SuperCapitalism 

The Sperry Plan 

To Rescue The U.S. Economy

By: M J Sperry

Part 5 of 5



An Example of
"Compounded Profits"

I, nor anyone else, can tell you exactly what kind of money you could make from something like this. But I can give you a simple sketch of my perception of how you and others, could compound your profits into a progressively bigger piece of the pie. I am no financial analyst, just a guy with a vision who sometimes dreams out loud, so don't take this as a guarantee of anything at all. It's just my idealized view.

Let's say the 35 of your company decide to get together with about 30 other groups, for a total of about 1,000 people to start a restaurant similar to the one described above. You want to be certain it isn't under-capitalized so instead of $10,000, you all pony up $30,000. Each contributor then invests $30. At a $10 a week contribution they all have the required investment in 3 weeks and immediately invest.

Since a thousand people will be eating there at least twice a week, some more some less, the revenue yields a profit of $4,000 a week or about $30,000 in 8 weeks or two months. Each investor then has their $30 back in that time and subsequently return it back to the investment pool. Besides the $30, each has contributed another $80 in the ensuing two months, but we won't deal with that here as it would make this less than simple. We just want to focus on the original $30 investment alone.

As you can see in the chart below, the $30 is returned as earnings on investment two months after the original investment and  reinvested in another restaurant. We now have two investments that again return $30 each at the four month point. Added together, the returns come to $60 and are reinvested; $30 in another restaurant and $30 in an insurance agency. Two months later, six months after the original investment, the first two return $30 each and the latest investment returns $60, for a total of $120 that is reinvested in a convenience store, a bakery and gas station.

By the eighth month the return totals $240 which is again reinvested, but this time it is invested regionally with 3,000 other companies, instead of only 30. The investment is in a new cellphone startup technology that offers better quality, for less money, using standard equipment. The last feature makes startup and return on investment just as fast as the others. The tenth months return totals $480 and is reinvested as is the twelfth months return, which is now up to $960. 

Now think about this. After 12 months of compounding return on investment, six streams of revenue have been created that together are producing $960, and all this is from only one investment of $30. Further, this is only at a 'third', or 33% profit, which is small compared to the profit built in to most things. Then consider that during this same 12 month period, the investor would have contributed another $520 (at $10 a wk) over and above their $30 investment. 

Their is of course a limit. It is the amount you normally spend to buy products and services your businesses would sell. Since investment returns per year represents a 'third' or ".33" in the present case, then $960 divided by .33 = $2,880 a year, which is the amount the average person must purchase to ensure that return of $960. If the amount the average person spent normally on goods and services came to about 7 times that $2,880 amount, or about $20,000 a yr, then that average person should be able to ensure the returns of up to 7 X $960 or about $6,720 a year.

At that point the investor might:
A) Use their portfolio of investments to leverage a loan for further investment. With an "established" total return of almost $7,000 a year, a return that could be reasonably expected to be there year after year, a lender might value the entire portfolio at 10 to 1 -  $70,000 or more. This especially when you consider the 5 yr. rate on a  guaranteed bank CD is now about 3%, - 33 to 1. That money could then be reinvested, but once again, only in products and services the borrower will actually be using.

Further, if the economy begins to "deflate" through genuine competition (prices fall) that money will buy more and thus "increase" in value spurring deflation. It is likely this will happen sooner if not later, as the profit now being taken (that causes inflation) by others will begin to be taken by hundreds of millions of SuperCompany investors, thus at minimum maintaining an equilibrium if not deflation.

B) A second possibility an investor might consider, aside from the above ("A") is to cease reinvestment and simply take their profit each year of $7,000 from then on.

C) The investor might consider investing in businesses with higher profit margins.

D) The investor might also continue to invest, but without the investor purchasing their own product, and thus minus the surety derived by the investor also being their own 'perfect customer'.  Of course, any combination of A - D might be considered as well.

...

Now, are you starting to see the potential of this? As I've stated, I'm not an expert on these things and this has been an idealized version of what could be. It should however give you an idea of how this thing might work, how far it might go, as well as its potential for making ordinary Americans, well, not so ordinary, at least not in the money department.

Now Get Busy

I'm sure there will be many questions and I will answer them all bye and bye, but for now just rest on what you've read. Mull it over, talk it over. Then get started. Begin in your community, both in your town and the Internet. If you want this to happen, everyone must know. You know how to make this go viral, so do it. Make it go viral and everything will just sort of happen. Visit the websites often for updates: http://sperryism.org & http://howtorescueamerica.org - Maybe we'll meet someday, shake hands and thank each other, for helping to rescue America.

           "Compounded" Profit Table

                                    (Hypothetical)

Investments 
              1rst       2nd    3rd     4th      5th          6th

Start      $30 - Original Investment

2nd-Mo.

Return  $30 = $30 - Reinvestment

4th-Mo.

Return  $30  + $30 = $60 - Reninvestment

6th-Mo.

Return  $30  + $30  + $60 = $120 - Reninvestment

8th-Mo.

Return  $30  + $30  + $60  + $120 = $240 - Reninvestment

10th-Mo.

Return  $30  + $30  + $60  + $120  +  $240 = $480 - Reninvestment

12th-Mo.

Return  $30  + $30  + $60  + $120  +  $240  +  $480 = $960 - Reninvestment

...

A Message To The Elite

Though sometimes coarse, the relationship between the elite and the average American has been a profitable one. No one can deny it. Together we have built the greatest country this world has ever known and we should be proud of that. Your job has been to guide the masses. Few leaders and many hands were a necessity. The development of machines, robotics and especially the computer has obviated the great need that once existed for 'hands'. So, it is now time that those 'hands', join hands with the those of its leaders, stand shoulder to shoulder as peers with mutual respect, and share in the bounty we both have created. We must no longer stand in each others way. We need your help and almost certainly you must realize that you need ours. Can we find some common ground and extend a helping hand, one to the other?



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Frequently Asked
Questions

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The information contained herein is only for the purpose of elucidating and conveying, an entirely new financial strategy for the rescue of America. It should not be considered in any manner an offer to sell, buy or invest in anything, in any way. Always consult a trained financial advisor before considering any financial investment.

mac Sperry is a writer living in San Diego

visit: www.howtorescueamerica.org    email: howtorescueamerica@gmail.com

© M.J. Sperry - March 2009 - All rights to this work are hereby relinquished to the public domain, but only if republished in its entirety, including this disclaimer. Please distribute widely.