Something sinister has been predicted might eclipse the success being recorded by participants of popular ponzi scheme - MMM Nigeria.
MMM is an infamous pyramid scheme. It was wrong on the first day. It was wrong in December of 2016. It is wrong today. And it will be certainly wrong on the calamity day. It should never have been allowed in Nigeria. Its entire operation is based on the following mechanism:
The owner of the scheme takes money from the first person and pockets it. Now, he is owing one person.
Then he takes money from two new people to pay the first person and keeps a part of it to himself. Now, he is owing two people.
Then he takes money from four people to pay the two people and keeps a part of it for himself. Now, he is owing four people.
Then he takes money from eight people and pays the four people and keeps a fraction for himself. Now he is owing eight people.
The system continues to grow like a pyramid – more and wider number of people paying to cover fewer people that came before. At each point, the owner of the scheme is making money for himself because he keeps a portion of each new money people pay.
The first people that have been paid are happy and the owner of the scheme is making big money for himself and is happy. But what about those who have not been paid and those who are yet to put their money into the scheme?
This is where basic knowledge of Mathematics and Economics comes in. Mathematically, you understand the concept of infinity and the opposite. The only way to keep paying out money to everybody is if the new people putting in their money are infinite, i.e., if the population is infinite. Once you realize that the number of people paying is no endless, you will know that time shall come when the scheme will not have enough new money to pay old claims. That is Mathematics there for you. Then Economics will have taught you that there has been really no value movement to justify the 30% you expect to receive in 30 days on the money you paid in. That will tell you that it is other people’s money that you are expecting to pocket and walk away with.
The inescapable logic is that there is a calamity date down the line. It will come the day the owner of the scheme fails to pay. That moment came in December 2016. If all those who were owed and who could claim had claimed in December, that would cause the calamity day to come. But the owner of the scheme played a fast one. He suspended all payments. As he reopen in January, he still knows that he cannot pay all claims. The claimants (GHs) are now too big for the new subscribers (PHs) and all GHs cannot be paid. So, they are reducing the number of GHs to be paid while encouraging more PHs to pay in. They are only postponing the Calamity date.
I got involved in this matter because some of the qualified GHs in December were aggrieved when they could not get money as they were promised and they sensed a foul play and they considered legal help and came to me.
The calamity will come and very soon. It cannot be postponed much longer. ECULAW and Co. will help all those that will be stranded as of the calamity day. This logic is inescapable and we are preparing for that unfortunate day.
-By Emeka Ugwuonye
Post A Comment:
0 comments: