Daily Jewel

by Pastor Carnell, McAlester, OK
June 14, 2012

“Scams and Schemes!”
“Riffraff and rascals talk out of both sides of their mouths.” – Proverbs 6:12 (The Message)

Late in 2008, many Americans became familiar with what was for many a new concept—a “Ponzi Scheme.” Synonymous with that phrase is the name, Bernie Madoff who according to experts is the largest in terms of monetary losses in history. A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.
The scheme is named for Charles Ponzi, who became notorious for using the technique in early 1920. He had emigrated from Italy to the United States in 1903. Ponzi did not invent the scheme (Charles Dickens' 1857 novel Little Dorrit described such a scheme decades before Ponzi was born, for example), but his operation took in so much money that it was the first to become known throughout the United States. His original scheme was in theory based on receiving international reply coupons (bonds) for postage stamps, but soon diverted investors' money to support payments to earlier investors and Ponzi's personal wealth. The system is destined to collapse because the earnings, if any, are less than the payments to investors. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases. Prosecutors estimate losses at Madoff's hand totaling roughly $21 billion, as estimated by the money invested by his victims. When considering what the investments were meant to give back, the total could actually be closer to $68 billion.
It is obvious from the verse mentioned above that “scams” and “schemes” have been a part of humanity for as long as history has been recorded. And much of it goes back to the previous verses—it is about trying to get something for nothing. Countless numbers of men and women who have used other people’s resources for their own selfish purposes—and gave nothing back but heartache and loss.
But let’s take this to a far different and even more important level—and it goes to the issue of “trust.” Not trust in a person but a trust in God that does not need “investments” to feel secure in life. When you look at some of the people that invested in Madoff’s scheme, it reads like a “Who’s who” of Hollywood insiders, Sports figures and yes, political figures as well. Some say they lost several million dollars. Which leads me to ask the question—where have they placed their trust? If they had that kind of money to invest in the first place, you have to wonder if God is anywhere in the picture?
Is it wrong to invest? No. Even in biblical times the concept of investment was alive and well—but if we are weak in our faith and trust and we rely upon worldly riches and resources, then when some “riffraff” comes around promising a great return for our investment—what do you think might be the result?
O, and by the way—the master “riffraff,” the devil, wants to steal our most precious resource—our soul and the souls of our family. If your trust and faith is outside the love and grace of God, his ability to steal those resources is much greater. Know what you are investing in and who is in charge of it—you do not want to lose it all with no recourse to recover.
Pastor J. T. Carnell.