A
lot of Doomsters foresee an economic apocalypse bringing down the world’s
financial system. Economic Armageddon always seems to be part of the litany of
the end times.
Well,
by golly, former Russian financier Sergei Mavrodi, “the man behind the infamous
MMM financial pyramid that cheated millions of Russians out of their savings in
the 1990s, is broke and in prison for nonpayment of a 1,000-ruble ($33) fine.”
Yet, his descent from billionaire to penniless prisoner has not stopped him
from plotting.
"My
goal is a financial apocalypse, a destruction of the global financial
system," he explained scant hours before he was arrested March 14. "I
consider the current financial system unfair; it's not fair that some people
own billions while others have nothing. The system must be destroyed and
something else must be built in its place. That's precisely what I'm working
on."
Funny,
isn’t it? I’ll bet he was preaching “unfair system” when he was bilking his countrymen
and amassing an ill-gotten fortune. His redistribution of the wealth also
smacks of something his country tried, unsuccessfully, from 1917 to about 1989.
His
plan to bring about the financial apocalypse was simply another Ponzi scheme.
“The
principle behind (the new scheme) is the same as in any Ponzi scheme -- earlier
investors receive their profits from subsequent investors,” pointed out a news
article. “Mavrodi promises fantastic returns of 20 percent to 75 percent a
month, as well as lotteries and bonuses for investors.
“What
sets this new scheme apart is that unlike the original…which was presented as a
financial institution with offices selling vouchers bearing Mavrodi's picture,
the new version is entirely Internet-based. Investors have their money
converted into a virtual currency called the "mavro dollar" that is
supposed to increase in value.”
Marvo
dollars? Really?
Essentially,
Mavrodi is setting up a financial social network in which participants give one
another money.
Although
in prison, he is claiming that this new Ponzi apparatus has 20 million members,
a number impossible for anyone to verify. It is known that is charisma attracts
the gullible, including one former Russian legislator who tossed his political
career to spend his time promoting Mavrodi’s new scheme.
"He
isn't doing it for money,” the politician proclaims. “I believe that his
intentions are noble. Will he succeed? Considering the speed with which (the
scheme) is growing, I think I will see this new life. I think it will happen
soon. Even if I go bust, I will have invested my money in his project, I will
have supported him as a strong personality."
Well,
fear not. European and Western laws will stop any Ponzi operation from
spreading too far or too fast.
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