15 Dec 2020

BMS ep. 168: Bob Responds to Dave Ramsey Calling IBC a “Scam”

Bob Murphy Show, Infinite Banking Concept 5 Comments

If this one interests you, definitely use the YouTube version, because (near the end) I walk through an Excel file to make some of my points. (Video below.) But here’s the audio version with all of the relevant links, too.

5 Responses to “BMS ep. 168: Bob Responds to Dave Ramsey Calling IBC a “Scam””

  1. guest says:

    I’m in the middle of this video and I just listened to that clip of Dave Ramsey that didn’t age very well at all.

    I’ve been wanting a clip like that (of Dave Ramsey) for some time now, but for other reasons. That was awesome!

    For comparison with Dave Ramsey’s views on the economy and the stock market, I recommend these:

    Peter Schiff was Right (2006-2007 Edition)

    Peter Schiff repeatedly predicted the 2008 crash on Larry Kudlow’s show

    (Larry Kudlow is Trump’s economic adviser.)

    Herman Cain vs. Ron Paul On Predicting The Economic Collapse.mp

    (Herman Cain had been considered by Trump to be the Chairman of the Federal Reserve.)

    Aside: I do remember hearing Dave Ramsey, after the crash, give people advice to the effect that the housing market is volatile (someone had some cash he could either invest or buy a house to flip).

    • guest says:

      I saw in the YouTube comments that someone suggested Bob use an Excel feature called Solver.

      True. When you’re trying to figure out what number to plug in to reach $500,000, you don’t have to tinker with the numbers because Solver will do that for you instantly.

      (Yes, Excel is actually doing some trial and error work, if you read about what it’s doing, but for most situations it’s instant.)

      Pro tip: Check out a guy called Bill “Mr. Excel” Jelen.

    • guest says:

      After watching most of this video, I no longer think that IBC is likely some kind of scam or Ponzi scheme.

      I think it could probably benefit from a better name, now that I think I know what’s actually going on; and also I think that it relies overly much on Lefties not eventually being able to see that people are making money that they want to tax because “common good” nonsense.

      The name should be changed to something like Infinite Broker Concept, as it essentially has very little to do with either banking or life insurance, except that life insurancer is what the broker is risking to get your money so he can invest it for you.

      In theory IBC is great because the government isn’t taxing your investments (which is what this really is). I’m all for that. Zero taxes; Liberty breathes through those tax “loop holes”.

      But unless we stop using fiat (and digital) money, the government will simply print the Cantillon Effect of being able to enforce the closure of such loop holes.

      “Be your own banker” sounds like a Ponzi scheme.

  2. Tel says:

    I’m with you on this one Bob, the argument Dave Ramsey is putting forward, that an investment can only ever get back the money that you put in is completely ridiculous.

    If Ramsey had said he thinks that the life insurance companies tend to invest in the wrong kind of things, that would at lest make sense … although we can argue all day about what makes a good investment. Saying “Oh no it’s impossible to ever get a return” makes him sound like a bozo.

    My only complaint about the episode is that it was a little bit long winded. You are correct, you just explained it verbosely. Personal taste … others might benefit from the long and detailed examples.

    • LP says:

      That’s something which has always puzzled me about RPM… He’s such a hardcore anarchist that he won’t accept his salary directly from government funding, but he advocates an investment strategy which mostly relies on municipal government bonds (that’s what most whole-life life insurance uses for semi-liquid assets).

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