admin A common method of showing the public the power of Nelson Nash’s
Infinite Banking Concept” (IBC) is to stress its feature of “constant
compounding.” In contrast to many other asset classes, dividend-paying
Whole Life insurance always increases in value. Indeed, some proponents of
IBC enthusiastically declare: “There’s nothing else like it!”
Not only does private lending help diversify a stock-heavy portfolio, but through private lending, it is also very easy to diversify amongst different types of assets, or real estate investments, in different locations.
The World Population Clock1 is currently registering 7.6 billion people on the planet. Among those 7.6 billion people, Forbes2 has identified only 2,208 individuals who are billionaires from 72 different countries. Based on this information our chances of ever becoming a billionaire are pretty slim — somewhere around 0.00002%.
Believe it or not, there is growing interest—even among market friendly economists—for the government to mail checks to every American. Guess it’s time to explain why this is a really bad idea.
Have you taken a “30,000-foot view” of your finances lately? Is it positioned for the growth, strength, stability and cash flow you desire? To help you answer that, let’s examine asset allocation and diversification.
The Hope of Victory: By Bob Murphy
May the God of hope fill you with all joy and peace as you trust in him, so that you may overflow with hope by the power of the Holy Spirit. (Romans 15:13, NIV)
FRACTIONAL RESERVE BANKING CAUSES THE BUSINESS CYCLE: by Robert P. Murphy
On April 16, I debated the Cato Institute’s George Selgin on the resolution, “Fractional Reserve Banking poses a threat to the stability of market economies.” I was arguing for the resolution, while George was against. This is an area where even self described Austro-libertarian economists are hotly divided, and moreover fractional reserve banking plays a key role in the book I co-authored with Carlos Lara (How Privatized Banking Really Works). For these reasons, it’s worth summarizing my case in the present article.
Congress established a statutory definition of life insurance in 1984 in IRC Section 7702 that was a significant step in eliminating the favorable income tax treatment of investments disguised as life insurance. In 1988 Congress further tightened the tax rules that apply to life insurance. Under these rules governing the taxation of life insurance, any life insurance contract becomes a modified endowment contract (MEC)and is subject to less favorable income tax treatment if it fails to meet the 7-pay test.
What Is Wrong With Tariffs?: By Robert P. Murphy
Several years ago, I was conducting an Infinite Banking Concept Seminar
in Western Colorado. The sponsor of the event assembled his audience and
said. “The Infinite Banking Concept is all about how you think. It’s all about
how you think. It’s about how you think!”—and then he introduced me. It
was such an effective—and truthful—way to start the seminar that I adopted
the phrase in all speaking events and it is expressed—or implied—in all
writing that I do.
