It’s easy to forget that banks, just like the rest of us, exist in today’s economy by making money. The history of banking didn’t begin on the Monopoly board, nor did it begin with the $1, $5 or $10 bills. But the need for creating a process for lending and borrowing, for negotiating and transferring payments is how the earliest banking began – sort of.
In the Ancient World, merchants loaned grain to the farmers and traders to carry in exchange for other goods. In time, with greatly increased transactions, there was a need for lighter, more easily conducted payments. So the earliest monetary coins were created.
With the development of a more manageable currency, a whole new class of merchant emerged to help manage it – the “money-lenders”. These original “loan sharks” were wealthy, small-time merchants who charged interest to the small-time borrowed and became even wealthier.
Though there is an ancient history of banking that involves exchange of currency for goods, our modern banking system came about in 1913 on Jekyll Island, Georgia. It was there, on the Golden Isle, that wealthy businessmen and bankers of the day created the Federal Reserve Act which established the introduction of the Central Bank – The Federal Reserve.
Changing How You Bank to Make More Money
Inflation and taxes kill a person’s wealth. Borrowing from a bank with high interest rate, or giving your money to a bank to grow a nest egg for yourself comes with hidden fees and, more hidden fees. Utilizing a whole life policy as your bank and lending option is a way to eliminate those hidden fees, as well as shelter your money from inflation. Finally, when you properly structure your whole life policy you receive many tax advantages, if not get money completely tax – free.
Click Life Insurance is an Asset to learn more about the power of Infinite Banking
Infographic: Infinite Banking Basics
Further Reading: The Purpose of The Federal Reserve, Forbes.com