Having two daughters who attended college and graduate school (four years of two in school at the same time!), I feel the pain of those who are putting children through college, or who are approaching that time. I also acknowledge that schools are pricing many of our young people right out of the opportunity to attend college. One might argue that not all young people should go to college and although I do not disagree with that thought, I do think that every child and parent should have the choice and the financial resources, should the child desire a higher education.
You may have read that 529 College Saving Plans are great ways to put money away for your child’s education. You may have also read that not only can you contribute to the plan, but grandparents and even Junior’s rich aunt and uncle can contribute to the same plan. And, you can contribute up to the amount of the anticipated cost of the child’s education. That sounds pretty good, right? But, let’s look at the bigger picture. Although your funds grow tax deferred and you can withdraw funds for qualified college expenses tax free, (not all expenses are considered qualified) money managers tell you to make sure you time your withdrawals with the tuition credits and market movements.
It is important to know your money is typically invested in mutual funds. Research the decline in values of the major 529 plans in recent years. (And, if you haven’t read my post comparing saving versus investing, you should!) So, having your money invested with market risk prevailing, I cannot help but ask why you would put money away for college that may or may not grow? Even worse, it may actually be worth less when you need it. Just one more thought. What if Junior decides not to go to college? You now have to go through the trouble of applying to change the beneficiary or you are going back to school… or face taxation and possible penalty on those funds when you withdraw them! Remember, the government crafted all qualified plans. And, government doesn’t craft anything that they do not receive financial benefit from!
With savings in a privatie reserve account, there is no limit on how much you can put into your account. The money is contractually guaranteed to grow, there is no exposure to the market. Your money grows tax deferred and can be withdrawn or borrowed afgainst tax and penalty free. And, if Junior decides not to go on to college, no problem! Your money can be used for any purpose and eventually become a supplemental, tax free income in retirement years!
Infinite Banking or privatized banking as we at Integrated Financial Concepts like to call it, was developed by R. Nelson Nash about thirty years ago. He developed a concept based on what banks and credit unions have been doing for about 200 years. He began teaching others how banks work and how we could mimic what banks do.
Two of the biggest drains on our wealth are taxes and market risk. You can eliminate those two concerns from your long term savings, college savings and retirement savings. In addition, you can have the following benefits:
• Recapture the interest you now pay to the banks
• Contractually guaranteed growth with no loss of principal
• Penalty and Tax Free Access to your money at any age
• NO Government control
• Tax Free Retirement Income
• Your money is creditor and lawsuit proof
• You pay NO fees, ever!
If you think that what I have described here sounds too good to be true, then I will just say thank you for reading my post! If you want to know how I use my money in my private reserve account, then contact me. Or, simply view the 7 minute video to the right. Start plugging the holes in your wealth bucket and allow your money to work for you instead of the banks and government! Let us show you how and guide you through the discovery process. You can also view our corporate web page.
Friday, July 29, 2011
Monday, July 18, 2011
Saving or Investment; What is the Difference
I often ask business people if they share my philosophy about preserving their capital and saving for retirement. Most people, business or otherwise would agree that it is important to preserve capital, especially those who are approaching retirement in the next few years!
Might I suggest you watch the 7 minute video, titled Your Cirle of Wealth on the right side of this page before you read any further?
Second, I want to point out the difference between saving and investment. Investments are funds we can afford to lose! Savings are funds that we depend on, either now or in the future, but are not funds that we can afford to lose! I mention this because in general, Americans have become enamored by the stock market over the past 50 years and as a result, have invested funds with the hope of considerable gains. What has also happened is that money managers have convinced us that there is no difference between saving and investing, much to their advantage! They get paid no matter what our investment does! Stocks, bonds, 401K, 403B, IRA, Mutual Funds, etc., are all subject to market risk. With markets as they are and with a desire to maintain our lifestyle in retirement, is that what we want to do with our savings? I think banking, a system that has been in existence since 2000 BC, is a safe alternative and one that I teach clients to make the most of!
It is true our money earns little interest in the bank, however, I am not suggesting that you simply put your money in a local banking institution or credit union. Think about it for a minute; the names on some of the biggest buildings across the country are banks, right? Why? Well, the Golden Rule comes to mind; those with the gold make the rules! Banks have us trained to deposit money, allowing them to use it in their sweep accounts, while paying us very little for the use but making a considerable profit from our deposits. We are also taught to go to the bank for a loan when we need money. Banks love us when we are the borrower about 9 times more than they love us a saver (another topic for another post!). But… What if you were the bank? What if you had a source for expenses throughout your life that could grow into a considerable TAX FREE supplemental retirement income and a legacy for your heirs?
When you borrow money from the bank, you pay your banking institution volumes of interest. When you withdraw funds from your savings to make a purchase, you lose interest on your savings. You become a victim of “lost opportunity costs”, a major wealth transfer we describe in our training.
It is analogous to the individual that withdraws money to purchase a new car. Once the money is out of his/her account, it no longer has the potential to grow and build wealth for them. Let’s say after a four year period, the individual has a depreciated asset and nothing more unless they faithfully put the money back into their savings account over that four years. Even still, the opportunity to grow wealth was limited by the pace at which the money was returned to savings, not to mention the interest they lost whiel the money was out of their account. What if you could use the money from your savings and continue to receive the full benefit of interest and dividends as if you had never taken the money out of your account?
The reality is this. For fifty or so years, money managers and our government have encouraged us to use investment vehicles that put our hard earned money at risk in the stock market. And, the only one that benefits by this strategy is the government (via the taxes we pay when we withdraw funds), the money managers and large corporations. If it is money that you can afford to lose, than good luck with the investment! But if it is retirement, long or short term savings, then consider that banking has been around and working well for thousands of years. The difference between banking with the banks and privatized banking is that we now teach you principals that the banks never wanted you to know!
So, what happens to your money? First, it is not invested and has little or no risk, since it is not in the market. It will be contractually guaranteed to grow and you will have penalty free and tax free access to the cash whenever you want it or need it. You can pay it back and use it again and again. There are no loan applications, no credit checks and no jumping through hoops to get the money. It is lawsuit and creditor proof and there is no government control. (Read the article printed in Forbes.com.) Banks use this same savings vehicle as one of their core assets. And, there is no fee for our services, ever!
If you would like some additional information, let us set up a no cost seminar for you to view over the internet. Simply use the contact form on the corporate web page to participate from the comfort of your home. I welcome the opportunity to speak to those who have an interest in privatized banking and wish you continued success in your endeavors.
There are many great published resources available for you to learn more. One such book is “A Path To Financial Peace of Mind” by Dwayne Burnell and can be purchased on the Internet. Feel free to peruse the FAQ’s or my personal web site as well at http://www.jdierking.com/ .
Jim Dierking
Might I suggest you watch the 7 minute video, titled Your Cirle of Wealth on the right side of this page before you read any further?
Second, I want to point out the difference between saving and investment. Investments are funds we can afford to lose! Savings are funds that we depend on, either now or in the future, but are not funds that we can afford to lose! I mention this because in general, Americans have become enamored by the stock market over the past 50 years and as a result, have invested funds with the hope of considerable gains. What has also happened is that money managers have convinced us that there is no difference between saving and investing, much to their advantage! They get paid no matter what our investment does! Stocks, bonds, 401K, 403B, IRA, Mutual Funds, etc., are all subject to market risk. With markets as they are and with a desire to maintain our lifestyle in retirement, is that what we want to do with our savings? I think banking, a system that has been in existence since 2000 BC, is a safe alternative and one that I teach clients to make the most of!
It is true our money earns little interest in the bank, however, I am not suggesting that you simply put your money in a local banking institution or credit union. Think about it for a minute; the names on some of the biggest buildings across the country are banks, right? Why? Well, the Golden Rule comes to mind; those with the gold make the rules! Banks have us trained to deposit money, allowing them to use it in their sweep accounts, while paying us very little for the use but making a considerable profit from our deposits. We are also taught to go to the bank for a loan when we need money. Banks love us when we are the borrower about 9 times more than they love us a saver (another topic for another post!). But… What if you were the bank? What if you had a source for expenses throughout your life that could grow into a considerable TAX FREE supplemental retirement income and a legacy for your heirs?
When you borrow money from the bank, you pay your banking institution volumes of interest. When you withdraw funds from your savings to make a purchase, you lose interest on your savings. You become a victim of “lost opportunity costs”, a major wealth transfer we describe in our training.
It is analogous to the individual that withdraws money to purchase a new car. Once the money is out of his/her account, it no longer has the potential to grow and build wealth for them. Let’s say after a four year period, the individual has a depreciated asset and nothing more unless they faithfully put the money back into their savings account over that four years. Even still, the opportunity to grow wealth was limited by the pace at which the money was returned to savings, not to mention the interest they lost whiel the money was out of their account. What if you could use the money from your savings and continue to receive the full benefit of interest and dividends as if you had never taken the money out of your account?
The reality is this. For fifty or so years, money managers and our government have encouraged us to use investment vehicles that put our hard earned money at risk in the stock market. And, the only one that benefits by this strategy is the government (via the taxes we pay when we withdraw funds), the money managers and large corporations. If it is money that you can afford to lose, than good luck with the investment! But if it is retirement, long or short term savings, then consider that banking has been around and working well for thousands of years. The difference between banking with the banks and privatized banking is that we now teach you principals that the banks never wanted you to know!
So, what happens to your money? First, it is not invested and has little or no risk, since it is not in the market. It will be contractually guaranteed to grow and you will have penalty free and tax free access to the cash whenever you want it or need it. You can pay it back and use it again and again. There are no loan applications, no credit checks and no jumping through hoops to get the money. It is lawsuit and creditor proof and there is no government control. (Read the article printed in Forbes.com.) Banks use this same savings vehicle as one of their core assets. And, there is no fee for our services, ever!
If you would like some additional information, let us set up a no cost seminar for you to view over the internet. Simply use the contact form on the corporate web page to participate from the comfort of your home. I welcome the opportunity to speak to those who have an interest in privatized banking and wish you continued success in your endeavors.
There are many great published resources available for you to learn more. One such book is “A Path To Financial Peace of Mind” by Dwayne Burnell and can be purchased on the Internet. Feel free to peruse the FAQ’s or my personal web site as well at http://www.jdierking.com/ .
Jim Dierking
Sunday, July 17, 2011
The following article appeared on the Mises Institute Web page and is the daily newsletter to subscribers for Friday, July 15, 2011. If you are curious about the potential default of the US Treasury and how it will affect your saving or banking activities, the article is a good read. It speaks for itself.
July 15, 2011
Mises Daily
A Short History of US Credit Defaults
by John S. Chamberlain on July 15, 2011
On July 13th, the president of the United States angrily walked out of ongoing negotiations over the raising of the debt ceiling from its legislated maximum of $14.294 trillion dollars. This prompted a new round of speculation over whether the United States might default on its financial obligations. In these circumstances, it is useful to recall the previous instances in which this has occurred and the effects of those defaults. By studying the defaults of the past, we can gain insights into what future defaults might portend.
The Continental-Currency Default
The first default of the United States was on its first issuance of debt: the currency emitted by the Continental Congress of 1775. In June of 1775 the Continental Congress of the United States of America, located in Philadelphia, representing the 13 states of the union, issued bills of credit amounting to 2 million Spanish milled dollars to be paid four years hence in four annual installments.
The next month an additional 1 million was issued. A third issue of 3 million followed. The next year they issued an additional 13 million dollars of notes. These were the first of the "Continental dollars," which were used to fund the war of revolution against Great Britain. The issues continued until an estimated 241 million dollars were outstanding, not including British forgeries.
Congress had no power of taxation, so it made each of the several states responsible for redeeming a proportion of the notes according to population. The administration of these notes was delegated to a "Board of the Treasury" in 1776. To refuse the notes or receive them below par was punishable by having your ears cut off and other horrible penalties.
The notes progressively depreciated as the public began to realize that neither the states nor their Congress had the will or capacity to redeem them. In November of 1779, Congress announced a devaluation of 38.5 to 1 on the Continentals, which amounted to an admission of default. In this year refusal to accept the notes became widespread, and trade was reduced to barter — causing sporadic famines and other privations.
Eventually, Congress agreed to redeem the notes at 1,000 to 1. At a rate of 0.82 troy ounces to the Spanish milled dollar, if we take the current (July 2011) price of silver, $36 to the troy ounce, this first default resulted in a cumulative loss of approximately $7 billion dollars to the American public.
Benjamin Franklin characterized the loss as a tax. Memory of the suffering and economic disruption caused by this "tax" and similar bills of credit issued by the states influenced the contract clause of the Constitution, which was adopted in 1789:
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts.
The Default on Continental Domestic Loans
In addition to its currency issuance, the Continental Congress borrowed money both domestically and abroad. The domestic debt totaled approximately $11 million Spanish dollars. The interest on this debt was paid primarily by money received from France and Holland as part of separate borrowings. When this source of funding dried up, Congress defaulted on its domestic debt, starting on March 1, 1782. Partial satisfaction of these debts was made later by accepting the notes for payments of taxes and other indirect considerations.
In an act of 1790, Congress repudiated these loans entirely, but offered to convert them to new ones with less favorable terms, thereby memorializing the default in the form of a Federal law.
The Greenback Default of 1862
After the Revolutionary War, the Congress of the United States made only limited issuance of debt and currency, leaving the problems of public finance largely to the states and private banks. (These entities defaulted on a regular basis up to the Panic of 1837, in which a crescendo of state defaults led to the invention of the term "repudiation of debts.")
In August of 1861, this balance between local and federal finance switched forever; the Civil War induced Congress to create a new currency, which became known as the "greenback" due to the green color of its ink. The original greenbacks were $60 million in demand notes in denominations of $5, $10, and $20. These were redeemable in specie at any time at a rate of 0.048375 troy ounces of gold per dollar. Less than five months later, in January of 1862, the US Treasury defaulted on these notes by failing to redeem them on demand.
After this failure, the Treasury made subsequent issues of greenbacks as "legal-tender" notes, which were not redeemable on demand, except through foreign exchange, and could not be used to pay customs duties. Depending on the fortunes of war, these notes traded for gold at a discount ranging from 20 percent to 40 percent. By the stratagem of monetizing this currency with bonds and paying only the interest on those bonds in gold acquired through customs fees, Lincoln's party financed the Civil War with no further defaults.
The Liberty Bond Default of 1934
The financing of the United States government stepped up to a whole new level upon its entry into the Great War, now known as World War I. The new enterprises of the government included merchant-fleet maintenance and operation, production of ammunition, feeding and equipping soldiers entirely at its own expense, and many other expensive things it had never done before or done only on a much smaller scale.
To finance these activities, Congress issued a series of debentures known as "Liberty Bonds" starting in 1917. The preliminary series were convertible into issues of later series at progressively more favorable terms until the debt was rolled into the fourth Liberty Bond, dated October 24, 1918, which was a $7 billion dollar, 20-year, 4.25 percent issue, payable in gold at a rate of $20.67 per troy ounce.
By the time Franklin Roosevelt entered office in 1933, the interest payments alone were draining the treasury of gold; and because the treasury had only $4.2 billion in gold it was obvious there would be no way to pay the principal when it became due in 1938, not to mention meet expenses and other debt obligations.
These other debt obligations were substantial. Ever since the 1890s the Treasury had been gold short and had financed this deficit by making new bond issues to attract gold for paying the interest of previous issues. The result was that by 1933 the total debt was $22 billion and the amount of gold needed to pay even the interest on it was soon going to be insufficient.
In this exigency, Roosevelt decided to default on the whole of the domestically held debt by refusing to redeem in gold to Americans and devaluing the dollar by 40 percent against foreign exchange. By taking these steps the Treasury was able to make a partial payment and maintain foreign exchange with the critical trade partners of the United States.
If we price gold at the present-day value of $1,550 per troy ounce, the total loss to investors by the devaluation was approximately $640 billion in 2011 dollars. The overall result of the default was to intensify the depression and trade reductions of the 1930s and to contribute to fomenting World War II.
The Momentary Default of 1979
The Treasury of the United States accidentally defaulted on a small number of bills during the 1979 debt-limit crisis. Due to administrative confusion, $120 million in bills coming due on April 26, May 3, and May 10 were not paid according to the stated terms. The Treasury eventually paid the face value of the bills, but nevertheless a class-action lawsuit, Claire G. Barton v. United States, was filed in the Federal court of the Central District of California over whether the treasury should pay additional interest for the delay.
The government decided to avoid any further publicity by giving the jilted investors what they wanted rather than ride the high horse of sovereign immunity. An economic study of the affair concluded that the net result was a tiny permanent increase in the interest rates of T-bills.
What Will Happen in August of 2011?
Many people are wondering about the possibility of a default by the Treasury on August 3, 2011, when, according to the Treasury's projections, it will no longer be able to meet all expenses without additional borrowing.
$25 $18
In this event, it is unlikely a default will occur. Historically, governments prioritize debt service above all other expenses. If the expansion of funds via debt becomes ipossible, the Treasury will cease paying other expenses first, starting with "nonessential" discretionary expenditures, and then it will move on to mandatory expenditures and entitlements as a last resort.
In extremis, what will happen is that all the losses will be foisted onto the Federal Reserve. The Fed holds something on the order of $1.6 trillion in debt issued by the Treasury of the United States. By having the Federal Reserve purchase blocks of Treasury debt and defaulting on these non-investor-held securities, the United States can postpone a default against real investors essentially forever.
John S. Chamberlain lives in Natick, Massachusetts, and works as a software engineer specializing in earth science and artificial intelligence. He has an A.B. in politics from Princeton University and an M.S. in computer science from Northeastern University. Send him mail. See John S. Chamberlain's article archives.
You can subscribe to future articles by John S. Chamberlain via this RSS feed.
July 15, 2011
Mises Daily
A Short History of US Credit Defaults
by John S. Chamberlain on July 15, 2011
On July 13th, the president of the United States angrily walked out of ongoing negotiations over the raising of the debt ceiling from its legislated maximum of $14.294 trillion dollars. This prompted a new round of speculation over whether the United States might default on its financial obligations. In these circumstances, it is useful to recall the previous instances in which this has occurred and the effects of those defaults. By studying the defaults of the past, we can gain insights into what future defaults might portend.
The Continental-Currency Default
The first default of the United States was on its first issuance of debt: the currency emitted by the Continental Congress of 1775. In June of 1775 the Continental Congress of the United States of America, located in Philadelphia, representing the 13 states of the union, issued bills of credit amounting to 2 million Spanish milled dollars to be paid four years hence in four annual installments.
The next month an additional 1 million was issued. A third issue of 3 million followed. The next year they issued an additional 13 million dollars of notes. These were the first of the "Continental dollars," which were used to fund the war of revolution against Great Britain. The issues continued until an estimated 241 million dollars were outstanding, not including British forgeries.
Congress had no power of taxation, so it made each of the several states responsible for redeeming a proportion of the notes according to population. The administration of these notes was delegated to a "Board of the Treasury" in 1776. To refuse the notes or receive them below par was punishable by having your ears cut off and other horrible penalties.
The notes progressively depreciated as the public began to realize that neither the states nor their Congress had the will or capacity to redeem them. In November of 1779, Congress announced a devaluation of 38.5 to 1 on the Continentals, which amounted to an admission of default. In this year refusal to accept the notes became widespread, and trade was reduced to barter — causing sporadic famines and other privations.
Eventually, Congress agreed to redeem the notes at 1,000 to 1. At a rate of 0.82 troy ounces to the Spanish milled dollar, if we take the current (July 2011) price of silver, $36 to the troy ounce, this first default resulted in a cumulative loss of approximately $7 billion dollars to the American public.
Benjamin Franklin characterized the loss as a tax. Memory of the suffering and economic disruption caused by this "tax" and similar bills of credit issued by the states influenced the contract clause of the Constitution, which was adopted in 1789:
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts.
The Default on Continental Domestic Loans
In addition to its currency issuance, the Continental Congress borrowed money both domestically and abroad. The domestic debt totaled approximately $11 million Spanish dollars. The interest on this debt was paid primarily by money received from France and Holland as part of separate borrowings. When this source of funding dried up, Congress defaulted on its domestic debt, starting on March 1, 1782. Partial satisfaction of these debts was made later by accepting the notes for payments of taxes and other indirect considerations.
In an act of 1790, Congress repudiated these loans entirely, but offered to convert them to new ones with less favorable terms, thereby memorializing the default in the form of a Federal law.
The Greenback Default of 1862
After the Revolutionary War, the Congress of the United States made only limited issuance of debt and currency, leaving the problems of public finance largely to the states and private banks. (These entities defaulted on a regular basis up to the Panic of 1837, in which a crescendo of state defaults led to the invention of the term "repudiation of debts.")
In August of 1861, this balance between local and federal finance switched forever; the Civil War induced Congress to create a new currency, which became known as the "greenback" due to the green color of its ink. The original greenbacks were $60 million in demand notes in denominations of $5, $10, and $20. These were redeemable in specie at any time at a rate of 0.048375 troy ounces of gold per dollar. Less than five months later, in January of 1862, the US Treasury defaulted on these notes by failing to redeem them on demand.
After this failure, the Treasury made subsequent issues of greenbacks as "legal-tender" notes, which were not redeemable on demand, except through foreign exchange, and could not be used to pay customs duties. Depending on the fortunes of war, these notes traded for gold at a discount ranging from 20 percent to 40 percent. By the stratagem of monetizing this currency with bonds and paying only the interest on those bonds in gold acquired through customs fees, Lincoln's party financed the Civil War with no further defaults.
The Liberty Bond Default of 1934
The financing of the United States government stepped up to a whole new level upon its entry into the Great War, now known as World War I. The new enterprises of the government included merchant-fleet maintenance and operation, production of ammunition, feeding and equipping soldiers entirely at its own expense, and many other expensive things it had never done before or done only on a much smaller scale.
To finance these activities, Congress issued a series of debentures known as "Liberty Bonds" starting in 1917. The preliminary series were convertible into issues of later series at progressively more favorable terms until the debt was rolled into the fourth Liberty Bond, dated October 24, 1918, which was a $7 billion dollar, 20-year, 4.25 percent issue, payable in gold at a rate of $20.67 per troy ounce.
By the time Franklin Roosevelt entered office in 1933, the interest payments alone were draining the treasury of gold; and because the treasury had only $4.2 billion in gold it was obvious there would be no way to pay the principal when it became due in 1938, not to mention meet expenses and other debt obligations.
These other debt obligations were substantial. Ever since the 1890s the Treasury had been gold short and had financed this deficit by making new bond issues to attract gold for paying the interest of previous issues. The result was that by 1933 the total debt was $22 billion and the amount of gold needed to pay even the interest on it was soon going to be insufficient.
In this exigency, Roosevelt decided to default on the whole of the domestically held debt by refusing to redeem in gold to Americans and devaluing the dollar by 40 percent against foreign exchange. By taking these steps the Treasury was able to make a partial payment and maintain foreign exchange with the critical trade partners of the United States.
If we price gold at the present-day value of $1,550 per troy ounce, the total loss to investors by the devaluation was approximately $640 billion in 2011 dollars. The overall result of the default was to intensify the depression and trade reductions of the 1930s and to contribute to fomenting World War II.
The Momentary Default of 1979
The Treasury of the United States accidentally defaulted on a small number of bills during the 1979 debt-limit crisis. Due to administrative confusion, $120 million in bills coming due on April 26, May 3, and May 10 were not paid according to the stated terms. The Treasury eventually paid the face value of the bills, but nevertheless a class-action lawsuit, Claire G. Barton v. United States, was filed in the Federal court of the Central District of California over whether the treasury should pay additional interest for the delay.
The government decided to avoid any further publicity by giving the jilted investors what they wanted rather than ride the high horse of sovereign immunity. An economic study of the affair concluded that the net result was a tiny permanent increase in the interest rates of T-bills.
What Will Happen in August of 2011?
Many people are wondering about the possibility of a default by the Treasury on August 3, 2011, when, according to the Treasury's projections, it will no longer be able to meet all expenses without additional borrowing.
$25 $18
In this event, it is unlikely a default will occur. Historically, governments prioritize debt service above all other expenses. If the expansion of funds via debt becomes ipossible, the Treasury will cease paying other expenses first, starting with "nonessential" discretionary expenditures, and then it will move on to mandatory expenditures and entitlements as a last resort.
In extremis, what will happen is that all the losses will be foisted onto the Federal Reserve. The Fed holds something on the order of $1.6 trillion in debt issued by the Treasury of the United States. By having the Federal Reserve purchase blocks of Treasury debt and defaulting on these non-investor-held securities, the United States can postpone a default against real investors essentially forever.
John S. Chamberlain lives in Natick, Massachusetts, and works as a software engineer specializing in earth science and artificial intelligence. He has an A.B. in politics from Princeton University and an M.S. in computer science from Northeastern University. Send him mail. See John S. Chamberlain's article archives.
You can subscribe to future articles by John S. Chamberlain via this RSS feed.
Tuesday, July 12, 2011
A.M. Best Affirms Mutual Trust's Rating as A- (Excellent)
One of the Company's that I use for our Privatized Banking Clients is Mutual Trust Life, part of the Mutual Trust Financial Group. In the company newsletter to agents, the following quote was printed. I have copied it to my blog so that my clients can see the continued progress and successes of MTL!
"We are pleased to announce that A.M. Best, the largest and longest-established credit rating organization serving the financial services industry, has affirmed—effective June 14, 2011—Mutual Trust Financial Group's rating as A- (Excellent), with a stable outlook. A rating of A- is assigned to companies that have, in A.M. Best's opinion, an excellent ability to meet their ongoing obligations to policyholders"
TAre you saving for retirement? Are your retirement plans performing well? Are your retirement saving plans tied to the market? With Privatized Banking, you control your money. There is guaranteed no loss of principal and your funds are accessible whenever you need them! To know more about privatized banking, watch our Online seminar
"We are pleased to announce that A.M. Best, the largest and longest-established credit rating organization serving the financial services industry, has affirmed—effective June 14, 2011—Mutual Trust Financial Group's rating as A- (Excellent), with a stable outlook. A rating of A- is assigned to companies that have, in A.M. Best's opinion, an excellent ability to meet their ongoing obligations to policyholders"
TAre you saving for retirement? Are your retirement plans performing well? Are your retirement saving plans tied to the market? With Privatized Banking, you control your money. There is guaranteed no loss of principal and your funds are accessible whenever you need them! To know more about privatized banking, watch our Online seminar
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