Posts Tagged ‘reserve’

Quantitative easing = creating money out of thin air.  Fractional reserve banking = creating money out of thin air.  Both cause inflation.  Private reserve banking = using money which already exists.  Establishing your own private bank not only prevents inflation, but keeps potential wealth in your own pocket.

“We operate from a level of liquidity that no one else does.  We don’t want to operate on bank lines.” –Warren Buffett

It is amazing how the greatest investor alive understands the necessity of keeping money in a liquid (easily accessible/available) position, knowing there will come hard times; yet most people strap themselves to the bank with high levels of debt.  It is imperative to build a private reserve from which cash can be obtained in hard times.

There are several definitions of money changer; one of which is a bank.  They basically exchange forms of currency.  Associated with this transaction is a fee; of which can be a premium charge.  Think of it like this, money changes, or moves, from one to another.  Becoming dependent on such money changers consistently moves your money into their hands.  Stay away from the money changers by developing a reserve of your own in order to retain those fees for yourself.

A private reserve strategy is nothing more than creating your own financial system; a holding place for your money that you control and is readily available when needed.

Reverse Mortgages and Banks

Posted: September 3, 2013 in Mortgages
Tags: , , , , ,

“Banks love reverse mortgages. They promote them for all kinds of needs.” -Mark Ford      Sounds to me like a good reason to second guess any thoughts of using them.

Living on borrowed money is no different than living on borrowed time.  Eventually, the piper must be paid.  The news in Detroit today is just another example, and possibly the first of many to come, of what borrowing money to pay expenses does to a person or entity.  The volume of interest grows into a destructive nightmare.

Now, my point today is if a person is to live on borrowed money, at least live on money that one has first stockpiled and then borrow from the developed reserves.  If hard times develop, then that  private fund can be redeveloped at a slower pace, as plausible, and not according to the schedule of a creditor other than oneself.  Debt to oneself is much different than debt to another.

“The basic idea of [Private Reserve Strategy] is that the typical American household is flushing away boatloads of money in interest expenses to outside financiers.  If people could become disciplined and save up before making major purchases—so that they were relying on their own accumulated capital rather than what others had saved—they would be able to finally start getting ahead.” –Robert Murphy