They tell their buddy who makes shovels that they were digging a great hole and shovel maker asked if Hole Digger would need more shovels so Hole Digger said they'd invest 100 bucks in the Shovel Maker. for future discounts on shovels. Shovel Maker Inc. says great then tells the guy who makes Shovel Handles that he's got a 100 dollar investment deal with Hole Digger Inc. and he'd like a piece of the Shovel Handles company for future discounts on handles. Now Shovel Handle Inc. tells people he's making shovel handles for the Shovel Maker Inc. whose gonna make the shovels for Hole Digger Inc. Now each of them show new earnings increases of 100 bucks each which causes interest in their stocks and causes their stock prices to go up which of course makes each owner wealthier, on paper, yet not a penny has changed hands between the companies. So they do it again and add Screw Maker Inc. and Fancy Rubber Handle Cover Inc. into the loop and now they all have an advanced product they say nobody else can make (mostly because the entire supply chain for Shovels now runs through all of them) and people keep seeing their stock rise so they keep buying it, stock keeps sky rocketing and the owners keep getting wealthier. They keep this roundtable scheme going and going through clever marketing, publicity and accounting which they can now afford while floating around on their yachts because they've been leaking their ownership shares through crypto turning it into tax free cash because they were able to buy an election and get all the cops that watch this shit canned.
Yet not one penny has exchanged hands between them. Not even the initial 100 bucks. Only "promises" of "deals" and loans to provide positive cash flow that are cleverly hidden by those high paid accountants and lawyers.
Maybe not exactly how it works but the big 7 AI oriented companies are now so locked into a viscous cycle of circularity, probably more than likely illegal circular investing that artificially inflates their values to insane amounts (Nvidia a trillion dollar company? Give me a break) that they are now dragging the entire economy along in this charade, and it is very dangerous. They are running out of ways to come up with and/or hide the way these towers of cash are sitting a top a foundation of sticks its getting scary.
The rookies are running the government and aren't very good at it so all they can come up with is the BS of flat out pumping and dumping the American people. They probably really don't care. I believe they are going to find out very quickly that while most Americans will trust to a fault, they also tend not to forget when you start killing them. Start killing the white ones well... we can't have that as a society and that's usually where it starts to fall apart...regrettably and disgracefully.
I heard a rough idea of that example on a popular gamers utube channel, probably messed it up but in general, a giant Ponzi Scheme in the Round.
= new reply since forum marked as read