The US’s Fundamental Financial Problems


Our nation has a fundamental financial problem. As we already know, our government spends more than it possesses and owns 18 Trillion in Debt. We live in a financial era mainly based on investment speculation and have lost our know how and ability to actually save money. Savings should be the foundation of our own personal economy and needs to fuel our investment purchases. Savings, not investments, were used to create our American economy back when the nation was forming. However, savings has become unpopular and money in a bank, CD, or other safe places is not what it used to be due to our low interest rate environment.

Currently, our monetary system is controlled by our central bank, known as the Federal Reserve. The Fed, though created by the government, is owned by private individuals and operates independently from the wishes of the government. A famous economist, Murray Rothbard states, “The Federal Reserve, virtually in total control of the nation’s vital monetary system, is accountable to nobody–and this strange situation, if acknowledged at all, is invariably trumpeted as virtue.” However, there is a lot of mystery in our economy about the Federal Reserve and the part they play. Our current financial system allows the Fed along with commercial banks to literally create money out of thin air, for the benefit of their owners and their major customers.

Currently, our interest rates are lower than ever, which encourages people to borrow more money, adding more depth to our economic problem. Banks are inflationary institutions that promote credit which leads to a continuous cycle of being enslaved to a lending institution. Rising student loan debt, credit cards, and other high interest rate loans keep banks at the top of our financial cycle. How does that lead to financial independence?

Another concern with our banking system is SAFETY and PRIVACY. According to analysts, there is an estimated 2% of FDIC reserves for every deposit in our banking system. Currently, deposits in a bank are backed by the Deposit Insurance Fund and our Federal Government. In order to understand the problem, one must be educated on the lack of FDIC strength in light of recent systematic monetary banking failures. Civil Asset Forfeiture is a legal tool that allows law enforcement officials to seize property and cash that they assert has been involved in certain criminal activity.

Therefore, let me introduce you to an asset that would be an alternative. This asset is highly criticized and is misunderstood in our marketplace. Traditional “financial gurus” have given it a bad name because they do not fully understand how it works. The asset that I am talking about, in reference to privatized banking, is a properly structured, dividend paying, mutual life insurance policy. Here is why one should strongly consider placing their long term capital inside this type of account:

Lastly, we finance everything we buy.

We either self-finance purchases with cash or finance it with a bank or lending institution. In using this system you can pay for vacations, health insurance deductibles, car purchases, annual taxes, etc… To finance your major purchases all while your cash never stops working for you. Therefore, by using a properly structured, dividend paying, mutual life insurance contract you are creating your own “privatized banking” system.

The life insurance needs to be properly structured.

This means, that a large percentage of the insurance cost is taken out of it and it is structured more for savings & liquidity versus for life insurance death benefit reasons. This is very different than traditional whole life insurance. The significant meaning for this is that the commission rate is reduced by 60-70%. Therefore, your cash starts working for you immediately.

There is true safety inside a mutual life insurance company.

These companies have been around for over 100 years and some even trace back to the 19th century. Therefore, this is probably one of the safest assets in our global economy.

Mutual Life Insurance Companies are very different than Banks.

These companies have been around for over 100 years and some even trace back to the 19th century. Therefore, this is probably one of the safest assets in our global economy.

You are in control of your money, which is the most important thing.

As an owner of the life insurance contract, you are the owner of the contract, not the company. This leads to absolute control inside your financial plan.

There is a competitive rate of return on your money over the long term.

Let me loudly state that insurance is not an investment. However, it does offer a nice return that is better than banks are offering. Over a 20-30 year period there is anywhere from a 3-5% net return in this low interest rate environment. As interest rates change that would affect the rates of return. This return is around or better than the rate of inflation.

With a mutual life insurance company you share in the profits just as the owners of the company does.

These profits are called dividends and once you receive them you never lose them.

You can use your cash like a bank account, but you do not lose the compounded growth once you use it.

There is uninterrupted compounding growth inside the life contract You can collateralize your cash to use this fund as an opportunity fund instead of a mere emergency fund.

Instead of using high interest rate credit cards or utilizing student loan debt, you can use your own ever increasing cash system and borrow from your capital as your money continually grows.

Interest rates are much more generous than credit card interest rates and your cash never stops working for you.