Taupo Event: Interest Free Wealth Creation System

[sarahd]

Genuine Wealth System

The Genuine Wealth System is a way of simplifying financial relationships whilst building community relationships. It is a way of eliminating interest payments paid to banks.

It is based on a system from the JAK Members Bank in Sweden which has been operating for more than 40 years, has $250 million dollars of savings and loans and charges no interest.

The Genuine Wealth System is based around an ‘agreement’ rather than conventional banking ‘loans’. It is a contract that outlines the relationships and is legally enforceable, but because it does not necessarily require the creation of legal entities or make loans it does not come within banking legislation.

Currently Prometheus Finance Ltd in New Zealand is holding the system accounts and providing the accounting service.

Come along and hear Bryan Innes of Taupo talk of this interest free system..who knows we may be able to eliminate banks from our next transactions…imagine a world without interest…and what we could do with property!

Venue: Vault Financial Group Board Room
Upstairs, 107 Heu Heu St.
Time: 7-8.30pm
Contact: Sarah Delany 07 378 9444 sarah@vaultfinancial.co.nz
Date: Monday 23rd June

[sarahd]

Hi please contact me if you want to attend as the seats are limited to 15. As always, we will have a gold coin donation with all monies going to the Taupo Budget Advisory Service.

Sarah
(see contact details above)

[sarahd]

Hi

Remember this is on on Monday. Please email me with any rsvps.

This concept will blow your mind and you will wonder why we all dont do this now.

Note: I have nothing to do with the system and I don't profit from it at all. I recently went to a talk about it and thought it was an amazing concept and wanted others to learn about it.

[Dean@Massiveaction]

I'm interested but can't get down there Sarah. Given that in 40 years they have only attracted 250 million dollars one would have to assume that in practise the system doesn't given the tiny volume, (tiny based on a finance company business model, after 40 years they should have billions??)

[sarahd]

Here's a bit more about the JAK bank:

http://en.wikipedia.org/wiki/JAK_members_bank

[sarahd]

Poomba - by your definition of success, i.e. lending out more, are you saying that the finance companies (of which many have recently fallen over) are more successful?!!

[Dean@Massiveaction]

No I am just saying a 40 year old european based "bank" would have a much bigger base than 250mil one would have thought. You didn't say they were NZ based but Swedish.

[sarahd]

Hi an answer from Bryan:

I tend to agree with the comment in the sense that their growth has not been what one would expect the potential to be.

However there are two factors which have bearing on their growth.
1) They started from a base of zero and were totally on a leading edge with a completely novel approach to financing. This was in a world where few understand how money is created and what the the role of interest is. They needed to have a big educational push with potential members. Conventional finance systems do not require this. Social Credit in NZ had similar difficulties. The growth rate of the JAK Bank is now 7% and has been for the last 5 years.
2)The JAK Bank has not behaved as an aggressive commercial bank. They decided to grow under the radar screen because of a perceived vulnerability to the wider banking sector and central government regulation. This led to very conservative policies being adopted by their board. The default rate on their loans is 0.03%. They operate in the domestic, not the commercial sector.


Those policies may in fact be quite wise - under current legislation in Sweden it would be impossible to start up a similar bank today.


The basic JAK Bank principle of concurrent savings and loan repayments has been included in the Genuine Wealth System (NZ) but the model is totally different from the Swedish one and has none of the self imposed limitations of JAK. It avoids the problems of banking legislation by avoiding being a bank or a finance company.