What do you think?
Rate this book
How Privatized Banking Really Works - Integrating Austrian Economics with the Infinite Banking Concept
What if there was a solution to government intervention and our current money madness? Would you hesitate one minute in wanting to know what it is? Of course not! No one would. The problem is so pervasive that a solution seems impossible and yet, there is a solution. This solution's only requirement is the action of a single person acting in a manner to help only himself, but in so acting ultimately he helps all of society. The powerful combination of Austrian Economics, The Sound Money Solution and Privatized Banking, as described by R. Nelson Nash's Infinite Banking Concept, is the "new" idea in this book.
263 pages, Paperback
First published January 1, 2010
46 people are currently reading
204 people want to read
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 16 of 16 reviews
July 9, 2018
Two great quotes from the book:
“A man who is forced to provide of his own account for his old age must save a part of his income or take out an insurance policy… Such a man is more likely to get an idea of the economic problems of his country than a man whom a pension scheme seemingly relieves of all worries.”
— Ludwig von Mises
"A bureaucrat differs from a nonbureaucrat precisely because he is working in a field in which it is impossible to appraise the result of a man's effort in terms of money.
- Ludwig von Mises
Having the infinite banking concept described by an economist and experienced businessman was very enjoyable. Most of the book was spent laying the economic and historical foundation for the lay reader. I think this was important for the writers to do to ensure that their readers would fully understand their position on the matter as well as the reason they see dividend-paying whole life insurance as an asset.
Reading about the Federal Reserve never fails to baffle my mind. How do we (these United States of America) keep moving through history without questioning the elephant in the room? This book takes a very foundational look at our economic system, and money itself, and explains how to use life insurance of all things to solidify your financial plan.
“A man who is forced to provide of his own account for his old age must save a part of his income or take out an insurance policy… Such a man is more likely to get an idea of the economic problems of his country than a man whom a pension scheme seemingly relieves of all worries.”
— Ludwig von Mises
"A bureaucrat differs from a nonbureaucrat precisely because he is working in a field in which it is impossible to appraise the result of a man's effort in terms of money.
- Ludwig von Mises
Having the infinite banking concept described by an economist and experienced businessman was very enjoyable. Most of the book was spent laying the economic and historical foundation for the lay reader. I think this was important for the writers to do to ensure that their readers would fully understand their position on the matter as well as the reason they see dividend-paying whole life insurance as an asset.
Reading about the Federal Reserve never fails to baffle my mind. How do we (these United States of America) keep moving through history without questioning the elephant in the room? This book takes a very foundational look at our economic system, and money itself, and explains how to use life insurance of all things to solidify your financial plan.
January 20, 2017
Very good book in many respects. The first part offers a simple overview of economic thought from the Austrian perspective. The middle (& best) part of the book goes into amazing detail on how the U.S. banking system works with particular interest on the federal reserve, the treasury, & the big banks. It is also in this section that the evils of fractional reserve banking are exposed in great detail. The book closes by introducing the reader to IBC (Infinite Banking Concept) as a way to avoid the "boom & bust" economic cycles that are necessary to government involvement in banking through the federal reserve and fractional reserve banks.
Really great all around!
Really great all around!
October 19, 2010
this book both assumes you agree with the author and makes some leaps with its conclusions, and at the same time explains other basic concepts in depth. you are either are trying to further educate a group that agrees with you and already has some base knowledge, or you are trying to persuade a group that disagrees with you by providing a new perspective on something.
also, the formatting of this book is very unprofessional. are production artists that expensive?
i think this could have been a very good, useful book.
also, the formatting of this book is very unprofessional. are production artists that expensive?
i think this could have been a very good, useful book.
Read
October 8, 2016More motivation if you already are into IBC. I suggest you start with something else if you want to understand how the IBC works. I have a policy and I love it. No one asks me about my credit when I call for a loan. I just get a check in the mail. I have a check on the way as I write this.
May 31, 2023
A useful book that provides a helpful overview of the fractional reserve banking system and an overview of Austrian economics. The overview of the banking system and gradual shift from full reserve to fractional reserve is very useful.
I am still learning about IBC, so am not sure yet about its use. The authors argue that while "Ending the Fed" would be a much better goal for economic stability and returning to a sound money solution (such as the gold standard) they propose using the Infinite Banking Concept (IBC) as written by Ronald Nash to implement a whole life insurance policy to finance loans and become financially independent of the banking system. Personally I would prefer a solution that used a hard money as its base such as gold, silver, or Bitcoin, as an alternative that doesn't depend directly on the fiat system and could additionally provide a hedge against inflation.
Although this book was written in 2010 following the 2008 Great Financial Crisis (GFC), many of the concepts are still relevant for recent banking failures and crisis in 2023.
Even in terms of inflation, media and government education has made us shift our focus away from the root issue:
"In this book, we claim that the "money masters" in the government and major media have pulled a giant con on the American public. When it comes to inflation, for example, Americans are encouraged to look at villainous Arab nations, greedy corporations, or grasping labor unions. Americans are not told to look at the true source of inflation, namely the Federal Reserve and fractional reserve banking. It is the magician's classic ruse of misdirection" (pg. 208).
"The most obvious discrepancy between our current world, and the market economy sketched in earlier chapters, is that people nowadays do not use gold or silver as money. Instead, they use pieces of paper issued by governments. When the monetary unit was itself an actual commodity, its purchasing power held its value over time; a gold ounce in 1810 generally bought the same amount of goods as a gold ounce in 1910. In contrast, with government paper, the purchasing power of money constantly falls-for example, the U.S. dollar has lost 95 percent of its value since the Federal Reserve was established in late 1913. So pervasive is government inflation, that people in our age take it for granted that prices inexorably rise year after year, as if it were a fact of nature" (pg. 160).
Both authors also show that the "boom-bust" economic cycles are a result of the shift to fractional reserve banking ad government interference in the economy, rather than letting the free market economy set prices and have a sound currency backed by real money (e.g. Gold and Silver). The historical portion of this book on money should be read by high school students and anyone interested in the true history of the US dollar and how it relates to the US economy.
I am still learning about IBC, so am not sure yet about its use. The authors argue that while "Ending the Fed" would be a much better goal for economic stability and returning to a sound money solution (such as the gold standard) they propose using the Infinite Banking Concept (IBC) as written by Ronald Nash to implement a whole life insurance policy to finance loans and become financially independent of the banking system. Personally I would prefer a solution that used a hard money as its base such as gold, silver, or Bitcoin, as an alternative that doesn't depend directly on the fiat system and could additionally provide a hedge against inflation.
Although this book was written in 2010 following the 2008 Great Financial Crisis (GFC), many of the concepts are still relevant for recent banking failures and crisis in 2023.
Even in terms of inflation, media and government education has made us shift our focus away from the root issue:
"In this book, we claim that the "money masters" in the government and major media have pulled a giant con on the American public. When it comes to inflation, for example, Americans are encouraged to look at villainous Arab nations, greedy corporations, or grasping labor unions. Americans are not told to look at the true source of inflation, namely the Federal Reserve and fractional reserve banking. It is the magician's classic ruse of misdirection" (pg. 208).
"The most obvious discrepancy between our current world, and the market economy sketched in earlier chapters, is that people nowadays do not use gold or silver as money. Instead, they use pieces of paper issued by governments. When the monetary unit was itself an actual commodity, its purchasing power held its value over time; a gold ounce in 1810 generally bought the same amount of goods as a gold ounce in 1910. In contrast, with government paper, the purchasing power of money constantly falls-for example, the U.S. dollar has lost 95 percent of its value since the Federal Reserve was established in late 1913. So pervasive is government inflation, that people in our age take it for granted that prices inexorably rise year after year, as if it were a fact of nature" (pg. 160).
Both authors also show that the "boom-bust" economic cycles are a result of the shift to fractional reserve banking ad government interference in the economy, rather than letting the free market economy set prices and have a sound currency backed by real money (e.g. Gold and Silver). The historical portion of this book on money should be read by high school students and anyone interested in the true history of the US dollar and how it relates to the US economy.
December 1, 2020
Really important issues are, unfortunately, addressed in a book filled with redundancies. The two authors each wrote their own sections and it really shows. The issues addressed are affecting every American citizen and need to be more widely known, but I doubt this book will achieve broad readership because of the way it’s written.
The sections on fractional reserve banking and sound money address very serious issues and deserve to have more clarity, while the section on the infinite banking concept sacrifices detail for clarity.
On the whole, this could serve as an introduction to any of the three areas addressed, but does not really address any of them sufficiently.
The sections on fractional reserve banking and sound money address very serious issues and deserve to have more clarity, while the section on the infinite banking concept sacrifices detail for clarity.
On the whole, this could serve as an introduction to any of the three areas addressed, but does not really address any of them sufficiently.
September 5, 2017
The real positive of this book is how it manages to simplify and explain why current economic policy in the United States is so bad. I've always struggle with understanding a realistic road map to go back to a gold standard. For the first time I actually see that not only is it possible, but it would be incredibly beneficial. Also well done on how the authors tie together personal finance to economic policy. It's something that few people, even those that are a little bit more informed about personal finance, never seem to grasp.
December 23, 2020
Great book!
A well articulated discussion on the current problem with banking and how to opt out. Dividend paying Whole-Life Insurance has been a blessing to my family and it can be for yours too.
A well articulated discussion on the current problem with banking and how to opt out. Dividend paying Whole-Life Insurance has been a blessing to my family and it can be for yours too.
March 10, 2025
Economics should be talked about more; however, the government teaches us that we must depend on other sources besides ourselves. When we all learn to invest in ourselves, we will stop the games. This book provides clarity to what is going on.
September 7, 2021
I enjoyed this.
October 6, 2023
A quick read, not the most exciting book, but opened my eyes to a new concept.
January 11, 2024
This was the first book I read about IBC - before Nash's "Becoming Your Own Banker" and it was the comprehensive study that helped me understand the system.
October 26, 2021
First off, this is mostly a book about politics, especially conservative, libertarian, and Austrian politics/economics. So right off the bat, 1-star because no data or studies prove conservative politics/economics to be better than liberal politics/economics.
Second note, the reason for the book, that IBC is the best investment vehicle. It's not. You're much better off buying term-life and investing the rest of the money yourself in ETFs. Investing is all math. You'll make much more money doing this than IBC.
All IBC is is term life + letting the insurance company invest the rest in a multitude of assets. But if instead of paying this middle man and you invested yourself in a more concentrated fashion (either SPY or QQQ or a mix) you're looking at making 12%-40%/year.
Money, business, and investing are all math. Buying term and investing the rest makes more logical/mathematical sense than IBC.
Second note, the reason for the book, that IBC is the best investment vehicle. It's not. You're much better off buying term-life and investing the rest of the money yourself in ETFs. Investing is all math. You'll make much more money doing this than IBC.
All IBC is is term life + letting the insurance company invest the rest in a multitude of assets. But if instead of paying this middle man and you invested yourself in a more concentrated fashion (either SPY or QQQ or a mix) you're looking at making 12%-40%/year.
Money, business, and investing are all math. Buying term and investing the rest makes more logical/mathematical sense than IBC.
July 29, 2015
The first 2/3 of this book is a popular-level description of Austrian economics--both how it diagnoses our current economic malaise and then proposes to fix it. Pretty standard stuff.
But the final third describes what is most commonly known as the Infinite Banking Concept, developed by Nelson Nash in the 80s, and argues that it is essentially a microcosm of Austrian economics within a family's financial plan: Savings comes before wealth; you can't inflate money into new wealth; etc.
What stands out to me is that they write as economists, not as life insurance agents or professional financial planners. This brings an objectivity to the discussion about the IBC concept that should be helpful to skeptics and/or those just now encountering it.
This book is available as a free PDF online, or for purchase in print.
But the final third describes what is most commonly known as the Infinite Banking Concept, developed by Nelson Nash in the 80s, and argues that it is essentially a microcosm of Austrian economics within a family's financial plan: Savings comes before wealth; you can't inflate money into new wealth; etc.
What stands out to me is that they write as economists, not as life insurance agents or professional financial planners. This brings an objectivity to the discussion about the IBC concept that should be helpful to skeptics and/or those just now encountering it.
This book is available as a free PDF online, or for purchase in print.
July 24, 2016
I skimmed Parts 1 & 2 as these are a general intro to finance from an Austrian economics perspective. Part 3 is what I came for, which is an argument for using whole life insurance as a cash flow management tool. Bob Murphy also describes how this approach is a way to opt-out of the Keynesian system of fiat inflation.
March 24, 2016
I loved this book because it teaches the novice how money actually works and should work in a sane and safe world. Today things are not so safe and require using financial tools that are risk free and still provide savings, protection and growth. I loved the book... great read!
Displaying 1 - 16 of 16 reviews