Nelson Nash developed the idea of infinite banking in the 1980s. Nash was an expert in finance and an adherent of the Austrian school of economics, which contends that conventional economic principles like supply and demand do not always determine the value of things.
Instead, people place varied values on money and products depending on their financial situation and requirements. Nash came up with the concept of people acting as their own bankers to better attain their own special, particular financial goals as a result of this approach.
High loan interest rates were one of traditional banking’s drawbacks, in Nash’s opinion. Too many people, including himself, had financial difficulties as a result of their reliance on banking institutions. Individuals lacked control over their own money as long as banks determined lending terms and interest rates.
Nash came to the conclusion that you could take control of your financial future by being your own banker. However, you require a bank of your own in order for Infinite Banking to function.