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Life & the Creation of Infinite Banking - R. Nelson Nash - (BWL POD #0001)

Jun 06, 2021
In this episode, Nelson Nash and I discuss the genesis of NNI, the Nelson Nash Institute. Let there be light, and there it was. You really know a few words. You know, going back to the genesis. That's the first book. Actually, it's before the first book. At that time, James: When you wrote the first book, Becoming Your Own Banker. Nelson: My Genesis Oh, yeah. Yes, there is no doubt. Yes, that's the big book. James: At first. Nelson: Yes, there are 66 of them. James: I want to talk about your book. Nelson: Oh, you mean this one? Nelson: Have you read that one?
life the creation of infinite banking   r nelson nash   bwl pod 0001
James: I've read that one. Nelson: Very good James: I can't tell you how many times. James: It's been pretty recent. Read everything (recently) three times. Nelson: Do you know what it says? James: Yes, I do. I think so. I'm still searching in case I've missed something. Okay, but when you created the think tank, right, and then it evolved into IBI. And now it is the Nelson Nash Institute (NNI). You did not do it. You didn't imagine this or create this for a bunch of agents to sell a bunch of

life

insurance. Why don't you do what you did?
life the creation of infinite banking   r nelson nash   bwl pod 0001

More Interesting Facts About,

life the creation of infinite banking r nelson nash bwl pod 0001...

Nelson: Why? James: Yes Nelson: Well, the view that something is wrong in the financial community, that

banking

is necessary or existed in the way we live today. It has to be, but the role is in the hands of the wrong people and when you look deeper you'll discover that they are evil to the core. Anyone who lends money that doesn't exist is evil. James: And charge interest on it. Nelson: Yes, if you understand this concept, it is real money and it is in a place that cannot invite money supply. There's a really good video called Banking With Life (James movie).
life the creation of infinite banking   r nelson nash   bwl pod 0001
Did you ever see that one? James: I got it. Nelson: Anyway, there are about 13 personalities in that video, including yours truly, but I think the third one is a guy named Paul Cleveland, who is a good friend and an Austrian economist in Birmingham, Alabama, and he points out that the Money is not wealth, wealth is assets. and services. That money is the medium of exchange through which we acquire wealth. I felt that the function of money is in the hands of the wrong people because all you have to do is look at what happened during my

life

time.
life the creation of infinite banking   r nelson nash   bwl pod 0001
How the money supply increased in a big way. Well, what that did was dilute the power of the medium of exchange? Well, I graduated from college in 1952. I went on active duty in the Air Force for a couple of years because I was an ROTC student there. that was one of the ways I made my way through college. The other option was working two part-time jobs all the time. I was at the University. Very good. Anyway, do you have any idea what the base salary of a second lieutenant was in 1952? $213.75 a month, every month, whether you like it or not.
Now you had 75 dollars a month in housing allowance and 42 dollars a month for food. And you know, we get along very well on that. Compared to everyone else, we lived pretty well. Well, let's consider what is happening today as absurd. Increasing the money supply solves nothing at all. But who caused this? Bankers. They are the only ones who can inflate the money supply. So it's in the hands of the wrong people. Well, there's real money and there's fun money, but people can't tell the difference because to them it's just digits and stuff. You probably know this place called Tulsa, Oklahoma, where the largest race riot ever occurred.
We are talking about 1922-23, which one? James: 1921. Nelson: Yes, yes, there was a black community there that was relatively very wealthy. Well, what happened there was tragic in terms of death, but the thing is that human beings have a tendency to obsess over tragedy. , but they don't look at the cause. Well find out what the cause is and the cause had to do with the fact that the tenth commandment was in force, you shall not covet. And you imagine white trash seeing these really rich black people living near Well, that led to disaster. Yes, but why did black people get rich?
Money never changed the community until it spun 30 to 100 times. Well, let's go back to Paul Cleveland and in this great video called Banking With Life you should see it. Wealth is goods and services. So, a guy performed a service somewhere and what did he get as compensation? James: Money. Nelson: Money! Alright, that's real money, right? That is a representation of something that was real wealth. So, that's real money. Okay, so he's got that real money and if there's another black guy around here he's got something you'd like to sell and it just so happens that this guy would like to buy it.
Then they come to an agreement based on the monetary denomination. Okay, so money flowed from here to this guy and goods flowed here. Alright, now when he has that money, he finds someone else, so the money never left the community until he gave it away 30 to 70 times. Well, that's the secret to everything there. Well, in contrast to what happens in the big world, you know, human beings loved to have designations behind their names. MD, PhD and such and such. CRNA all that kind of nonsense. Well, in life insurance it is Chartered Life Underwriter. CLU Now you must understand something.
You're getting into the life insurance business and you're becoming a member of the life insurers and if you're going to be anyone, you've got to be here, at some point. And sometimes you have to become CLU. Well, when I took the course it was ten parts and it took me a couple of years. It is equivalent to a master's degree anywhere. One of the parts of the book was economics. And, above all, the economics book they used was Economics by Paul Samuelson. That's the textbook all the universities used, so the guy is bordering on communism. Caramba.
To the extent of what he is teaching, life insurance would cease to exist. In Russia they don't have life insurance. Oh my God. So here I am studying that course and I come across this idea that Samuelson describes. He says the government taxes the economy with ten billion dollars. Well, that's money coming to the government. Right, James? James: Yes Nelson: Very good. Now the government will spend it, he says. Then it will be reversed three times and that stimulated the economy. Well, I have belonged to the Austrian school of thought for about sixty-two years. I deliberately failed that course.
I have only failed one subject in my life and it was Economics. CLU Studies. James: That's funny, I don't care who you are. Nelson: I'm also pretty proud of that when I was in college. The first year there, it's economics 101. And I got a d+. That's Delta plus, not bravo plus, okay. I'm proud of that fact because that way I didn't have to erase so much nonsense from my brain. Alright. Anyway, I deliberately failed the CLU Studies course in the final exam. and I said, yeah, so what Samuelson said here is true, but this is also true.
Al Capone, the famous gangster. He steals ten billion from the American public. He will spend them. That will give you three times. That also stimulated the economy. Therefore we should have more Al Capones. And they didn't see any humor in it and they failed me. I took the course, gave them their answers, and they gave me a designation. and I have a... what's his name? Certificate! Hello. That's all framed and stuff and I'm a CLU. Well, eight years ago. Getting older and things like that. Where we lived there was more space and more garden to keep up with what we need at our ages.
We downsized and I found that diploma. It was in a closet facing the wall, and I was going to throw it in the trash, but David says no, I'll keep it. So I hung it in my garage. So if you want to come see my CLU study, my CLU designation. Come visit my garage next time you come to Birmingham. James: So the Nelson Nash Banking Institute is in the wrong hands. Nelson: Yes, James: the

banking

functions. Nelson: Yes. James: People don't really realize that they have really abdicated their responsibility. Nelson: Sure! James: However, you created this institute, but you didn't create it so that agents would go out and write a lot of life insurance.
Nelson: No, that wasn't the goal at all, it's just the means to achieve that result. Know? Emerson said, "The end preexists in the means." "the objective preexists in the means." Look at the media. Now, my mentor Leonard Read quoted Emerson quite a bit and I always liked him. But when I found out that he was very influenced, at one point, by that guy from Walden Pond, what was his name? Anyway, are we all looking around Walden Pond? Nelson: Yes, Walden Pond. Yeah, I can't think right now, but anyway those guys were the ones who caused the War of Northern Aggression and therefore I find it hard to cite Emerson as a result, but no, he was a good guy, but you already know.
Many people go astray and that is not good. Yes. But life insurance companies find it impossible to increase the money supply anyway. It can not be done. Alright, I met a guy named James Neathery and he convinced me that buying life insurance is a very good idea. Well, I signed my name on the dotted line and they vet me and things like that and the policies are issued. What am I going to give him? James: Money. Nelson: What amount of money? James: Effective. Nelson: Real money. Something I have earned for goods and services of some kind or another.
Everything is well now. James will gain something for his efforts there. Oh, that's real money you have right? James: Yes, sir. Nelson: It's okay now. Most of it goes to the life insurance company. It's real money. Well, they have to pay the hired help. No business can be run without administrative staff. It is impossible. That's real money for them. Well, most of it is going to disappear. Uh Build things that are like, come to downtown Birmingham on Fifth Avenue. 20th Street is a civic center in Birmingham. There are four buildings there and three out of four or two are owned or fully financed by Equitable Life.
That's real money. Am I right? Yes that's fine. Now, how do they recover? That investment. Well, they provide office space and such. Well, what do people have to give them? Real money. So you see, if we get this thought to enough people, then they can learn how to separate themselves from the system. No need to change it from top to bottom. It can't be done from the top down. It's impossible because of the people who created all the inflation and so on. Bankers have been poisoning people's minds for so long that that's not going to happen. but in that community you can.
I evoked this phrase James. How will IBC survive in a hostile financial environment? and one of our practitioners modified it. He said no. How to survive and thrive in a hostile financial environment. As you can see, this is a work in progress and people add things all the time. James: So you are very satisfied with the execution, you know the structure, the activity of NNI and what is happening there, from what you know, training agents in Austrian economics and what you discovered, what you can do with life insurance and the structure. Nelson: Well, when I discovered all this over 35 years ago.
I saw that this had to be taught out there and it cannot be taught from the top down. I tried that attack and it was a miserable failure and I thought academia was the way to teach it and that was even worse and then I saw that it had to be done, on the you and me level and I also saw that I'm not going to live forever. That I needed to find people who would understand this, take over and leave. And I had a couple of miscarriages there with people who had very good driving and so on, but had problems with the steering.
Have you ever heard the term vector? James: Yes. Nelson: The vector is the force in the direction without both qualities, you don't have a vector, okay? So to illustrate, you know, I'm an airplane driver and here's the airline pilot with his load of passengers and he says, about halfway through the trip, he says folks, I have good news and bad news. He says the good news is that we are going at a good pace, but the bad news is that we have lost our way. James: They'll get to a place they didn't want to go very quickly.
Nelson: And that was a big blow and everything. Well, as time went on, there was a guy named Carlos Lara who got interested in this and he didn't realize it right away, it took a while. He readily admits it, but I guess he understands this the most of anyone I know. I've always tried to convey this to my Austrian friends, but they're too busy with whatever they were chasing at the time. I was never able to get their attention at all. Carlos Lara one way or another got up with a guy named Bob Murphy who lived there in Nashville, Tennessee.
How they got together is an interesting story in itself, we wouldn't have time to continue with it now, but anyway it was Carlos who convinced Bob that he had to read my book. Then Bob says that he had read the book. He says when he is right about everything but there are 10 things he is missing and so on. Then he read the book again and said no, he only needs nine. He finally got off, nothing was happening. James: It was him. Nelson: It's a funny story the way Bob tells it. We will never achieve the mission without the intellectual community.
That's all about it. And Bob Murphy is the key. If there is anyone who can totally understand it, it is Bob Murphy and he is the key to the intellectual community. Well, fortunately my youngest daughter got married. Well, a guy named David Stearns. Of course, he wasn't veryexcited about purchasing life insurance when he first married my daughter, but that was the only way to do it. So he was a slow learner too, but there is no better practitioner of the concept than David Stearns. If there is something that gives me true joy in this advanced stage of life today.
Those three guys are everything I've ever dreamed of. So the future is in good hands and there are great professionals out there. Nelson: Life is good. James: Life is good. So we are going in the right direction. The Delta that is correct. That's good. Nelson: Shall we talk about this? James: Well, we don't use the word revolution. We are moving money from. Nelson: Well, it's a revolution for individuals, but the masses will never realize this. They will never realize this. You see, they are very indoctrinated by the banking community. That's when you're trying to describe something like this.
They think it's crazy. You will see when I first saw this vision. It was something instantaneous. And I tried to suppress it for two years because I said no one would believe me and I could make a very good living selling life insurance and teaching individual clients and so on, and that would be it, but the fire wouldn't go out. I know what that burning bush and Moses were about. That this had to be taught in a big way and so well that I began to teach it to individuals or small groups. Well, the conference room I used held 18 people and I was trying to get it done in two and a half hours, but I was bypassing everyone.
Fortunately, I had this experience years ago with a guy named Larry Wilson, Wilson Learning Corporation. He was the guy who created the advisor sale. He was a school teacher and had the bad habit of spending 1.25 times his income. James: Was he a doctor? I'm kidding. Was he a doctor? Nelson: No, no. Anyway, he had to get another occupation and in the life insurance business he did extremely well. But that bothered him. He couldn't explain it. Why was it good? He called himself a competent unconscious and, although he had four children, at that time. He decided that he was going to find out why.
So he took a year off and said, "I'll find out why I'm good." When you start looking for the answers they appear like magic. You have to want it, what does it amount to? He discovered that the answers were there for the asking, but he also stumbled upon something else. It's called a syllogism. He crossed paths with BankAmerica looking for someone to create a sales training package for his bank and the sales council was born. It was a 40-hour block of instruction designed to be taught 4 hours at a time over a 10-week period. Anyway, you know, we became really good friends and stuff like that.
My partner in the life insurance business in those days with Equitable was Lamar Phillips. We used to offer it to the general public and things like that. So based on that experience, I saw that he was making a big mistake by trying to include this in a package at 2 1/2 hours. So, I rewrote the course. I simply divided it into five parts and designed it to last two hours over a five-week period. And then I got a group of 18 people. The oldest is 75 years old and the youngest is 25. Men, women, all kinds of different occupations and so on.
I wouldn't let anyone but a life insurance guy into the room. Very good. At the end of the first session, 60% of them were wanting to ask questions and I told them, go home. It's over. I'll be here Thursday night at six next week and I deliberately didn't call anyone. I wanted to see what would happen. 20 people showed up. More than the same 18 people, but others said you'd heard this and by the third session everyone was saying you needed to write a book. You need to write a book. You're too young to remember Paul Harvey now, aren't you?
James: No, I remember. Nelson: Okay! Well, you know the rest of the story. That's how the book came about. James: So a group of financial professionals and brokers told Nelson that we want to do this too. How did you know the Think Tank was developed? Nelson: Well, I've been doing these seminars before the book came out. I guess quite a while, but at least four years. I was using overhead projectors and slide boxes etc. Things like that. And anyway, this is a guy in Iowa who said, "You need to meet Kim Butler in Phoenix, Arizona." I didn't know her and she didn't know me.
Anyway, I looked for someone to introduce me and no one could. I couldn't find anyone. Finally, I gave up, I just called her and she wasn't there, she called me back. I wasn't playing tag, probably five sessions before we finally got together. Early one morning. I was in the garden playing and Mary yells at me. Phone. Kim Butler is on the phone. I introduced myself and said I wrote this book. I will send the manuscript to you. I'd like to see what you think of this? Anyway, she said I've been looking for this here since. Anyway, my wife and I have been working with Dr.
Clarence Carson on publishing books, etc. Carson was my number two man. Leonard Read was the Foundation for Economic Education, he was my boss. But the number two man was Clarence Carson, an Alabama historian who wrote history from an economic point of view, from a natural point of view. Economic good. Anyway, we all worked with him for about 22 years and it was the influence I got from him on how to publish books etc. Then we knew how to self-publish. We knew something about ordering books and things like that. How many of this printer we'd been using for Clarence did you order? and Mary said 500, that will last forever.
Anyway, when I went out to do the seminar for Kim Butler. She bought 100 copies immediately. I place an order for 2,000. Mary said, "You've gone crazy." I called and said add another thousand. Well, the books are pretty good. It is in 31 countries and changed the lives of many people. Most of them you will never meet. True, yes. But it is quite rewarding. That they call me and tell me that you are changing my life. I said no, I didn't change your life. You saw something of value and you changed. Without you, you are doing nothing. Back then, in my days in North Carolina, when I was a forester.
There was a time when I was president of the Chamber of Commerce. Well, I admit I had to select the speaker for the annual meeting. He would be an airplane driver. I chose William Piper of the Piper Aircraft Company. He was about 82 at the time and I was about 30. I mean, what an experience. Spending time you and me with a guy like that. Anyway, we had fun visiting, but one of the messages he conveyed to our group was, "You have a phone." What a thing. If someone else doesn't have a phone then you have nothing. Okay, what's the message?
Maybe you have the best message in the world. You may have the best delivery system in the world. Maybe you have the best technique in the world. But if you don't have a receptive listener, you have nothing. So the magic that exists is if people see this vision and catch guys like James Neathery. You know, thanks for saying my name, you can say it all you want. That's ok. Yeah? Well. I have seen. I've learned that, you know, that's really the message. In reality, it is ultimately the freedom and control of the banking function. Sure! Absolutely.
The middle is simply the structure of life insurance. It is the only thing that meets the requirements. It's the perfect solution, but people won't realize that because they'll see that they've been focusing entirely on the death benefit and then, of all things, after the advent of World War II, all these soldiers are off active duty and the socialists who were in charge at the time said, "Oh, that's going to ruin the economy." That wasn't true, but you know, they were running the show. Listen, we have to give them something to do so they can make their way in the economy over a period of time.
Then let's send them to college. Not all that. We will solve another problem, increase intellectual capital and thus kill two birds with one stone. GI Bill is the best thing that ever happened. Well, what happened was 108 degrees opposite. Tom DiLorenzo, who is big, is a good friend. We're on a first name basis in a big way. He points out that there was a completely opposite result. And universities became diploma factories. And today we have people who have university diplomas and who do not know how to read the diploma. So those Harvard MBAs that came out created an atmosphere of I guess you could call it a pecking order or something, but these are the people who become the big bankers, what not that increase in the money supply and so on.
And that is bad, but people don't recognize evil. You have to recognize what evil looks like. You have to recognize that the devil is a cunning creature, unless you understand what he is like, you will not recognize him. So the middle here is a place that can't inflate the money supply and if you had this closed community that life insurance creates, its value would always be increasing. Everyone should do this kind of thing, but that is incomprehensible to most people. I don't know if they will ever happen or not, but it doesn't matter if it happened or not.
There is no need to live that way again, how to survive and thrive in a hostile financial environment. The joy and peace of mind that comes from having banks out of your life cannot be described. You know, I've worked, I've given seminars for people like you all over the country for the last 20 years. Look, I had been doing seminars long before the book came out. Anyway, years ago I was giving a seminar for this guy in Thousand Oaks. Los Angeles region, high rent district. By the way, that's just a lie. There are not a thousand oaks, I have counted them.
I am a forester. There are only 976. Anyway, the sponsor was Arkady Milgram, a Russian Jew who came here in 1989. I guess it was something like that. He was able to leave Russia. But with only a hundred dollars in his pocket. That's all he could get out. Made extremely well. I never discovered the life insurance business until about eight years ago. I had 25 Russians there and about 20 of us American guys halfway through the seminar. I am telling people that a peaceful and stress-free way of living is when you eliminate banks from your life. And lightning struck my weak brain at that moment.
God is good. I'll tell you. I said to myself: Oh my God, what an opportunity! There, in front of me, in the front row, is a doctor from Russia. A neurologist. I'm going to pick her brain in front of everyone and I have no idea what that woman is going to say. I'm going to take a chance. Doctor, what role does stress play in medical illnesses? Her response: "it all starts there." So I asked the group in your life and in the lives of your peers, what do you think is the biggest stressor? a chorus returned.
Money. This is how to totally control the money factor in your life. In a place where you can't inflate it. But the message must be passed on to the next generation. Well, what are they exposed to out there? Noise. Yes, the hostile environment, big time. So we have a patient with them and so on. There are some people who don't realize it and you can't help it. But you know. You just have to recognize that you can't force feed this kind of thing. You can't inject it into their brains. They have to catch him. They had to be fertile land.
Receptive to higher seeds. Now you know how much longer you do this kind of thing. You may run into some superior people. So you know a lot of what I'm talking about there, you know it with all the books you read, for God's sake. Can you imagine what it was like to have Leonard Read as your personal friend and mentor? Sit down and talk to him like this and that. And if you could pick up the phone and call him and if he didn't have something urgent, he would take the time and talk to you, etc.
I mean God. James: I think I'm as close to that as any man alive today could be. Nelson: Yes. Okay, I have your phone number. Nelson: All I knew was collecting seeds and trying to find fertile soil to plant them in, that's all. But you have to understand that you have found superior seeds in fertile soil, but you also get weeds. You have to recognize the weeds. What happens if you get rid of the weeds and the top stuff sticks out like a sore thumb? Well, how complicated can this be? Good sir. But therein lies the problem.
People love to complicate things, don't they? Well why? I don't want to say So, do you think NNI practitioners will be able to continue carrying the message to the next generation? I have high hopes. We believe that very, very good candidates have arrived. Look, we made a big mistake when we created the IBI. We had it open to anyone who wanted, but you know, I've been singing in choirs for 75 years and so on. I had to leave here recently and it's been very painful for me to do that, damn it, but our music minister at our church is one of those very outstanding people.
He is the director of the School of Fine Arts at Sanford University. Anyway, here's this pianist who's been with us for quite some time. He is a very young boy and gets along very well. Well, he wanted to go to the next level. Well, to do it he had to meet with about five people from the Fine Arts Department there. Go through an interview to determine if he was a candidate or not. Then theyI suggested to College Bob and David that that's what we should do. So we adopted it immediately and now we won't even let anyone take the course until they have completed it.
Between 30 and maybe an hour, an interview to find out what motivates you. Why do you want to do this? Etc. We had to turn some people away. They just won't fit. James: What a shame. Nelson: As a result of the candidates getting veteran veterans. Some in the relatively recent past are spectacular. I mean, my goodness, I wish I lived a few more years to see the results. Yes, it will be filmed in a minute. Then there's the interview process that they have to do for the courses, Austrian economics, and then there's, you know, some life insurance education that they didn't get from the head office or any of the insurance companies because this wasn't created by insurance companies.
It was discovered by you. I saw something they were leaving out and so on. You see how incredible it is to go back to those Harvard MBAs because their headquarters is a life insurance company that decided they had to be everything to everyone. And there is no way. That's not. They don't understand the power of what they really have, they don't understand what can be done with this thought process. Well, some of them are starting to realize today and that is the glorious feeling, but it is not an overnight process because they eliminated many of the old types of thinking that they had that dominate everything.
James: It's quite difficult to unlearn Nelson: always the hardest job in the world is to unlearn. Thanks for listening. If you liked the content, leave us a like or a thumbs up, share us with your friends. Give us your opinion and we'll see you next time. You

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