Nelson Nash: Stop Playing Their Financial GAME... Start Playing YOURS (14 of 30)

Okay. All right, now.

Watch this. That's coming up.

This is a check. Remember.

This is what happened since the Federal Reserve took place.

Jekyll Island, Georgia, 1911. But the effectiveness of it didn't start until December. Between Christmas and New Year's Day the Federal Reserve became law. Now you notice the shaded areas here are reversals. There's a Great Depression. That's when yours truly appeared on the scene. Okay? Now you notice that the dollar was worth a dollar here in 1913, but here in about 1920 it had less than half.

Well, along comes the recession type stuff. And it started building back up. And when the Great Depression came, look what happened.

We're back up there to 80 cents.

Now. Look what's happened since that time. The dollar, that was the dollar here is now for three and a half cents.

Now I bought that policy in 1959, right?

So here was its value at that time, about 35 cents or so. Well, here at three and a half cents really the fact that it should be five, it should be ten. But what I'm trying to point out is that the debt shows everything about that state foreign policy offset inflation just perfectly.

Does Dave Ramsey know this? Apparently not that any of the financial geniuses out there know this.

It's always been there.

Now let's suppose an opportunity came along, Steve, that.

I needed $91,000 to take advantage of it. You know, all I gotta do is call State Farm and say send me $91,000. Now that's real complicated, isn't it?

No Mickey Mouse paperwork, no stupid questions, anything like that at all. Now who set the repayment schedule? Me. Yeah, well, suppose I die in the meantime. What happens to that did against the felons insurance company pays it off with the gun claim and sends the net death benefit to the benefit. Do people think this thing through? Apparently not. Absolutely not. Not apparently. Absolutely they don't. Now one of the reasons I see is that the insurance companies haven't done a real good job of explaining that product to the general public. To the contrary. I saw during my career as an agent a life insurance company started boosting tax sheltered plans and mutual funds and Equitable Life of New York invented variable life and they invented group insurance and stuff like that should never have come into existence. If they told people what a glorious product this is and how that through multiple generations there that you can produce perpetual motion. This is never brought up.

And I don't understand.

Now the reason I saw this again was because of my Austrian background there that back there when I got out of the air force in 54, went to work in eastern North Carolina and forestry. By the way, I never worked for the government Smokey Bear and I don't see eye to eye on anything.

I work privately for landowners on a contract basis. And what I saw in eastern North Carolina is the mental paralysis caused by socialism. Eastern North Carolina, Johnson County, North Carolina is the second largest tobacco county in the world.

When I said tobacco, we're talking about government programs. Everything is built around a government program. Now that thought.

Process extended over to the general public and they all think around government programs. And I could not understand that. Why don't anybody behave that way Now I found that off at a social gathering at home with this radiologist about what I ran into and he says, sounds like you need this book. Went back to his library, got Henry hadlett's economics in one lesson. Read this.

Well, less than 10 days I had it back in his hands. I said, I have two questions. Well, you guys been hiding this stuff and why'd y' all hide it from me? He said, if you like what you read, you know this maiden, this is this journal called the Freeman.

Now all you gotta do is ask for it. They will not send you a bill. Now they supported entitled by donations. If you haven't thrown some money at them in a year.

They will just simply take you off the mailing list. That's all. Well, the more I read the better it got. And that became an obsession. And what I saw that the best Austrian economics book in the world is the Bible. But most folks in religious circles don't see this correlation. And unfortunately a lot of my folks in the economic world don't see that the opposite is true either. But it's true. All the other stuff out there that goes on the different schools of thought that we talked about earlier like kings inism and about Milton Friedman, so forth, that's top down thinking. And again there's our my friend, okay, I know Ron Paul, I've been knowing him for years. His solution is to get rid of the Federal Reserve. But he wants to do it from top down.

We want to get a political movement to change that. And that's about like chances snowball in hell.

Well, you can secede from this immediately. Just simply don't play that game.

Buy a lot. So life insurance, learn how to finance everything this way.

See we have again we. It took me 13 years to get rid of the banks.

Now most average buyers say about 20 years to get rid of them. But once you get rid of them, you Take that money you were paid in interest and pay off policy loans plus what you'd be paying for premiums anyway. And you'll be astounded how fast you pay off a policy loan. There are no policy loans outstanding out that day. If you look at our hand, you swear that I'm not practicing what I'm preaching, but yes we are. But there are no bar salons at this particular pony. They've all been paid off. And it's a peaceful stress free way of life and all that. I get to have fun talking to guys like you. Now, do y' all have any folks that are still hung up on interest rates? Yeah, yeah, yeah, yeah. Brace yourself. Especially the wealthy ones. Yes. Yeah. Well, Gertie's. You take this year's cash value to the state Farm bond. Now you take last year's cash value. Now you divide the little number and the big number and you get one point. Something of the point something is the growth, the interest, the rate y' all got that you always take a little of it, divide it into the big number. All right? That measures the growth.

I learned that in partial school, say.

All right.

Now.

Part of that growth is cause I paid 388. Right? We got to subtract that out of the growth. Now take that little number and divide into the cash pay this year and you'll see what State Farm did on its own. Right. Are you ready?

4.13 with no taxes.

How's your CDs doing?

Not worth a dang.

This policy here did 4.13 and no taxation.

Now I don't know of any company out there that's all that much different from what you see. The fact is that, you see, people haven't looked at an old policy or over a long enough period of time. They always look at a policy just the first ten years or something like that and they draw those.

Weird conclusions about what it's like. Well, that's our opportunity to rectify their thinking and we rejoice for that opportunity. Okay, how we doing on time? Jason.

15 minutes. Okay. Golly, I'm not lucky.

Now, did you see how the state foreign policy fit during this downward valuation of money and so forth? It kept up with things just perfectly.

But yet there's financial geniuses out there that say don't ever buy life insurance because inflation is going to eat you alive.

Well, that's the way things go. And what does that mean by.

This tree is exactly my aged in this house for 47 years and we downsized six years ago. And Dave, my son in law, y' all know Dave Stearns, okay? Now, Dave lives where we live, some 47 ute. I built 60% house on these two hands. I designed it, brought them, the children put it together and they came along and ended up with a house. And they ruined my house.

Curtis. They kept my fireplace and chimney.

They didn't mess with it, but they did a fantastic shower. But they put in a three car garage with 1,000 square feet of heated pool airspace above that to do whatever I want to in the future. So there's a total of four garages between the two buildings though they built the pool. That tree got him going. This tree is my age. Now, you all know how I know how old it is. You count rings. In the spring of the year you get light colored wood. In the summer you get dark colored wood. And the other two seasons had no growth. Now, the rate at which he grew here was pretty spectacular, right? Compared with that in here and so forth during this period here, there wasn't all that good space between them, right? Yes. But you get out here to this area where the bark is. The bark has a cambium layer there. On one side it produces wood, it other side it produces bark. Now you got to take that growth rate here and multiply it by 3.1416, you know PI. PI R square. Yeah, you go back in Alabama, they say no, PI, not square PI or round cornbread or square.

PI isn't squared. The volume here was humongous in comparison to the volume here. This is not about rates, this is about volume. And you see, all the growth in a life insurance policy is exactly that way. The growth is on top of what it was before.

You can't show me a Troy that grows backward.

You can't show me a life insurance policy that grows backward except the variable life of universal life. So forth. By the way, here come all these Harvard MBA products and whatnot. Who invented.

Universal life? Do y' all know Hutton? E. F Hutton. Y' all remember them? When E.F. hutton speaks, everybody listens, Right, Mama? Martin, have you heard him say anything like that? Many, many years ago, yeah. Don't exist today. He ain't there anymore. Well, in essence, what EFNOST brokerage firm was saying, you guys in life insurance don't know what you're doing. You should buy term insurance and have a side fund of an interest bearing account. Now, back in those days, interest rates was high. And so it looked good on paper, but they fell in the face, out of business. Well, they always bought out by somebody it Executive Life in California bought them out. Well, they fell on their face and they don't exist anymore. Does the name Michael Milken mean anything? Oh, boy. Jump on, King. Well, where was Michael Milken selling all those jump bonds? Please. Probably executive lucky. Not probably, definitely.

They spent prison time. Well, do you want your financial future in the hands of folks like that?

Don't you see, that's the stuff that appeals to people out there. And that's what we have, all this financial noise. Well, if you cut out the noise, the facts are just spectacular in their own. Well, this is real agricultural country around here. And the area that we drove through from northern Washington all the way here, it's fantastic agricultural area.

And we saw corn fields and stuff like that. Now, you plant corn. As a farmer, what else do you get besides corn? Weeds. Well, if you got lots of weeds to the point where you can't hardly see the corn.

That'S what we got in the financial world.

And if you get rid of the weeds, that corn stands out like a sorghum, doesn't it? I rest in the case. All you really gotta do is cut out the noise. So teach your clients how to build their own financial noise canceling headset.

Tell them beware of the horseshoe. You get burned.

It's still simple. Don't complicate it.