Notes from the Cutting Edge of Finance

I’ve just returned from the Nelson Nash Institute’s (NNI) annual Think Tank conference for practitioners of the Infinite Banking Concept (IBC) in Birmingham, AL. It seems appropriate to say a few words about the experience.

For context, the IBC is a cash-flow management strategy that allows individuals to opt-out of the federally-enforced cartel that you might know as “the commercial banking system.” Nelson Nash is the creator of the IBC and author of the book Becoming Your Own Banker — the key text wherein Nelson explains the IBC from start to finish. The NNI is the organization that certifies financial professionals who wish to assist individuals in properly implementing the IBC through the unique construction and design of the financial contract necessary to do so.

[Read more on Ryan's Medium page]

Financial Flow & the Banking Business: They've Got you by the Heart Strings

Many people have difficulty properly conceptualizing money. It's no wonder! Financial education is often hopelessly misguided at best and outright corrupt at worst. I wrote this article to help you better understand money, it's flow, and how it relates to the banking business. Check out an excerpt below and see the full article here. For those who do, there's a free bonus at the end!

 From Carlos Lara's May 2014 article in the Lara-Murphy Report entitled "Bank Deposits Are Risky--Now More Than Ever"

From Carlos Lara's May 2014 article in the Lara-Murphy Report entitled "Bank Deposits Are Risky--Now More Than Ever"

 

"Your income, your investment earnings, your bill payments are all evidence of the fact that money flows, but little attention is paid to this startlingly fundamental fact. Young adults devote a hefty chunk of their lives to studying the flow of blood. Entire professions are devoted to studying, tweaking, and augmenting the flow of it.

Ask yourself how many money flow specialists you know.

Don’t get me wrong. It isn’t the case that there aren’t any specialists in the science of money flow — of monetary systems. There are. But learning who they are comes with the painful price of self-awareness. Consider this: the monetary specialist in your life is probably not you. Of course, not everyone is a cardiovascular expert, and it’s silly to think that everyone should be their own monetary system expert too. But you know something. The heart, the arteries, the veins. You get the basics. And you know that it’s a good thing that you’ve got your own heart, your own arteries, your own veins, and so on. Many Americans — particularly of the diabetic type — fear not having their own well-functioning blood-flow system, and rightly so. Who wants their blood flowing through someone else’s system?

What constitutes the heart of your monetary system? Maybe you’ve never been asked. We can forgive the financial gurus and advisers who should be asking you. They probably don’t think about money in these terms. After all, they’re a product of the same money education system you see bits and pieces of in the news, in newspapers, and on TV commercials. They don’t know any better. And despite Masters and doctoral training in economics, I didn’t know either. Stunning and sad, but true."

Dr. Murphy: Opt out of the Financial Mess with Life Insurance

It turns out that the great Austrian Economist of the 20th century Ludwig von Mises observed that Americans prepared for uncertain futures by saving with life insurance in his classic text Human Action. Who knew?! Dr. Murphy lays out why this was so, offers a potential explanation for why we no longer do, and suggests why the solution to our financial worries may require turning back this uniquely American history. 

Read an excerpt below. Check out the full article originally published at FEE here.

Taking all things into account, a growing number of Americans are surprised to discover that a boring old permanent life insurance policy offers a simple way to largely secede from the financial system in which the masses participate, yet without going into truly exotic outlets (such as cryptocurrencies) that are difficult for some to understand. As things currently stand, permanent life insurance offers an outlet for savings that is remarkably robust across several criteria (such as liquidity, safety, privacy, and usefulness in estate planning). By relying on a permanent life insurance policy as a main vehicle for long-term saving, a household is naturally assured of substantial financial assistance in the event of a breadwinner’s death, reducing reliance on government “social insurance” programs. Yet this vehicle reaps other benefits, too: The household is much less vulnerable to stock market volatility, and (over time) can wean itself from the use of commercial lenders to finance car purchases or other major expenses. To repeat, this growing trend of using life insurance as a savings vehicle is nothing revolutionary or faddish; a century ago Americans would have considered the practice quite commonplace.

Austrian Economist Robert Murphy on his Experience with IBC

Dr. Robert Murphy is Senior Fellow of the Ludwig von Mises Institute, Assistant Research Professor of Economics at the Free Market Institute at Texas Tech University, co-founder of the Nelson Nash Institute, and co-creator of the Authorized IBC Practitioner course, and much more! 

He recounts his personal experience with the IBC in this article. An excerpt follows: 

Thus this article serves several purposes. First, I hope it clarifies for Austrian / libertarian readers why I became so interested in the economics of life insurance. Yet I also hope it further explains to people already in the IBC community why I think the IBC Practitioner’s Program is such an important component in bringing this message to a wider audience. Finally, it will hopefully prove useful as a general introduction to IBC for any reader, told in the style of “one guy’s journey.”