Hello and welcome. You are listening to Patrick Boyle on Finance, a podcast exploring ideas from quantitative finance, examining events occurring in markets right now and financial history to see what lessons can be taken away, including interviews with some of the most interesting people in the world of finance. To learn more about the podcast, visit onfinance.org.

Hello and welcome back to Patrick Boyle on Finance. So the story I'm about to tell you today

will contradict almost everything I've taught people about risk in return, about how easy it is to make infinite money, about arbitrage profits, just everything.

Today I'm going to tell you how an experimental physicist, Constantine Anakev, discovered an infinite money machine and used it to make $310,000 risk-free and then the IRS

could not even tax him on the income.

Now just to be clear, normally if you make $310,000 in the United States, after taxes,

Social Security, Medicare and so on, you'd be left with under $200,000.

It depends on which state you live in, but let's just say under $200,000, which unfortunately

is not enough to buy even the cheapest Lamborghini, the Euros, which is a horrible SUV

and not a real Lamborghini.

Thus, such gains, while nice, will impress none of the Forex traders on Instagram.

Now because Constantine doesn't have to pay taxes on his gains, he is actually left with

the full $310,000, which is enough money to buy a Lamborghini Hurrican, which while it doesn't have

the right kind of doors, it does the job on Instagram, and he even has money left over

to get it wrapped in gold, and to get one of those Louis Vuitton bags full of cash that all

the traders carry around with them.

So how did he do this?

How did Constantine get his hands on non-taxable gold Lambo money?

And can you do this too?

Well Constantine took his idea from personal finance websites.

The idea was to exploit the difference between unlimited 5% credit card rewards and lower fees on gift cards

and money orders. He told the Wall Street Journal, if one has a theory, one can test it

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