HYIP, High Yield Investment Plans. How To Hedge HYIP Schemes.
Our pension funds are legal ponzi schemes; albeit they are admittedly closely guarded, highly scrutinized and well publicized ones, nonetheless, as in ponzi schemes, they rely on fresh money to finance obligations to earlier subscribers and have a strong tendency to go bust.
Even the old German Emperor, Bismark, who allegedly created the world’s first state pension fund already knew, that like all ponzi schemes, sooner or later, they are doomed to fail. It is why he decided to allow benefits only as from 65 years of age, at that time, it was the average age of German males, in other words, men were supposed to be statistically dead by the time they reached pension benefits eligibility.
In the case of our pension plans, the state has reserved itself the right to “adapt” conditions as it sees fit, whether it is in Switzerland, Venezuela, Argentina or the USA. Since the age pyramid has turned itself on its head (there are not enough births to garantee that enough workers will be funding the pension schemes when fresh retirees arrive), the state has grabbed the only possible solution there is: make people work longer.
And so it is that we see the official retirement ages in different countries rise, as it is the case in Switzerland (where parliament is looking at a law proposing that men should retire at 67 and women at 62, up from 65 and 60) or Belgium. It is in the works everywhere.
It is the same thing with online HYIP or High Yield Investment Plans. It used to be that HYIP was a term that was heard only in the mouths of Private Bankers, preferably those that took care of “major accounts”, if you read between the lines, that refers to extremely wealthy customers.
That was and still is because HYIP opportunities were only truly accessible to people who have very large amounts of capital at their disposal. As in all very risky entreprises, it always prudent to shop around for insurance if and when it is available.
Insurance was born in the 15th century when wealthy ship owners decided to bail each other out when things went wrong and today, this mature industry shows how efficient it has become as we see insurance rates for ships sailing past Somalia rise because pirates are active in this area.
But for HYIP, there is no insurance available, which is why these schemes usually provide for leverage in case things go wrong, as is known to happen. High Yield also stands for High Risk. How does leveraging HYIP work?
Let us look at an example. There is a new HYIP on the market named WBwso, which stands for Wealth Builders Web Site Owner. This UK registered company is active in the Internet market niche of site flipping. They buy cheap Internet sites that have no traffic and through hard work and the applying of specialized knowledge, they try to turn them into a winner, that is, a site that pulls large amounts of visitors.
Now the site that they bought for mere pennies can be sold for a serious amount, there where the investment required only 1500$ and now is worth twice or three times the amount spent, all within 14 to 24 months. Those are serious returns. They advertize accordingly: turn 100$ into 90 000$ in three years.
If I want to emulate HYIP investors, I will invest the 100$ with WBwso and “leverage” my bet by seeking out an online punter or bookie. I will ask him to propose odds on the WBwso venture. Bookies are extremely proficient at evaluating risks, it is this ability that allows them to make money. If one proposes a tarif, I will have a very good indication of the risk factor of my HYIP.
Most of all, I would bet both ways. This means I will bet that the HYIP will win and also that it will lose. Either way, I will not have lost all my money. In HYIP schemes, this is how leveraging works.
