I apologize to the community. Somehow I posted the same blog twice. I am not sure how this happened. Please disregard the duplicate content.
Do Not Send Me Money!
This is posted in comedy because I find this very funny. And you may find this rewarding, just get a few of your friends, to get a few of their friends...
If you don't need a lesson on what's a Ponzi Scheme, skip to the first image in the post.
Quick History: The Ponzi Scheme is named for Charles Ponzi, though he wasn't the first to use such scheme. He just happened to a run a large scheme that was discovered and highly reported. His scheme worked like this. People (investors) gave him money to buy international stamps in a foreign country. He could buy those stamps at a cheaper rate than the value of the stamps in a more prosperous country. He could then sell the stamps in the more prosperous country for a profit and divide the profit among the investors.
Makes sense to me. What's the problem?
The catch on a ponzi scheme is always the same. The actual mechanism for creating a profit is too small or doesn't exist. So, the generator of the scheme boldly claims the great success of the scheme to attract new investors, to pay old investors. And as long as new investors pour more money into the system than the amount of money paid out to old investors, it works great! Until it doesn't.
I will say this again. Don't send me money. I am not seeking investors. This is for humor and knowledge only.
screenshot from methodofmad
This part is true. I bought a roll of 100 stamps on Amazon last month. The stamps are Forever stamps, which means that no matter how high US Postage becomes, the stamps can be used to mail a letter first class. The stamps were $0.416 a piece and were free delivery (by US Mail). The current cost of a US Postage stamp is $0.58. That's a spread of more than $0.16. That's almost a 40 percent return on investment!
But wait there's more...
screen shot from Methodofmad
Not to be outdone, you can buy 2018 stamps on Walmart for $44.95. Yes, these stamps cost more than the Amazon stamps, but they are a not as old! 2018 Forever stamps must be better than 2017 Forever stamps. And it's free shipping again!
But Wait there's more...
screenshot from methodofmad
Walmart will sell those not so fresh 2017 stamps at a discount of $41.95. That's not quite as cheap as Amazon, but did I mention that I'm buying these with my credit card that pays 2% cashback? This has to be free money on top of free money.
What can I do with all of these stamps? If I was Charles Ponzi, I would say let's buy every roll at $41.95 and then resale them at the current value of $58 a roll. We're clearing 40 percent. I don't currently have a lot of cash, but if all my friends and their friends give me cash, I'll pool the money and buy the stamps, and then sell the stamps and then give everyone their money back and then we will all be rich!
Don't GIVE ME YOUR MONEY!
By now you probably see, that the ponzi scheme starts legit. Right now, US Postage stamps can be purchased with a 40% profit if resold at face value. That's true. And it's a good deal if you need stamps. I bought several rolls from Amazon and Walmart. I have been using them all month to mail letters with no problems.
The problem comes in when the idea is moved from a tangible product to an intangible promise. Ponzi's investors never saw the stamps. The assumption was based on his promise that he was buying the stamps and reselling the stamps.
Ok, so don't send me money.
I'm not promising to resell the stamps, even though I am accumulating a few rolls of stamps.
I have this other idea, I will mail letters to 10 people. The letters should have the name and address of 10 people on the list. The receiver mails $1 to each of the top three on the list, and then removes one name from the top and adds, their name and mails the letter to 10 people they know with the same instruction... It's like a chain of money....