The Coming Crashes … Part 3

Dec 19, 2014 No Comments by


As we approach the end of the year, we wanted to get you thinking about your planning for 2015. This post and the two previous posts feature an article by Austrian economist Robert Murphy, PhD from the October 2014 Lara Murphy Report entitled “The Coming Crash(es), Life Insurance and Gold.” This is Part 3 of a 3-part series giving you time to digest Dr. Murphy’s analysis and recommendations. We’ll also provide key takeaways at the end of each segment to further guide you in your own thinking and planning. As always, we are available to work with you as you plan for 2015, please contact me at Julie Ann Hepburn.


Dr. Robert P. Murphy

Dr. Robert P. Murphy

In this article I’ll outline a framework for estimating the severity and possible timing of the crash.

However, I’ll also explain that there are different types of economic crises—some involving “only” a drop in equities, while more serious ones pull down the currency as well. 

The best mix of assets to hold depends on the type of crisis we endure. The responsible business owner or head of household must be aware of these nuances when preparing for the coming storm—or storms.  — Robert Murphy, PhD


What About Gold?

Before concluding, I should mention one important consideration: The Federal Reserve is not omnipotent, and ultimately the world may lose confidence even in the U.S. dollar. In that case, holding dollar-denominated assets would be slim consolation. Sure, the life insurance companies can faithfully provide policy loans and death benefit checks according to the terms of the contract, but if bread costs $10 per loaf, that might be a cruel joke.

This is why Carlos and I always supplement our discussions of IBC with a plea to obtain at least several months’ worth of gold (and/or silver) as emergency money. In the event (say) that Americans see prices across the board double (in a short period of time), they would eventually see their incomes double.

However, there would be a lag, with average workers, and especially retirees, having to pay higher prices for food, energy, etc. while their incomes stayed the same. For such a transition period, it is essential to have assets that respond more than proportionately (and immediately) to a change in the expectations of price inflation. Gold and/or silver are ideal in this respect.

For those who still have variable sources of income, we recommend figuring out the bare minimum of expenses for a desired transition period, such as 6 months, a year, or even longer, depending on the risk tolerance of the individual and the speed with which income would adjust, then obtaining that dollar-amount worth of gold and/or silver at today’s prices.

Furthermore, for absolute accessibility in a crisis, we recommend taking physical possession of these precious metals, rather than, say, buying into an exchange-traded fund (ETF) or other vehicle that could be severed from one’s control during an emergency.


David Stockman

David Stockman

During our most recent, August 2014, Night of Clarity in downtown Nashville, we hosted David Stockman as our headline speaker. In the Q&A session after dinner, someone asked Mr. Stockman his own portfolio strategy, given Stockman’s extremely bearish views.

We were very pleasantly surprised to hear his succinct answer: “Cash and gold.” We, the authors of the Lara-Murphy Report, could not agree more.

The one subtlety we would add is that “cash” is best held in the form of accumulated cash surrender values in one or more dividend-paying whole life policies, as opposed to an individual directly owning Treasuries, money market funds, large commercial bank balances, or other USD-denominated assets.

As I wrap up this article, let me offer the standard disclaimers: Every individual is unique. No one knows the future with certainty. I am not in this article providing direct financial advice. Before taking any action, each reader should consult with qualified and properly licensed professionals, especially to consider the tax ramifications of any decisions.

Let me remind the financial professionals who read the LMR: If you do not have a securities license, then FINRA will not take kindly to you urging clients to sell equity holdings (perhaps to fund the acquisition of a new life insurance policy). It is important that your clients come to you, already knowing what they want to do, without you “finding the money” for them.

Finally, for readers who want to learn more, I urge you to seek out a properly trained IBC Authorized Practitioner at the following website:

These individuals have been through the training program and passed the exam designed by Nelson Nash, David Stearns, Carlos, and myself. The financial professionals listed at this website understand how the Infinite Banking Concept provides the solution to the problems that the Austrian economists have so ably identified.

From National Private Client Group
Part 3: Key Takeaways

  • If it’s within your ability, secure several months – at least six – worth of gold or silver as an emergency back-up. These respond proportionately and immediately to changes in the market. Keep them in your possession for accessibility in a crisis – do not buy through an exchange-traded fund (EFT).
  • Former Fed chair, David Stockman advises ‘cash and gold’ in a crisis.
  • While gold and silver are excellent as emergency back-ups – it is more important to first pay down your total debt before using funds to purchase these.
  • Cash is best held in the form of accumulated cash surrender values in dividend-paying whole life insurance policies rather than directly owning U.S. Treasury bonds and other USD-denominated assets.
  • Work with a properly trained IBC (SEB) Authorized Practitioner, such as National Private Client Group‘s Julie Ann Hepburn.

NPCG Bottomline: Keep emergency reserves in gold or silver and cash. Cash is best held in dividend-paying whole life insurance policies.

We hope this 3-part series based on Dr. Robert Murphy’s article “The Coming Crash(es), Life Insurance and Gold, which appeared in the October 2014 Lara Murphy Report, has been helpful in explaining the reasons why the booms and busts of our economy continue to happen and why we, as consumers and investors, continue to be caught unprepared. Current monetary policy continues to support this trend, which has been in play since the appointment of former Federal Reserve Chairman Paul Voelker in 1979.

If you already have a Self-Empowered Banking (SEB) system, also known as privatized banking or an IBC in place, then you are already well on your way to being protected in the next crash. If you’ve been thinking about jumping into a SEB, as Bob say, ‘time is of the essence.’  If you want to know more about how an SEB can protect you in a financial crisis similar to what we all experienced in 2008, please contact me at Julie Ann Hepburn.

Please mark your calendar for April 17, 2015 when we will once again present Your Financial Destiny 2015. Dr Robert Murphy will be one of our speakers and you can learn from him firsthand how to read the signals which the market is communicating and the types of actions you can take to protect yourself. If you would like to receive Early Bird information and pre-register for the day-long seminar, please email me at YFD2015.

Wishing you and yours a Happy Holiday Season and a prosperous 2015!!

Building Wealth, Knowledge is Power

About the author

Julie Ann Hepburn, is a Private Banking Expert and Financial Coach. She is the founder and principal of National Private Client Group, LLC , a Chicago based financial consulting group. Ms. Hepburn is a licensed finance professional, and serves as an agent and consultant for several major mutual insurance carriers. For full bio, please see:
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