

Fractional Reserve Banking Creates Inflation: Infinite Banking is the Solution
Jul 22, 2024
46:50
Inflation causes everything to feel more expensive, so what do you do to protect your money from inflation? Today, we’ll explore the link between inflation and fractional reserve banking and how Infinite Banking is the sound money solution.
https://www.youtube.com/live/ay4aDG2phBg
A thought-provoking journey through inflation, fractional reserve banking, and the revolutionary concept of infinite banking. This episode promises to demystify how the traditional banking system and increased currency supply fuel inflation, challenging widespread misconceptions.
You’ll gain a deeper understanding of inflation’s root causes by contrasting liberal views with Austrian economic theories, and learn how your everyday choices can influence market prices and how they relate to the average rate of return on your money.
Next, we shift gears to tackle the often-overlooked topic of healthcare pricing elasticity. Hear real-life stories about how informed consumer decisions can lead to significant savings on prescriptions and medical procedures.
Discover practical strategies for price negotiation without confrontation, and understand the ripple effects of increased money circulation on the economy. We’ll also discuss the impact of government policies like minimum wage hikes on business expenses and overall market pricing.
Finally, explore a smarter financial strategy that sidesteps the pitfalls of fractional reserve banking. By leveraging whole life insurance policies, you can protect your assets from inflation and achieve greater financial security.
Rachel and Bruce explain the benefits of mutual insurance companies, which maintain robust reserves, and how these practices can create a more stable personal economy.
This episode is packed with insights into what fractional reserve banking does and actionable advice to help you take control of your financial destiny and build a prosperous future.
So, if you want to learn how to ensure more economic stability and prosperity, tune in today!
What You’ll LearnWhat Is Inflation in a Fractional Reserve Banking System?The Nature of Banking Under the Fractional Reserve SystemAvoiding the Risks of Fractional Reserve BankingResources:Book a Strategy Call: Explore Alternatives to Fractional Reserve BankingFAQs About Fractional Reserve BankingWhat is fractional reserve banking in simple terms?How does fractional reserve banking create inflation?Why does this system disadvantage savers?Is fractional reserve banking used everywhere?What’s the alternative to using traditional banks?Can I learn more about how banks really operate?
What You’ll Learn
What fractional reserve banking is and how it quietly affects your financial stability
Why the fractional reserve system contributes to rising prices and weaker dollars
How inflation is created—and why it punishes savers the most
The surprising connection between bank loans and money creation
What fractional reserve banking does to your purchasing power over time
How government policies and circulating currency impact market prices
Why Infinite Banking may offer a safer, more predictable alternative
What Is Inflation in a Fractional Reserve Banking System?
We all feel the effects of inflation, but what is it really? Inflation is when a dollar becomes less valuable. This is why bread used to cost a couple of nickels and now costs more than a couple of dollars. One of the major reasons for inflation is that our banks continue to pump more dollars into the banking system, decreasing the overall value of a single dollar.
Our current banking system, fractional reserve banking, allows banks to keep only a fraction of their customers’ money in reserves. This means that banks can do more business than they actually have available.
While this can stimulate the economy on some level, this also means that money is being created out of thin air. This is what the fractional reserve system does: it exp...