The Production Ponzi
Toyota: When It’s Just Out Of Time
Believe it or not, Toyota is a Ponzi scheme and has less than 5 years left before its sayonara to Japan’s leading automaker. Specifically, the company borrows money from the bond markets that it lends out all via its subsidiary, Toyota Financial Services, at a much cheaper rate than it borrows at. This is why its product margins are about 3x the size of anyone else’s — they are, quite, simply, manufactured (well, non-manufactured as the case may be.)
Toyota has been able to get away with this because for the past 5 years Toyota Motor Corp., its parent, has been recycling the lending loss into manufacturing cost. In subsequent posts I will show in detail how the Toyota Ponzi works, but for now, let’s talk cryptocurrency solutions, because a big problem is lying ahead. (If you want a basic headline figure, consider that the company has borrowed in excess of $6.5 billion a year on slack revenue growth for the past 3 years, serviced another $4 billion in cost-of-debt, and offers more 0% loans than any other manufacturer out there, and you start to get the idea. More on this in later posts however.)
First, the critical question is: what are we going to do with all the out-of-work employees who currently depend on their Toyota income?
I see so much possibility in this. To tackle this looming devastation in Japan’s auto industry, I will initially write a white paper outlining my reasons for Toyota being a Ponzi scheme as well as my rationale for creating a cryptocurrency around this thesis with a specific crisis solution when d-day hits soon (to set an example of how we can provide utility at the most required times).
Then:
1. I will make a blockchain POS with some staking functions and Premine a bit of currency upfront
2. I will sell that premined bit of currency in return for bitcoin and I’ll use the bitcoin to buy some credit spreads
3. I will pay the interest on the credit spreads down with monthly mining revenue from my staking in masternodes
4. When Toyota does go bust I will sell the credit spreads at a huge profit
5. I will then invest in bankrupt Toyota dealerships and plants that will be going for nothing in a fire sale as per staking on the POS chain dictates (there will be a lot of options for many dealerships open so the currency stakers can choose which they like best)
6. I will invest In the dealerships and manufacturing plants that are being sold off in a fire sale, keep local jobs in place and the pos currency will be used to purchase real automobiles
7. The pos currency with infinite issuance and pos mining but also deflatable characteristics will be the ideal supply chain purchasing currency for autos.
Irrespective of your views on Toyota, it strikes me as if this is the ideal blend of speculative asset financing for potential bankruptcies that utilizes the Blockchain, and is worth sharing on its own as a singular piece here if only to offer the seed of a potential forthcoming solution to the side-effects of large-scale corporate fraud.
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