The integration between Austrian economy, healthy money and the infinite banking concept is very logical. Once you understand these principles, the only question you have is why we as a whole society are not doing it. The authors provide answers and also shed some light on this.
Why is this important to me?
I always want to ask this question as if I were in your shoes. Would you benefit from reading this summary? At the moment, the whole world works with a fiat currency system. Basically, fiat means that the currency is not backed by hard assets like gold and silver. In 1971, Richard Nixon took the US off the gold standard and we’ve chased inflation ever since. Also, the Federal Reserve was established in 1913 and since then the dollar has lost 96% of its purchasing power. To put this in perspective, in 1950 two silver coins could fill your car with petrol and today two silver coins fill your car with petrol. The difference is that the silver was worth 50 cents in 1950 and is now worth $62. The problem is that it buys the same amount of goods.
With all the turmoil in the market, you hear the news headlines talking about the evils of capitalism. This book and many others show that the boom and bust cycles are created by government intervention and the Federal Reserve’s central control over monetary policy.
How privatized banking really works is full of several key concepts related to the entire financial system. It is divided into 4 main parts and for the sake of time we will briefly cover each part.
1. Fractional Reserve Banking – Fractional Reserve Banking is a very interesting concept as it brings massive profits to central banks and has the potential to wipe out our entire financial system. Basically, for every $10 deposited, the banks can borrow $10. This creates money out of thin air that contributes to inflation.
2. Privatize banking – The Austrian economy is about scarcity and choice. They promise that it makes financial sense to close the Federal Reserve and privatize the banking system. Right now, our entire financial system and government is controlled by the Federal Reserve, which is constitutionally illegal. When was the last time the Federal Reserve was publicly audited? I realize the news talks about more regulation that is actually needed to control the amount of leverage banks use to make a profit. The main problem is the Federal Reserve and the government controls our money.
3. Sound Money – Sound Money is money backed by real assets such as gold and silver. These precious metals have been real money for over 2000 years. When currency is tied to assets in this way, inflation and boom/bust cycles disappear because the government can no longer spend unlimited money. This one concept would be the greatest deterrent in stopping wars and building empires. This is the main reason why the government took us off the gold standard in the first place. Do a Google search for the 1950 Silver certificate and you will notice that it resembles the dollar bill. The difference is that it is not called a “Federal Reserve bill”, but you can exchange this certificate for real silver. Today the central bank prints money and our money supply has tripled in the last 3 years. History shows that all fiat currencies reach their zero intrinsic value. Every empire (Persian, Greek, Roman, etc.) has devalued its currency and failed. This is the only historical truth. The difference today is that the whole world has never been tied to fiat currency and the ripple effect will be terrible.
4. Infinite Banking Concept – The good news is that the little guy has a method to opt out of the banking system. The concept was developed by R. Nelson Nash. By using a guaranteed life insurance policy, you can create a profitable banking system for yourself. Mutual insurance companies have been around for over 200 years. They are safe because their capital requirements are 1 to 1, so there is no extreme leverage like the mainstream banks. In addition, the policyholders own the business. The authors argue that if only 10% of the population adopted this banking method and opted out of the traditional financial system, real change would occur.
How Privatized Banking Really Works is an examination of sound money, private banking and the abolition of government monopoly control over our money. These concepts require study as it is directly related to our liberty and liberties that make this country great.
I hope you found this short summary helpful. The key to any new idea is to work it into your daily routine until it becomes a habit. Habits form in just 21 days. One thing you can take away from this book is the concept of sound money. You must have at least 10% of your savings in solid money, i.e. gold or silver. Silver is volatile because it is priced in dollars. If you price the stock market in terms of gold, you see that the values have been declining for 20 years. Silver is still below 1980 levels. There is no other investment or commodity that is this cheap.
Recommended
- Cryptocurrency Security: Bitmarque Review If you are looking for a reliable custody service for your digital assets, you might want to check out Bitmarque. Started in 2017, Bitmarque is another cold storage solution, which is free of bugs.The blockchain experts behind this service use military-grade security systems and a secure offline wallet. They have…
- The Federal National Flood Insurance Program has grown to… The Federal Flood Insurance Program, also called the National Flood Insurance Program (NFIP), is a total disaster, pun of course, you know me. How bad has it gotten? Well, they're redrawing flood maps to get more premiums to pay their costs, costs that don't add up, simply because FEMA is…
- 101 Dog Tricks by Kyra Sundance - fun for everyone In 101 Dog Tricks, Kyra Sundance teaches and demonstrates the proper ways to train your dog to do some truly amazing tricks. Fun and informative, the book is a must for any dog trainer or owner. Whether you're training for competitions or just at home, this book is a must…
- Importance of credit and financial services for an… Like money, the importance of credit and financial services cannot be ignored. We know that money is the backbone of any economy. In addition, the functionality of an economy depends on the financial system of the state. In this article, we are going to learn more about the importance of…
- Take care of your financial security In today's uncertain economic times, owning gold has become almost a necessity. One has to allocate part of his income to investments in gold. While inflation has continued on its way up, the value of gold has always shown consistent growth. Owning gold has protected your purchasing power for decades…
- Banking and financial services - essential part of… Banking and financial servicesToday, banking and financial services are an essential part of everyone's life. Every day people use different types of banking and different financial services. Some examples are paying utility bills or insurance premiums, shopping online or via debit/credit cards. These technology-driven banking and financial services have simplified…
- I am a student of Christian Science Are you a Christian scientist?When asked this question, more often than not I answer, "I practice Christian Science." Christian Science is a practice, a system of divine healing that can be applied in everyday life. In short, pigeonholing myself as a Christian Scientist can be misleading. For example, I know…
- Insurance policies, complaints and testimonials I've read reviews and testimonials from people who have different insurance plans. Some are tragedies, others are triumphs. Some are irrational and others are lucid. Some throw blame, while others give excited cheers. The key to all of this is that there is no middle ground. The reviews or testimonials…
- Best backpack for travel The first thing to consider when choosing a backpack is its size. You may be tempted to buy a large backpack: maybe 50-80 liters. This is almost certainly not what you want. You want to think about packing as light as possible, certainly less than 15 kg in your backpack.…
- Why outsource to India? Why should I consider outsourcing? This is the first question that comes to mind when we think of outsourcing. I will, without laying down a foundation, quickly list the benefits:o Survive and be stable in tough competitiono Cut those hefty expanses:o Increase payoutso Employee benefitso High infrastructure costso Recruitment costso…
- Oscar Worthy Customer Service - How the Hollywood Model Can… The 2008 Customer Service Oscar goes to USAA! This year, the national business award for outstanding customer service, considered the OSCAR of customer service, went to USAA, the United States military's financial and insurance provider, for the second year in a row. (Reported in the March 2008 edition of Business…
- What is a STAT Medical Delivery? There are many companies working in the Chicago courier service that offer medical delivery services as part of their total package of services. Medical courier companies are an important part of the overall health care system. These are specially licensed couriers who have the appropriate vehicles and training to transport…
- Ready to travel to Ukraine to adopt Get ready to adopt your trip to Ukraine! Lots to plan and prepare to make your trip less stressful and your stay more comfortable: • Go online and familiarize yourself with the Ukrainian currency. The appearance of the different denominations and exchange rates. (Currently $1 USD is about 8 Ukrainian…
- The importance of definitions to the world of policy and… Policy and procedure documents and manuals contain several important words and phrases that are often misunderstood by policy and procedure writers. And the way these words are used can actually change the whole meaning of your policy and procedure documents. Defining these words is an easy task; what makes the…
- Your insurance coverage - is it adequate? Many people don't realize how much money they spend on insurance premiums. Auto, life, home, contents insurance and extended warranties can be costly. Insurance is risk assessment and coverage. It's about the future, so as with all decisions, we must go to Jesus for guidance. Only He knows the future.…
- Are you old enough for life insurance? Life insurance is basically a way to secure the future of one's family. Parents often took out insurance for their lives, knowing that if they died suddenly, they would leave enough money for their loved ones, especially their children, to save their own lives. So it can be a good…
- Home Insurance Coverage Summary: The importance of insuring… If you are looking for home insurance, it is important to understand what it is. This type of insurance generally covers your private home and will pay you in the event of damage or loss. How much of the property is covered and how much compensation money you can receive…
- Car Ownership: Make your vehicle last longer by doing things… I got my new insurance today. It made me smile that I have been with the same company, USAA, since 1977. They are just great. One more look at my policy and I realized I've owned 32 vehicles since 1977. In that time I've had a vehicle stolen, a vehicle…
- Secrets to Passing the California Insurance License Exam Like most states, California requires you to pass a government-administered licensing exam before you can hang your clapboard to sell insurance. In addition, you must complete up to 52 hours of pre-license training, which thankfully can now be done online. Separate licensing exams and training are required to sell property…
- Retire or invest in Latin America? Don't miss out on these… When considering investments of any type, the bottom line is of course the most important. But one of the very attractive benefits of alternative investments and retirement abroad is that they are not just numbers on a screen. They often also entail significant fringe benefits which, while not directly contributing…