The Lara-Murphy Report

Carlos and Bob continue with 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, Bob explains the significance of the inverted yield curve, and ties it to standard Austrian business cycle theory. Carlos explains why the business owner would typically want to own an IBC policy in his or her own name, rather than being owned by the company.Mentioned in this episode: The IBC Business Owner Seminar on May 10, 2019, in Nashville. Academic articles explaining the yield curve inversion's ability to "predict" recessions. A CNBC story explaining that the yield curve inverted in late March.The audio production for this episode was provided by Podsworth Media.

Carlos and Bob begin a 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, Bob and Carlos discuss the Fed's recent guidance on its bond roll off schedule. They also explain entrepreneurship in the Austrian vision (with reference to Bob's recent interview of Peter Klein), and Carlos relays statistics on business ownership in the US.Mentioned in this episode: The IBC Business Owner Seminar on May 10, 2019, in Nashville. A CNBC article summarizing the Fed's announcement about its bond roll off. Episode 23 of the Bob Murphy Show, featuring Peter Klein and his work on entrepreneurship in the Austrian tradition.The audio production for this episode was provided by Podsworth Media.

Carlos and Bob discuss the economic outlook for 2019, from the perspective of Austrian business cycle theory. The yield curve is close to inverting, and if it continues we should expect a recession by the end of 2019 or, failing that, almost certainly in 2020. There are two types of Fed tightening during this recovery, namely interest rate hikes and a rolloff of the Fed's bonds. Powell can't indefinitely postpone the bond rolloff because as interest rates rise, the Fed is paying ever more billions in interest to the commercial banks.Mentioned in this episode: The minutes of the Jan 29-30, 2019 Federal Reserve meeting. The June 2017 addendum to the Federal Reserve statement, describing some particulars of the impending bond rolloff program. The Bob Murphy Show, episode 17, featuring Alex Tabarrok (who does not think the Fed has set us up for an inevitable crash).The audio production for this episode was provided by Podsworth Media.

Carlos and Bob discuss the Fed's actions with interest rates and its balance sheet, and how they are behind the recent stock market volatility. They also use media reports to get inside the minds of Bernanke, Yellen, and Powell.Mentioned in this episode: “How to Weather the Coming Financial Storms.” (Carlos and Bob video.) Bob's pushback against the WSJ letter calling for a carbon tax. Graph of federal funds rate versus Fed's total assets. Market Watch article on Yellen discussing the taper tantrum. Market Watch article discussing newly released transcripts from 2013 in which Powell says Fed needs to "jump." Schedule a call / Skype session with Carlos and/or Bob. Find an authorized IBC Practitioner near you. The Case for IBC.

Carlos and Bob tackle a friendly bet that two listeners submitted. The controversy concerns two apparently conflicting goals: On the one hand, Nelson Nash says in BYOB that you should pay more against your policy loans than the insurance company requires, effectively buying more paid-up life insurance. But on the other hand, shouldn't you aggressively fund your IBC policy up to the MEC limit right away, meaning there wouldn't be any room left to pay more on a loan?Mentioned in this episode: LMS episode 64 on the shaky stock market. "How to Weather the Coming Financial Storms." (Carlos and Bob video.) Schedule a call / Skype session with Carlos and/or Bob. Find an authorized IBC Practitioner near you. The Case for IBC.The sound engineer for this episode was Chris Williams. Learn more about his work at ChrisWilliamsAudio.com.

Carlos and Bob reiterate their longstanding critique of Fed policy to help frame the recent plunges in the stock market. They explain that the Fed has painted itself into a corner and will have no choice but to continue with rate hikes.Mentioned in this episode: "How to Weather the Coming Financial Storms" video. Bob Murphy Show ep. 2 interview of Carlos Lara. Lara-Murphy.com blog post on CPI. The Case for IBC.The sound engineer for this episode was Chris Williams. Learn more about his work at ChrisWilliamsAudio.com.

Carlos and Bob explain to the average listener why it's important to learn at least the basics of Austrian economics. It's not the same as other free-market schools, and it's not the boring curves you remember from college.Mentioned in this episode: The next IBC Seminar for the General Public on October 13, 2018 in Fort Worth, TX. Details at IBCSeminar.com. Murphy article: "The Chicago School versus the Austrian School." Murray Rothbard's Man, Economy, and State, and Murphy's study guide. Murphy's intro to Mises, Choice: Cooperation, Enterprise, and Human Action. Tucker Carlson's critique of Bezos. "How to Weather the Coming Financial Storms."The sound engineer for this episode was Chris Williams. Learn more about his work at ChrisWilliamsAudio.com.

Carlos and Bob tackle a question from Twitter: Why is using IBC preferable to just "paying cash" for large purchases? This seemingly simple question actually raises many issues.Mentioned in this episode: The next IBC Seminar for the General Public on October 13, 2018 in Fort Worth, TX. Details at IBCSeminar.com. The Practitioner finder. The Case for IBC.The sound engineer for this episode was Chris Williams. Learn more about his work at ChrisWilliamsAudio.com.

Carlos and Bob discuss some of the misconceptions or difficulties they had early on, which made them reluctant to embrace IBC.Mentioned in this episode: The next IBC Seminar for the General Public on October 13, 2018 in Fort Worth, TX. Details at IBCSeminar.com. Lara-Murphy Show episode 51. The Practitioner finder. The Case for IBC.The sound engineer for this episode was Chris Williams. Learn more about his work at ChrisWilliamsAudio.com.

Carlos and Bob discuss some of the misconceptions or difficulties they had early on, which made them reluctant to embrace IBC.

Mentioned in this episode:

The next IBC Seminar for the General Public on October 13, 2018 in Fort Worth, TX. Details at IBCSeminar.com.

Lara-Murphy Show episode 51.

The Practitioner finder.

The Case for IBC.

The sound engineer for this episode was Chris Williams. Learn more about his work at ChrisWilliamsAudio.com.