There is actually a best way to buy your life’s needs and wants to fulfill your dreams.

 IBC 3 ways to save for your needs

 If You Have Dreams… We Have The Solutions…

How Can I Ful­fill My Dreams, you ask?

Every­thing we do with our money will ful­fill our dream or ful­fill some­one else’s dream.

What does this mean?, I have been asked.

Every deci­sion we make about every penny we earn will either help us ful­fill our dreams, if it was an informed deci­sion, or pull us fur­ther away from our dreams, if the deci­sion was not based on all the facts regard­ing our finan­cial circumstances.

If it is pulling us fur­ther away from our dreams, then some­one else is more than likely prof­it­ing and so they are get­ting closer to their dreams.

Every penny in cir­cu­la­tion is earn­ing some­body money and los­ing some­body else money. It all depends on whether you treat your money like a bank owner does or not.

It is really impor­tant to know the true cost of any­thing we are spend­ing our money on, no mat­ter how we pay for it.

Inter­est is always work­ing. It is either work­ing for you or work­ing against you, but it never stops working.

Most peo­ple are pay­ing so much more inter­est than what they are ever aware of, even if they are pay­ing with cash.

If you want to get closer to man­i­fest­ing your dreams, stop ful­fill­ing the banks dreams. Start your money work­ing for you 24/7/365.

Start using a sys­tem that helps to make inter­est work for you more often, right now.

Learn how to sim­ply repo­si­tion and max­i­mize your money so you become wealthy in the safest way possible.

Do you even know what your dreams are anymore?

Are you will­ing to have a par­a­digm shift in the way you under­stand bank­ing and read a book called Becom­ing Your Own Banker by R. Nel­son Nash, with an open mind?

Are you will­ing to take some time to meet with my col­leagues and I via online webi­nar and talk about some lit­tle known finan­cial and bank­ing strategies?

OR

Will you choose to do noth­ing and let your cred­i­tors con­tinue to use your money to get rich when you could be using it yourself?

Will you con­tinue to spend cash with­out real­iz­ing you are still pay­ing inter­est on that cash?

Will you allow the “Sounds too Good To Be True” voice in your head stop you?

Will you con­tinue to do the same thing with your money and get the same results for the rest of your life?

Really, what are you going to do? Some­thing or Nothing?

Con­tact me today. You have noth­ing to lose but your dreams.

 

 

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Jennifer · No Comments
Posted in: Buying - differences

Becoming Your Own Banker for Multi-tasking Debt Elimination Dollars

 Private Reserve Banking System

understanding debt

(Our Retire­ment Ready-or-Not cal­cu­la­tor helps you deter­mine how much you will want to put away while you are work­ing so you can main­tain your cur­rent stan­dard of liv­ing after you retire)

When you pay off col­lege loan debts, credit card debts, car loan repay­ments etc. what hap­pens to the money you make those repay­ments with? It is gone for­ever. It is never com­ing back. It has per­formed one action for you, it has helped pay off one debt and that is all it has done.

If I could show you a way that would allow you to cap­ture much of the prin­ci­pal and inter­est charges back into your account, when would you want to learn how to do that?

Many peo­ple, after learn­ing about Infi­nite Bank­ing, either don’t come to see me because they think they have too much debt and so can­not afford another expense added to their bud­get, (but we uti­lize those same dol­lars to do more than one thing) or wait till they have paid off their debt before they come to see me (not real­iz­ing they could have used that money mul­ti­ple times).

It sad­dens me when either of these sce­nar­ios occur and it also proves how brain­washed our soci­ety as a whole is, in regards to cash flow and how to best uti­lize their hard earned dol­lars. Life insur­ance when designed and uti­lized cor­rectly within a Mutual Insur­ance com­pany struc­ture, can mul­ti­task the same money you are pay­ing your debts off with. Of course you have to have some sav­ings and or be sav­ing while pay­ing off your debts for the best results.

Rather than inves­ti­gat­ing a whole dif­fer­ent par­a­digm of money man­age­ment, many peo­ple either ignore it, think­ing they could not pos­si­bly qual­ify or they do what they have always been taught to do, uni-task their dol­lars by throw­ing as much as pos­si­ble towards debt prin­ci­pal pay off to save inter­est charges with­out con­sid­er­ing the lost oppor­tu­nity costs asso­ci­ated with the spend­ing of those dollars.

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Jennifer · 4 Comments
Tags: , , , , , , ,  · Posted in: Debt Elimination with Becoming Your Own Banker, Uncategorized

Understanding ‘Private’ Banking — 5 minute video selections

If you don’t have ALL these ben­e­fits with your money, ask your­self, WHY NOT? It’s time to get con­trol. IMAGINE!

Now con­tact me today. Jen­nifer 845 – 649 –7487

Have you ever thought to ask....

Sign-Up to Learn More from These Free Videos:

http://privatizedbankingsystems.com/

Then: Con­tact Jen­nifer Hansen for a free pri­vate webi­nar ses­sion at

845 – 649-7487 or Jennifer@DebtDiagnosis.com

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Jennifer · No Comments
Tags: , , , , , , ,  · Posted in: Understanding Banking, VIDEOS

My Win Win Offer — The Bible of Banking — Becoming Your Own Banker

Order your copy of BECOMING YOUR OWN BANKER by Best­selling Author,R. Nel­son Nash below.

 

 

                                  

                                   $22 includes ship­ping in USA

Official PayPal Seal

Pool of Capital

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Jennifer · 10 Comments
Tags: , , , , , , , , , , , , , ,  · Posted in: Becoming Your Own Banker, Book - MONEY BACK GUARANTEE, BOOK RECOMMENDATIONS

How Privatized Banking Really Works

How Pri­va­tized Bank­ing Really Works

Inte­grat­ing Aus­trian Eco­nom­ics with the Infi­nite Bank­ing Con­cept By L. Car­los Lara and Robert P. Mur­phy, PhD. What if there was a solu­tion to gov­ern­ment inter­ven­tion and our cur­rent money mad­ness? Would you hes­i­tate one minute in want­ing to know what it is? Of course not! No one would. The prob­lem is so per­va­sive that a solu­tion seems impos­si­ble and yet, there is a solu­tion. This solution’s only require­ment is the action of a sin­gle per­son act­ing in a man­ner to help only him­self, but in so act­ing ulti­mately he helps all of society.

Access Your Free E-Book Ver­sion Below.

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Jennifer · No Comments
Tags: , , , , ,  · Posted in: BANKING with INSURANCE, BOOK RECOMMENDATIONS, FINANCIAL EDUCATION 101, How Banking Really Works, How Privatized Banking Really Works, NELSON NASH

Protected: My Recorded Videos

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March 7, 2016·  Jennifer · Enter your password to view comments.
Posted in: Uncategorized

L54) Life Insurance vs. Modified Endowment Contracts

1.3 — Life Insur­ance vs. Mod­i­fied Endow­ment Contracts

Cur­rent tax law spec­i­fies that a life insur­ance pol­icy is one that passes the 7-pay test. This test requires that the pre­mi­ums paid dur­ing the policy’s first seven years can­not exceed the sum of the net level pre­mi­ums nec­es­sary to fund a fully paid-up pol­icy at the end of seven years. If cumu­la­tive pre­mi­ums do not exceed the spec­i­fied amount dur­ing the first seven years, the pol­icy is deemed a life insur­ance con­tract, sub­ject to tax treat­ment nor­mally applic­a­ble to life insur­ance. If cumu­la­tive pre­mi­ums exceed the spec­i­fied amount dur­ing any one of the first seven years, the pol­icy will be deemed a mod­i­fied endow­ment con­tract, or MEC, sub­ject to dif­fer­ent, less favor­able tax treatment.

Exam­ple: Life Insur­ance vs. MECs

For exam­ple, assume that a pol­icy pro­vides for a death ben­e­fit that would require the pay­ment of $14,000 in pre­mi­ums by the end of Year 7 to be a fully paid-up pol­icy. As long as cumu­la­tive pre­mi­ums paid do not exceed the cumu­la­tive max­i­mum amount in any year, the pol­icy will pass the 7-pay test and will be con­sid­ered life insurance.

As the fol­low­ing chart shows, in Year 4, the pol­i­cy­owner pays an amount into the pol­icy that causes the total pre­mium paid to exceed the total amount allowed as of that point. In that year, the pol­icy fails the 7-pay test and will be deemed a MEC. And although the total pre­mi­ums paid through Year 7 do not exceed the total cumu­la­tive limit, the amount deposited in Year 4 caused the pol­icy to become a MEC.

mec

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January 15, 2016·  Jennifer · No Comments
Posted in: L54) MEC Modified Endowment Cont

Every penny of your tax dollars pays for your national debt to the banksters.

Take back Con­trol of Your Money.

Every penny of your tax dol­lars pays for your national debt to the banksters.
The banksters then loan your hard earned tax money back to the govt. and charge inter­est on it for your basic pub­lic services.

If you earn an aver­age salary over your life­time you will pay the banksters over 1,000,000 in taxes.
3/4 of your life­time of work pays for your gov­ern­ment debt to the banksters and your per­sonal debt to the banksters on your mort­gaged houses, your car loan, stu­dent loans and other loans.

The banksters game is all about tak­ing your money in taxes and then loan­ing your money back to you again with inter­est.
They take prop­erty taxes, gas taxes, food taxes, cloth­ing taxes, and dozens of other taxes and fees. Infla­tion, which they cre­ate, is a hid­den tax.

Col­lec­tively the pub­lic will­ingly hands over tril­lions of dol­lars annu­ally to the banksters by deposit­ing money in their banks, pay­ing taxes to their cen­tral banks, sup­ply­ing labour to the cor­po­ra­tions, buy­ing stock in their cor­po­ra­tions and then spend­ing their sav­ings in their cor­po­rate superstores.

So what do the banksters do with all your money that they pocket?

They bomb, rob, kill, col­o­nize, exploit and advance their cause for global con­trol and for your even­tual enslavement.

Refuse to fight their wars.

Who took all the real money, the gold? The govt. and replaced it for the peo­ple in the form of green back paper backed by noth­ing. Worth some­thing only because the govt. says so.

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December 31, 2015·  Jennifer · No Comments
Posted in: Uncategorized

Walter E Williams — Economics And Personal Liberty

 

https://www.youtube.com/watch?v=mQb3yiYT5Zo

 Pro­fes­sor Williams is inter­viewed regard­ing his con­tention that Key­ne­sian eco­nom­ics is an assault against per­sonal liberty.

http://www.LibertyPen.com

 

 

 

 

 

 

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December 29, 2015·  Jennifer · No Comments
Posted in: Uncategorized

Debt is the weapon used to conquer and enslave societies. Interest is its prime ammunition.

Enslavement

World Bank — Inter­na­tional Mon­e­tary Fund.
Phys­i­cal slav­ery requires peo­ple to be housed and fed.
Eco­nomic slav­ery requires peo­ple to feed and house them­selves.
It is one of the most inge­nious scams for social manip­u­la­tion ever cre­ated and at its core it is an invis­i­ble war against the pop­u­la­tion.
Debt is the weapon used to con­quer and enslave soci­eties. Inter­est is its prime ammu­ni­tion.
The major­ity walks around obliv­i­ous to this real­ity while banks in col­lu­sion with gov­ern­ments and cor­po­ra­tions con­tinue to per­fect and expand their tac­tics of eco­nomic warfare.

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December 29, 2015·  Jennifer · No Comments
Posted in: Uncategorized

Protected: Social Security Claiming Strategies for Married Couples

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July 16, 2015·  Jennifer · Enter your password to view comments.
Posted in: Uncategorized

Protected: L52) The historical process by which the original, favored position of whole life deteriorated. Includes the standard features of whole life insurance — such as its traditional use as a savings vehicle as the public often cannot consider IBC if they have (erroneous) preconceptions about whole life insurance.

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April 6, 2015·  Jennifer · Enter your password to view comments.
Tags:  · Posted in: CLIENT LESSONS, L52) History of Whole Life

If You Do Not Govern Yourself, You Will Be Governed, Free webinar by Lawrence W. Reed, President of Foundation of Economic Education.

FREE Webi­nar titled “Are We Good Enough for Liberty?”

by Lawrence W. Reed, Pres­i­dent of Foun­da­tion of Eco­nomic Education.

Reg­is­ter today and receive a free copy of Larry’s book — “Are We Good Enough for Liberty?”

When: March 31, 2015 @ 7:00 pm – 8:00 pm

Where: Webi­nar

Cost: Free

Lawrence W. Reed

We believe the key for indi­vid­u­als and fam­i­lies to meet the cur­rent and future eco­nomic chal­lenges is for them to bet­ter under­stand the value of cer­tainty and how to achieve their max­i­mum finan­cial poten­tial with the least degree of risk.

Our events are edu­ca­tional based. We share infor­ma­tion about finan­cial strate­gies and dis­cuss their use in finan­cial plan­ning in a sem­i­nar for­mat. It is enter­tain­ing and engag­ing. We do not solicit the sales of finan­cial prod­ucts or ser­vices in our sem­i­nar environment.

There is absolutely no oblig­a­tion to attend our events.

Just click on this link to reg­is­ter:  https://attendee.gotowebinar.com/register/8212396749098231810

 

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March 24, 2015·  Jennifer · No Comments
Posted in: Uncategorized

Forever Taxed or Never Taxed — If You Have Taxable Savings, You Have a Problem; by Established CPA and tax adviser, Ed Slott

For­ever Taxed or Never Taxed — What does your retire­ment plan include?

If you have tax­able sav­ings — you have a prob­lem, and so do your beneficiaries!

Forever Taxed or Never Taxed - Ed Slott

Life insur­ance may be the most under used strat­egy to pro­tect large retire­ment bal­ances from being dec­i­mated at the high­est lev­els of tax­a­tion. Who is most at risk? Those of you who have the largest IRA’s or other tax deferred sav­ings accounts.

Most peo­ple don’t under­stand how life insur­ance works as an effec­tive plan­ning tool. Life insur­ance can fix lots of retire­ment prob­lems and even cre­ate wealth; and tax free wealth.

Under­stand what life insur­ance tax plan­ning can do for you both dur­ing your life­time and after your death.

Ed wants you to under­stand what’s in it for you from an unbi­ased, objec­tive, tax advan­taged point of view. Let Ed tell you why he thinks life insur­ance is the miss­ing piece in most peo­ples retire­ment and estate plans.

The tax exemp­tion for life insur­ance is the sin­gle biggest ben­e­fit in the tax code.

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March 4, 2015·  Jennifer · No Comments
Tags: , , ,  · Posted in: TAXES, Taxes Forever or Never Taxed

Protected: L 51) L M R 2015

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February 11, 2015·  Jennifer · Enter your password to view comments.
Tags:  · Posted in: CLIENT LESSONS, L51) L M R 2015

Wealth Seminar — Free Dinner and Educational Workshop on Unique Financial Strategies. California

 

VERY IMPORTANT:  PLEASE, let me know you are going so I can give Bob your name and have my col­league wel­come you.

You can con­tact me via, text, phone call or email at (845) 649‑7487 or Jennifer@DebtDiagnosis.com to register

Bob Means seminar

 

 

New Loca­tion, very close to adver­tized location.

Cal­i­for­nia Pizza Kitchen 12171 Seal Beach Blvd. Seal Beach, CA. 90740

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February 7, 2015·  Jennifer · No Comments
Posted in: CA Wealth Seminar Feb 2015, EVENTS, Feb 2015 CA Live Seminar, INTRODUCTORY WEBINARS

Feb. 2015 Dinners — Creating Financial Certainty in Uncertain Economic Times. You Are Invited

Please be so kind as to make sure you men­tion Jen­nifer Hansen of Debt Diag­no­sis invited you. Thank you. Please enjoy a free meal on us. I am in New York so will not be attend­ing but if you let me know that you are going, I will have my great friend and men­tor Craig Floyd or Jason Hen­der­son meet with you in per­son. My num­ber is (845) 649‑7487 and my email is Jennifer@DebtDiagnosis.com. Con­tact me via text, phone call or email.

Alliance Dinners Feb 2015

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February 6, 2015·  Jennifer · No Comments
Posted in: Uncategorized

If What You Thought To Be True About Money Turned Out Not To Be True, When Would You Want To Know That?

If What You Thought To Be True About Money Turned Out Not To Be True, When Would You Want To Know That?

Mak­ing One Small Change can open up a whole new world. Are you game enough to give it a go?

Under­stand, how right now, you are the loaner of your money, but you can be the owner of your money.

One small change

Under­stand, how right now, you are the loaner of your money, but you can be the owner of your money.

A Sci­en­tist bought a pot­ted plant and gath­ered some cater­pil­lars and lined them up around the rim of the pot and watched them walk around and around with­out ever stop­ping, or even slow­ing down. Around and around they went. As long as they were fol­low­ing the one in front they felt like they were going some­where. After a week of end­less star­va­tion and exhaus­tion they fell off, one by one and died. They never learned that all they had to do was to make one small change mov­ing an inch, a cen­time­ter or even a mil­lime­ter or to the right or the left and their lives would have been changed.

Isn’t this how most peo­ple do their banking?

This is what every­one does!

It has always been this way!

What other way could there pos­si­bly be?

How could the way I bank make much of a difference?

I trust my banks pro­fes­sion­als to advise me for my ben­e­fit not the banks benefit.

There is wealth all around us but we have tun­nel vision. I am ask­ing that at least for our meet­ings, you allow your­self to turn your gaze a lit­tle to the right or to the left so a finan­cial par­a­digm may take place for you.

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February 1, 2015·  Jennifer · No Comments
Tags: , , ,  · Posted in: FINANCIAL EDUCATION 101, Truth About Money

Do you have NO-LAPSE Protection Strategies on Your Whole Life Insurance Policy? Free Evaluation.

Are you find­ing it dif­fi­cult to pay your whole life insur­ance premiums?

Don’t lose your pol­icy by just stop­ping your pay­ments. You own a valu­able asset. There are many strate­gies you can use to either keep it alive for your loved ones, or ben­e­fit from the built up cash or death ben­e­fit now, while you are alive. If you need help decid­ing your options, please call me today so we can eval­u­ate them for you. Don’t throw away good money. We can show you how you can ben­e­fit from it now, or how your loved ones can help you now and ben­e­fit from it later. Even though we believe in keep­ing it in the fam­ily, if you so wish, we can also find out­side of your fam­ily par­ties to help.

No-Lapse Protection on your wholelife insurance policy update

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January 31, 2015·  Jennifer · No Comments
Tags: , ,  · Posted in: BANKING with INSURANCE, Benefits of Permanent Insurance, NO-LAPSE Protection Strategies

Mortgages and More.… Multi Tasking Dollars for Real Estate and How is Buying a Home/Real Estate, a Wealth Transfer?

Mortgages and More....

.

1/ http://debtdiagnosis.com/2014/11/19/multi-tasking-dollars-using-real-estate-and-life-insurance/

Pass­word: Call me for an appoint­ment, Jen­nifer Hansen 845 – 649-7487

2/ http://debtdiagnosis.com/2014/02/11/how-is-buying-a-home-a-wealth-transfer/

Pass­word: Call me for an appoint­ment, Jen­nifer Hansen 845 – 649-7487

3/ http://debtdiagnosis.com/2012/07/19/are-you-increasing-your-wealth-by-refinancing-from-a-30-yr-to-a-15-year-mortgage-you-tell-me-after-reading-this/

Pass­word: Call me for an appoint­ment, Jen­nifer Hansen 845 – 649-7487

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January 25, 2015·  Jennifer · No Comments
Posted in: Uncategorized

Fallacious Accounting by Our Government — 15 Nobel Prize Winners, 1,000 Top Economists come together. JOIN IN TODAY

Amer­ica in Worse Fis­cal Shape than Detroit-Professor Lau­rence Kot­likoff By Greg Hunter On Decem­ber 4, 2013 In Mar­ket Analy­sis 109 Comments

Kot­likoffBy Greg Hunter’s USAWatchdog.com

Boston Uni­ver­sity Eco­nom­ics Pro­fes­sor, Lau­rence Kot­likoff, says, “The coun­try is in worse fis­cal shape by many miles than Detroit. So, the coun­try is essen­tially bank­rupt.” Dr. Kot­likoff esti­mates the long term debt and lia­bil­i­ties of Amer­ica are more than $200 tril­lion! He is spear­head­ing a bill in Con­gress called The Inform Act. It is an attempt to wake up the nation to our dire finan­cial sit­u­a­tion so some­thing can be done to fix this enor­mous prob­lem. Dr. Kot­likoff explains, “The bill has been endorsed by over 1,000 econ­o­mists, includ­ing 15 Nobel Prize win­ners in eco­nom­ics …Never in the his­tory of this coun­try have this many top econ­o­mists from all polit­i­cal per­sua­sions endorsed a piece of leg­is­la­tion like this.” Dr. Kot­likoff and his fel­low econ­o­mists all con­tend, “The coun­try needs to do hon­est account­ing.” The pro­fes­sor charges the gov­ern­ment is “dis­guis­ing the true prob­lem.” Dr. Kot­likoff says, “The gov­ern­ment is print­ing moun­tains of money to pay its bills. The Fed is print­ing 29 cents of every dol­lar that Uncle Sam is spend­ing.” What hap­pens if this con­tin­ues? Dr. Kot­likoff says, “Even­tu­ally some­body rec­og­nizes this and starts dump­ing the bonds, and inter­est rates go up, and infla­tion takes off, and were off to the races.” In clos­ing, Dr. Kot­likoff warns, “This is going to crash, but there are dif­fer­ent ways for can­cer to kill you. It can be very grad­ual … or it can attack some organ and you can die overnight. Either of those out­comes can hap­pen.” Join Greg Hunter as he goes One-on-One with Pro­fes­sor Lau­rence Kotlikoff.

Pro­fes­sor Kot­likoff and, indeed, vir­tu­ally the entire eco­nom­ics pro­fes­sion, are appeal­ing for your help to get your mem­bers of Con­gress, start­ing with your Sen­a­tors, to pass this vital law.

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January 19, 2015·  Jennifer · No Comments
Posted in: Uncategorized

STUDENT LOAN SCENARIO — how can $4,000 actually increase your wealth by $18,299.32?

 How many stu­dent loans do you own? Blindly pay­ing monthly pay­ments with­out under­stand­ing what is really going on behind the scenes with each of your loans can cre­ate dev­as­tat­ing unman­age­able increas­ing debt load. Let me help you under­stand what is going on with your debts and come up with a plan so there will be a light at the end of the tun­nel. If you are ready to go to work, we are ready to help you save. call us if you have a burn­ing desire to get out of debt.

Financial Prison

KN Debts

Focus­ing on just one loan:

3rd Sal­lie Mae loan for $12,178.42 being charged a 9% inter­est rate and stu­dent being told $88.60 is her required monthly payment.

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January 8, 2015·  Jennifer · No Comments
Posted in: Uncategorized

GAMES LENDERS PLAY WITH YOUR STUDENT LOANS — Student Loan Misinformation that causes lifelong increasing debt.

The owner of this stu­dent loan has been told by the lender her monthly pay­ment need only be $48, and that is what she has been pay­ing for a num­ber of years. She believes that the loan is a ten (10) year loan also.

Why isn’t basic loan math­e­mat­ics a require­ment to under­stand before any­one can legally lend some­one money?

Below is an exam­ple of one of her NINE stu­dent loans. Her govt. Sal­lie Mae loans have a 9% inter­est rate.

The Keyen­sian Eco­nomic sys­tem, which is based on debt, is killing our coun­try, destroy­ing our youths finan­cial poten­tial, and is turn­ing every cit­i­zen into a slave of the state. Each par­ent should take on the respon­si­bil­ity of teach­ing their chil­dren How Money Really Works. If you don’t know, then call me today, Jen­nifer Hansen 845 – 649-7487.

The amor­ti­za­tion sched­ule below has a monthly pay­ment of $89.88. That is $41.88 more than she has been pay­ing. Even so, it will take her 20 years to pay it off with a 3.7% inter­est rate. However.….…

PLEASE LOOK AT THE VOLUME OF INTEREST HIGHLIGHTED IN YELLOW — 41.673% is actual inter­est dol­lar per­cent­age of loan amount orig­i­nally bor­rowed she will be pay­ing. $6,345.20 is 41.673% of $15,226.00.

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January 4, 2015·  Jennifer · No Comments
Tags: , , , , , ,  · Posted in: COLLEGE SAVINGS PLANS, GAMES LENDERS PLAY WITH UNSUSPECTING STUDENTS, STUDENT LOAN MISINFORMATION

L50) The world’s mega banks now have official permission to pledge depositor accounts as collateral to make leveraged derivative bets

http://www.lewrockwell.com/2014/12/mark-nestmann/worldwide-bail-ins-are-coming/

 

Wow!!  If there was ever a com­pelling rea­son to back away from banks and “too big to fail” ones par­tic­u­larly, and look for refuge in Whole Life Insur­ance, here’s plenty of reason…best regards to all, Michael E.

Thanks Michael.

— —  —  —  —  —  —  — - TEXT OF ARTICLE — —  —  —  —  —  —  — -

It’s Offi­cial: The World­wide Bail-ins Are Coming

By Mark Nest­mann • Decem­ber 23, 2014

In case you missed the announce­ment, Cyprus-style bail-ins are com­ing to a bank near you.

On Novem­ber 16, lead­ers of the G20 Group of Nations – the 20 largest economies – made an impor­tant deci­sion. The world’s mega banks now have offi­cial per­mis­sion to pledge depos­i­tor accounts as col­lat­eral to make lever­aged deriv­a­tive bets. And if they lose a bet, the counter-party to the con­tract has first dibs on your money.

The gov­ern­ments of these 20 coun­tries are now sup­posed to put these arrange­ments into law. Most, includ­ing the US, have already done so.

You could be for­given for not pay­ing much atten­tion to the G20 meet­ing, because it was mostly “more of the same” – the lat­est plan to have cen­tral banks inject tril­lions more dol­lars into the global economy.

But the G20 also endorsed a pro­posal with a mind-numbingly tedious title: Ade­quacy of Loss-Absorbing Capac­ity of Global Sys­tem­i­cally Impor­tant Banks in Res­o­lu­tion. Not exactly a page-turner. Your aver­age Amer­i­can is more likely to watch Chicago Fire than to delve into the minu­tiae of the global finan­cial system.

But this pro­posal pro­foundly changes the rules for bank­ing glob­ally, and not in a good way. Deposits in banks that are “too big to fail” will be “promptly recap­i­tal­ized” with their “unse­cured debt.” This avoids those nasty taxpayer-funded bailouts that proved so polit­i­cally unpop­u­lar dur­ing the 2008 – 2009 finan­cial crisis.

And the largest chunk of unse­cured debt is your bank deposits. Insol­vent banks will recap­i­tal­ize them­selves by con­vert­ing your deposits – check­ing accounts, but also money mar­ket accounts and CDs – into stock.

Thus, when you deposit money in a bank, you’re tak­ing the same risk as some­one buy­ing a stock. Or, for that mat­ter, bet­ting on a horse named “Falling Star” at the local race­track. Because, in effect, that’s what banks are doing with your money.

The G20 has also offi­cially declared that deriv­a­tives –the toxic con­tracts War­ren Buf­fett calls “finan­cial weapons of mass destruc­tion” – are secured debts. Since your bank deposits are now only unse­cured debt that the bank has pledged to a secured cred­i­tor, guess who gets your money if the bet goes the wrong way for the bank? Answer: It’s not you.

Heads, the bank wins. Tails, you lose.

For­tu­nately, “insured deposits” won’t be sub­ject to this treat­ment. In the US, 100% of deposits in insured banks are pro­tected up to $250,000 per depos­i­tor, cour­tesy of fed­eral deposit insur­ance. But it’s hardly reas­sur­ing that this fund has a reserve ratio under 1%. For every $100 on deposit, the FDIC has less than one dol­lar to back it with.

This is still a lot of money – $54 bil­lion at the end of Sep­tem­ber. But it’s dwarfed by $6 tril­lion in insured deposits, not to men­tion deriv­a­tives con­tracts with a total value of nearly $300 tril­lion. Indeed, the fail­ure of just a sin­gle major Wall Street bank could exhaust the fund.

Fed­eral law autho­rizes bor­row­ing from the US Trea­sury to make up the short­fall, but when a bank­ing cri­sis hits, it’s not likely to occur in a vac­uum, as I described in this essay. Lots of other peo­ple will be demand­ing a hand­out, many of them with stronger polit­i­cal con­nec­tions than you or I could ever hope to muster.

How bad could it get? Well, under the sce­nario the G20 just blessed, unin­sured bank depos­i­tors would be even worse off than account-holders in the government-owned banks in Cyprus that became insol­vent in 2013. Their claims were con­sid­ered supe­rior to those of deriv­a­tive counter-parties. Some unin­sured depos­i­tors got almost half of their money back (although at one government-owned bank, they got nothing).

A more apt exam­ple would be Lehman Broth­ers. When it declared bank­ruptcy in 2008, unse­cured cred­i­tors got about 21 cents on the dollar.

You might be won­der­ing why the G20 made this deci­sion. The obvi­ous incen­tive is to avoid polit­i­cally unpop­u­lar bailouts of mega-banks that are “too big to fail.”

But there’s a less obvi­ous rea­son as well. The G20 hopes that you’ll invest in gov­ern­ment bonds backed by the “full faith and credit” of its mem­ber gov­ern­ments. That will have the effect of keep­ing down inter­est rates on the alarm­ingly high debt car­ried by almost every G20 member.

How can you pro­tect yourself?

The most impor­tant pre­cau­tion is to min­i­mize your expo­sure to the bank­ing sys­tem. Keep bank deposits well below the deposit insur­ance max­i­mums. Accu­mu­late phys­i­cal cur­rency, pre­cious met­als, and other “real assets.”

Diver­si­fy­ing your invest­ments inter­na­tion­ally also makes sense, but because bail-ins have now gone global, it’s no longer as sim­ple as just open­ing an account out­side the US or what­ever other coun­try you live in. Use only strong, well-capitalized banks to hold the funds you keep in the bank­ing sys­tem. Look for banks with as high a level of “Tier 1” liq­uid­ity as pos­si­ble – 25% at the min­i­mum. (By com­par­i­son, the min­i­mum required in the US is only 6% to be clas­si­fied as “Well-Capitalized.”) If you have at least $500,000 or so to spare, open an account with an off­shore pri­vate bank that has no com­mer­cial lend­ing or deriv­a­tives exposure.

I don’t know when the next global finan­cial cri­sis will hit. But when it does, I do know who will pay for it. And it won’t be the bankers or the finan­cial geniuses who designed the “finan­cial weapons of mass destruc­tion” that led to their downfall.

Get your assets out of the “too big to fail” banks – now. It’s only a mat­ter of time before the *HTF.

Mark Nest­mann

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December 30, 2014·  Jennifer · No Comments
Tags: , , , ,  · Posted in: CLIENT LESSONS, L50) G20 Decision

IRS Code 7702 — Who Wins When You Play Chess With Yourself?

Under­stand­ing the play­ers in the finan­cial game can help you win with each move you make.

7702- Who Wins When You Play Chess With Yourself

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December 7, 2014·  Jennifer · No Comments
Tags: , , ,  · Posted in: 7702, BANKING with INSURANCE, Life Insurance with Living Benefits

Will Taxes Decrease or Increase in the Future?

.Taxes

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December 3, 2014·  Jennifer · No Comments
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College Costs Increase for 2014/2015

Col­lege Costs Increase for 2014/2015

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December 2, 2014·  Jennifer · No Comments
Tags: , , ,  · Posted in: College COSTS Increase, COLLEGE SAVINGS PLANS

Protected: GRATITUDE — the Virtue that Creates Abundance.

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December 1, 2014·  Jennifer · Enter your password to view comments.
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Protected: Multi-tasking Dollars using Life Insurance and Real Estate as an Investment Opportunity.

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November 19, 2014·  Jennifer · Enter your password to view comments.
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Divided We Fall, United We Conquer. Same goes for your dollars!

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Find more infor­ma­tion here: http://debtdiagnosis.com/2009/09/10/multi-task-your-money-by-understanding-core-banking-principals-and-tier-one-assets/

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November 16, 2014·  Jennifer · No Comments
Tags: , , ,  · Posted in: Multi-Task Your Money, Unite Your Dollars

Democracy or Legal Plunder?

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November 15, 2014·  Jennifer · No Comments
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Do What Banks Do

Wouldn’t you rather bank like a banker instead of like a con­sumer? Ask me how today!

See how banks really earn their mil­lions — http://debtdiagnosis.com/2011/02/10/how-banks-profit-from-your-deposits/

For more infor­ma­tion check out this blog post: http://debtdiagnosis.com/2010/10/04/bankers-math-bank-like-a-bank-instead-of-like-a-consumer/

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November 15, 2014·  Jennifer · No Comments
Tags: ,  · Posted in: Bank Like A Bank, Do What Banks Do

COLLEGE SAVING CHOICES with Benefits Comparison

There are so many occa­sions we buy gifts for our loved ones through­out one year.  Once a year every­one has a birth­day. Once a year it is also Christ­mas, Hanukkah, Kwanza, Easter, and New Year. Grad­u­a­tion from pre-school, kinder­garten, ele­men­tary school are also times we gift our chil­dren. How about con­sid­er­ing, instead of buy­ing them some junk, you do some­thing that will last them a life­time. Save for their education.

So let’s begin by com­par­ing ben­e­fits of the dif­fer­ent choices peo­ple typ­i­cally use to save for their loved one’s future edu­ca­tion. Are you look­ing for restricted use or flex­i­ble use of your dol­lars, over at least a pos­si­ble 22 year period of time? Guar­an­teed growth or no guar­an­tees? Risk of 100% loss or no loss pro­vi­sions? One use of each dol­lar or mul­ti­ple uses for each dol­lar? Depend­ing on what you are look­ing for will help you decide which of the fol­low­ing finan­cial vehi­cles is right for you to save for your child, grandchild’s or great grandchild’s future edu­ca­tion. Read the rest of this post »

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November 10, 2014·  Jennifer · No Comments
Posted in: 529 decline for college, 529 vs 7702, College Planning, COLLEGE SAVINGS PLANS, Comparison College Savings, Tuition Tracking Software

Do You Have a Committed Burning Passion to Get Out of Financial Prison?

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November 10, 2014·  Jennifer · No Comments
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