LMR – Oct 2019

“When government gives you the solution—i.e., tax-qualified plans—to the problem it created—i.e., onerous taxation—don’t you get just a little bit suspicious that you’re being manipulated?”
— R. Nelson Nash
We both heard Nelson say the above quote (or some version of it) numerous times over the years, when he would talk to the public about our financial landscape here in the United States. One of the chief objections to implementing IBC is that “everybody knows” the responsible thing to do is max out your contributions to a tax-qualified investment vehicle, such as a 401(k) or a 403(b).

BankNotes – October 2019

Some commentators consider fractional reserve banking as a major vehicle for the expansion in the money supply growth rate. What is the nature of this vehicle? Fractional reserve banking arises because banks legally are permitted to use money placed with them in demand deposits. Banks treat this type of money as if it was loaned to them. However, is this really the case? When John places $100 in a safe deposit box with Bank One he does not relinquish his claim over the $100.