Earlier this week (and in all seriousness), a French financial journalist asked me:
| Top Institutional Holders of Herbalife Ltd. (HLF) |
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To date, internationally, the only recent reports in the mainstream media referring to 'Herbalife,' seem to have been made by financial and sports journalists.
Regular readers of this Blog will know that I am not what you might call a fan of the mainstream media in general, and of the American mainstream media in particular. Indeed, I have already introduced many articles on this Blog with the following thought-provoking denunciation:
In 1945, whilst most, contemporary mainstream commentators were unable to look beyond the ends of their noses, with a perfect sense of irony, George Orwell (1903-1950) presented fact as fiction in an insightful 'fairy story' entitled, 'Animal Farm.' He revealed that totalitarianism is merely the oppressors' fiction mistaken for fact by the oppressed. In the same universal allegory, Orwell described how, at a time of vulnerability, almost any people's dream of a future, secure, Utopian existence can be hung over the entrance to a totalitarian deception. Indeed, the words that are always banished by totalitarian deceivers are, 'totalitarian' and 'deception.' Sadly, when it comes to examining the same enduring phenomenon, albeit with an ephemeral 'Capitalist' label, most contemporary, mainstream commentators have again been unable to look further than the ends of their noses. However, if they followed Orwell's example, and did some serious thinking, this is the reality-inverting nightmare they would find.
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| Igor Greenwald |
As if to prove the validity of the above statement, yesterday, Igor Greenwald published (in Forbes Magazine) possibly the most thoughtful mainstream article on the perplexing subject of 'Herbalife,' to date.
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| Bill Ackman |
Mr. Greenwald has demonstrated the (all-too-rare) capacity to put his ego on one side and start to do some serious thinking. He has bravely confessed to being initially incapable of accepting Bill Ackman's analysis of 'Herbalife' - as an entirely-valueless corporate structure hiding a vast pyramid fraud in plain view of the regulators - until he examined the evidence.
http://factsaboutherbalife.com/
Yet even Mr. Greenwald (who is one of the first financial columnists to step up to the plate and condemn 'Herbalife' as a pariah of a company which should not be touched with a barge-pole, mainly because investors might very-well lose their shirts) hasn't yet embraced the fully-deconstructed explanation of how the reality-inverting 'MLM income opportunity' racket has functioned. Hopefully, free-thinking financial commentators like Mr. Greenwald will now examine the wider-evidence and deduce that 'Herbalife,' and numerous other 'Amway' copy-cats, have all been the essentially-meaningless names over the entrances to essentially-identical pernicious cults built to the age-old totalitarian (or totalistic) pattern.
Before certain readers of this Blog throw up their hands in horror and ask: What qualifies this guy, David Brear, to be making pronouncements on the subject of totalitarianism?, I should confess that I've not been working entirely alone. If I have seen further: then it was by 'standing on the shoulders of giants.'
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Professor Robert Jay Lifton
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In 1961 (after many years of field-research, interviewing US servicemen held prisoner during the Korean War), Robert Jay Lifton (b. 1926) published, ‘Thought Reform and the Psychology of Totalism.’ In this standard, medical text-book, Lifton identified 8 ‘themes’ which, if present in any group, indicate that its members are being subjected to a mixture of social, psychological and physical pressures, designed to produce radical changes in their individual beliefs, attitudes and behaviour.
1). ‘Milieu control’ — the attempted control of everything an individual experiences (i.e. sees, hears, reads, writes and expresses). This includes discouraging subjects from contacting friends and relatives outside the group and undermining trust in exterior sources of information; particularly, the independent media.
2). ‘Personal or mystical manipulation’ — charismatic (psychologically dominant) leaders create a separate environment where specific behaviour is required; leading to group members believing that they have been chosen and that they have a special purpose. Normally group members will insist that they have not been coerced into group membership, and that their new way of life and beliefs are the result of a completely free-choice.
3). ‘Demand for purity’ — everything in life becomes either pure or impure, negative or positive, etc. This builds up a sense of shame and guilt. The idea is promoted that there is no alternative method of thinking or middle way, to that promoted by the group or by those outside it. Everything in life is either good or bad and anything is justified provided the group sanctions it as good.
4). ‘Confession’ — personal weaknesses are admitted to, to demonstrate how group membership can transform an individual. Group members often have to rewrite their personal histories and those of their friends and relatives, denigrating their previous lives and relationships. Other techniques include group members writing personal reports on themselves and others. Outsiders are presented as a threat who will only try to return group members to their former incorrect thinking.
5). ‘Sacred science’ — the belief in an inexplicable power system or secret knowledge, derived from a hierarchy who must be copied and who cannot be challenged. Often the group’s leaders claim to be followers of traditional historical figures (particularly, established political, scientific and religious thinkers). Leaders promote the idea that their own teaching will also benefit the entire world, and it should be spread.
6). ‘Loading the language’ — a separate vocabulary used to bond the group together and short-circuit critical thought processes. This can become second nature within the group, and talking to outsiders can become difficult and embarrassing. Derogatory names, or directly racist terms, are often given to outsiders.
7). ‘Doctrine over persons’ — individual members are taught to alter their own view of themselves before they entered the group. Former attitudes and behaviour must then be re-interpreted as worthless, and/or dangerous, using the new values of the group.
8). ‘Dispensing of existence’ — promotion of the belief that outsiders — particularly, those who disagree with the teaching of the group — are inferior and are doomed. Therefore, they can be manipulated, and/or cheated, and/or dispossessed, and/or destroyed. This is justifiable, because outsiders only represent a danger to salvation.
Another giant in the field of academic research into the cult phenomenon, is Prof. Margaret Singer (1921-2003). Her major work which was published in 1996, is 'Cults in Our Midst.' (http://en.wikipedia.org/wiki/Cults_in_Our_Midst). In this, Prof. Singer set out 'six conditions' in which totalistic thought-reform can be achieved:
Potential new members are led, step by step, through a behavioral-change program without being aware of the final agenda or full content of the group. The goal may be to make them deployable agents for the leadership, to get them to buy more courses, or get them to make a deeper commitment, depending on the leader's aim and desires.
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| Prof. Margaret Singer http://en.wikipedia.org/wiki/Margaret_Singer |
Another giant in the field of academic research into the cult phenomenon, is Prof. Margaret Singer (1921-2003). Her major work which was published in 1996, is 'Cults in Our Midst.' (http://en.wikipedia.org/wiki/Cults_in_Our_Midst). In this, Prof. Singer set out 'six conditions' in which totalistic thought-reform can be achieved:
- 1). Keep the person unaware of what is going on and how attempts to psychologically condition him or her are directed in a step-by-step manner.
- 2). Control the person's social and/or physical environment; especially control the person's time.
- 3). Systematically create a sense of powerlessness in the person.
The members serve as models of the attitudes and behaviors of the group and speak an in-group language.
Strip members of their main occupation (quit jobs, drop out of school) or source of income or have them turn over their income (or the majority of) to the group.
Once the target is stripped of their usual support network, their confidence in their own perception erodes.
As the target's sense of powerlessness increases, their good judgment and understanding of the world are diminished. (ordinary view of reality is destabilized)
As the group attacks the target's previous worldview, it causes the target distress and inner confusion; yet they are not allowed to speak about this confusion or object to it - leadership suppresses questions and counters resistance.
This process is sped up if the targeted individual or individuals are kept tired - the cult will take deliberate actions to keep the target constantly busy.
- 4). Manipulate a system of rewards, punishments and experiences in such a way as to inhibit behavior that reflects the person's former social identity.
The target's old beliefs and patterns of behavior are defined as irrelevant or evil. Leadership wants these old patterns eliminated, so the member must suppress them.
Members get positive feedback for conforming to the group's beliefs and behaviors and negative feedback for old beliefs and behavior.
- 5). The group manipulates a system of rewards, punishments, and experiences in order to promote learning the group's ideology or belief system and group-approved behaviors.
The only feedback members get is from the group; they become totally dependent upon the rewards given by those who control the environment.
Members must learn varying amounts of new information about the beliefs of the group and the behaviors expected by the group.
The more complicated and filled with contradictions the new system is and the more difficult it is to learn, the more effective the conversion process will be.
Esteem and affection from peers is very important to new recruits. Approval comes from having the new member's behaviors and thought patterns conform to the models (members). Members' relationship with peers is threatened whenever they fail to learn or display new behaviors. Over time, the easy solution to the insecurity generated by the difficulties of learning the new system is to inhibit any display of doubts—new recruits simply acquiesce, affirm and act as if they do understand and accept the new ideology.
- 6). Put forth a closed system of logic and an authoritarian structure that permits no feedback and refuses to be modified except by leadership approval or executive order.
Members are not allowed to question, criticize or complain. If they do, the leaders allege the member is defective, not the organization or the beliefs.
The targeted individual is treated as always intellectually incorrect or unjust, while conversely the system, its leaders and its beliefs are always automatically, and by default, considered as absolutely just.
Conversion or remolding of the individual member happens in a closed system. As members learn to modify their behavior in order to be accepted in this closed system, they change—begin to speak the language—which serves to further isolate them from their prior beliefs and behaviors.
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Building on Lifton's and Singer's solid foundation (and after much research) I concluded that pernicious cultism is an evolving criminogenic phenomenon which can be briefly defined as:
'any self-perpetuating, non-rational/esoteric, ritual belief system established or perverted for the clandestine purpose of human exploitation.'
However, since phenomena cannot be accurately defined; I set down the following, essential, and universal, identifying characteristics of a pernicious cult and I published these in 2005:
1). Deception. Pernicious cults are presented externally as traditional associations. These can be arbitrarily defined by their instigators as almost any banal group (‘religious’, ‘cultural’, ‘political’, ‘commercial’, etc.). However, internally, they are always totalitarian (i.e. they are centrally-controlled and require of their core-adherents an absolute subservience to the group and its patriarchal, and/ or matriarchal, leadership above all other persons). By their very nature, pernicious cults never present themselves in their true colours. Consequently, no one ever becomes involved with one as a result of his/her fully-informed consent.
2). Self-appointed sovereign leadership. Pernicious cults are instigated and ruled by psychologically dominant individuals, and/or bodies of psychologically dominant individuals (often with impressive, made-up names, and/or ranks, and/or titles), who hold themselves accountable to no one. These individuals have severe and inflexible Narcissistic Personalities (i.e. they suffer from a chronic psychological disorder, especially when resulting in a grandiose sense of self-importance/ righteousness and the compulsion to take advantage of others and to control others’ views of, and behaviour towards, them).* They steadfastly pretend moral and intellectual authority whilst pursuing various, hidden, criminal objectives (fraudulent, and/or sexual, and/or violent, etc.). The admiration of their adherents only serves to confirm, and magnify, the leaders’ strong sense of self-entitlement and fantasies of unlimited success, power, brilliance, beauty, ideal love, etc.
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* ‘Narcissistic Personality Disorder,’ is a psychological term first used in 1971 by Dr. Heinz Kohut (1913-1981). It was recognised as the name for a form of pathological narcissism in ‘The Diagnostic and Statistical Manual of Mental Disorders 1980.’ Narcissistic traits (where a person talks highly of himself/herself to eliminate feelings of worthlessness) are common in, and considered ‘normal’ to, human psychological development. When these traits become accentuated by a failure of the social environment and persist into adulthood, they can intensify to the level of a severe mental disorder. Severe and inflexible NPD is thought to effect less than 1% of the general adult population. It occurs more frequently in men than women. In simple terms, NPD is reality-denying, total self-worship born of its sufferers’ unconscious belief that they are flawed in a way that makes them fundamentally unacceptable to others. In order to shield themselves from the intolerable rejection and isolation which they unconsciously believe would follow if others recognised their defective nature, NPD sufferers go to almost any lengths to control others’ view of, and behaviour towards, them. NPD sufferers often choose partners, and raise children, who exhibit ‘co-narcissism’ (a co-dependent personality disorder like co-alcoholism). Co-narcissists organize themselves around the needs of others (to whom they feel responsible), they accept blame easily, are eager to please, defer to others’ opinions and fear being seen as selfish if they act assertively. NPD was observed, and apparently well-understood, in ancient times. Self-evidently, the term, ‘narcissism,’ comes from the allegorical myth of Narcissus, the beautiful Greek youth who falls in love with his own reflection.
Currently, NPD has nine recognised diagnostic criteria (five of which are required for a diagnosis):
- has a grandiose sense of self-importance.
- is preoccupied with fantasies of unlimited success, power, brilliance, beauty, ideal love, etc.
- believes that he/she is special and unique and can only be understood by other special people.
- requires excessive admiration.
- strong sense of self-entitlement.
- takes advantage of others to achieve his/her own ends.
- lacks empathy.
- is often envious or believes that others are envious of him/her.
- arrogant disposition.
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3). Manipulation. Pernicious cults employ co-ordinated, devious techniques of social and psychological persuasion (variously described as: ‘covert hypnosis’, ‘mental manipulation’, ‘coercive behaviour modification’, ‘group pressure’, ‘thought reform’, ‘ego destruction’, ‘mind control’, ‘brainwashing’, ‘neuro-linguistic programming’, ‘love bombing’, etc.). These techniques are designed to fulfil the hidden criminal objectives of the leaders by provoking in the adherents an infantile total dependence on the group to the detriment of themselves and of their existing family, and/or other, relationships. Pernicious cults manipulate their adherents’ existing beliefs and instinctual desires, creating the illusion that they are exercising free will. In this way, adherents can also be surreptitiously coerced into following potentially harmful, physical procedures (sleep deprivation, protein restriction, repetitive chanting/ moving, etc.) which are similarly designed to facilitate the shutting down of an individual’s critical and evaluative faculties without his/ her fully-informed consent.
4). Radical changes of personality and behaviour. Pernicious cults can be of any size, duration and level of criminality. They comprise groups, and/or sub-groups, of previously diverse individuals bonded by their unconscious acceptance of the self-gratifying, but wholly imaginary, scenario that they alone represent a positive or protective force of purity and absolute righteousness derived from their leadership’s exclusive access to a superior or superhuman knowledge, and that they alone oppose a negative or adversarial force of impurity and absolute evil.Whilst this two-dimensional, or dualistic, narrative remains the adherents’ model of reality, they are, in effect, constrained to modify their individual personalities and behaviour accordingly.
5). Pseudo-scientific mystification. The instigators of pernicious cults seek to overwhelm their adherents emotionally and intellectually by pretending that progressive initiation into their own superior or superhuman knowledge (coupled with total belief in its authenticity and unconditional deference to the authority of its higher initiates) will defeat a negative or adversarial force of impurity and absolute evil, and lead to future, exclusive redemption in some form of secure Utopian existence. By making total belief a prerequisite of redemption,adherents are drawn into a closed-logic trap (i.e. failure to achieve redemption is solely the fault of the individual who didn’t believe totally). Cultic pseudo-science is always essentially the same hypnotic hocus-pocus, but it can be peddled in an infinite variety of forms and combinations (‘spiritual’, ‘medical’, ‘philosophical’, ‘cosmological,’‘extraterrestrial’, ‘political’, ‘racial’, ‘mathematical’, ‘economic’, ‘New-Age’, 'magical', etc.), often with impressive, made-up, technical-sounding names. It is tailored to fit the spirit of the times and to attract a broad range of persons, but especially those open to an exclusive offer of salvation (i.e. the: sick, dissatisfied, bereaved, vanquished, disillusioned, oppressed, lonely, insecure, aimless, etc.). However, at a moment of vulnerability, anyone (no matter what their: age, sex, nationality, state of mental/ physical health, level of education, etc.) can need to believe in a non-rational, cultic pseudo-science. Typically, obedient adherents are granted ego-inflating names, and/or ranks, and/or titles, whilst non-initiates are referred to using derogatory, dehumanizing terms. Although initiation can at first appear to be reasonable and benefits achievable, cultic pseudo-science gradually becomes evermore costly and mystifying. Ultimately, it is completely incomprehensible and its claimed benefits are never quantifiable. The self-righteous euphoria and relentless enthusiasm of cult proselytizers can be highly infectious and deeply misleading. They are invariably convinced that their own salvation also depends on saving others.
6). Monopoly of information. The leaders of pernicious cults seek to control all information entering not only their adherents’ minds, but also that entering the minds of casual observers. This is achieved by constantly denigrating all external sources of information whilst constantly repeating the group’s reality-inverting key words and images, and/or by the physical isolation of adherents. Cults leaders systematically categorize, condemn and exclude as unenlightened, negative, impure, absolutely evil, etc. all free-thinking individuals and any quantifiable evidence challenging the authenticity of their imaginary scenarios of control. In this way, the minds of cult adherents can become converted to accept only what their leadership arbitrarily sanctions as enlightened, positive, pure, absolutely righteous, etc. Consequently, adherents habitually communicate amongst themselves using their group’s thought-stopping ritual jargon, and they find it difficult, if not impossible, to communicate with negative persons outside of their group whom they falsely believe to be not only doomed, but also to be a suppressive threat to redemption.
7). False justification. In pernicious cults, a core-group of adherents can be gradually dissociated from external reality and reformed into deployable agents, and/or de facto slaves, and/or expendable combatants, etc., furthering the hidden criminal objectives of their leaders, completely dependent on a collective paranoid delusion of absolute moral and intellectual supremacy fundamental to the maintenance of their individual self-esteem/identity and related psychological function. It becomes impossible for such fanatics to see humour in their situation or to feel pity for, or to empathise with, non-adherents. Their minds are programmed to interpret the manipulation, and/or cheating, and/or dispossession, and/or destruction, of inferior outsiders (particularly, those who challenge their group’s controlling scenario) as perfectly justifiable.
8). Structural mystification. The instigators of pernicious cults can continue to organize the creation, and/or dissolution, and/or subversion, of further (apparently independent) corporate structures pursuing lawful, and/or unlawful, activities in order to prevent, and/or divert, investigation and isolate themselves from liability. In this way, some cults survive all low-level challenges and spread like cancers enslaving the minds, and destroying the lives, of countless individuals in the process. At the same time, their leaders acquire absolute control over capital sums which place them alongside the most notorious racketeers in history. They operate behind ever-expanding, and changing, fronts of ‘limited-liability, commercial companies,’ and/or ‘non-profit-making associations,’ etc. Other than ‘religious /philosophical’ and ‘political’ movements and ‘secret societies,’ typical reality-inverting disguises for cultic crime are:
‘charity/ philanthropy’; ‘fund-raising’; ‘lobbying’ on topical issues (‘freedom’, ‘ethics’, ‘environment’, ‘human rights’, ‘women’s rights’, ‘child protection’, ‘law enforcement’, ‘social justice’, 'peace,' etc.); ‘publishing and media’; ‘education’; ‘academia’; ‘celebrity’; ‘patriotism’; ‘information technology’; ‘public relations’; ‘advertising’; ‘medicine’; ‘alternative medicine’; ‘nutrition’; ‘rehabilitation’; ‘manufacturing’; ‘retailing’; ‘direct selling/ marketing’; ‘multilevel marketing’; ‘network marketing’; ‘regulation’; ‘personal development’; ‘self-betterment’; ‘positive thinking’; ‘self-motivation’; ‘leadership training’; ‘life coaching’; ‘research and development’; ‘investment’; ‘real estate’; ‘sponsorship’; ‘bereavement/trauma counselling’; ‘addiction counselling’; ‘legal counselling’; ‘cult exit-counselling’; ‘financial consulting’; ‘management consulting’; ‘clubs’; etc.
9). Chronic psychological deterioration symptoms. The long-term core-adherents of pernicious cults are psychotic (i.e. suffering from psychosis, a severe mental derangement, especially when resulting in delusions and loss of contact with external reality). Core-adherents who manage to break with their group and confront the ego-destroying reality that they’ve been systematically deceived and exploited, are invariably destitute and dissociated from all their previous social contacts. For many years afterwards, recovering former core-adherents can suffer from one, or more, of the following psychological problems (which are also generally indicative of the victims of abuse):
depression; overwhelming feelings (guilt, grief, shame, fear, anger, embarrassment, etc.); dependency/ inability to make decisions; retarded psychological/ intellectual development; suicidal thoughts; panic/ anxiety attacks; extreme identity confusion; Post-Traumatic Stress Disorder; insomnia/ nightmares; eating disorders; psychosomatic illness ( asthma, skin disorders, headaches, fatigue, etc.); sexual problems/ fear of forming intimate relationships; inability to trust; etc.
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http://www.youtube.com/watch?v=-MbNdu-8BZA
http://articles.latimes.com/2001/feb/18/magazine/tm-26780
Classically of a pernicious cult, the narcissistic instigator/leader of 'Herbalife,' Mark Reynolds Hughes (1956-2000), and his narcissistic successors, have sought to control all information entering not only their adherents' minds, but also that entering the minds of casual observers. This has been achieved by constantly denigrating all external sources of information whilst constantly repeating the group’s reality-inverting key words and images.
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| 'MLM Income Opportunity' cultic racketeer, Michael Johnson. |
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| A pay-through-the-nose-to-enter 'Herbalife' orgy of deluded self-gratification (20 000 deluded 'Distributors' Barcelona 2011) All voices of dissent were banned |
Lately, Mr. Greenwald, and other mainstream commentators, seem to have spotted that the bosses of 'Herbalife' have systematically categorized, condemned and excluded as unenlightened, negative, dishonest, etc., all free-thinking individuals (like Bill Ackman) and any quantifiable evidence challenging the authenticity of their imaginary scenario of control. However, so far they have failed to spot that, in this way, the minds of core-'Herbalife' adherents have become converted to accept only what their leadership has arbitrarily sanctioned as enlightened, positive, honest, etc. Consequently, core-'Herbalife' adherents habitually communicate amongst themselves using their group’s thought-stopping ritual jargon, and they find it difficult, if not impossible, to communicate with negative persons outside of their group whom they falsely believe to be not only doomed to poverty, but also to be a suppressive threat to financial redemption.
In many respects, the mere fact that 'Herbalife' continues to be reported on business pages, is a victory in itself for the bosses of the group. Predictably, these world-class inverters of reality keep constantly-repeating the key-words: 'Business Model' , 'Direct Selling' and 'Products' - in a transparent attempt to maintain their rapidly-crumbling monopoly of information.
In reality, because the overwhelming majority of 'Herbalife' products have (due to their banal quality and exorbitant fixed-prices) only been bought by adherents of the group, they might as well have not existed. Their real function has been to launder illegal payments into, and prevent investigation of, a classic pyramid fraud. This is why I usually refer to illusory 'MLM products,' as 'wampum.' Indeed (as Bill Ackman's researchers quickly-discovered) if anyone should be so foolish as to want to acquire 'Herbalife' or any other 'MLM' wampum (but at a fraction of its original fixed-price), there is always a mountain of it going begging on e-bay.
About 15 years ago, I coined the common-sense phrase: 'premeditated, or dissimulated, closed-market swindle,' in order to deconstruct all Ponzi schemes, pyramid frauds, money circulation games, chain-letter scams, etc. However, although a few commentators have used my term (sometimes without attribution), a 'closed-market swindle' is not yet defined in law. That said, it is universally accepted that lying to, or withholding key-information from, people in order to take their money, is fraud which is a form of theft. Common-sense also reveals that, by 'passing any law, but failing to enforce it, has the effect of authorizing the very crime which you are trying to prohibit.'
The lie which is fundamental to all 'closed-market swindles' is that people can earn income by contributing their own money to participate in any alleged 'profitable commercial opportunity' which is secretly an economically-unviable fake, due to the fact that the alleged 'profitable commercial opportunity' has been rigged so that it generates no significant, or sustainable, revenue other than that deriving from its own participants. For more than 50 years, 'Multi-Level Marketing' racketeers have been allowed to dissimulate closed-market swindles by offering endless-chains of victims various banal, but grossly-over-priced, products, and/or services, in exchange for unlawful payments, on the pretext that 'MLM' products and/or services, can then be regularly re-sold for a profit in significant quantities. However, since no gang of 'MLM' racketeers has ever proved that 'MLM' wampum has actually been regularly re-sold to the general public for profit in significant quantities,'MLM' participants have, in fact, been peddled infinite shares of their own finite money.
In the final analysis, other than their ephemeral external presentations, internally there is no real difference between all closed-market swindles; for any alleged 'opportunity to make money,' wherein (when challenged, and/or rigorously investigated) the promoters are unable to provide independent quantifiable evidence to prove that their alleged 'viable commercial activity' has had any significant, and sustainable, source of revenue other than its own losing participants, is self-evidently a dissimulated closed-market swindle.
I invite readers to watch this disturbing 'Herbalife' propaganda video http://www.youtube.com/watch?v=I_k3ido0Hkc featuring 13000 deluded 'Distributors', and then please take note that, when recently questioned on American television, 'MLM Income Opportunity' racketeers, Des Walsh and Michael Johnson, were forced to adapt their previous 'financial' fairy-story and pretend that the overwhelming majority of their so-called 'Distributors' were, in fact, just 'discount customers.'
However, the day before Bill Ackman presented his case that 'Herbalife' is a pyramid scam, Mr. Johnson had committed wire fraud on US television by claiming that 90% of Herbalife's customers, the vast majority, are not Herbalife Distributors. Almost immediately afterwards, Johnson (probably on the advice of his attorneys) retracted this absurd lie - explaining that, in the heat of the moment, he'd made a mistake.
Mr. Johnson's latest televised claim is apparently that 90% of Herbalife's sales are to Herbalife Distributors for self-consumption.
Even then (with the notable exception of Herb Greenberg), CNBC's panel of commentators still couldn't comprehend the enormity of 'MLM Income opportunity' racketeering - a shameful pile of blame-the-victim, dissimulated closed-market swindles that has been growing right under their noses. Tellingly, not one member of the CNBC panel expressed the slightest concern for all the many millions of people who have had not only their time and money, but also their minds, hijacked by this American Dream version of the totalitarian fairy story.
One thing is absolutely certain, virtually no 'MLM' wampum has ever been directly sold (due to value and demand) to the general public, because (exactly like the fake corporate structures which have procured it), it has always been effectively-valueless.
David Brear (copyright 2013)
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