What is the Central Bank? Surprisingly, a lot of people don’t know what the central bank actually is. Currently, the central bank is the Federal Reserve System that provides services for the United States’ banking system, monetary policy, and issuing currency. When and Why did the Central Bank Begin?
The United States, since it began, had been operating under a pseudo national banking system and bartering system. Depending on the decade or territory of the U.S. at the time, an individual either bartered, or used bank notes to transact.
Fractional lending among goldsmiths (the goldsmiths turned into the banks) started well before the United States was established, and because fractional lending was unregulated due to experience, many banks during the gilded age and early 20th century failed.
These run on banks, including the 1907 Knickerbocker Crisis, initiated the need for fractional lending to be organized and regulated.
The Central Bank Today
Just as laws are written in response to what is politically at hand, so was the Central Bank’s initial guidelines in the early 1900s. With the information age ushering boundless access to knowledge on finances, currency and private monetary habits, some of the United States Central Bank ideas are antiquated.
People on U.S. soil, for hundreds of years, have ceaselessly debated that ‘the rich keep getting richer.’ If you want to take that same adage and apply it to the central bank, it rings true.
How the Central Bank Makes Money
Banks make money by lending out depositors money with an interest rate. Legally, banks are allowed to do this because they are part of the conglomerate Central Bank, or The Fed.
The United States economy, monetary system, and habits rest on the function of credit. The more money inserted into the economy stimulates development and growth – nevermind the fact that usually, the insertion of dollars into the economy means money being created from nothing.
When money with no value inflates the economy there becomes a huge imbalance and false economic indicators. (The Misleading Indicators) These false indications lead individuals to misread where the interest rate is going, to then make poor financial decision.
Remove Yourself from the Central Bank
One way to avoid allowing the bank to make money from you as a depositor, as well as guarantee yourself the opportunity to make accurate financial decisions is through Infinite Banking.
Infinite Banking is way to remove the Central Bank from your personal economy by using a Whole Life Insurance Policy in its place.
Whole Life Insurance is a vehicle for your money that allows you to take advantage of its opportunity cost. Instead of the central bank making money from your deposit, as an infinite banker, you are able to be both the lender and the borrower. This affords you the ability to have control over your money, not the bank.
Whole Life Insurance
Whole Life Insurance is often overlooked because individuals view the product as death insurance. In reality, Whole Life is meant to provide living benefits – like that associated with Infinite banking.
Whole Life Insurance provides market safety, a steady rate of return, tax-advantages, and a death benefit. Whole Life Insurance has also been used for hundreds of years by the ultra-rich to maintain and build their personal wealth.
We’re not saying that Central Banks are bad, but what we are saying is take advantage of your own money the same way banks today do; do it with Whole Life Insurance.
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