Reserve and Wall Street for This

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By Chris Black

The US financial market is often referred to by insiders as a casino. Trading is commonly described as “playing the stock market”. Why? Because it is a casino, and obviously, the house never loses. Only the bumpkins lose.

If you think I am kidding, remember the Wall Street bailouts from 2008, when the FED pumped over 20 trillion dollars to save the “too big to fail” croupiers (banks) in the casino that is Wall Street and the Globo Homo financial system generally speaking.

The Federal Reserve also pumps money like crazy, i.e. it conjures new money from thin air and gives it to the banks, as in the banks receive the money first at almost zero interest rate (remember ZIRP?), before inflation hits. The money printing operation has fancy names like Quantitative Easing or “Covid relief”, but after all’s said and done, it’s just old school money printing in the digital era. 

Banks also create huge amounts of money out of nothing via fractional banking. If you don’t understand the mechanics of money, well, keep on playing the casino, you’re a real life Robin Hood. To give you an idea about how messed up this system is, I will provide you with a few recent examples.

SIGL, a company with 1 employee, and no operations, has a market cap of $421.6MM after its stock soared by 1000% back in January. Why? Because grand wizard Elon Musk mentioned the company on Twitter and the sheeple rushed in and bought stock like crazy. 

The same Elon Musk promoted the Signal app, an encrypted communication system which is known to have been compromised by the FBI, leading to 1100% surge in unrelated stock with similar name, because people are THAT retarded.

Last week, Elon went on Twitter and started promoting the Clubhouse app as his favorite mean to communicate to his cult-following or something. This is from Zero Hedge:

ClubHouse Media Group Inc., which trades under CMGR, is a “self-described marketing and media firm targeting social media influencers,” according to Bloomberg. It is unrelated to the Clubhouse app that Musk has been pumping. Regardless, it has spiked over 1000% this year as retail traders have ignorantly (or, in some cases willingly?) mixed the two entities up. ClubHouse was formerly named Tongji Healthcare Group Inc. and now trade under CMGR. The company’s market cap has ballooned to $2.5 billion from $225 million in early January. 

Hilariously, this puts the fake ClubHouse at almost 2x the valuation of the actual Clubhouse.

Because, you know, market fundamentals, muh free markets, and Bitcoin is a store of value.

Anyway, this is legal and classic pump and dump scheme, just like Bitcoin.

Do you know how hard it is to get a private company above $30 million in revenue IN REAL LIFE? It is very hard.

Yet in the stock market, a company with no revenue and a single employee can see its value shoot above $2 billion on a mistake. Shitshow doesn’t begin to cover it. 

The reality is that publicly traded companies are total BS. Earnings and revenue are faked in many different ways. Our economy is pure fiction.

I remember when the company I worked for had the #1 item sold at checkout at a national retailer with supposed revenues of $6 billion. We sold $5 million with them that year. The retail value was $11 million. So the #1 selling item with 500k units sold, which cost $22, generated $11 million for the corporation.

Based on 3rd party analytics, the average transaction at the stores was $82. So I ask, where does the $6 billion in revenue come from if the #1 checked out item only made $11 million and the average transaction is $82?

Put in a very easy way to understand, is that every store they have has to do $38k in sales every single day. If the store doesn’t hit $38k, any balance must be added to the next day, and so on. I can tell you that I talked with a lot of store managers. A good day for them was between $5-6 thousand, nowhere near $38k. During Black Friday a high traffic store might hit that number. By that time the store would have to be doing a few hundred thousand per day to hit their target.

So the reported revenue is impossible. Wall Street doesn’t care. It doesn’t matter if it is pure fiction. Regulators don’t care because somehow the reported revenue uses GAAP rules. 

By the way, this company’s stock is up 500% since the March lows and 70% higher than their previous all-time high, when most states are still locked down and nobody can use most of what they sell. 

Fuck Wall Street.

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