Although the roughly two million affected residents of Northern California are recovering from the rolling blackouts imposed by utility PG&E, the company has warned that these “fire safety outages” may be periodically required for another decade. Naturally, California Governor Gavin Newsom decried the debacle as yet another example of “greed and neglect.” Yet as IER analyst Jordan McGillis explained in a previous article, the episode actually showcases the dangers of a government-imposed monopoly in electricity provision. In this article, I’ll elaborate on McGillis’ insights and show why the conventional economic rationale for government regulation of electric utilities is fundamentally flawed. Read More in BankNotesread more
Fractional reserve banking arises because banks legally are permitted to use money placed with them in demand deposits. Banks treat this type of money as if it was loaned to them.read more
It is with this in mind that I wish to take a closer look at the Mutual Insurance Holding Company (MIHC), which is a topic that is relevant to IBC practitioners and all those who may be thinking of implementing IBC policies in the near future. It is especially important now because Bob and I repeatedly stress that we are in the midst of an unsustainable boom that will crash and IBC offers, among other benefits, an exit strategy from the market collapses that are heading our way.read more
Back in the September 2012 issue of the Lara-Murphy Report, I tackled an older blog post by financial guru Dave Ramsey where he strongly attacked the idea of using permanent life insurance as a savings vehicle.1read more
Last month, I began this series, which tackles the question: Does IBC “work”
for people who are older and/or in poor health? Many people are concerned
that the “pure cost of insurance” will be so high in such cases, that practicing
IBC will be too expensive, or will have “too much drag,” to be sensible.