The money lenders of Moc Bai (Bavet) – Jumping the Border
Casinos are a wondrous thing. They spring up in the most desolate places and cater to all of mans vices. This is a tale of how my uncles make money. Moc Bai is located on the Vietnamese-Cambodian border. As Vietnam used to have quite strict gambling laws, and Cambodia didn’t, Vietnamese people would flock to the border to gamble. Asians love gambling.
Jumping the border
I entered Vietnam on a one entry Visa. To enter Cambodia and get to Moc Bai I would have to apply for a Cambodian Visa. To re enter Vietnam I would then have to re apply for another visa. Lacking the time involved to get the said visas and the money, I decided to jump the border. My uncle arranged the fiasco.
We all drove to the border. Me, my two uncles and cousin. As we got to the border, we parked up and I jumped out. Waiting for me was a motorcycle. I left all valuables with my uncle and jumped on. The motorcycle veered down a dirt road and pelted it, full throttle, through a field. We met up with a peasant who maintained a track made of sticks across a marsh and paid the toll. The motorcycle then drove to a hole in the wall of the great casino complex. Just before we entered, the man called ahead. He called the military to confirm that we could bend the rules. It took 20 minutes.
I would say that the journey was a fantastical experience, full of soldiers shooting at me, but it really wasn’t. The journey felt like racing around a dirt track. The scariest thing was being in a third world country without my passport – could they think I was trafficking drugs?
Money lending to the money lenders
My uncle wanted me to see Moc Bai. Where he made his money. It wasn’t through gambling, but rather lending money to the gamblers.
In Asia, gambling is in the blood. People would go to the casinos, spend all their money and then fret. If they played just a little longer, then surely they could at least recoup their losses casino. The classic gamblers psycosis.
Upon entering into that psycosis, they would turn to anyone and borrow money. This is where the money lenders step in. They’ll do a credit check. They’ll ask you what property you have. Then they’ll lend you inordinate amounts of money for silly amounts of interest. The interest can be calculated per day or per week.
If you win, then you’ll pay back the money lenders, take your profits and trundle home. If you lose then, you’re, fucked. They’ll literally follow you home and demand the money.
So where does my uncle fit into all this. He lends money to the money lenders. As a money lender, you’ll be charging interest rates unheard of in this country. As long as a money lender is able to keep his money working for him, then he can afford to borrow money. The rate for lending money to the money lenders of Moc Bai: 8%. 8% each fucking month. That’s 96% per annum.
Terms & Conditions
The minimum amount to lend is $10,000. Paid in cash. Interest is to be paid in cash per month. It is your responsibility to collect the interest. The interest will be paid each month until you need the principle back or I run away.
Just to recap
I lend $10 000 to you. Each month I have to go to Moc Bai and collect the interest of $800. This occurs indefinatly until I need the principle back. This is then paid back to me. If this works for 12 months then:
$10 000 + ($800 * 12) = $19 600
To put this into comparison, the you’d be lucky with 12% per annum on the US and UK stock markets.
The eighth wonder of the world
Compound Interest
1st Year: $10 000 + ($800 * 12) = $19 600
2nd Year: $19 600 + $18 816 = $38 416
3rd Year: $38 416 + $36 879.36 = $75295.36
By year three you’d turn $10 000 into $70 000.
Everything that sounds too good to be true, is.
I’m a cynical cunt. This can’t work. There are two possible outcomes:
- It’s an out and out scam. They run with your money.
- It’s a long scam. They wait till you have a ridiculous amount of money invested and run.
We can rule out the first option as my uncle has been doing this for over a year. He’s recouped his capital. The second option however, is a lot more plausable. My uncle has over $100 000 invested. He’s mitigated his risk somewhat in the fact that he’s lent to quite a few people. When they seem untrustworthy, he’ll ask for his principle back and reinvest it.
The other option
This can work indefinatly. As long as the money lenders can screw other people, then your money’s relatively safe.
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