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
Monday, April 11, 2011
Tuesday, January 11, 2011
Do You Know About The Hidden Tax?
Just want to remind everyone that the one of the nastiest taxes that exists is the tax on our savings. Nobody talks about it because it’s so misunderstood and it certainly won’t ever be taught in government funded schools. People incorrectly associate it with a rise in prices which is merely an effect of this tax. Our banks contribute 90% of this tax through the Fractional Reserve System with the Federal Reserve doing the rest of the damage. Next time you look at a dollar bill, look long and hard at what it says: Federal Reserve Note.
Realize that just like the mortgage note you signed on your house (which created a debt i.e. money that previously never existed), the dollar bill you hold in your hand is also a debt incurring interest (this is where our national debt comes from) because it also was borrowed into existence. When money is created from nothing, it increases the overall money supply diluting the value of the dollars you earn and save. This is inflation. It’s a hidden tax and it is simply a wealth transfer that not 1 in 1000 understands is happening.
As bad as the other taxes are, don’t forget which one is the greatest destroyer of wealth. It’s the tax that no one talks about because the common person doesn’t understand Fractional Reserve Banking and how the Federal Reserve manipulates the dollar to transfer wealth from our hands to theirs. And in case you’re wondering or haven’t made the connection, our federal income tax (16th amendment) came into being the same year as the Federal Reserve in 1913. If banks were going to control our money supply by making our currency a debt based currency, banks realized they needed a way to pay & collect the interest on that debt. What better way than to do that than to put a tax on labor (which is illegal if you abide by the Constitution—just like giving the Federal Reserve the monopoly on the creation of our money when it should belong to the Treasury to create non-interest bearing notes…). What is the IRS? Essentially, the collecting agency for the international bankers who own and control our Federal Reserve (which is actually a private corporation)… Fun stuff, right? It’s amazing what you can learn about money if you start asking the right questions beginning with: what is money?
By the way, I looked it up and the 3.8% tax on unearned tax to pay for Obamacare is correct, just not the way most people have calculated it. See this link: http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/
That being said, add it to the list:
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage Tax
Sales Tax
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
Of course, you can’t forget the death tax.
…and the list goes on, and on …
John Montoya
john@JLMws.com
Realize that just like the mortgage note you signed on your house (which created a debt i.e. money that previously never existed), the dollar bill you hold in your hand is also a debt incurring interest (this is where our national debt comes from) because it also was borrowed into existence. When money is created from nothing, it increases the overall money supply diluting the value of the dollars you earn and save. This is inflation. It’s a hidden tax and it is simply a wealth transfer that not 1 in 1000 understands is happening.
As bad as the other taxes are, don’t forget which one is the greatest destroyer of wealth. It’s the tax that no one talks about because the common person doesn’t understand Fractional Reserve Banking and how the Federal Reserve manipulates the dollar to transfer wealth from our hands to theirs. And in case you’re wondering or haven’t made the connection, our federal income tax (16th amendment) came into being the same year as the Federal Reserve in 1913. If banks were going to control our money supply by making our currency a debt based currency, banks realized they needed a way to pay & collect the interest on that debt. What better way than to do that than to put a tax on labor (which is illegal if you abide by the Constitution—just like giving the Federal Reserve the monopoly on the creation of our money when it should belong to the Treasury to create non-interest bearing notes…). What is the IRS? Essentially, the collecting agency for the international bankers who own and control our Federal Reserve (which is actually a private corporation)… Fun stuff, right? It’s amazing what you can learn about money if you start asking the right questions beginning with: what is money?
By the way, I looked it up and the 3.8% tax on unearned tax to pay for Obamacare is correct, just not the way most people have calculated it. See this link: http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/
That being said, add it to the list:
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage Tax
Sales Tax
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
Of course, you can’t forget the death tax.
…and the list goes on, and on …
John Montoya
john@JLMws.com
Tuesday, June 15, 2010
How Much Does It Cost To Get Started?
How Much Does It Cost To Get Started?
By John Montoya
June 15, 2010
This is probably the most common question I get asked after sharing with people how they can bypass the traditional banking system and create a banking system they can own and control, and therefore generate profits from. The answer is really simple. However, in order from someone to really understand the concept of Infinite Banking, I answer their question with a question so they can begin to wrap their mind around the concept:
"How much does it cost you to save money now?"
It's a pretty straight forward question but I never get the most obvious answer. The cost is nothing, nada, zilch. For example, if you save $200 every month, it cost you nothing to save that $200. It certainly requires discipline to save money, but there's no cost involved. According today's article in the L.A. Times, there is $5.06 trillion dollars sitting in passport savings and money market accounts earning closing to 0%. That's really quite astonishing on many levels.
The reason why our savings rate is increasing is because people are scared about losing money. I think a certain level of paranoia or call it caution, is a good thing considering the amount of risk people were willing to stomach in the past decade in order to chase rate of return. Being weary of losing money means people are being more rational about the risk/rewards of investing. If people start to take a greater interest on the return OF their money versus the return ON their money, I think this "lost" decade won't have been for nothing. However, some could argue, and perhaps rightly so, that having so much money currently sitting on the sidelines is an extreme over reaction to the volatility the stock market has been experiencing since late 2008.
Whatever the case may be, people are saving money and I mean really saving money the old fashioned way. I don't mean "investing to save" which is what most people do with their 401k/IRA contributions. True investing means that money is at risk of loss or has the potential for gain. Saving is simply socking away money which you know will be there when you need it. So many of us have been hypnotized into believing that money we put into our 401k/IRA's is our savings, but there's a reason why government statistics do not include qualified retirement contributions as part of their savings statistics. I believe it's because this 401k/IRA money could be here today and gone tomorrow which we all know can happen with stock market investments no matter how savvy an investor one may be. Here today and gone tomorrow hardly implies savings you can count on when you need it.
So what has it cost the American public to save $5.06 trillion dollars; money deposited into accounts with the confidence it will be liquid should it be needed? The answer is nothing. Every dollar of that $5.06 trillion dollars is liquid and available for withdrawal.
It works the same way when you own and control your own banking system. It costs you nothing because ultimately what you will have funded the banking system with will include every dollar you saved. Furthermore, the longer you have the banking system, the more profitable it will become.
So what are the next most frequently asked questions?
"It sounds too good to be true. There has to be a negative or more people would be doing it. Why aren't more people doing this and what are the downfalls, if any, to implementing this strategy?"
Stay tuned as I will answer this for you as well.
For more information about Becoming Your Own Banker or to attend a workshop, please contact JLM Wealth Strategies at 800-208-6141
By John Montoya
June 15, 2010
This is probably the most common question I get asked after sharing with people how they can bypass the traditional banking system and create a banking system they can own and control, and therefore generate profits from. The answer is really simple. However, in order from someone to really understand the concept of Infinite Banking, I answer their question with a question so they can begin to wrap their mind around the concept:
"How much does it cost you to save money now?"
It's a pretty straight forward question but I never get the most obvious answer. The cost is nothing, nada, zilch. For example, if you save $200 every month, it cost you nothing to save that $200. It certainly requires discipline to save money, but there's no cost involved. According today's article in the L.A. Times, there is $5.06 trillion dollars sitting in passport savings and money market accounts earning closing to 0%. That's really quite astonishing on many levels.
The reason why our savings rate is increasing is because people are scared about losing money. I think a certain level of paranoia or call it caution, is a good thing considering the amount of risk people were willing to stomach in the past decade in order to chase rate of return. Being weary of losing money means people are being more rational about the risk/rewards of investing. If people start to take a greater interest on the return OF their money versus the return ON their money, I think this "lost" decade won't have been for nothing. However, some could argue, and perhaps rightly so, that having so much money currently sitting on the sidelines is an extreme over reaction to the volatility the stock market has been experiencing since late 2008.
Whatever the case may be, people are saving money and I mean really saving money the old fashioned way. I don't mean "investing to save" which is what most people do with their 401k/IRA contributions. True investing means that money is at risk of loss or has the potential for gain. Saving is simply socking away money which you know will be there when you need it. So many of us have been hypnotized into believing that money we put into our 401k/IRA's is our savings, but there's a reason why government statistics do not include qualified retirement contributions as part of their savings statistics. I believe it's because this 401k/IRA money could be here today and gone tomorrow which we all know can happen with stock market investments no matter how savvy an investor one may be. Here today and gone tomorrow hardly implies savings you can count on when you need it.
So what has it cost the American public to save $5.06 trillion dollars; money deposited into accounts with the confidence it will be liquid should it be needed? The answer is nothing. Every dollar of that $5.06 trillion dollars is liquid and available for withdrawal.
It works the same way when you own and control your own banking system. It costs you nothing because ultimately what you will have funded the banking system with will include every dollar you saved. Furthermore, the longer you have the banking system, the more profitable it will become.
So what are the next most frequently asked questions?
"It sounds too good to be true. There has to be a negative or more people would be doing it. Why aren't more people doing this and what are the downfalls, if any, to implementing this strategy?"
Stay tuned as I will answer this for you as well.
For more information about Becoming Your Own Banker or to attend a workshop, please contact JLM Wealth Strategies at 800-208-6141
Monday, June 14, 2010
Why is money held by a life insurance company safer than money deposited at a bank?
Why is money held by a life insurance company safer than money deposited at a bank?
by John Montoya, Founder-JLM Wealth Strategies, Inc.
Based upon the fractional reserve system, banks are allowed to lend money they've created out of essentially nothing. They do this in order to earn interest (on money which didn't previously exist mind you) which of course translates to a very profitable business. But if all depositors were to ask for their money back at the same time (known as a "run on the bank"), banks wouldn't actually have it all. FDIC is a private "insurance" corporation back by taxpayers (you and me) to insure that all bank accounts to a certain dollar limit are protected. However, the FDIC itself only has a limited amount of dollars available as resources to cover claims i.e. deposits. Last information I read stated the FDIC had $115 billion available in assets & lines of credit. However, there is over $5.06 trillion sitting in bank accounts nationwide. That's why FDIC isn't really insurance because the FDIC's claims paying ability (also known as insurance!!) aren't 100% back by capital reserves. Like the banks it is supposed to support due to insolvency, FDIC operates on a fractional reserve system as well. This means the FDIC is just as highly leveraged as our big banks. Yikes!
Of course, if worst came to worst, the Federal Reserve can create more debt/issue more paper dollars (fiat currency) with no gold backing to create a bailout and everything is back to normal, sort of... increasing the money supply by creating more dollars has the adverse effect of causing inflation which everyone pays for unwittingly (unless of course you read my posts or others like it). Inflation is the hidden tax I've written about before. (If you haven't read some of my previous posts on Facebook, simply put, most people are aware that the price of things go up over time and think that things just cost more. In reality, the value of the dollar is actually eroding or losing value which means that it takes more dollars to buy the same thing. So what cost $2 a few years ago is now $4 today. This is the hidden tax known as inflation and erodes every dollar will attempt to save.)
Life insurance companies, on the other hand, are truly the SAFEST FINANCIAL INSTITUTIONS in the world! There is absolutely no leverage to create wealth unlike our traditional banking system. Here in the United States, our regulatory system requires that each life insurance company maintain sufficient capital reserves to cover all liabilities. This makes sense, right? After all, whenever we buy a life insurance policy, what we really are buying is the promise of that life insurance company to pay a death benefit which is a greater amount than what we've paid into the policy. Ultimately, what this means to us as a policyholder is that if every life insurance policy resulted in a claim today (a run on the bank, so to speak), life insurance companies would be able to pay each claim and still have money left over to conduct business tomorrow. That is SAFETY and PEACE OF MIND!
As an example, during the Great Depression while over 10,000 banks went out of business and people lined up outside of banks to get their money back only to be turned away (FDIC hadn't been created then, though as you now know, FDIC doesn't have the reserves to cover all bank accounts and furthermore was never intended to). Meanwhile, during the greatest financial crisis to ever hit our country, people who had faithfully paid premiums into their Whole Life policies were able to withdraw or borrow from their cash values to ride out the worst of times. This is an amazing feat to think about given our economic times and how close we came to the brink of financial calamity in late 2008.
So how secure do you feel about the money residing in your bank account now? When you learn how to become your own banker by owning and controlling your banking system, you will ride out the storm like some of the fortunate did a few generations ago. You will also learn to recapture all the interest and principal, and ultimately profit from the major purchases you will make in your lifetime by learning how to bank with your own money versus give it to your big bank who will only lend back to you for their own profit. This is a simple, foolproof foundation to building wealth and it all starts by raising your awareness to how money is actually created and how to best protect your family with a financial asset that has survived the worst of times and will continue to do so in the future.
For more information or to attend a workshop, please contact JLM Wealth Strategies at 800-208-6141.
by John Montoya, Founder-JLM Wealth Strategies, Inc.
Based upon the fractional reserve system, banks are allowed to lend money they've created out of essentially nothing. They do this in order to earn interest (on money which didn't previously exist mind you) which of course translates to a very profitable business. But if all depositors were to ask for their money back at the same time (known as a "run on the bank"), banks wouldn't actually have it all. FDIC is a private "insurance" corporation back by taxpayers (you and me) to insure that all bank accounts to a certain dollar limit are protected. However, the FDIC itself only has a limited amount of dollars available as resources to cover claims i.e. deposits. Last information I read stated the FDIC had $115 billion available in assets & lines of credit. However, there is over $5.06 trillion sitting in bank accounts nationwide. That's why FDIC isn't really insurance because the FDIC's claims paying ability (also known as insurance!!) aren't 100% back by capital reserves. Like the banks it is supposed to support due to insolvency, FDIC operates on a fractional reserve system as well. This means the FDIC is just as highly leveraged as our big banks. Yikes!
Of course, if worst came to worst, the Federal Reserve can create more debt/issue more paper dollars (fiat currency) with no gold backing to create a bailout and everything is back to normal, sort of... increasing the money supply by creating more dollars has the adverse effect of causing inflation which everyone pays for unwittingly (unless of course you read my posts or others like it). Inflation is the hidden tax I've written about before. (If you haven't read some of my previous posts on Facebook, simply put, most people are aware that the price of things go up over time and think that things just cost more. In reality, the value of the dollar is actually eroding or losing value which means that it takes more dollars to buy the same thing. So what cost $2 a few years ago is now $4 today. This is the hidden tax known as inflation and erodes every dollar will attempt to save.)
Life insurance companies, on the other hand, are truly the SAFEST FINANCIAL INSTITUTIONS in the world! There is absolutely no leverage to create wealth unlike our traditional banking system. Here in the United States, our regulatory system requires that each life insurance company maintain sufficient capital reserves to cover all liabilities. This makes sense, right? After all, whenever we buy a life insurance policy, what we really are buying is the promise of that life insurance company to pay a death benefit which is a greater amount than what we've paid into the policy. Ultimately, what this means to us as a policyholder is that if every life insurance policy resulted in a claim today (a run on the bank, so to speak), life insurance companies would be able to pay each claim and still have money left over to conduct business tomorrow. That is SAFETY and PEACE OF MIND!
As an example, during the Great Depression while over 10,000 banks went out of business and people lined up outside of banks to get their money back only to be turned away (FDIC hadn't been created then, though as you now know, FDIC doesn't have the reserves to cover all bank accounts and furthermore was never intended to). Meanwhile, during the greatest financial crisis to ever hit our country, people who had faithfully paid premiums into their Whole Life policies were able to withdraw or borrow from their cash values to ride out the worst of times. This is an amazing feat to think about given our economic times and how close we came to the brink of financial calamity in late 2008.
So how secure do you feel about the money residing in your bank account now? When you learn how to become your own banker by owning and controlling your banking system, you will ride out the storm like some of the fortunate did a few generations ago. You will also learn to recapture all the interest and principal, and ultimately profit from the major purchases you will make in your lifetime by learning how to bank with your own money versus give it to your big bank who will only lend back to you for their own profit. This is a simple, foolproof foundation to building wealth and it all starts by raising your awareness to how money is actually created and how to best protect your family with a financial asset that has survived the worst of times and will continue to do so in the future.
For more information or to attend a workshop, please contact JLM Wealth Strategies at 800-208-6141.
Wednesday, May 26, 2010
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.
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.
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