The Lara-Murphy Report

Bob and Carlos discuss a recent Mercatus Policy Brief that documents how rising interest rates have caused the Fed to lose a trillion dollars in the value of its assets, and is now technically insolvent. Does it matter?

Prompted by an email, Bob and Carlos acknowledge that yes, things look pretty bleak right now, both financially and culturally. But there is still cause for hope. The worst thing to do right now would be to give up.

Bob and Carlos discuss the oddities in the official numbers, which show low unemployment but also low labor participation, and how the statistics don't match their personal observations.

Bob and Carlos discuss a recent article in The Hill, which explains that rising interest rates have rendered the Fed technically insolvent.

Bob asks Carlos to recount his own financial struggles as a young businessman in the late 1970s, when price inflation and interest rates skyrocketed. This painful episode ultimately led Carlos to discover Austrian economics.

Carlos and Bob discuss the views of some prominent economists on whether a recession is baked into the cake. Contrary to even free-market members of the Chicago School, the Austrians know it's not just a matter of money supply growth. During the boom, there were real malinvestments, and these must be liquidated in a bust.Mentioned in this episode and other links of interest:The Fortune article on Steve Hanke and his views about recession.Bob’s journal article with Ryan Griggs on the inverted yield curve and Austrian business cycle theory.“The Foundations of IBC” video series.John Exter and his pyramid asset analysis.Bob and Carlos' presentation, "How to Weather the Coming Financial Storms."Bob and Carlos’ book with Nelson, The Case for IBC.Their book, How Privatized Banking Really Works.The IBC Practitioner Finder.The audio production for this episode was provided by Podsworth Media.

Carlos and Bob discuss inflation and whether it spells the doom of life insurance, and thereby ruins the case for IBC. They conclude that rising interest rates per se don't adversely impact life carriers, because of asset-liability matching. Moreover, when you practice IBC, you're not "investing in life insurance."

Carlos and Bob revisit their September 2016 video presentation in which they lay out a 3-prong strategy to protect your household from economic calamity.

After a long hiatus, the Lara-Murphy Show is back! Bob and Carlos relay what's been happening in their personal lives and the world of IBC, and discuss the spiritual war that is currently ramping up.

In their monthly publication the Lara-Murphy Report, Carlos and Bob have each started a series investigating the history of certain groups operating behind the scenes to influence social and political trends.Mentioned in this episode and other links of interest: Information on the Lara-Murphy Report. Bob's college essay on the origins of the US public school system.The audio production for this episode was provided by Podsworth Media.

In the wake of the coronavirus, the Federal Reserve has engaged in unprecedented actions, pumping $2.5 trillion into the financial system in just two months. Many readers ask: Does this make IBC a bad idea? After all, it relies on a dollar-denominated asset (life insurance). Bob and Carlos discuss the economic outlook and this particular issue.Mentioned in this episode and other links of interest: Carlos and Bob’s September 2016 presentation, “How to Weather the Coming Financial Storms.“ The documentary This Is Nelson Nash. The book co-authored by Nelson Nash, Carlos, and Bob, The Case for IBC. Bob’s new series for the Mises Institute, Understanding Money Mechanics. Carlos and Bob’s book, How Privatized Banking Really Works. Bob’s analysis of the Fed’s latest emergency repo operations.The audio production for this episode was provided by Podsworth Media.

Carlos and Bob critically assess the Fed's $1.5 trillion repo operations, allegedly designed to stem market panic over the coronavirus. Bob observes that even Walter Bagehot's famous dictum said central banks should lend freely *at a high rate of discount*.Mentioned in this episode and other links of interest: Carlos and Bob's September 2016 presentation, "How to Weather the Coming Financial Storms." The documentary This Is Nelson Nash. Bob’s new series for the Mises Institute, Understanding Money Mechanics. Carlos and Bob’s book, How Privatized Banking Really Works. Bob's analysis of the Fed's latest emergency repo operations.The audio production for this episode was provided by Podsworth Media.

Carlos and Bob end their hiatus and return to the airwaves, fresh from the 2020 IBC Think Tank in Birmingham. They summarize the talks they gave at the event, including some exciting news about the Nelson Nash Institute's forthcoming project.Mentioned in this episode: The CBO's 2019 Long Term Budget Outlook. The documentary This Is Nelson Nash. Bob's new series for the Mises Institute, Understanding Money Mechanics. Carlos and Bob's book, How Privatized Banking Really Works.The audio production for this episode was provided by Podsworth Media.

Bob and Carlos discuss the 2017 Tax Cut and Jobs Act's impact--especially because of the boost in the standard deduction--on incentives to make charitable contributions. Then they discuss Beto O'Rourke's pledge to remove the tax exempt status of churches and other organizations that don't endorse gay marriage.Mentioned in this episode: AEI's Alex Brill's report on how the 2017 tax reform will reduce the incentives for charitable giving. GivingUSA's report on charitable giving in 2018. Scott Sumner very upset that the 2017 tax reform retained the deductibility of employer-provided health insurance. The YouTube video of Beto O'Rourke.The audio production for this episode was provided by Podsworth Media.

As the U.S. authorities once again pivot to begin another round of cheap credit, Carlos and Bob reflect on the deception--both deliberate and unwitting--involved. Part of the problem is that younger investors haven't lived through a crash, but even the old timers are caught flat-footed if they think past crashes were an "act of God." This is why it's so important to learn Austrian economics.Mentioned in this episode: Carlos and Bob's video, "How to Weather the Coming Financial Storms."The audio production for this episode was provided by Podsworth Media.

Bob and Carlos return from their summer hiatus to bring listeners up to speed. Carlos had a medical issue that occurred in June, which he explains in the episode. After describing what happened, Carlos ties his experience to the broader condition of medical care in the United States: it's top-notch, but very expensive.Mentioned in this episode: Bob's post on the inverted yield curve. How to subscribe to the Lara-Murphy Report.The audio production for this episode was provided by Podsworth Media.

While this was an interview Murphy conducted on his own podcast, it is relevant to Lara-Murphy Show listeners. Keith Smith is an anesthesiologist and founder of the Oklahoma Surgery Center and the Free Market Medical Association. His group is doing for health care what the Nelson Nash Institute is doing for the financial sector.Mentioned in this episode: The Bob Murphy Show, ep 37 (with links to items discussed in the episode). The Surgery Center of Oklahoma.The audio production for this episode was provided by Podsworth Media.

Bob asks Carlos to elaborate on the changing estate tax laws and how that could affect long-term planning, even with the excellent tax advantages of IBC.Mentioned in this episode: The IBC Practitioner Finder.The audio production for this episode was provided by Podsworth Media.

Bob asks Carlos to discuss his April 2019 article for the Lara-Murphy Report. Carlos explains how "shadow banking" has become the dominant source of mortgage lending in the United States. He explains this trend and its implications for real estate investors.Mentioned in this episode: The business owner seminar in Nashville, TN on May 10, 2019. Sample issues and subscription details for the Lara-Murphy Report.The audio production for this episode was provided by Podsworth Media.

Carlos and Bob finish their 3-part series explaining Austrian economics and IBC specifically for the business owner. The series is tied to the upcoming IBC Business Owner Seminar to be held on May 10, 2019, in Nashville, TN. In this episode, they discuss Carlos' typical approach to helping a business in distress. They also discuss Carlos' research on the Dodd-Frank Act and whether the revisions under the Trump Administration affect Carlos' warnings about a "bail-in" during the next crash.Mentioned in this episode: The IBC Business Owner Seminar on May 10, 2019, in Nashville. Bob gives a biographical sketch of Carlos' discovery of Austrian economics and the business cycle.The audio production for this episode was provided by Podsworth Media.