Exceeding the total amount of money over the total value of goods produced is a known situation from which inflation derives. The reverse situation causes an economic crisis.
Money is as much a commodity as anyone else. They are produced, sold, but they remain a symbol of wealth, but not wealth itself. However, the laws of overabundance or shortage of goods apply to moneymarks as well. More than that, on their indicators on the accounts.
How does this happen? Remember the famous advertisement “Money Must Work!” A valid statement. Money, which represents a known share of capital, is invested in production in the form of investment and stimulates it. Then they come back with honestly earned interest, which is also grounded because they epitomize the now produced. This is how bank accounts should ideally grow.
As for pyramids and MMM, in particular, there are a large number of people engaged in activities, but not production. Comparing pyramids with so-called mutual aid checkouts is incorrect. In the KVP, people simply stacked up money, and it was in full returned in a certain order to depositors. Not growing in size, but not descending. Here there are huge associated costs for the payment of regular and regular employees of the pyramid, for legal costs. On the most powerful multimillion-dollar advertising, finally. What do the pensioner invested 10 000 rubles in this background mean? One rented billboard in the city costs dozens of times as much.
Here it comes out that people voluntarily carry their blood earned, as a cliff, into a pyramid on feeding “barina” in the hope that will be at the right time near when this “barin” will spread out promised bonuses. True, everyone won’t have enough to return even what they put in. Everyone understands! However, calculating that someone else will come after, bear without thinking about the cynicism of their actions.
In addition to the general moral harm inflicted by the pyramids to society, people are cultivated a taste for halava and a disregard for the interests of a neighbor (“I will have time, and there grass will not grow”), each contributor is trite is substituted. The pyramid can collapse in one moment. And collapses necessarily!
And when it happens, so-called “deluded depositors” lobby in the State Duma the law on allocation from the state budget of sums to cover their losses. From our total budget of all Russians.
In order to prevent this vicious practice, many regions – subjects of the Russian Federation – have already adopted laws prohibiting the activities of financial pyramids in their territory. Not far off the day when such a law will be adopted by the State Duma of the Russian Federation. And this means that only the depositors in the pyramids will be responsible for their initiatives in pursuit of fabulously fast enrichment.