[Video] Fake Economy With Fake "Success Stories" That Actually Operate at a Loss and Carry Around Very Heavy Debt or Growing Deficits
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Collective of Bubbles as Liquid Economy
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TODAY'S second video mostly talks about finance in relation to so-called 'tech' companies (scare quotes because they seem to be more about business or embezzlement, not tech).
Facebook claims to have done spectacularly well (in its latest report), but there's no public data on how much Facebook's debt grew (in spite of mass layoffs). The debt more than trebled in the past 3 years!
In the video I've discussed the example of Amazon, which is still a debt leader (expect many more layoffs), Tesla (whose debt grew 2.5 billion dollars in the past 3 months alone), Spotify, Twitter, Microsoft and so on.
When a company tells you - and its shareholders - that it made X in profits (NOT revenue) and debt grew by MORE than X, then it is actually losing money.
Running a company AT A LOSS is EASY.... ANY person can do THAT! One need only borrow money or raise money from gullible shareholders/investors.
As an associate put it yesterday (in IRC), "the profit vs revenue misdirection is a classic. The revenue numbers usually sound big until you compare them to expenses. Sadly, most people don't know and don't want to know the difference between revenue and profit."
In the video I've given the example of faked growth. A company can BUY another company for its revenue/s (various revenue sources), e.g. Activision, in order to fake "revenue" growth in XBox. But at what cost? Also, how is the acquisition funded? Stock/shares? To inflate already overinflated share prices?
Parrots in the mainstream/corporate (or "Wall Street") media will only ever parrot the lies and the delusions. It makes such delusions seem widely acceptable and even respectable. That's what such "media" exists for - it's assistive or supportive of the scam.
Our associate said that Microsoft did this with Activision, "like Microsoft did with OpenAI. AFAIK no money changed hands."
Nope. Fake currencies. Fake hype, too.
"Then," he said, "I suspect Microsoft 'buys' other companies with those companies' own money and then loads old Microsoft debt onto the new acquisitions."
This is known as the practice of "debt-loading" [1, 2], which should of course be illegal rather than commonly practiced in Wall Street. At the end the taxpayer is left holding the bag and footing the bill for these systemic acts of fraud. Watch how Microsoft 'creates' money [1, 2, 3] - it is like the subprime mortgage fiasco all over again and it has gone on for at least a decade already. █
