In the last few years, many people have discussed the concept of infinite banking. What does it mean? It is the process by which banks control physical assets and use them to create money in amounts that is unlimited. In other words, they can create as much money as they want, in the form of credit, and then lend this money to buyers. The whole process is done from the point of view of the banks being "money creators" rather than merely cashiers and check writers.
This concept has caused many critics to decry it as a scam. They argue that banks create credit when they lend it. The banks "create" debt by repaying it with interest and rental income. Thus, critics argue, banks are not borrowing or creating debt when they lend credit. To this end, they argue, it is obvious that banks are not money creators, but merely parasites who extract wealth from their customers and then squander it irresponsibly.
However, there are many things that one must consider before one comes to such a conclusion. First, it is important to recognize that this is not a loan or credit that a bank makes. In other words, a bank does not lend you money so that you can buy something and then return it to the bank, leaving you as the original creditor. In other words, a bank does not create money. Instead, the bank simply makes a loan, receives interest on that loan, and then returns it to its customer (that's you). Acquire more information about infinite banking on this link: https://paradigmlife.net/blog/understanding-the-basics-of-infinite-banking/
Thus, while a bank can create as much money as it wishes, it cannot lend that money to you, because it does not own the actual currency itself. For example, a bank may lend you credit for the purchase of a car. You then take that car back to the bank and use it as collateral on another loan.
It should be noted, however, that many banks now engage in "interbank" lending. What this means is that two different banks make loans to you, which are then collateralized with the same money from each other. Interbank lending has become a very popular business for banks, as it enables them to make loans against a pool of money that they already own. Some of the biggest names in the banking industry regularly engage in interbank lending: Bank of America, Chase Bank, Citibank, Wells Fargo, Fleet Bank, National Association banking clubs, Branch Bank, Sun Trust Bank, Branchless Banking, PNC Bank, Branch banking, Key Bank, Fifth Third Bank, and more.
One great benefit of the Paradigm Life infinite banking firm is that it offers a very cost effective way for individuals to obtain loans whenever they need them. No matter how low you think your credit score is, or how little money you have in your bank account, you can find a bank that will issue you a loan if you fulfill the lending criteria. In fact, most banks only require that you have the funds available in your checking or savings accounts, as well as a job or residence where you will be able to physically verify your income and identity. Check out this post that has expounded on the topic: https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/money-banking-and-investment/banking.