The Seen & Unseen of Bank on Yourself/Infinite Banking Concept

You'll want to take the time to read the intro and all the discussion thread banter.  Very informative.

http://enjoyyourmoney.blogspot.com/2010/03/infinite-banking-and-bank-on-yourself.html

Reading articles like the above always remind me of the very first conversation I had with Nelson Nash.  He schooled me and I'll never forget it.  In particular, he told me I was majoring in the minors.  Basically getting caught up in all minute details and missing the bigger picture.  It's easy to get caught up in forensics and analysis of a policy but in the end he recommended returning to the WHY (control the flow of your money) and refer to the basics. He calls it the Seen and Unseen of IBC.

1. There is no safer place for money.  No FDIC insurance needed.  Life insurance companies are solvent.  They must have more capital reserves than liabilities at all times.
2. The money is liquid. Access your cash value for any reason, any time.
3. The money is tax-advantaged.  IRS approved section 7702a.

For the most part, these characteristics are the "seen".  It doesn't take much study to know this about a whole life policy.  The "unseen" is how utilizing this very specifically designed policy will move you from a position of being a saver/borrower to saver/borrower and banker.

Banking is the most important business in the world.  All other businesses will come and go, but the business of banking is eternal.  That's why Nelson will instruct people to have two paychecks in life.  One from their job/business and the other from their banking business.  If they maintain only their job/business, they've giving the banker the other paycheck they could be earning.

People get so upset about the fatcats on Wall Street and the banking industry, yet they fail to understand why the fatcats are there in the first place.  It's because we outsource our individual banking function (give up control of the flow of our money to them).  Wall Street banks will never teach us to control the flow of our money (Be our own banker).  Doing so would mean an end to easy money.

Nothing improves in this world until people change the way their think.  The biggest secret is that we are what we think about the most.  When it comes to your money, my hope is you start thinking like a banker.

John Montoya

JLM Wealth Strategies, Inc.

(925) 386-6639 Office

Authorized Advisor-Bank on Yourself®

How Much Does A Bank on Yourself® Policy Cost?

This is a great question. Most people are accustomed to buying term insurance because it is so cheap. It's great for that purpose but a term policy is all cost because it doesn't have any cash value growth.

Eventually only 2% of all term policies pay a death benefit. So 98% of the time, all the money paid into a term policy will be lost forever. This means your next generation will be no better off than you were during your life.

A permanent Whole Life policy structured as a Bank on Yourself® policy is designed as a savings account. It is contractually guaranteed to grow every single year!

I can show you how quickly the cash builds and the remarkable thing is how the cash value will pay for the cost of insurance which on this type of policy is guaranteed to never increase unlike with a universal life policy. Because a Bank on Yourself® policy is designed as a savings account and not like a life insurance policy, the question is not how much it costs.

The question is how much would you like to save on a monthly basis?

Call or email to request a free Bank on Yourself® analysis.

John Montoya
JLM Wealth Strategies, Inc.
john@JLMws.com
(925) 386-6639 Office
Authorized Advisor-Bank on Yourself®
CA Life#0C42222

How Safe is Money in the Bank When The Economy Collapses?

Mike Maloney has been predicting a major economic collapse for years. Heed his warnings and start learning why this collapse is now unavoidable. Think for yourself. Don't believe what the corporate media is telling you.



Also, read this article in the Business Intelligence featuring an interview with Jim Rogers.

We all need to change the way we think. We have to stop putting hope in the ability of bankers, financiers, and politicians to fix a broken economic system. The same people who are creating the chaos cannot be counted to correct the problem they made. To expect otherwise is delusional.

Create your own banking system first. Shelter your cash savings from economic collapse. You'll not only earn a better return on your money, you'll protect the money from taxes, and most importantly, when the public is denied access to their cash held in the bank, you'll have the peace of mind knowing your money is safe and liquid just like during the Great Depression when families who owned Whole Life policies were able to remain liquid and ride out the economic collapse better than those that lost everything held in the banks and on Wall Street.

And if you think FDIC is going to re-pay you. Think again. The FDIC is insolvent. There is conservatively over $4 trillion sitting in bank accounts across the nation. The FDIC balance sheet only has a little over $100 billion in assets and available line of credits. With over 800 banks on the watch list in jeopardy of failing, there simply isn't enough money to make bank account holders solvent when banks begin to fail in mass.

As an experiment, if you have over $5000 in a bank account, ask for it in cash. Let me know if the bank gives you a portion and asks that you come back tomorrow for the remainder. They simply don't have it. Now imagine 100's of people trying to do the same thing at the same time. We saw bank runs when IndyMac failed in 2008 and that was just one bank! Don't wait until the bank collapse is more widespread.

Talk to a Bank on Yourself authorized advisor today to protect and grow your money today!

The best thing you can is prepare for the worst. When you do, you can ride out even the worst financial times far better than those who followed the crowd listening to the same advice that continue to net the same results.

We had the Great Depression in the 1930's. Could a Greater Depression be around the corner? The signs are there it will happen. Mike Maloney and Jim Rogers can see it. Can you?

If you are wondering if you can buy gold and silver with your private banking system, the answer is yes. I call this strategy "This AND That". Not "This or That" as with every other type of financial strategy.

John Montoya
JLM Wealth Strategies
(800)208-6141

A Wise Man Builds His House on a Rock

I heard this recently and it made sense right away.

A wise person builds his house on solid rock. A foolish person builds his house on the sand.

This line of thinking works the same with saving money. We've all essentially been tricked into thinking banks and Wall Street. Just think about where you put your own savings.

It's probably sitting in a bank (you don't own or control) earning next to nothing or in the stock market at risk of loss, probably in mutual funds either at a local investment firm or through your employer retirement program like a 401k.

The best foundational place for your money is where it can grow tax-favored safely with contractual guarantees while allowing full access to your money, also tax-free.

Where is the safest place for savings? It's an Infinite Banking designed Whole Life policy through a mutual whole life insurance company. It must be a mutual company because the profits of this type of life insurance company go back to the policyholders, not shareholders on Wall Street! Also, a whole life policy has contractual guarantees to increase in value each year of the contract and it's even tax favored within the IRS tax code.

You probably don't know about Infinite Banking because the bankers and advisors on Wall Street are paid on Assets Under Management (AUM). They get paid to manage assets.   Nothing wrong with that but follow the money trail and it's easy to understand why they don't incorporate life insurance strategies more into their recommendations.

And the life insurance industry would just as soon hope you not learn about Infinite Banking because the large commissions that can be had on traditional Whole Life policies are only available if the industry can get you to buy as much permanent death benefit as you're willing to buy. This is the exact opposite of what authorized Infintie Banking advisors do.

Authorized IBC (Infinite Banking Concept) advisors structure policies for you with the least amount of death benefit to maximize the cash value of each policy. In doing so, we are able to replicate the exact same characteristics you enjoy with your local bank. The difference, however, is that with a Bank on Yourself policy, you control the flow of your money instead of outsourcing the flow of your money to you bank. That's why it's called Bank on Yourself! You are the bank.

Having control over the flow of money means being able to profit from the financing you do in your lifetime. If you think you don't finance anything, then please read my article "The Simple Truth About Money".

We emphasize the safety and contractual growth of a properly structured IBC Whole Life contract because it provides the foundation of wealth building. Simply put, it is the rock that you build your financial house on.

However, if you like building wealth on sand, your traditional Wall Street/Bank advisor probably has a few more mutual funds to offer you.

Interested in learning more? Go to www.IBC.guru


Thank you,


John Montoya

What's Going On In The United States These Days?

Glad you want to know. Click to read this article by Jim Willie at Financial Sense.

Mr. Willie provides an excellent summary of all you need to know about the financial chaos going on in our country. If you watch the evening news or read the newspaper on a regular basis, this is likely to be news to you (and real news at that). Stay informed. I encourage you to read alternative sources of news such as:

www.Mises.org

www.Lewrockwell.com

www.FEE.ORG

www.DailyReckoning.com

www.Sovereignman.com

www.Shadowstats.com

www.Elliottwave.com

If you think your bank is safe, think again.

Mr. Willie says that $7 trillion is sitting in FDIC insured bank accounts. If the government actually had that money, don't you think they would have found a way to spend it and replace it with IOUs by now?

The safest place you can have your cash is in a mutual whole life insurance policy. The money is backed by capital reserves that exceed the life insurance company's liabilities. In other words, these institutions are solvent! They are regulated to be this way.

Banks operate under the fractional reserve system meaning they keep a fraction of your deposit, lend the rest, and then inflate the money system by creating up to 10x the amount of your deposit in new money to lend out. In short, banks are highly leveraged and the main culprit in creating that nasty destroyer of wealth: inflation.

What about FDIC insurance? The FDIC inspires confidence. Just like Bernie Madoff did... and just like Bernie Madoff, the FDIC is insolvent.

Stick with what works.

A participating non-direct recognition whole life policy has been around for nearly 200 years. It'll be around for another 200+ years because it simply works. It is the safest place you can warehouse your cash.

Combine the fact that you can make $1 do the work of $2 by saving money with the same dollar being used to pay off debt, and you'll realize you're the smartest person in the room once you learn about the Bank on Yourself.

Despite all the uncertainty in the world today, one thing is certain. The business of banking is eternal and will survive what happens politically and economically in the decades to come. For that reason above all else, it's crucial that individuals have their own banking system. The sooner we, as individuals, control our flow of money through the creation of our personalized Infinite Banking system, the safer and wealthier we will become.

Go to www.CashValueBanking.com to learn more or call (800) 208-6141 to request a free analysis by a Bank on Yourself certified advisor. All appointments can be done over the phone and in front of your computer. Let your cash find a safe place before the storm clouds on the horizon gets any closer.

(Note: If you have a preconceived notion that this is like your mom's or grandma's whole life policy, you're sorely mistaken. A short online meeting can put that notion to rest quickly. And if you think you're too old or have health issues, we can look at insuring your spouse, child, or grandchild.)

John Montoya
JLM Wealth Strategies
(800) 208-6141

My Reason For Teaching The Infinite Banking Concept (IBC)

Sometimes when I tell people what I do for a living, my explanation flies right over their head. We are all so accustomed to depositing our money at our local bank and then using those banks as our source of capital for larger financing needs that it's beyond our comprehension to think we don't ever have to rely on a local bank again. It's almost like I'm telling people the world is round while everybody still believes the world is still flat!

It's often said that the greatest trick the devil ever pulled was convincing the world he doesn't exist. I believe the greatest trick bankers ever pulled is making all of us believe we can't function without them. This, of course, simply couldn't be further from the truth.

Why do I dislike our banking system so much? It's dishonest. The banks take our money and lend it right back to us at interest. Then the banks go one step further. They create money out of thin air, money that never existed before, and they lend that money out as well. Anybody that lends money that doesn't exist is evil. The power to corrupt is unimaginable. It should be no wonder our economy and country is where it's at today after nearly 100 years of the Federal Reserve controlling our money supply.

Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take this power away from them, and all the great fortunes disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create money and control credit. - Silas W. Adams in The Legalized Crime of Banking (1958)

Need I say more? Bankers know if they control the debt, they can control individuals and countries alike. This is the reason behind all central banking and our Federal Reserve banking system here in the United States: Control. The essence of banking is to make us slaves to debt. Once they own our debt, they own us. And if you didn't know, our money is debt. Simply look at the dollar bill in your pocket. It's say Federal Reserve Note. It's an IOU. The Federal Reserve creates the money out of thin and we pay interest on these debt notes.

Read this article by Gary North: The Safe Banking Fantasy. My hope is that after reading this article, you'll start to question your belief in our banking system. Remember the greatest trick a banker pulls is convincing you that you need them. It's a fantasy. This article helps to expose the safety we believe banks have. Banks are actually the riskiest financial institution that exists because they lend out your money and money they don't have.

So why do I love what I do for a living? I get to help people take back control of their money and their financial life from the banks. It's that simple. The sooner you start learning about how banking really works, the sooner you can free yourself from your banks grip on your money. Change in this country will have to start from the ground up. It's obvious to me as it should be to you by now that real change will not happen from the top. Our political leaders lack the will to do so. Any real change must be come from individuals.

Privatized banking is not only safer than traditional banking, it doesn't create inflation (an increase in the money supply). The Infinite Banking Concept is built upon a sound money principle which is something we all need to practice.




Visit CashValueBanking.com to learn how you can get started with your own banking system or email me at John@JLMws.com for more information.

Finally, watch this clip from the movie The International. I hope what I'm sharing with you is starting to resonate. For more detailed reading about the history of the Federal Reserve, I highly recommend you read The Creature From Jekyll Island by G. Edward Griffin. It reads like a mystery novel and is all the more fascinating because the book is based on facts. You'll have a hard time putting it down.

John Montoya
JLM Wealth Strategies, Inc.
(925) 386-6639 Office
Authorized Advisor-Bank on Yourself®
CA Life#0C42222

The Simple Truth About Money

Understanding how Becoming Your Own Banker: The Infinite Banking Concept (IBC) works begins with understanding one very fundamentally important money principle. Some people will get it right away and for others it takes a bit longer, but what I've discovered over the years in my professional practice is that when you dedicate yourself to learning the truth about money and practicing IBC, you will ultimately have the IBC epiphany and be able to fully comprehend this one very simple truth about money:

You finance everything you buy.

You either lose the interest you could have earned or you agree to pay interest to someone else, most commonly your bank or finance company. It's as simple a principle as that. Flip a coin and you have two possible outcomes: heads or tails. It's the same scenario when you buy something. Give up interest earned as you pay cash or pay interest by financing it with a 3rd party. The interest you lose on your money adds up into the hundreds of thousands over one's lifetime. Is it any wonder why there are multiple banks on every major street corner in every town across the country looking for deposits? (As a side note, you should be asking yourself,"what is it that bankers know that I don't?)

Now it might seem to you either scenario, paying cash or financing, is a losing proposition. And it is a losing proposition for most of you just learning about Becoming Your Own Banker and not yet practicing it. However, it is a winning proposition for the owners of the banking system. Unfortunately, we've been taught to be customers of the banking system rather than owners of it.

Our lack of education about how the banking system works leaves us in a very vulnerable and powerless position. We are conscious about our ability to earn millions of dollars of income in our lifetime, but we're confused about where it all goes. This is because no one ever taught us how to harness our savings to re-deploy it over and over again within a banking system we own, control, and, therefore, profit from. For generations we have been ingrained to continually save money the way our family, friends, and neighbors do which means we've never investigated or been presented with an opportunity to own our banking system.

For this reason, the most prudent thing you can do is create your own banking system as written about in books such as Becoming Your Own Banker by R. Nelson Nash and Bank on Yourself by Pamela Yellen. In doing so, you'll eliminate the opportunity cost of paying cash or financing at your lenders terms. The interest you once squandered and principal of capital transferred will be re-directed back to your own banking system for a lifetime of use. Thus, you will be capitalizing on the things you'll buy in your lifetime instead of letting it slip through your hands and back to the bank.

As Nelson Nash is fond of saying,"You should receive two paychecks. One paycheck from what you do for a living and one paycheck from your banking system." He also says,"Businesses come and go, but the business of banking eternal." Since you are captive to your local bank, doesn't it make sense to be in the very business you use everyday?

If it sounds to good to be true, you're not alone in thinking so. This is only because, like most people, you haven't been presented with this knowledge before or, if you were like me, you failed to grasp the enormity of its power in creating risk-free, tax-free wealth for yourself now and your future generations the first time IBC was presented to you.

Before you continue on your journey learning about Becoming Your Own Banker, I'd like to recommend you open your mind to one simple truth: you finance everything you buy.

This blog, as well as my website at JLMWealthStrategies.com, is full of F.A.Q.s and articles relating to Becoming Your Own Banker: The Infinite Banking Concept. At this point, you can choose to ignore what you learn or you can heed this writers advice. I can tell you what the smart people I meet do with their personal and business money. They take control of it and having your own banking system gives you the ultimate power to do so.

For a free analysis, call (800) 208-6141.

John Montoya
John@JLMws.com
www.CashValueBanking.com

The Infinite Banking Concept (IBC)- The Most Frequently Asked Question

What's the most frequently asked question I get? Without hesitation:

Why haven't I heard about this before? It sounds too good to be true. 

There are many reasons.

First, this financial strategy seems to be given a new name every few years.  It is originally known as the Infinite Banking Concept (IBC).  Bank On Yourself is another popular name thanks to Pamela Yellen who's book by the same name hit multiple best-seller lists in 2009.  It's also been called Becoming Your Own Banker, Income For Life, the 770 Account, the Presidential Account, Private Reserve Strategy… you hopefully get the idea.  Many names for the same thing.

The Infinite Banking Concept/Bank On Yourself is a savings strategy (not an investment strategy) that also includes a death benefit.  This means Wall Street investment firms do not underwrite, market, or promote IBC/Bank On Yourself.

Sadly, the life insurance industry does not put much effort into promoting IBC/Bank On Yourself either.

Part of the reason is because IBC/Bank On Yourself policies strictly use only dividend paying Whole Life insurance policies.  There are only approximately 45 mutual life insurance companies left in the United States out of 1500+ that exist today.   Of those 45 or so mutual (owned by policyholders instead of shareholders as with a stock based company), maybe 10 offer a competitive and flexible Whole Life policy suitable to IBC/Bank On Yourself.

If you are wondering what the difference is between mutual and stock insurance companies, here's a brief explanation:

Any profits earned by a mutual insurance company are rebated to policyholders in the form of a dividend.  In contract, a stock insurance company is owned by investors who have purchased company stock.  Any profits generated by a stock insurance company are distributed to the investors without necessarily benefitting the policyholders.  This is why you want a dividend paying Whole Life policy from a mutual insurance company.


The savings component of a dividend paying Whole Life insurance policy is contractually guaranteed to increase in value every year and the life insurance company is on the hook for those increases regardless of economic conditions.  In comparison, Wall Street cannot offer any guarantees because they do not insure your money against losses.  They are paid to manage assets and you as the investor assume the risk of losses. The death benefit component of the IBC strategy can only be offered by life insurance companies.

Since Wall Street does not profit from the vehicle that best fits Becoming Your Own Banker, they have no incentive to sell it. Wall Street is primarily interested in 1) managing assets from which they can earn an annual management fee and 2) selling products that bear no financial risk to the firm when a clients assets fall in value.

As a better alternative to mutual funds and 401k's, it is Wall Street's worst nightmare come true should the public discover they could re-allocate their savings into accounts that are insured from loss, 100% access to their money without penalty, and provide tax-favored growth, distribution, and transfer including a life long death benefit protection. Think about it for a moment. Would you still choose a risky and tax-disadvantaged 401k for you and your family over what I just described?

Another reason why you may not have heard of Becoming Your Own Banker, while traditional banks can offer this specific type of life insurance product, doing so would eliminate the most profitable department of every bank: the lending department. Americans have been conditioned from one generation to the next to outsource their individual banking function to their traditional bank. These banks have no financial incentive to give their customers the ability to develop their own banking system within their larger banking system.

It wouldn't make any business sense for banks to teach and offer Becoming Your Own Banker because giving people the capacity to save and borrow from themselves would eliminate the need for banks as we know them. The only reason for having a traditional banking relationship would be limited to maintaining a checking account.

Ignorance is indeed bliss for bankers. Sadly, this is so true that not even bank employees know how to set up their own banking system. Ironically, the largest purchasers of cash value life insurance policies are banks.

Banks purchase more high cash value life insurance policies than any other institutions in the world! And they do it for a variety of reasons which any savvy individual would recognize are the same reasons they should be purchasing it for themselves: safety of principal, to enjoy tax benefits, strengthen financial stability, and to have contractually guaranteed growth provided by the most financially secured institutions in the world (life insurance companies).

Due to the volume of high cash value policies bought by banks, the policies they purchase are now known as Bank-Own Life Insurance or BOLI. Corporations do the same thing with policies known as Corporate Owned Life Insurance or COLI.

Also, the mainstream media is largely controlled by the same Wall Street financial institutions that pay for lobbyists to influence members of Congress. If you don't believe me, ask yourself how quickly Congress intervened to approve TARP money for troubled Wall Street investment firms and bank in 2008? It happened in days.

Compare this to how quickly these same elected officials were willing to reach an agreement on a fiscal budget to avoid a government shutdown. The budget shutdown didn't get resolved until the final minutes even though Congress had months to reach an agreement.

The point is Wall Street's advertising and lobbyist dollars have a direct influence on what we hear, read, and watch from our various news outlets. Turn on the evening news and before too long, you'll be updated on how the stock market fared. Tune into your favorite AM radio station for the same news.

Open any financial magazine, you'll find strategies created and recommended by Wall Street for the benefit of Wall Street. Sadly, we've been conditioned for far too long by the Wall Street marketing machine and now believe that the only option for saving money is investing with Wall Street.

You have to ask yourself why this is? Who benefits? Are there alternatives? If what you thought to be true wasn't, when would you like to know? Wall Street lost over 35% of your account values twice in the past decade. Do you really have to be convinced that any other strategy would be better?

Hopefully, you get the idea of why people haven't heard of Becoming Your Own Banker. There are many high power influencing forces (Wall Street, Traditional Banks, and the Corporate Media) that don't want you to know.

Now I'll get to the biggest culprit which may surprise you. Believe it or not, life insurance companies are as much to blame as any other entity previously listed. Life insurance companies offer an incredible product called dividend paying Whole Life insurance yet fail to invest the time and energy to properly train licensed agents how these policies are engineered to be the safest and most superior savings vehicle ever created.

The fact that whole life policies have survived over 150 years with little change should be testament enough to even the most skeptical of doubters. What is particularly interesting is that the sale of dividend paying Whole Life policies has seen a substantial increase in the last 10 years thanks to the many scandals and financial collapse of storied firms like Lehman Brothers and Bear Stearns and the demise of others who only survived by being swallowed by their peers (think Merrill Lynch and Morgan Stanley among others).

My hope is that the trend continues. I can't think of one person who would not benefit from having a safe, tax-free, and guaranteed way to grow their money.

As disappointed as I am in the life insurance industry for the lack of leadership in promoting the Infinite Banking Concept, I understand why life insurance companies choose not to invest the necessary time to train a licensed agent how to design and implement this strategy.

First and foremost, the failure rate for newly licensed agent is extremely high. The majority of new agents fail to make it past their first year. Secondly, any agent trained to sell a policy structured to meet the specific criteria of a Becoming Your Own Banker policy must be willing to take at minimum a 50% pay cut in commission. In some cases, the commission paid on a this type of policy is as great as a 70% cut in commission.

Since the life insurance industry, much like Wall Street advisors, is a sales driven industry, stomaching a 50-70% drop in pay for often what is 5 times the amount of work in educating prospective clients is simply too steep a price to pay.

From the perspective of a life insurance company and any business owner, does it make sense to train an employee who's likely to be doing something else in 12 months how to make 50-70% less on each case? It simply does not.

It's my belief that if insurance companies took the initiative to train a sales force on the Infinite Banking Concept, the length of a career agent would increase dramatically and it would also have the dramatic effect of strengthening the financial foundation of Americans who would benefit and prosper from having a rock solid financial foundation the Infinite Banking Concept provides and 401k/IRA/Mutual Funds simply cannot.


John A. Montoya
(925)386-6639
John@JLMws.com
JLM Wealth Strategies, Inc.
www.CashValueBanking.com

The Truth About The Federal Reserve

The Federal Reserve is not Federal and has no Reserves. The existence of a central bank occurred 3 times previous to our current one and failed each time. The accepted opinion of the Fed is that it resides to stabilize our economy. The results since 1913 when it was created show it has failed miserably.

Since the Federal Reserve was created, it has presided over the market crashes of 1921 & 1929, the Great Depression of 1929-39, the recessions in 1953, 1957, 1969, 1975, and 1981, "Black Monday in 1987, the dotcom bubble in 2000 and recession of 2001, and the real estate bubble and Great Recession we are currently experiencing. And don't forget ...the 1000% inflation which has destroyed 90% of the dollars purchasing power since 1913. If that is not failure, I'm not sure what is. So don't believe the mainstream press and politicians who will have you believe the Federal Reserve's role is to stabilize our economy. Sure, it is one of the goals. However, it's primary objective is to serve commercial interests. If you look up the definition of a cartel, then learn who was behind the creation of the Federal Reserve and how it operates, you'll understand the Fed's true objective. It sounds crazy. But it's all been written about, but just totally ignored.

The Fed has the ability to stabilize the economy but it's not its primary objective. The Fed in its current form was created to serve the interests of major commercial interests by allowing the money supply to become more elastic which creates the need for financing and ultimately, a reliance on large commercial interests.

There is no free ...market discipline when the banking system is allowed to create money out of nothing versus having to make wagers against its actual capital. If banks were forced to take responsibility for it's actions, it would mean bankruptcy for not managing money properly and not bailout by taxpayer money. Having the endorsement of the government under the guise of protecting the American public allows banks to take risks no other business is allowed to make and have those risks ultimately secured by taxpayers. The Federal Reserve was created to do just this. It ensures the stabilization of the banking industry and allows big banks to become even bigger (which of course means "too big too fail". The reason why the economy is what it is right now is largely due to the market manipulation of the Federal Reserve and its ability to set interest rates and create fiat money that is no longer tied to gold.

FDIC is ultimately a hoax, too. The guise is to protect depositors, but all one has to do is deposit a $100k in multiple accounts in order to get around the system. Furthermore, the FDIC operates on it's own fractional reserve system meaning it doesn't have the money to secure all deposits. If banks, like life insurance companies, were regulated the same way, there would be no need for the "insurance". FDIC ultimately protects the banks from taking large risks with the imaginary money. The loans created by banks from the money created out of nothing (fractional reserve system) ultimately is repackaged and repackaged (also called a "rollover") allowing the banks to continue to earn interest (the life blood of it's business) in order to avoid using the banks own capital to cover the losses, which by the way are losses on money that didn't exist before! If the bank had to actually to use it's own capital, it couldn't possibly take on as much risk as it does. Eventually, though, the scheme ends and borrowers finally realize they'll never pay off the loan. If this happens among too many borrowers, eventually the bank cannot be saved (the fraud is exposed!) and it leads to a bailout and the help of "the lender of last resort" which is the Fed and again the reason why it was created...To ensure that commercial interests can take these risks and if they don't work out, pass it onto the American public.

The history of the creation of the Federal Reserve is an incredible read.

Allow banks to stand on their own two feet. No market manipulation and government backing. Eventually, money will be created from capital instead of debt. Banks would obviously prefer money created from debt since greater elasticity of money lowers competition for the banking industry and creates more opportunity to earn interest.

And know this, when business comes together in order control profits and drive out competition, it is called a cartel. The Federal Reserve is a formal organization, a union of banks, that agree to coordinate prices, marketing, and production of our currency and set rates. It is a cartel but cleverly disguised and the American public is none the wiser.

The more I learn about the Federal Reserve and the banking industry the more I come to think that there is reason why money isn't taught in school. Ignorance is a very powerful weapon.