Episode Transcript
[00:00:00] Hey there, this is Michael Sparks with dynasty wealth partners. We're trying a new project today and what we're going to be doing is reading various articles that are about the infinite banking concept, particularly many articles that are written by the Laura Murphy Report. This is a report newsletter that used to come out written by Robert Murphy and and Carlos Lara.
[00:00:28] Robert Murphy is no longer on the board of directors of the Nelson Nash Institute, but he has had many valuable contributions to helping people understand the infinite banking concept. Carlos Laura is still on the board with the Nelson Nash Institute as of this recording on four third of 2024.
[00:00:48] And they had been writing this newsletter since about 2011. So I'm going back into some of these old newsletters that I think are worthy of your time and I'm going to read them. So I'm going to call this series IBC audible and we'll be putting this up on a separate podcast feed for anybody who wants to basically hear me read infinite banking literature and articles that have been written over the years. So that's what we're going to do here.
[00:01:24] So the first article I'm going to read is Austrian Economics plus whole life infinite banking concept.
[00:01:32] This was in the December 2011 Laura Murphy report and it's basically an interview with the Laura Murphy Report and Nelson Nash Nelson Nash is the founder and creator of the infinite banking concept and he has passed away in 2019. And there's a lot of videos you can watch about Nelson and to get a better understanding. But I'm going to read these for you and I hope you enjoy them.
[00:01:58] So here goes. Austrian economics plus whole life infinite banking concept Laura Murphy report December 20 eleven R. Nelson Nash was born in Greensboro, Georgia in 1931 and married Edward and married Mary Edward Williams in 1952. Nash received a B's degree in forestry from the University of Georgia in 1952 and spent 30 years with the Army National Guard where he earned master aviator wings. In addition to being a consulting forester for nine years in eastern North Carolina, Nash was a life insurance agent with equitable of New York for 23 years, hall of Fame member and the Guardian Life for twelve years.
[00:02:50] Nash describes himself as the discoverer and developer of the infinite banking concept, IBC.
[00:02:58] He explains his revelation and how IBC works in his classic book, Becoming your own Banker, of which more than 200,000 copies have been sold.
[00:03:08] Nash is also the publisher of Banknotes, a quarterly newsletter. He lectures all over the United States, teaching his book in ten hour seminars averaging 50 seminars per year.
[00:03:19] Nash is passionate student of austrian economics, having started this pursuit over 54 years ago.
[00:03:28] Laura Murphy report for the benefit of our readers who have never heard of one of your seminars, can you explain how you discovered austrian economics? Nelson Nash it was back in the mid fifties. I had to go on active duty with the Air Force upon graduation from college.
[00:03:48] When those two years were up, I moved to eastern North Carolina to begin my forestry career.
[00:03:54] By the way, I did not work for the government. Smokey and bear and I don't see things exactly the same.
[00:04:00] I worked for private landowners by contract.
[00:04:04] I knew nothing about socialism, but inherently I knew something was wrong about it. I also didn't realize how much the ideas of socialism permeated the thought process of folks involved in forestry. So I came face to face with the mental paralysis that the monster creates in the human mind. I could not believe what I was witnessing. Why would anyone behave that way?
[00:04:31] So here I am mouthing off at a social gathering at the home of a radiologist about what I had experienced.
[00:04:39] He went back to his library and bought me a copy of Henry Hazlitt's economics in one lesson.
[00:04:46] Try reading this, he said. A couple of weeks later I had finished it. I took it back to him and asked two questions. Where have you folks been hiding this stuff and why did you hide it from me?
[00:05:00] He replied, if you liked it, get on the mailing list of this monthly journal called the free man. That is published by an organization called the foundation for Economic Education. Fee.
[00:05:12] All you have to do is ask for it and they will never ask you for money, but they are entirely supported by donations. If you have not sent them some money in a year, they will simply take you off the mailing list.
[00:05:24] The more I read, the better it got. I was particularly attracted to the writings of Leonard E. Reed and doctor Clarence B. Carson. Within the next ten years, I had become good friends with Leonard and he became my mentor.
[00:05:38] We had Leonard down to Birmingham every year for many years. Another ten years passed, and my wife and I met Doctor Carson at a gathering that we sponsored for foundation for economic education conducted by Leonard Reed. Soon after, we began to work with Doctor Carson on the board of directors of his organization.
[00:05:58] The study of austrian economics and history became my passion and remains so for this day.
[00:06:08] Laura Murphy report let's suppose a reader is fully on board with the basic austrian message, but he doesn't know much about life insurance. What would you say to this person to encourage him to research the area further?
[00:06:24] Why is it worth his time if he already understands the dangers of fiat money, central banking and so forth? What is your perspective. What is it that your perspective offers to him that he is currently lacking?
[00:06:39] Nelson Nash that's the reason I wrote the book becoming your own banker unlock the infinite banking concept back in October of 2000. There is no way to give a simplistic explanation to one who is not acquainted with the concept.
[00:06:56] It takes time to develop a rationale that is totally different from what most folks think.
[00:07:02] So life insurance agents who use my book to educate prospects and clients might say, mister prospect, I found this very interesting book. At least it is interesting to me because it has changed the lives of thousands of people all over the country.
[00:07:18] I'd like your opinion on it. Would you read it and let me know what you think? Give me $25. That's the retail price plus shipping cost. When you have finished it. If you don't like it, I'll buy it back.
[00:07:32] Or one might say, how would you like to make the interest that the banking industry is making off of your major purchases that you make during your lifetime, like automobiles, houses and business equipment, etcetera, and do it on a tax deferred basis? Read this book and you'll learn how to do it.
[00:07:53] As to your other questions, practically no one realizes that the primary source of inflation in our economy is done through local commercial banks. They lend money that doesn't exist.
[00:08:05] That is fraud. When one makes a loan from a life insurance company and uses the cash value of his policy as collateral, there is no inflation of the supply of money. It is from savings by all the participants when they buy dividend paying whole life insurance from a mutual company that is an insurance company that is owned by the policy owners. Very few people understand this fact.
[00:08:29] The Laura Murphy report now let's turn it around. Let's say the reader has been a huge fan of your philosophy for years and indeed she quit her previous job to become a successful insurance agent, showing her clients how to solve their household financial problems with the disciplined use of properly designed dividend paying whole life policies.
[00:08:52] She knows that you happen to be a fan of austrian economics, but views this incidental hobby you have akin to you liking John Wayne movies.
[00:09:02] What would you say to such a hypothetical fan to encourage her to learn more about austrian worldview?
[00:09:10] Why does she need to bother with all of that boring econ stuff if she is doing quite well in her current business?
[00:09:18] Nelson Nash when one understands the teachings of austrian economics and also understands how dividend paying whole life insurance works, it is easy to connect the dots. I have had a number of emails from people who have read my book and said, this is austrian economics in action.
[00:09:38] Laura Murphy report our roster of previous interviews have attested to the immense growth in the popularity and influence of the austrian school. Can you give us your perspective on the fortunes of infinite banking concept, perhaps telling us about your book sales and the acceptance of your views among insurance professionals?
[00:10:01] Nelson Nash at this time my book has sold over 200,000 copies. We know thousands of people who will never see a bank again in their lives except for the convenience of a checking account. My wife and I have not used bank loans of any kind for over of 17 years again, except for checking convenience.
[00:10:22] It is a very peaceful way of life, in addition to being very profitable, by using life insurance policy loans to make the major purchases that occur in life, we are in effect making what the bank would be making off us tax free.
[00:10:37] Do this over a number of years and the results are outstanding.
[00:10:44] Every month I am on a conference call with a large number of life insurance agents who are practicing this concept personally and with all of their clients. Just today one of the agents was happy to report, thanks to what you have taught me, my family and I are now totally free of bank financing of any kind. Additionally, there are many home office people in life insurance business who had no real appreciation for the power of this concept and now they own a significant amount of the product. They were standing in the middle of a fantastic solution to financial problems and they never saw it because of the way they were taught. Infinite Banking Concepts is an educational organization that is dedicated to rectify this misunderstanding.
[00:11:30] Laura Murphy Report one of our favorite lines from a talk you gave at our night of clarity conference in Nashville was something like in the decades that I have spent studying the Bible, I do not recall it saying, and then Moses retired.
[00:11:46] Can you share with us your views on the typical american view that you work a job you hate for 45 years so you can stack up a bunch of money and then start living once you retire?
[00:11:58] Nelson Nash retirement has got to be the most stupid idea that has ever come along.
[00:12:06] I have read the Bible through and through during my lifetime and I can't find anywhere it says, and so Moses retired and lived happily ever after. The word retirement doesn't appear in vocabulary of human beings until about 1890.
[00:12:23] Bismarck in Germany came up with that idea. They were the ones who gave the world the idea of Social Security.
[00:12:31] He set age 70 as retirement for german males, and life expectancy for those folks was probably around 50. The odds were that no one would ever live to receive an income from the scheme.
[00:12:43] Along comes World War one and he had to reduce it to age 65. That's where FDR, Franklin Delano Roosevelt, in the United States president in the 1930s, got age 65 for american males, for our Social Security. In 1937, when life expectancy was around 61.
[00:13:03] Now life expectancy is 78. There is no way that scheme can work. It will fail in due course. But our politicians say they are going to fix it.
[00:13:14] There is no way that they can fix something that is inherently defective. Americans have been sold a bill of goods with this crazy idea. I am working on writing a new book right now entitled building your Warehouse of Wealth. Think about it. The book will include an extensive chapter dealing with the subject of retirement. For the further reading, I suggest the pension idea by Paul Peratt, a small booklet that he wrote back in 1950. It is available on our website, www.infinitebanking.org.
[00:13:48] Mankind needs a purpose in life. In March of 2012, I will be 81 years old. There is no way to convince me to retire. This life is too much fun to miss out.
[00:14:03] So there you have it. That was the article that I read here, austrian economics plus whole life insurance equals IBC. An interview with Nelson Nash.
[00:14:14] Nelson had a lot of great thoughts. If you haven't read the book, becoming your own banker, that's the first place that I recommend everybody to start. And it will really give you a great foundational understanding of what the concept is and more over what the concept is not. It is not, it's not an investment of any kind. It's not a, you know, get rich quick scheme. Yes, it uses life insurance, but we're using it in a different way. So that's what really Nelson brought to life, is austrian economics in action, how to solve the banking function in most people's life. And the banking function, when we talk about this, is the loans, right? So most people, they go buy a car, they go to a bank, they get a loan, and then they pay back the loan. What we're going to do is the same thing, but we're going to do that with a whole life insurance policy, using the cash value and taking a loan against that cash value and paying it back. And therefore we would then be able to recapture the interest that we would have paid to the bank. We would own the vehicle that we purchased, and then we would have had all the payments that we would pay for that vehicle back into our system. So, hope you enjoyed the article. There'll be ways to subscribe to this feed somewhere once we get it posted on the Internet. And if you like it, give us a thumbs up and if you got suggestions, we'd be glad to have those, too.
