Both of them protect your purchase power.
Let me elaborate on this statement:
Earlier in history, owners of gold experienced the difficulty of carrying their gold to places of trade because it was heavy in large quantities and made them a target of thieves and criminals.
A good solution was offered by Goldsmiths who offered safe storage and extended a receipt to the owner for the amount of gold left in custody. These receipts later on were used in the exchange of goods and services, and the new bearer of the receipt now had a claim on the stored gold.
Ever since the Goldsmiths found out that they could create additional receipts to earn additional profit on the gold that was trusted to them for storage by the owners, the general population became robbed.
People did not know about this, and it was extremely difficult to discover the wrongdoing unless every person holding one of these receipts went to the Goldsmith to redeem their share of gold at the same time.
Goldsmiths were the bankers of yesterday and the practice of fractional reserve lending has been a huge part of the process of how banks profit by controlling the money exchange.
Due to the regular practice of a dishonest and legalized process, (fractional reserve lending) and compounded with the authority of controlling the monetary system given unconstitutionally by Congress to the Federal Reserve Cartel, the population of the US and the world has been taken advantage of since 1913, when the FED was created.
This abuse causes many problems in the economy: The amount of money in circulation, the interest rates that are manipulated by the Federal Reserve, the fraudulent creation of currency and the favoritism on who gets that new created money first.
This creates wealth on those selected individuals and organizations that get the new money first and increases the cost of living for the average citizen.
When there is more of something that something becomes less valuable, so the more money there is in circulation, the less that money can buy. That is why we see goods around us going up in price all the time.
The manipulated low interest rates creates a fictitious economic environment where entrepreneurs invest believing in present conditions, only to be tricked, and lose their
Investments when the FED intervenes and raises the interest rates.
This economic cycle has repeated several times since the FED has been in control of the economy.
There is one point that you need to know: Paper receipts or notes representing an amount of gold were convenient to trade with, so this practice gained popularity. As there were restrictions to the creation of more paper notes (dollars) unless there was more new gold backing it up, this system worked fairly OK.
Things changed and a huge problem appeared when President Richard Nixon, on August 15 - 1971, cut the co-relationship of the paper note (dollar) with gold.
Since then, these abuses have spiraled out of control, and we can see the results in the huge debt amassed by the United States, and the loss of value of the dollar reflected on high prices all around us.
Now that you understand the problem, you will see how Gold and the Infinite Banking can provide protection to the population.
Gold has been the currency of choice throughout history due to its unique characteristics. In time of crisis, people have acquired gold to help them through the crisis and minimize losses. Everybody like or love gold, gold is storage of value and has always been worth something.
The Infinite Banking Concept (IBC) is a process that takes advantages of economic principles, Insurance rules, and government laws plus tax advantages.
This powerful process allows you to have control and use of your money, and is a guaranteed efficient way to grow capital.
The IBC offers you the best conditions to park and secure your discretionary money. It gives you unrestricted no questions asked access to your money, and on top of that, there is a death benefit to help you accomplish what you want and protect your loved ones even if you pass away.
Now, what is the relation of the IBC to gold?
Well known economic experts Carlos Lara and Robert P. Murphy, Ph. D. were flooded with questions about the validity and genuine power of the IBC made by us, the promoters and practitioners.
They were asked if the IBC process was either as good as we claimed, or a gimmick used to sell high amounts of life insurance.
As they were not particularly knowledgeable of the IBC details, they embarked in the task of scrutinizing it and came up with their own analysis report in a book named "How Privatized Bank Really Works".
They became the strongest advocates of its practice since it goes hand in hand with Austrian Economics teachings.
Where is the connection with gold?
Carlos and Robert came up with their own formula to solve the economic sickness of the world since the dollar is still the standard for global commerce.
Carlos and Robert proposed three points:
1- Peg back the value of the dollar to an amount or price in gold.
2- Practice "Privatized Banking" as per the IBC teachings and recommendations.
3- Close the Central banks of the world.
That is the relation of the IBC process with gold.
Do you have any comments? Want to elaborate or challenge the proposed solution offered by Carlos Lara and Robert P. Murphy, Ph.D.?
Email your comments.
I am a practitioner and very passionate promoter of the "Infinite Banking Concept". Close to seven years ago I opened my eyes and ears to my limited knowledge of money management by the use of Whole Life Insurance and when I realized how powerful and beneficial to the average American it was, I decided to promote it.
- Baby Monitor Market is expected to reach the market valuation of US$ 1,970 million by 2027 expanding at a reasonable CAGR of 6.2%
- If you want to go one step further and really impress the bankers with your answer, then tell them how you became interested in IB years ago.