Decentralization and the infinite banking concept; Part one, can the tools used by banks be used by consumers to achieve financial freedom and prosperity?

in finance •  29 days ago  (edited)

The infinite banking concept, using the same tools used by banks to free consumers from Wage Slavery.

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I have been involved with cryptocurrency for over a year and my initial efforts to understand cryptocurrency were hampered by my lack of understanding of the Global banking system. This was initially frustrating, but subsequently both humorous and enlightening.

It was frustrating because I didn’t understand the significance of terms like transparency, decentralization and immutability because they are not terms that one uses every day when discussing the banking system. The terms that I was more familiar with were: deposits, withdrawals, notarization, endorsements, transfers and of course the terms for fees. The monthly service fees, transfer fees, early withdrawal fees, money transfer fees and other fees for just about everything.

Please don’t think I don’t wish to pay for services, because I think paying for services is legitimate business transaction. But once you understand the concept and practice of “fraction of baking” and you understand how much the bank was profiting off of my deposits to my checking and savings accounts, you start to feel as if they should’ve provided those services for free or at a nominal cost. I should add that I have business accounts at my same bank and they do in fact pay me more interest on my deposits and charge me no fees for the same services they charge me for when executed from my consumer accounts.

But I feel like the way they treat consumer account is is to make you feel appreciative or lucky that they allow you to give them your money, so that you put up with all of the hassles that are involved in getting your money back from them and you put up with all their rules and fees. When I was younger I was sometimes angry and frustrated about the difficulties involved in withdrawing my money, but overtime I became desensitized and accepted it.

However the Darkside of current banking institutions is not just fractitional banking, which is believed by economist to undermine the value of currency, thus contributing to its devaluation and the steady pace of inflation of the cost of goods and services, the yearly increase in the cost of living and the need for you to work harder each year just to pay for the same necessities. Especially if your wage increases don’t keep up with the yearly devaluation of your currency ( inflation ), which is thought to be a byproduct of fractional banking. The other dark side is the easy availability of consumer credit via credit cards, financing for homes, cars and other goods at high compound interest rates, which means consumer interest consumes 30% of the average American workers paycheck. (Data from US government FDIC Federal Deposit Insurance Company). Thus between rent/mortgage, food and consumer debt people don’t progress financially, and each year inflation adds to their burden of working harder, longer or getting a part-time job just to stay even. This is wage slavery.

So that’s depressing, but this article was actually about something happy and encouraging. This article is about how IBC or the Infinity Banking Concept allows Consumers to harness a Tool from the Fractional Banking Toolbox used by Banks called the Velocity of Money. This and another tool called a simple Interest line of credit, can be used to pay down consumer debt, using the same legal and financially sound principles that the banks use to make money multiply and go much much farther then it usually does. Additionally the Infinity Banking Concept allows you to decentralize your banking and become a mini bank yourself utilizing another tool called Whole Life Insurance.

In fact in addition to Fractional Banking, and using the Velocity of Money, Banks use Whole Life Insurance as a financial tool. They are in fact such large utilizers of these tools that there is a insurance subset called BOLI or Bank Owned Life Insurance, which is designed just for Banks.

The irony of my discoveries is that these tools and this knowledge are not new. They are being used by banks and also used by the rich, farmers and other segments in our society. But this knowledge, unlike cute cat videos, doesn’t get widely disseminated. Let’s change this now.

My journey, has brought me here and I invite you to join me on this journey, as I write about my discovery of these tools.

Remember, knowledge is power, power creates money and money creates freedom.
Free yourself.

✍🏼 written by Shortsegments

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Super interesting stuff. I would love to be more financially savvy and find more ways to hang onto my money, have more of it available for fun and travel, and feel less victimized by financial systems I don’t understand. It takes so much time to become knowledgeable enough to be truly effective with money that I just keep working hard and hoping that sweat equity will eventually get me where I need to go.

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The nice thing about Steem is that all this niche information seems to be organized right here directly on chain. It seems to be a lot harder to find this stuff on my own surfing the web with regular search engines.

Very true. Steemit is an amazing library of articles written by people who understand these issues and some of the solutions. I am getting an education here.

My motivation exactly and my feelings a few months ago!

My motivation
Exactly and my feelings
A few months ago!

                 - shortsegments


I'm a bot. I detect haiku.

The monthly service fees, transfer fees, early withdrawal fees, money transfer fees

Overdraft Fees! D:


“fraction of baking

I don't want a piece of the pie!
I want the whole thing!


Sounds like you're going to be using Ethereum a lot in the future. They don't have much now, but the DeFi niche is stronger there than anywhere else.

It is very interesting how we can use their own tactics against them.
Cheers.

Overdraft fees are an incredible theft and source of revenue. When I first left home I had an overdraft. The bank declined the check and returned it to the vendor. I got the notice in the mail and went down to the bank. In the two days or so it took me to get the notice not only did they charge me the overdraft fee the first day, but the overdraft fee exceeded my balance also, so they charged me an overdraft on the overdraft fee every day until I went down there. I had to pay them four overdraft fees! I was “fit to be tied” so angry my friend had to calm me down. Banks...gotta tolerate them and learn how to Out bank them.

  ·  29 days ago (edited)

I've never had any problems at the bank.
My experience with credit unions has been stellar.

Heard plenty of horror stories to the contrary though...
Seems like the bigger the bank is, the worse the service.

!glyphy good + job
Thank you for the good explanation

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I think it’s

!gliphy good + job

!glyphy good + job

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Knowledge full video keep it up

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Thank you.

  ·  29 days ago Reveal Comment