Nelson Nash: How To KILL the BEST Business In The World (11 of 30)

Now I know how to create perpetual tailwind to everything that you do in the financial world.

But you've got to get in the banking business.

And this is the way that the conventional people think. You got to get capital stock, about 10 to $20 million. You got to go to your state capital, your province capital and get a black charter from the commissioner. And you're not the only person in.

The state or municipality or principality that wants to get in the bike admitted the line's a mile long. You can't break in lines. Typically it'll take as much as 10 years to get in. Get the truck.

For instance, there's a television station in Birmingham. WTTO. TTO stands for Television 21. Why all the 21s? The Chapman family, who owns the store, the station, it took them 21 years to get a charter. Well, what does that tell you about a commission or commissioner?

Yeah, under the table.

You got to pay through the nose.

So this was.

Willis Morgan, isn't it? Moran, Moran, Moran. This is going to be the. Okay, now you live where? Edmonton. Edmonton. All right, now you got the capital, that 10 to 20 million dollars. You got a charter from the folks. Is Emmett in the capital or is it counting? It's a capital eminent in his capital. Yeah. Okay, so you got to go down and get the commissioner to get your charter and that's going to take you a while. Now you got to put. Get somebody to put money in your bank. Well, why are they going to put money in your bank, sucker?

But yet it's happening. It used to be toasters. In the USA.

We give you a toaster.

Now it's iPads. IPad? Yeah. Okay. Interest rates, something like that anyway. All right, now so.

You lend that money before they withdraw it. That's all there is to the banking business. Adam Smith in his bank. In his book paper money. That's not the real Adam Smith. That's a writer for Esquire magazine. He's funny and he's also accurate. He says the bank can't make a loan unless he has deposit. He says. I hate to say that so Bald, but we 3 out of 10 college graduates don't know if import or oil. I don't mind saying something. Bald bankers don't lend their money. They lend money other people put back. But you got to keep a relationship between these three things or your bank is going under. This makes it supposedly a safe place to do business with that capital. Stop that day now, proof positive that you got to have a prudent relationship is the story of First national in Midland, Texas. September 1983 Midland, Texas. Okay. By the way, when I hear the word Commissioner, we'll. That's what I think of.

As what it looks like. That's what iceberg really looks like. And 90% under the water with the commissioner. 90% of what goes on is under the table. You can't talk about it. They can't talk about it. Now the story of first national of Midland, Texas. Midland is the richest city in America. For a capital oil patch country.

First national 94 years old loan portfolio 1.5 billion in September 83. 26% of the loans are out. Non performing. Ouch. Remember the minutes. Grocery store 26% of their shelves empty. What will happen in a minute's Grocery goes down. Out of business. Yeah. Now somebody got to hold this thing up if they're going to stay in business. That's normally the function of stockholders. They lost 87% of the magazine stock. Down to 12 million. 12 million in relation to 1.5 million. Boyfolio is a shaky bank. What did the deposit do when they got wind of that? They wanted the money. They withdrew 500 million.

One third of that. Well.

We'Ll get somebody to put $1,000 in his bank. Do y' all know what he can lend? 10,000. 10,000. Where did the nine come from? Air money. Yeah.

Nothing. Yeah. It's all lie. It's all a lie. Call it what it is. And people's behavior changes. Yeah. See, that's the problem. Words have meaning. But if you notice that all these folks always change the meaning of words. Curtis. They change the meaning of words.

Yeah. In fact, in the usa do you know the definition of homeownership?

You have title to a property, but you owe more than the property is worth. That's homeownership. The President of the United States said so. Good Lord. You don't own it until you don't owe anything. Own it.

They change many words. All right. Sorry. And now does it exist? They pretend it exists. You got to multiply this by this to see how much business potential they lost.

Well, what did they do to rectify their position? They went to Chicago, Got a new president come and put out the fire. You know, that is the way to solve all problems. Can you see your Fortune magazine tells you that. Corporate magazine tells you that. Businessweek tells you that. Just get you a new CEO. That'll solve everything. Lie. It was too late. Two months later, November 83den broke out of business. Richest city in America. 94 year old man out of business.

Every bank that went over went under during that particular era was just a variation of that story. They did not tell you will the real truth. They never do.

What I'm telling you is coming from a six inch column in Fortune magazine that is all just little snippets of information.

I had a client in the drilling business at that time in Alabama. Water, not oil.

Between Christmas and New Year's I'm calling on him for a review. The instant that I arrived there he was getting ready to get in his pickup and go solve a problem that had come up brush fire that happens in businesses. He says please don't leave. I'm the only one who can solve this problem. I'll be back in less than an hour. Make yourself at home. Well, God is good. Lo and behold, on his coffee table in his waiting room. Current issue of a drilling magazine. It had the gory detailed story mark of first national Amendment. Would you care to guess where most of those non performing loans was made? If you guessed the 16 man board of directors, go to the end of the class.

They were taking peas out the back door in wholesale warranty work. Well, why are they doing this? How is this happening?

Noise.

Noise. Pseudo economists, Keynesian types tell me this is not real money. Real money is land, timber, coal, houses in Vancouver.

Oil. That's real money.

Now to get in the oil business we got to deal with.

Dollars. That's all. This too. You're director of the bank, you don't have to fill out Mickey Mouse paperwork, answer dumb questions. You just simply go in and say look, I'm a director of the bank. I won't get a 25 million dollar loan. I'm going to put in the oil business. Well, I'm going to make a killing.

Were they paying back? No. Now you go examine most any bank and you're going to find that pattern everywhere.

But yet people respect this stuff. Unbelievable.

Now if the pseudo economists were correct in saying that oil is real money. Will tell me, how much oil does Switzerland produce?

Pretty much zero.

Zero. But they've known about banking for a while, haven't they? Banking is the most important business in the world.

There's a sign that says everybody should be in two businesses. One of these. Yeah. On the business are in money. One, the business, the business here you're in. And the banking business then finances whatever you do for a living. Another two, banking is the most important.

Circular side stamp was the president of bank of England in the 1920s.

That's their version of our central bank, the Federal Reserve and what do you call it here in Canada? I don't know. Central bank. Central bank account.

He says the modern banking system manufactures money out of nothing. Process has the most astounding slide of hand ever invented. Banking was conceived in iniquity, born in sin. Bankers on the earth take it away from them, but leaving them the power to create money and control credits. And with a flick of a pen they'll create enough money to buy it back again. Does that sound familiar?

Take this great power away from the bankers, all great fortunes like mine when you sell and they ought to disappear. But this would be a better and happy world to live in.

But if you want to continue slave practice and pay the cost, you own slavery. Let them continue to create money and control credit. Now, do y' all know who Ron Paul is? Yeah. All right, what's his solution to this? End the Fed.

Now do you think that's going to get done anytime soon?

No.

That's top down thinking. This entire world since time began has been top down thinking.

Until the arrival of Jesus Christ.

As a radical change of thinking. Don't play their game. Secede.

Was he, was he vilified when he printed this.

Second? Vilified?

Yes. Was Sir Josiah vilified when he dared to print this over here? Yeah, back in the 20s.

I don't know, there's some question about this. I've heard that this is not true, but it's, it's, it tells the truth of what? Bang on. What goes on? Yeah, bang on. Yeah, the truth of what's going on. Truth is true no matter where it might be attributed.

Okay, now will, do you want to go through that process I just described to get in the back of this? No, don't think so.

Much simpler way done through dividend pay and whole life insurance been around as long as 250 years.

You consider the purchase of a life insurance policy as a new business startup Again.

Walmart started out Bentonville, Arkansas, down in the city. You haven't been there, Mark? No. Bentonville.

You want to go?

Typical little small town, city square type. North, south streets, east, west streets on the western exposure, the city square. Go up about halfway the block there. Walton's 5 and 10.

It's a.

BE an offshot, it's a.

Come on, that's the word museum. Now.

It'S two compartments to it now and work your way around the left compartment. There's Sam Walton's pickup truck with a dog kennel on the back of it. And there signs around there, people asking Sam, what you Driving that for. You could drive anything you wanted to. He said, well, what else would all my dogs in.

Now, a little bit of trivia. I'm not going to charge you this either. Do you know.

Do you know Sam was an airplane driver?

Yes, sir.

Yeah. Do you know what he flew.

And fisted engine, twin engine Zesa.

They have Gulf streams in the fleet.

Gulfs and lyrics.

Yeah. Are you not aviator? No. Don't have any other aviators in here, do you? All right. Gulf Stream is the ultimate in airplane now.

Now, we might argue with Bombardier Global Express.

All right, that's aviators for you. Yeah. And fighters. They get together and tell lies and argue with one another, so forth.

But airline pilots would love to be able to fly on a Gulf stream. So I'll just say that I'll rest with that. Okay. All right.

Sam, he flew the twin engine, Cessna, piston engine. And he always took his dogs running and he went to call on somebody. What happened? And anyway, the guy came out to meet Sam and his Bentley. And so dogs, Sam's dogs got a ride in the Bentley.

Let's just hope that they didn't deposit any gifts.

Okay. When you crank up a life insurance policy, you're starting a business from scratch. Okay?

Now, have I told y' all that at one time Mary and I own 49 life insurance policies? Wow.

Branch offices are the first national banking system.

Now we're at the stage, aren't we, Bob, of getting rid of things. You can't take this stuff with you. Good God. You can't take it with you. This is a great way to give things to other people in family. What about. Or charitable causes, whatever. See, Southside Baptist Church has owned a significant policy on Marifold and, oh, at least 40 years.

We haven't been members of that 30 years. But it's going to the Lord's work. Who cares? All right. Foundation of Economic Education, only policy on me for over 45 years.

This is a great way to give charity. But we've given away policies to family members and stuff like that. We're down to 24 policies now.

Tomorrow I'm going to leave a piece of paper with you guys and go over it. I'm teaching Mary how to be a widow.

Back in my active days with the insurance industry, I. I saw what a sorry job men are doing with teaching their wives how to be a widow. They left them with a mess.

Okay? My youngest brother died last year in May 26, and I found that their brother had done the same stupid thing.

And so on our way back from North Carolina. That's an all day drive. I told Mary, when we get home, I'm going to start teaching you how to be a widow. I gave her a checkbook and I said, this is going to be deposited every month and you got to live off of that. Everything. We go buy groceries and so forth. You pay half, I pay half.

Well, the first three months it's pretty tough because she kept saying.

What did I do about so and so. Mary, I'm not here. No. Yes, you are. No, I'm not here.

Shake her head. Now another three months, she's gone on real good. I'm satisfied now. She hang out. Yeah. Now I encourage you guys to do the same sort of thing. Yeah, it's going to happen.