A well-known trick used by government entities and large businesses is to borrow money in the form of bond issuance. Make interest payments every time they are due (usually every 6 months) and then just before the bond becomes due, issue a new bond and use those proceeds to pay off the first bond.
What if we applied this strategy to Manufactured Spend? AMEX Simply Cash offers 5% back at Office Supply Stores as does Chase Ink. There’s an interest-free grace period before payment is due. What if we created a perpetual motion machine whereby we MS on Card 1, and just before the bill becomes due, we MS on Card 2 for the same amount to pay back Card 1. Then when the bill on Card 2 becomes due, we MS on Card 1 again.
One might need 3 cards to pull this off perpetually depending on how you can rig the statement closing dates. Also, due to maximum spend at Office Supply Stores capped at $25k or $50k per year, you are limited to a total perpetual spend of that amount. Also, if the credit card company ended that specific card, you’d effectively have to end this game and be able to pay back both cards so keeping the amount owed in a high yield savings account is crucial.
Is this a strategy employed by any MSers? If so, what are the specifics to make it work? If it won’t work, what are the flaws in the plan?