One 77-year-old’s search for the truth: 9/11, election fraud, illegal wars, Wall Street criminality, a stolen nuke, the neocon wars, control of the U.S. government by global corporations, the unjustified assault on Social Security, media complicity, and the "Great Recession" about to become the second Great Depression. "The most important truths are hidden from us by the powerful few who strive to steal the American dream by keeping We the People in the dark."
Showing posts with label Obamacare. Show all posts
Showing posts with label Obamacare. Show all posts
Wednesday, January 08, 2014
"[T]he White House tells us that ObamaCare is a worthy program even though those who are supposed to be helped by it aren’t because of large deductibles, copays, and Medicaid estate recovery. The cost of this non-help is a doubling of the policy premiums on those insured Americans who did not need ObamaCare and the reclassification by employers of workers’ jobs from full-time to part-time in order to avoid medical insurance costs. All it took was campaign contributions from the insurance industry to turn a policy that hurts most and helps none into a worthy program. Worthy, of course, for the insurance companies." [excerpt]
The Case of the Missing Recovery — Paul Craig Roberts
January 3, 2013 | Original Here Go here to sign up to receive email notice of this news letter
The Case of the Missing Recovery
Paul Craig Roberts
Have you seen the economic recovery? I haven’t either. But it is bound to be around here somewhere, because the National Bureau of Economic Research spotted it in June 2009, four and one-half years ago.
It is a shy and reclusive recovery, like the “New Economy” and all those promised new economy jobs. I haven’t seen them either, but we know they are here, somewhere, because the economists said so.
Congress must have seen all those jobs before they went home for Christmas, because our representatives let extended unemployment benefits expire for 1.3 million unemployed Americans, who have not yet met up with those new economy jobs, or even with an old economy job for that matter.
By letting extended unemployment benefits expire, Congress figures that they saved 1.3 million Americans from becoming lifelong bums of the nanny state and living off the public purse. After all, who do those unemployed Americans think they are? A bank too big to fail? The military-security complex? Israel?
What the unemployed need to do is to form a lobby organization and make campaign contributions.
Just as economists don’t recognize facts that are inconsistent with corporate grants, career ambitions, and being on the speaking circuit, our representatives don’t recognize facts inconsistent with campaign contributions.
For example, our representative in the White House tells us that ObamaCare is a worthy program even though those who are supposed to be helped by it aren’t because of large deductibles, copays, and Medicaid estate recovery. The cost of this non-help is a doubling of the policy premiums on those insured Americans who did not need ObamaCare and the reclassification by employers of workers’ jobs from full-time to part-time in order to avoid medical insurance costs. All it took was campaign contributions from the insurance industry to turn a policy that hurts most and helps none into a worthy program. Worthy, of course, for the insurance companies.
Keep in mind that it is the people who could not afford medical insurance who have to come up with their part of the premium or pay a penalty. How do people who have no discretionary income come up with what are to them large sums of money? Are they going to eat less, drive less, dress less? If so, what happens to people employed in those industries when demand falls? Apparently, this was too big a thought for the White House occupant, his economists, and our representatives in Congress.
According to the official wage statistics for 2012 http://www.ssa.gov/cgi-bin/netcomp.cgi?year=2012 , forty percent of the US work force earned less than $20,000, fifty-three percent earned less than $30,000, and seventy-three percent earned less than $50,000. The median wage or salary was $27,519. The amounts are in current dollars and they are compensation amounts subject to state and federal income taxes and to Social Security and Medicare payroll taxes. In other words, the take home pay is less.
To put these incomes into some perspective, the poverty threshold for a family of four in 2013 was $23,550.
In recent years, the only incomes that have been growing in real terms are those few at the top of the income distribution. Those at the top have benefitted from “performance bonuses,” often acquired by laying off workers or by replacing US workers with cheaper foreign labor, and from the rise in stock and bond prices caused by the Federal Reserve’s policy of quantitative easing. Everyone else has experienced a decline in real income and wealth.
As only slightly more than one percent of Americans make more than $200,000 annually and less than four-tenths of one percent make $1,000,000 or more annually, there are not enough people with discretionary income to drive the economy with consumer spending. When real median family income and real per capita income ceased to grow and began falling, Federal Reserve chairman Alan Greenspan substituted a credit expansion to take the place of the missing growth in income. However, as consumers became loaded with debt, it was no longer possible to expand consumer spending with credit expansion.
World War II left the US economy the only undamaged industrial and manufacturing center. Prosperity ensued. But by the 1970s the Keynesian demand management economic policy had produced stagflation. Reagan’s supply-side policy was able to give the US economy another 20 years. But the collapse of the Soviet Union brought an era of jobs offshoring to large Asian economies that formerly were closed to Western capital. Once corporate executives realized that they could earn multi-million dollar performance bonuses by moving US jobs abroad and once they were threatened by Wall Street and shareholder advocates with takeovers if they did not, American capitalism began giving the US economy to other countries, mainly located in Asia. As high productivity manufacturing and professional service jobs (such as software engineering) moved offshore, US incomes stagnated and fell.
As real income growth stagnated, wives entered the work force to compensate. Children were educated by refinancing the home mortgage and using the equity in the family home or with student loans that they do not earn enough to repay. Since the December 2007 downturn, Americans have used up their coping mechanisms. Homes have been refinanced. IRAs raided. Savings drawn down. Grown children, now adults, are back home with parents. The falling labor force participation rate signals that the economy can no longer provide jobs for the workforce. In such a situation, economic recovery is impossible.
What the Treasury and Federal Reserve have done, with the complicity of the White House, Congress, economists, and the media, is to focus on rescuing a half dozen banks “too big to fail.” The consequence of focusing economic policy on saving the banks is rigged financial markets and massive stock and bond market bubbles. To protect the dollar’s exchange value from quantitative easing, the price of gold has been forced down in the paper futures market, with the consequence that physical gold is shipped to Asia where it is unavailable as a refuge for Americans faced with currency depreciation.
At a time when most Americans are running out of coping mechanisms, the US faces a possible financial collapse and a high rate of inflation from dollar depreciation as the Fed pours out newly created money in an effort to support the rigged financial markets.
It remains to be seen whether the chickens can be kept from coming home to roost for another year.
Wednesday, October 02, 2013
I suppose that many of you who visit my blog are, like me, retired with a pension or adequate savings to live out the rest of our lives in comfort. In the meantime, even Americans with degrees in engineering, physics, or other professions requiring higher education cannot find jobs anywhere except for the likes of Walmart, Home Depot, McDonalds, etc., which at their pleasure may employ them for no more than 30 hours a week, thus making them ineligible for either a pension or Obama care, which as explained here by PCR is a bad deal for most.
Obamacare Is Another Private Sector Rip-Off Of Americans
October 1, 2013 | Original Here Go here to sign up to receive email notice of this news letter
Obamacare Is Another Private Sector Rip-Off Of Americans
The private sector allied with government is a second IRS
Paul Craig Roberts
The government of the “world’s only superpower,” the “exceptional,” the “indispensable” country, claims to know what is best for Syria, Iraq, Afghanistan, Libya, Yemen, Pakistan, Somalia, Mali, Russia, Venezuela, Bolivia, Ecuador, Brazil, China, indeed for the entire world. However, the “indispensable” country cannot even govern itself, much less the world over which the “superpower” desires hegemony. The government of the “world’s only superpower” has shut itself down.
The government has shut itself down, because it cannot deal with the budget deficit and mounting public debt caused by twelve years of wars, by financial deregulation that allows “banks too big to fail” to loot the taxpayers, and by the loss of jobs, GDP, and tax base that jobs offshoring forced by Wall Street caused.
The Republicans are using the fight over the limit on new public debt to block Obamacare. The Republicans are right to oppose Obamacare, but they are opposing Obamacare largely for ideological reasons when there are very good sound reasons to oppose Obamacare.
Last February 3, I posted on this website a column, “Obamacare: A Deception,” written by an expert on the subject. http://www.paulcraigroberts.org/2013/02/03/obamacare-a-primer/
When Republicans for ideological reasons blocked a single-payer health system like the rest of the developed world has and, indeed, even some developing countries have, the Obama regime, needing a victory, went to the insurance companies and told them to come up with a health care plan that the insurance lobby could get passed by Congress. Obamacare was written by the private insurance industry with the goal of raising its profits with 50 million mandated new customers.
Obamacare works for the insurance companies, but not for the uninsured. The cost of using Obamacare is prohibitive for those who most need the health coverage. The cost of the premiums net of the government subsidy is large. It amounts to a substantial pay cut for people struggling to pay their bills. In addition to the premium cost, it is prohibitive for hard pressed Americans to use the policies because of the deductibles and co-pays. For the very poor, who are thrown into Medicaid systems, any assets they might have, such as a home, are subject to confiscation to cover their Medicaid bills. The only people other than the insurance companies who benefit from Obamacare are the down and out who are devoid of all assets.
This might prove to be a growing percentage of Americans. On September 19 the New York Times on the front page of the business section reported what I have reported for years: that real median family incomes in the US are where they were a quarter of a century ago. In other words, in a quarter of a century there has been no income growth for the median American family.
In 2013 payroll employment is below where it was six years ago. During 2013 most of the new jobs, barely sufficient to stay even with population growth and insufficient to recover the job loss from the recession, have been part-time jobs that do not provide any discretionary income with which to drive a consumer economy.
Obamacare has resulted in the health insurance companies, who thought that they would be living in high profits from the mandated health coverage, being outsmarted by employers, who have reduced their full-time workers to part-time in order to avoid Omamacare’s requirement to provide health coverage to those employees who work 30 hours a week or more.
Employers can get away with this, because jobs are hard to find. The lack of employment opportunities results in Americans with engineering degrees working as retail sales clerks and as shelf stockers in Walmart and Home Depot. Despite the abundance of unemployed and under-employed American technical and engineering workers, the large corporations lobby Congress for more H-1B visas to bring in lowly paid foreigners with the argument that there is a shortage of qualified Americans for technical work.
As I have pointed out so many times, if there were a shortage of engineering and technical workers, salaries would be rising, not falling.
For millions of employees, Obamacare means cut hours and less take home pay plus out-of-pocket expenses to purchase an Obamacare health policy. For most people covered by Obamacare, this is a lose-lose situation.
It is also a lose-loss situation for the vast majority of the young. Most young people, unless they have jobs that provide health coverage, do without it, because the chances of the young having heart attacks, cancer, and other serious health problems is low.
Obamacare, however, requires the healthy young to pay premiums for coverage or to pay a penalty to the IRS.
In my day this might not have been a problem. However, today there are few jobs for the young that pay enough to have an independent existence. The monthly payroll jobs reports do not show well-paying jobs. The Labor Department’s projections of future jobs are not jobs that pay well. For the youth, it seems that the penalty is less than the premium, so youthful penalties paid out of waitress and bartender tips will subsidize the unusable Obamacare health policies for the poor adults who are not thrown into Medicaid, which confiscates their assets, if any.
Obamacare benefits only two classes of people. It benefits employers who drop their employees working hours below the hours specified for Obamacare coverage, and it benefits the insurance companies or the IRS who collect the premiums and penalties.
Many of the people who pay the premiums won’t be able to use the policies because of co-pays and deductions.
The very poor with no assets might receive health care if they reside in states that accept the Medicaid provisions of Obamacare.
In 21st century America, the few people who have experienced income gains are the executives and shareholders of firms who offshored their production for US markets, Wall Street which makes bets covered by the Federal Reserve, and the military-security complex which has been enriched by the neoconservatives’ wars.
Every other American has lost.
Monday, August 13, 2012
PAUL CRAIG ROBERTS: "THAT THE UNITED STATES HAS DEGENERATED INTO A POLICE STATE IN A SHORT PERIOD OF TEN YEARS SHOULD BE THE CAMPAIGN ISSUE."
The Next Election: High Stake Outcomes Based on Non-issues.
The election of the next puppet president of the “world’s only superpower” is about two and one-half months off, and what are the campaign issues? There aren’t any worthy of the name.
Romney won’t release his tax returns, despite the fact that release is a customary and expected act. Either the non-release is a strategy to suck in Democrats to make the election issue allegations that Romney is another mega-rich guy who doesn’t pay taxes, only to have the issue collapse with a late release that shows enormous taxes paid, or Romney’s tax returns, as a candidate who advocates lower taxes for the rich, don’t bear scrutiny.
What are Romney’s issues? The candidate says that his first act will
be to repeal Obamacare, a program that Romney himself first enacted as
governor of Massachusetts. This will cost Romney political contributions
from the insurance industry, which is thankful for the 50 million new
private insurance policies that Obamacare, written not by Obama but by
the private insurance companies, provides at public expense. It is not
to the insurance industry’s benefit to have a single payer system like
other western countries.
Romney’s other issue is to blame Obama for America’s unemployment
caused by the offshoring of the US economy by Republican corporate CEOs.
In order to enhance their compensation packages, the Republican CEOs
sent millions of America’s best jobs to India, China and elsewhere. The
lower cost of labor in these offshore sites means much higher earnings,
which drives up share prices for shareholders and drives up performance
bonuses for management, while wrecking US employment, GDP growth and tax
base and driving up the deficit in the balance of payments.
America’s main economic problem–the relocation of the US economy
offshore–is not a campaign issue. Therefore, the US economy’s main
problem will remain unaddressed.
The real issues can nowhere be found in the campaigns or in the
media. There is no mention of the Bush/Obama destruction of the US
Constitution and its legal protections of citizens from arbitrary
government power. Due process no longer exists for anyone who the
executive branch suspects of being connected in any way to Washington’s
chosen enemies. US citizens can be thrown into dungeons for life on
suspicion alone without any evidence ever being presented to a court,
and they can be executed any place on earth, along with whoever happens
to be with them at the time, on suspicion alone.
Last May federal district court judge Katherine Forrest ruled that
indefinite detention of US citizens is unconstitutional and issued an
injunction against the Obama regime using this police state measure in
the National Defense Authorization Act (NDAA). The Obama regime gave the
federal judge the finger. During the week of August 6-10 the Justice
(sic) Department’s Brownshirt lawyers refused to tell Judge Forrest if
the Obama regime is complying with the injunction. The position of the
Obama regime is: “we are above the law and do not answer to federal
courts.” One would think that Romney would be all over this, but he
isn’t because he wants the power himself. (http://rt.com/usa/news/ndaa-injunction-tangerine-detention-376/print/)
The Obama police state will shop around and find a federal appeals
court dominated by Republican Brownshirt judges and get Judge Forrest’s
ruling overturned. All those Republican federal judges we had to have to
save us from liberal Democrats will now complete our deliverance to a
total police state where all power rests in an unaccountable executive
branch.This is what the Republican Federalist Society has wanted for
years, and they are on the verge of obtaining it.
That the United States has degenerated into a police state in the
short period of ten years should be the campaign issue. Who would ever
have thought such a thing possible. Yet, there is no mention of the
destruction of the rule of law in the name of a hoax “war on terror.”
The Bush regime created the propaganda that “they (Muslims) hate us
for our freedom and democracy,” but how can Muslims hate us for what
does not exist? The arbitrary unaccountable power asserted by the
executive branch is totally incompatible with freedom and democracy.
Yet, neither Obama nor Romney makes this an issue. And neither does the
media.
There is no war on terror. There is war on countries that are not
Washington’s puppet states. Unaccountable Washington is currently
slaughtering thousands of Muslims in a variety of countries and is
preparing Syria as its next holocaust. Washington, taking advantage of
the splits between Sunnis and Shi’ites and between Islamists and secular
Muslims, has organized a rebellion in Syria in order to overthrow a
government that is not a puppet of Washington and Israel.
Among the foreigners streaming into Syria to overthrow the secular
state in which Sunni and Shia Arabs have lived peacefully, are the
Islamist extremists that Washington has squandered $6 trillion fighting
for 11 years. The extremists are on Washington’s side. They want the
secular Syrian government overthrown, because it is not an Islamic
government.
This suits Washington’s policy, so now the taxes extracted from
hard-pressed Americans are flowing to the Islamists that Americans have
been fighting.
Speaking before the Council on Foreign Relations on August 8, Obama’s
national security aid John Brennan defended the diversion of American
taxpayers’ money to the outside forces Washington has organized,
financed and provided with military weapons to overthrow the government
of Syria. John Brennan said, with a straight face, that the Obama
administration is careful that the financial and military aid does not
go to the rebels affiliated with al Qaeda. Brennan has to make this
claim, because the Obama regime, being in cahoots with al Qaeda, is in
violation of its own NDAA and is subject to arrest and indefinite
detention.
Does anyone believe that Washington, determined to overthrow the
Syrian government, is refusing to arm the most effective part of the
fighting force that is involved? Is there anyone so naive not to know
that military aid to “rebels” is fungible?
Having suffered damage to its superpower reputation by being fought
to a standoff by a few thousand al Qaeda in Iraq and Afghanistan,
Washington learned that the trick was to employ al Qaeda not as an
enemy but as an ally.
The test case was in Libya, where the US-al Qaeda alliance worked to
overthrow the Libyan government. The advantage for Washington is that
Libya is now beset by warring factions and is no longer a country that
could get in Washington’s way.
Libya is the roadmap for Syria.
Syria made its mistake when it thought it could pacify Washington by
taking Washington’s side in the first war against Iraq, thus confirming
for Washington that Arabs are incapable of sticking together and thus
are an easy mark to be overthrown.
If Syria falls, Washington will have murdered yet another nation.
But this is not a part of the presidential debate. Both candidates
agree that Washington should prevail in establishing a puppet state in
Syria. Even Amnesty International has been suborned and lends its
influence to the demonization of the Syrian government. Only the US is
moral, indispensable, virtuous, humane, a light upon mankind. By
definition, any opponent chosen by Washington is debauched, evil,
sinful, a country that suppresses dissent and tortures its opponents,
something Washington would never do, being, of course, the “light unto
the world.”
Unlike the 1957 plot by British Prime Minister Harald Macmillan and
US President Dwight Eisenhower to foment an “uprising” in Syria and
assassinate the Syrian leadership (see http://globalresearch.ca/index.php?context=va&aid=32254),
the Obama administration cloaks its intervention in humanitarian
language, as do the rebels while they murder and execute civilians who
support the Assad government. The presstitute western media describes
the mayhem and murder as “humanitarian intervention,” and the
brainwashed western public reposes in its moral superiority.
After Syria is destroyed, the last independent country in the region
is Iran. Iran has also been weakened, not by Washington’s embargo, an
act of war in itself, but by Washington’s financing of the “Green
Revolution.” Iran now has a fifth column within itself.
Iran, the second oldest country after China, is now surrounded by 40
or more US military bases and is confronted by four US fleets in its own
Persian Gulf.
There is a large number of nominal Muslims interested only in money
and power who are working with Washington to overthrow the Syrian and
Iranian governments.
If Iran falls, with both Russia and China surrounded by US missiles
and military bases, the world as we know it will enter its final stage.
Will Russia and China, having sacrificed all their buffers without a
fight, surrender and be content to be ruled by puppet governments, or
will they resist?
Don’t expect the packaged political campaign of the next couple of
months to deal with any significant issue. Americans are oblivious of
their fate, and so apparently is the rest of the world.
The selection of the next president of the US will depend on one
thing alone–which of the two candidates financed by the ruling private
oligarchy has the most effective propaganda.
Whether you vote Republican or Democrat, the oligarchs will win.
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Thursday, August 09, 2012
WHILE DOCTORS BRIBED BY BIG PHARMA TO RECOMMEND THEIR DANGEROUS MEDS MAY CONTINUE TO DO WELL (see yesterdays post), YOUR HONEST, COMPETENT PERSONAL DOCTOR MAY SOON BE FORCED TO GIVE UP HIS/HER PRIVATE PRACTICE DUE TO INCOME REDUCTIONS IMPOSED BY THE U.S. GOVERNMENT ON PRIVATE PRACTICE AND THE CRIMINALIZATION OF EVERY ASPECT OF MEDICAL PRACTICE. THIS MUST-READ ARTICLE IS AS POETIC AS IT IS COMPREHENSIVE AND AUTHORITATIVE.
Reflections on a Medical Career by Robert S. Dotson, M.D.
The Impending Collapse of American Medicine
Just as is every issue in the US, Obamacare and the wider question of
the state of American health care are obscured by propaganda and
disinformation. In the article below, Dr. Robert S. Dobson looks back on
a lifetime of medical practice and provides facts and insights that
might help us to understand our situation.
The US medical system is the most expensive on earth without being
the best and without providing full coverage. One-sixth of the American
population has no medical coverage.
There are two main reasons that US medicine is so expensive. One is
that profits are piled upon profits. In addition to wages and salaries
for doctors, nurses, and medical personnel, the American health care
system has to provide profits for private hospitals, diagnostic centers,
insurance companies, and for the accountants, attorneys and management
consultants made necessary by the enormous litigation and regulatory
compliance cost. American medicine is the most regulated in the world
and the most criminalized.
What “Obamacare” does is to divert Medicare and Medicaid monies to
the profits of private insurance companies. Instead of providing
medical care to those in need, the taxpayers’ money will provide bonuses
for insurance executives and profits for their shareholders. It is the
height of folly for Obama worshipers to defend a law written by the
private insurance companies that uses public revenues to provide
insurers with 50 million more customers and to add yet another layer of
profits to the cost of American medicine.
Reflections on a Medical Career
Robert S. Dotson, M.D.
Robert S. Dotson, M.D.
All lovely things will have an ending, All lovely things will
fade and die; And youth, that’s now so bravely spending, Will beg a
penny by and by.
-Conrad Aiken (“Disenchantment IV”- 1916)
Thirty years have passed since a much younger physician opened his
ophthalmology practice in East Tennessee. A lifetime of hopes and
expectations, intermingled with the usual collection of fears and
uncertainties, has sped past at blinding speed. Children came, grew up,
and moved on to their own lives. Parents and grandparents, aunts and
uncles, many friends and colleagues have returned to dust in advance of
their fading photos.
Patients and their parents and children and grandchildren have moved
in and out of this world, too, inextricably woven into the fabric of my
life. Sadly, a few may have been hurt by lapses in judgment or the
arrogance of youthful physician pride and overconfidence. But, at the
end of the day, most were helped. I was fortunate to be recognized as a
“doctor’s doctor” early on and, though there was no attendant reward
other than the respect of peers, that was a sufficiently gratifying
laurel to carry.
As in any human story, joy and pain, love and sorrow, have marked
these same years. The Millstone of Time has also worn away foolish
aspirations and vainglorious pretensions. There is no one left to
impress, no accolades to seek, no rank to which to aspire. Consequently,
I feel freed to offer some end-of-life reflections on my profession and
career.
Any thinking American knows that there is something terribly wrong
with the health care system in this country. Throughout my career, the
political ruling elite has been enacting piecemeal a version of
“universal” healthcare coverage to satisfy the demands of an
increasingly vocal, but also increasingly disenfranchised citizenry. Our
overlords, of course, have been more motivated by enhancing corporate
bottom lines and enriching themselves, than in genuinely helping the
peasantry.
Every U.S. President since Kennedy in 1962 has dealt with the issue
in one way or another – by policy statement or passage of legislation.
LBJ oversaw the creation of Medicare and Medicaid in 1965. Nixon oversaw
the passage of the HMO Act (Health Maintenance Organization) in 1973
and ERISA (Employee Retirement Income Security Act) in 1974. Amazingly,
he also introduced CHIA (Comprehensive Health Insurance Act) in 1974.
Even more incredible was the spectacle of Ted Kennedy working to ensure
its defeat. Doubtless, Kennedy regretted that in future years. Following
the untimely departure of the 37th President, Gerald Ford signed ERISA
into law in 1974 on his behalf, thereby introducing some minimal
regulations to ensure that separated employees could maintain benefits,
such as health insurance, for a limited time.
Carter campaigned in favor of National Health Insurance, but failed
to pass anything similar during his time in office. He cited Kennedy’s
opposition to CHIA and to his own proposals as the main reason for
failure. Reagan’s era witnessed the passage of EMTALA (Emergency Medical
Treatment and Active Labor Act) and COBRA (Consolidated Omnibus Budget
Reconciliation Act) in 1986 that, among other things, provided for
emergency medical treatment coverage for anyone who could drag
themselves into an emergency room (of course, such a visit might
bankrupt them unless they were lucky enough to be an illegal alien).
Medical labs and imaging centers (and, the providers staffing them) were
given “special attention” under CLIA (1988).
The first President Bush had little time for national health care
issues, as he was primarily focused on launching the NWO. Poppy’s
“Thousand Points of Light” degenerated into in-coming tracers from the
illuminated Angel of Death – simply more “peace, freedom and liberty”
being delivered to millions of innocents across Battlefield Earth. It
seems so trivial now, but Bush was unseated after reneging on his pledge
of “no new taxes,” not for offshoring the US economy or taking the
first step toward turning US foreign policy into the pursuit of world
hegemony.
The Clinton administration tried to force through “Hillarycare” in
1993, but met with stiff opposition from their Republican opponents (of
course, the opposition was due to perceived threats to corporate profit
margins). Nonetheless, Team Clinton was able to push through HIPAA
(1996) (Health Insurance Portability and Accountability Act) and SCHIP
(1997) (State Children’s Health Insurance Program) which, contrary to
the titles of the acts, neither improved health insurance portability or
accountability nor improved the health of children.
The Clinton White House had more important fish to fry: war in the
Balkans; the liberal distribution of depleted uranium and cruise
missiles across the globe; test wars on Americans at places like Ruby
Ridge, Waco, and Oklahoma City (OKC); the appearance of numerous
“Arkan-cide” victims whose mortal remains seemed to be discovered at the
most inconvenient times; and, a semen-stained blue dress. The first
versions of the Patriot Act were trotted out in response to the false
flag event of OKC, but Congress and even the Imperial Senate balked at
moving so precipitously toward the New Amerikan Security State.
The ascension of son Bush and his neoconservative cabal turned the
government to the drive toward world hegemony. The serendipitous events
of 9/11 opened the door for passage of the neocon’s PATRIOT Act and for
the still on-going implementation of their Project for the New American
Century (PNAC). New alphabet agencies like DHS and TSA were created to
augment existing departments and agencies (FDA, DHHS, IRS, FTC, FCC,
EPA, FEMA, DEA, BATF, FBI, NSA, CIA, and DOD) charged with dominating
the nation and the planet beyond. Orwell’s dystopia, 1984, became
reality: “War is Peace. Freedom is Slavery, Ignorance is Strength.”
President Bush modeled Big Brother’s third slogan for an admiring
populace more concerned with Harry Potter and Janet Jackson’s nipple
than with the deadly machinations of the psychopath in charge.
It seems likely that steps toward the Third World War were taken
during Bush II’s reign with “war, war, WAR” being unconstitutionally
declared against the nebulous (some might say, non-existent) terrorists
lurking under every bed and in every closet, cave, and country on the
planet. In spite of a premature proclamation of “Mission Accomplished”
from a flag-festooned carrier in 2003 by the Decider-In-Chief, the
killings have continued with little pause up to this day. The Great
Decider used the opportunity of “victory” abroad, however, to turn his
attention to the healthcare needs of his subjects.
What could be a better bone to throw to the peasants than the
expansion of pharmaceutical coverage for those under Medicare? And, what
could be a better pay-off for corporate buddies than massive new
government wealth transfers of taxpayers’ dollars to Big Pharma via
such a plan? It was a perfect “win-win” for the oligarchs at the top of
the pyramid and a “lose-lose” for the peons at the bottom. To the great
joy of Big Pharma, the Medicare Prescription Drug, Improvement and
Modernization Act (Medicare, Part D) was launched in 2003 to insure
unimaginable profits for its corporate members and more expense for the
common people it was alleged to help. As in any casino, our healthcare
croupiers are well trained to leave no dollar on the table.
President Obama, a corporate stooge par excellence, was able to ram
through “universal healthcare” with the help of a Howdy Doody smile, his
corporate sponsors, and the slavish devotion of an ever-delusional,
pseudo-Left. It mattered not that the legislation was written by the
insurance companies who had been profiting from the misery of patients
for decades.
It is no accident – and would be comical, if it were not so serious –
that there will be no true, equitable national health care system under
the Patient Protection and Affordable Care Act of 2010 (aka,
“Romneycare II” or “Obamacare” or, lately, “Robertscare” in homage to a
Supreme Court judge) and its accompanying legislation, the Health Care
and Education Reconciliation Act. No Single Payer. No mutual insurance
system that provides a basic level of healthcare for the proles of this
collapsing Security State. Instead, we are witnessing the imposition of a
system that will further enslave and impoverish the peasants here in
Gulag Amerika. How poetic that a self-identifying “black man” is the
front for resurrecting a 21st century version of chattel slavery in the
twilight years of Empire.
Obama was positively beaming in his many photo-ops with the
sponsoring corporatist representatives of Corporate Medicine, Big
Insurance, Big Pharma, and Big Government who enabled the Prince of
Change to achieve this milestone deception of America. The very fact
that this “wonderful” new system – lauded by supporters as
“revolutionary” – is to be enforced by a projected army of 16,500 new
IRS agents should give us pause.
Notwithstanding passage of the legislation, decades of bad healthcare
policy and corporatist plunder are finally taking their toll. The
collapse of the ill-conceived US health care system might be near.
Ever more intrusive regulations are driving up the cost of medical
care, and the practice of medicine is being criminalized. Even with all
of their flaws, Medicare and Medicaid have provided a safety net for the
elderly and disadvantaged since their inception. Those systems’ days
are numbered, however, as they are being gutted to turn health care into
profits not for doctors and hospitals but for insurance companies and
Big Pharma. For starters, large sums have been ear-marked to be taken
from Medicare and Medicaid to help fund PPACA (Patient Protection and
Affordable Care Act). Is looting Social Security and Medicare “change
one can believe in”?
If this system is bad for patients, what does it mean for doctors? It
means falling reimbursement rates and rising overhead costs for
providers, onerous government mandates and regulations, and
institutionalized, legalized larceny by Big Pharma, Big Insurance and
Corporate Medicine. As an example of how time and circumstance have
affected my own profession of ophthalmology, one need only look at
Medicare approved reimbursement rates for cataract surgery.
In reflecting back over my many years in the field of ophthalmology
(as of this writing, I am 63 years old and feeling pretty shop-worn), I
am staggered by the changes that have occurred. When I opened my
practice in 1982, Medicare approved surgical fees for cataract and
implant surgery were near $1200. By 2012, that approved charge had
dropped to about $570 in Tennessee. (There is some variance within
states based on rural versus metro areas and between states where some
are declared to have higher costs of doing business.)
Additionally, the US dollar has declined in value an average of
almost 2.5% per year over the past 30 year period. Needless to say,
overhead operating costs – salary, rent, insurance, personnel costs,
taxes, and normal business expenses – have exploded during this same 30
year period. My office rent was raised 20% in the Fall of 2011, for
instance.
To further illustrate the absurdity of the situation, it is worth
recounting an anecdote. Several years ago, a patient excitedly told me
of the vision restoring cataract surgery that her poodle had received at
the local veterinary college. It “only cost $2600 for both eyes!” At
the time, Medicare was paying about $1400 for two eyes in a human –
including work up, surgical fee, post-op care for 90 days, and the very
real liability associated with being a physician in a litigious society.
I do not begrudge my animal doctor friends their success, but surely
the worth of human care should at least approximate that for a poodle.
Although I know veterinarians who are struggling in their own practices
due to the economic recession, at least they do not have to deal with
government fee-setting and the liability and costs associated with
treating humans. They are able to price their services sufficiently to
keep their practices open and to provide for their own health care and
retirement.
In my own practice, the amount of “write off” on charges for
legitimate services rendered began to climb as we entered the 21st
Century. For years, the “disallowed” charges by Medicare and private
insurers resulted in “discounts” of 20-25%. As the economic upheaval of
2008 rolled around, those fee adjustments (actually theft of labor from
providers) began to climb – 30%, 32%, 35%, and in my last year of
practice over 60%! For years, I had been able to subsidize my Medicare
(cataract) side of the practice by offering elective refractive surgery
procedures (LASIK, PRK, etc.) to my patients. As these were private pay
cases, they offset the draconian cuts in Medicare and insurance fee
“adjustments.” The economic collapse of 2008, however, reduced that
income stream for many ophthalmologists and, subsequently, led to the
closing of many practices throughout the country.
Most general ophthalmologists are, by definition, primarily cataract
surgeons. Many people – including Medicare recipients – do not realize
that the fees paid to their physician are fixed by the U.S. Government
after consultation with its many corporate sponsors within Big
Insurance, Big Pharma, and Corporate Medicine. Patients also do not
realize that those reimbursement levels are set by central planners at
below-cost levels.
Medicare issues cut across all specialties, and ophthalmology has not
been alone in experiencing cutbacks. Primary care physicians have
increasingly become “piece good workers” – managed by corporate pencil
pushers to see a patient every 6-8 minutes while being forced to carry
all the liability and manage all the data and coding previously done by
insurers. Who can diagnose, much less treat a patient in 6-8 minutes?
My own solo cardiologist was forced to close his practice last Fall
and seek employment with an area hospital, due to declining
reimbursement levels. More than 51% of cardiologists in the U.S. are now
hospital employees. One of my medical school classmates, a successful
internal medicine specialist, has recently given up the fight and has
plans to enter some other line of work. Several friends in Radiology
have seen their incomes decline as more and more work is “outsourced” to
tele-docs in Asia. Still other long-time friends who are general
surgeons are struggling to survive (a surgical fee for incisional
cholecystectomy, for instance, is now under $400). Several have retired
prematurely and others are looking for other work to do. As a final
example, another of my friends is one of five physicians in a busy
urology practice (2 offices and 26 employees) and they are now borrowing
from the bank to make payroll. A recent article from CNN, “Doctors
Going Broke,” confirms the growing problem. http://money.cnn.com/2012/01/05/smallbusiness/doctors_broke/index.htm
As income reductions are being imposed on private practice, costs are
being driven up by exploding regulations. In addition, the plethora of
new mandates and laws have increasingly criminalized every aspect of the
practice of medicine and created vast new armies of armed bureaucrats
whose sole aim is to impose civil and criminal penalties on any provider
unlucky enough to be singled out for attention. The old Soviet dictum
attributed to Lavrenti Beria (Stalin’s NKVD chief), “Show me the man and
I’ll find you the crime,” is in full force in Amerika.
The present puppet in the White House has completed the work begun by
his predecessors in moving the nation into a police state. The NDAA
passed in the Fall of 2011 was the final nail in the coffin of personal
freedoms guaranteed by the US Constitution. By suspending habeas corpus
and even trial by judge or jury, the Act has made certain that no person
is safe from being violated by a power-mad Security State. At the mere
movement of the Unitary Executive’s pen, it is now permissible to
“disappear” or even execute anyone on the planet – all on the whim of
the unaccountable psychopath in charge. Judge Andrew P. Napolitano, has
reported that our present Unitary Exec spends every Tuesday morning
reviewing and signing off on a kill list supplied by his loyal minions.
Nobel Peace Prize worthy stuff, indeed!
One is presumed guilty now in Amerika until proven otherwise and
nowhere has this been more demonstrated than in the policing of
medicine. Heaven help the poor provider who is targeted by the Medicare
Police – or now, one supposes, by the new IRS Medical Special Branch. If
targeted, his or her practice will be shut down without due process.
His or her assets will be seized without due process (assuring the
inability to even defend oneself). Finally, the unlucky
guilty-until-proved-innocent physician will be permanently discredited
(libeled) in his or her community with the ready help of the
Government’s countless propaganda organs – press, radio, and TV – all
before any day in court is seen.
New restrictions, rules, and regulations on healthcare – on providers
and patients alike – have imposed legal constraints with which full
compliance is impossible. Medicare rules and regs alone fill tens of
thousands of pages, and ignorance of any of them is no defense for the
unlucky. The original HIPAA legislation has been amplified with many
additions since its inception in 1996: FERPA, HITECH, ARRA (2009). Each
additional act or regulation has further criminalized the practice of
medicine.
Finally, the entire health care system is being forced to switch to
electronic health records (EHRs) and, soon, to a completely new coding
system (from ICD-9 to ICD-10). Failure to comply with these mandates
will result in further reductions in provider payments with every year
that they remain unimplemented. For a solo physician practice, it is
estimated that each mandate will cost as much as $80,000 to implement
initially and, then, $10-15,000 annually to maintain. For
multi-physician practices, costs run as high as three times (or more)
that of a single provider practice. Of course, the purpose behind all of
this is to make each person’s most private and personal information
available to government bureaucrats and regulators while also ensuring
its accessibility to the Security State’s many law enforcement tentacles
and to all the corporate members of the Medical-Industrial complex.
Unfettered access to this information will ensure that the Corporate
State can maximize its profits, largely avoid all risk and liability,
and eliminate any potential competition (such as, often cheaper and more
effective alternative medicine providers and therapies, non-GMO whole
foods, and nutritional supplements). It will also ensure that medicine
is practiced/delivered within strict cookbook guidelines that are
carefully written by non-physician bureaucrats to maintain corporate
profits and government power. All of this is well along in
implementation.
A recent article, “Efforts to implement Obamacare law raise concerns
of massive government expansion” from Fox News, 5 July 2012, (http://www.foxnews.com/politics/2012/07/03/efforts-to-implement-obamacare-law-raise-concerns-massive-government-expansion/#ixzz1ziuZDCSV)
informs us that lawyers have already “drafted more than 13,000 pages of
Obamacare regulations and that this number will increase further over
coming months. In addition, we are told that DHHS (Department of Health
and Human Services) has been given more than one billion dollars to date
in order to begin oversight of this mess and that more than 180
“commissions, boards, and bureaus” within the Agency are already hard at
work implementing the final destruction of American medicine.
Widespread vaccination of the population with untested “stabs” will
be mandated and enforced. As long predicted by Tin Hatters around the
planet, this will permit biometric “nano-chipping” of the citizenry
without the unpleasant need to ask their permission.
Vast sums will be committed to “preventive” medicine which will
prevent nothing and will only expand the reach of the Medical-Industrial
complex into every nook and cranny of a person’s life – and, into every
wallet. Certain corporate profit-driven diets and treatment regimens
will be mandated and enforced; access to nutritional supplements and
alternative medicine practices will be limited or banned altogether;
behavior patterns of all types will be monitored and carefully scripted
and controlled (what we see, hear, read, do, eat, drink, and breathe –
where and how we work, play, and live) under the guise of State Security
concerns and its new companion, Public Health or Public Good; and,
finally, the Corporate State will deploy “death panels” to decide when a
person has outlived his or her economic usefulness to the State. In
spite of Obama’s denials that such bodies exist and Palin’s
diversionary, hysterical rantings at Tea Party rallies, there is clear
provision in the Act for bureaucratic decision-making bodies which will
make end-of-life decisions for us all. These entities are already being
formed and deployed across the land. Our Anglo cousins in the UK are
showing us the way by withholding food and fluids from as many as 29% of
their hospital patients now who are judged to be living beyond their
government-dictated “use-by” dates (pragmatically justified “to free up
beds” – oh, those Brits and their refined sense of humor).
What can be done about the failing American health care system and
the wider collapse of the economy and civil liberty? Frankly, very
little. The system is rigged against the people as it has always been,
only now one can be “black-bagged” and disappeared at any time. Protest
too loudly and one is liable to literally see a grim Reaper overhead
with one’s personal biometrics programmed into its fire control system.
Like every other institution within the United States, the medical
system is totally and completely broken. It can no longer be fixed by
“voting” for the lesser of evils, by printing bales of fiat currency, or
even by deploying fleets of obsolete aircraft carriers across the
planet.
If as it seems we are arriving at the end of an age, if we can
survive the end, something better might arise from the ashes. The
prospect of collapse turns one’s thoughts to escape and survival. Can
you do either? Volumes have been written about preparedness in a time of
chaos, so I will spare readers a rehash. But, a few comments about
healthcare, in particular, might be in order.
In a perfect world, it is my opinion that we should have some form of
single payer healthcare system and divorce ourselves from corporate
medicine. In my opinion, this will not happen without the complete
collapse of the present system. Since that is unlikely to occur before
more seasons of national election fraud are imposed on us, a few
“in-the-meantime” suggestions follow:
Avoid contact with the existing health care system as far as
possible. Yes, emergencies arise that require the help of physicians,
but by and large one can learn to care for one’s own minor issues.
Though it is flawed, the internet has been an information leveler for
the masses and permits each person to be his or her own physician to a
large degree. Take advantage of it! Educate yourself about your own body
and learn to fuel and maintain it as you would an expensive auto or a
pet poodle. One does not need a medical degree to:
1. avoid excessive use of tobacco or alcohol or, for that matter, caffeine;
2. avoid poisons like fluoride, aspartame, high fructose corn syrup, and addictive drugs (legal or illicit);
3. avoid unnecessary and potentially lethal imaging studies (TSA’s radiation pornbooths, excessive mammography, repetitive CT scans – exposure to all significantly increases cancer risk);
4. avoid excessive cell phone use and exposure to other forms of EMR pollution where possible (the NSA is recording everything you say and text anyway);
5. avoid daily fast food use and abuse (remember: pink slime and silicone) ;
6. avoid untested GM foods (do you really want to become “Roundup Ready?”):
7. avoid most vaccinations and pharmaceutical agents promoted by the establishment;
8. avoid risky behaviors (and, we do not need a bunch of Nanny State bureaucrats to define and police these);
9. exercise moderately;
10. get plenty of sleep;
11. drink plenty of good quality water (buy a decent water filter to remove fluoride, chloride, and heavy metals);
12. wear protective gear at work and play where appropriate (helmets, eye-shields, knee and elbow pads, etc.):
13. seek out locally-grown, whole, organic foods and support your local food producers;
14. take appropriate nutritional supplements (multi-vitamins, Vitamin C, Vitamin D3);
15. switch off the TV and the mainstream media it represents;
16. educate yourself while you can;
And, lastly…
17. QUESTION AUTHORITY!
Doing these simple, common-sense things will add healthy years to a
person’s life and help one avoid most medical encounters during his or
her allotted time on earth.
Finally, we have a responsibility to our neighbors and our families.
We need to reach out to those around us – talk to them, listen to them –
sympathize and empathize. Take time especially to listen to those who
are in pain and are suffering and to help them by being humane. If you
do this, you will discover that we have more in common with each other
than the ruling elite wants us to believe. Governments obtain power and
control by taking advantage of divisions along religious, ethnic, class,
economic, ideological, and nationalistic lines. We must awaken to this
fact if the 99% are to prevail against the 1%.
As for me, I was finally forced to close my practice earlier this
year. Nearly two years of consulting with multiple attorneys,
accountants, practice management consultants, and bankers, and expending
most of my resources in a vain effort to keep operating, were simply
not enough. It seemed only poetic that April Fool’s Day 2012 should be
chosen for turning out the lights and ringing down the curtain. Patients
and employees and suppliers were notified of the end. Many had been
with me for my entire career and leaving them was and remains painful.
More than nine thousand active charts were transferred to the care of a
younger ophthalmologist still trying to stay afloat.
I share the heartache of many physicians forced out of medicine by
the high cost of practicing it. As the health system is stripped of
medical care in behalf of corporate profits, its exploitative character
will become clear to all. In the meantime, don’t give in or give up.
Plan for something better on the other side of chaos.
I wanted a perfect ending. Now I’ve learned, the hard way, that
some poems don’t rhyme, and some stories don’t have a clear beginning,
middle and end. -Gilda Radner
Glossary of Terms:
ARRA American Recovery and Reinvestment Act of 2009CHIA Comprehensive Health Insurance ActCIA Central Intelligence AgencyCLIA Clinical Laboratory Improvement Amendments of 1988 – administered by CMSCMS Centers for Medicare and Medicaid ServicesCOBRA Consolidated Omnibus Budget Reconciliation Act of 1985DHHS Department of Health and Human ServicesDHS Department of Homeland SecurityDOD Department of DefenseEMR Electromagnetic radiationEMTALA Emergency Medical Treatment and Active Labor Act – part of COBRA1986EPA Environmental Protection AgencyERISA Employee Retirement Income Security ActFEMA Federal Emergency Management AgencyFBI Federal Bureau of InvestigationFDA Food and Drug AdministrationFERPA Family Educational Rights and Privacy Act (1974 original legislation)GM Genetically modifiedHCERA Health Care and Education Reconciliation Act of 2010 – supplement to PPACAHIPAA Health Insurance Portability and Accountability ActHITECH Health Information Technology for Economic and Clinical Health Act (2009)HMO Health Maintenance OrganizationICD-10 International Statistical Classification of Diseases and Related Health Problems 10th RevisionIRS Internal Revenue ServiceNDAA National Defense Authorization ActNSA National Security AgencyNWO New World OrderPPACA Patient Protection and Affordable Care ActSCHIP State Children’s Health Insurance ProgramTSA Transportation Security AdministrationUSAPA Unifying and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism – aka, The Patriot Act
Sunday, July 22, 2012
THE LIBOR SCANDLE: PAUL CRAIG ROBERTS' VIEWS "IN FULL PERSPECTIVE," JULY 19TH
The Libor Scandal In Full Perspective
July 19, 2012 Original here
The article about the Libor scandal, coauthored with Nomi Prins,
received much attention, with Internet repostings, foreign translation,
and video interviews. To further clarify the situation, this article
brings to the forefront implications that might not be obvious to those
without insider experience and knowledge.
The price of Treasury bonds is supported by the Federal Reserve’s
large purchases. The Federal Reserve’s purchases are often misread as
demand arising from a “flight to quality” due to concern about the EU
sovereign debt problem and possible failure of the euro.
Another rationale used to explain the demand for Treasuries despite
their negative yield is the “flight to safety.” A 2% yield on a
Treasury bond is less of a negative interest rate than the yield of a
few basis points on a bank CD, and the US government, unlike banks, can
use its central bank to print the money to pay off its debts.
It is possible that some investors purchase Treasuries for these
reasons. However, the “safety” and “flight to quality” explanations
could not exist if interest rates were rising or were expected to rise.
The Federal Reserve prevents the rise in interest rates and decline in
bond prices, which normally result from continually issuing new debt in
enormous quantities at negative interest rates, by announcing that it
has a low interest rate policy and will purchase bonds to keep bond
prices high. Without this Fed policy, there could be no flight to
safety or quality.
It is the prospect of ever lower interest rates that causes investors
to purchase bonds that do not pay a real rate of interest. Bond
purchasers make up for the negative interest rate by the rise in price
in the bonds caused by the next round of low interest rates. As the
Federal Reserve and the banks drive down the interest rate, the issued
bonds rise in value, and their purchasers enjoy capital gains.
As the Federal Reserve and the Bank of England are themselves fixing
interest rates at historic lows in order to mask the insolvency of their
respective banking systems, they naturally do not object that the banks
themselves contribute to the success of this policy by fixing the LIbor
rate and by selling massive amounts of interest rate swaps, a way of
shorting interest rates and driving them down or preventing them from
rising.
The lower is Libor, the higher is the price or evaluations of
floating-rate debt instruments, such as CDOs, and thus the stronger the
banks’ balance sheets appear.
Does this mean that the US and UK financial systems can only be kept
afloat by fraud that harms purchasers of interest rate swaps, which
include municipalities advised by sellers of interest rate swaps, and
those with saving accounts?
The answer is yes, but the Libor scandal is only a small part of the
interest rate rigging scandal. The Federal Reserve itself has been
rigging interest rates. How else could debt issued in profusion be
bearing negative interest rates?
As villainous as they might be, Barclays bank chief executive Bob
Diamond, Jamie Dimon of JP Morgan, and Lloyd Blankfein of Goldman Sachs
are not the main villains. The main villains are former Treasury
Secretary and Goldman Sachs chairman Robert Rubin, who pushed Congress
for the repeal of the Glass-Steagall Act, and the sponsors of the
Gramm-Leach-Bliley bill, which repealed the Glass-Steagall Act.
Glass-Steagall was put in place in 1933 in order to prevent the kind of
financial excesses that produced the current ongoing financial crisis.
President Clinton’s Treasury Secretary, Robert Rubin, presented the
removal of all constraints on financial chicanery as “financial
modernization.” Taking restraints off of banks was part of the
hubristic response to “the end of history.” Capitalism had won the
struggle with socialism and communism. Vindicated capitalism no longer
needed its concessions to social welfare and regulation that capitalism
used in order to compete with socialism.
The constraints on capitalism could now be thrown off, because
markets were self-regulating as Federal Reserve chairman Alan Greenspan,
among many, declared. It was financial deregulation–the repeal of
Glass-Steagall, the removal of limits on debt leverage, the absence of
regulation of OTC derivatives, the removal of limits on speculative
positions in future markets–that caused the ongoing financial crisis. No
doubt but that JP Morgan, Goldman Sachs and others were after maximum
profits by hook or crook, but their opportunity came from the
neoconservative triumphalism of “democratic capitalism’s” historical
victory over alternative socio-politico-economic systems.
The ongoing crisis cannot be addressed without restoring the laws and
regulations that were repealed and discarded. But putting Humpty-Dumpty
back together again is an enormous task full of its own perils.
The financial concentration that deregulation fostered has left us
with broken financial institutions that are too big to fail. To
understand the fullness of the problem, consider the law suits that are
expected to be filed against the banks that fixed the Libor rate by
those who were harmed by the fraud. Some are saying that as the fraud
was known by the central banks and not reported, that the Federal
Reserve and the Bank of England should be indicted for their
participation in the fraud.
What follows is not an apology for fraud. It merely describes consequences of holding those responsible accountable.
Imagine the Federal reserve called before Congress or the Department
of Justice to answer why it did not report on the fraud perpetrated by
private banks, fraud that was supporting the Federal Reserve’s own
rigging of interest rates (and the same in the UK.)
The Federal reserve will reply: “So, you want us to let interest
rates go up? Are you prepared to come up with the money to bail out the
FDIC-insured depositors of JPMorganChase, Bank of America, Citibank,
Wells Fargo, etc.? Are you prepared for US Treasury prices to collapse,
wiping out bond funds and the remaining wealth in the US and driving up
interest rates, making the interest rate on new federal debt necessary
to finance the huge budget deficits impossible to pay, and finishing off
what is left of the real estate market? Are you prepared to take
responsibility, you who deregulated the financial system, for this
economic armageddon?
Obviously, the politicians will say NO, continue with the fraud. The
harm to people from collapse far exceeds the harm in lost interest from
fixing the low interest rates in order to forestall collapse. The
Federal Reserve will say that we are doing our best to create profits
for the banks that will permit us eventually to unwind the fraud and
return to normal. Congress will see no better alternative to this.
But the question remains: How long can the regime of negative
interest rates continue while debt explodes upward? Currently, everyone
in the US who counts and most who don’t have an interest in holding off
armageddon. No one wants to tip over the boat. If the banks are sued
for damages and lack the money to pay, the Federal Reserve can create
the money for the banks to pay.
If the collapse of the system does not result from scandals, it will
come from outside. The dollar is the world reserve currency. This means
that the dollar’s exchange value is boosted, despite the dismal
economic outlook in the US, by the fact that, as the currency for
settling international accounts, there is international demand for the
dollar. Country A settles its trade deficit with country B in dollars;
country B settles its account with country C in dollars; and so on
throughout the countries of the world.
For whatever the reason–perhaps to curtail their accumulation of
suspect dollars or to bring Washington’s power to an end–the BRICS
countries, Brazil, Russia, India, China, and South Africa, are agreeing
to settle their trade between themselves in their own currencies, thus
abandoning the use of the dollar.
According to reports, China and Japan have reached agreement to settle their trade between themselves in their own currencies.
The moves away from the dollar as the currency of international
transactions means that the dollar’s exchange value will fall as the
demand for dollars falls. Whereas the Federal Reserve can create dollars
with which to purchase the Treasury’s debt, thus preventing a fall in
bond prices, the Federal Reserve cannot prop up the dollar’s exchange
value by creating more dollars with which to purchase dollars. Dollars
would have to be taken off the foreign exchange market by purchasing
them with other currencies, but in order to have these currencies the US
would have to be running a trade surplus, not a long-term trade
deficit.
In the short-run, the Federal Reserve could arrange currency swap
agreements in which foreign central banks swap their currencies for
dollars in order to supply the Federal Reserve with currencies with
which to soak up dollars. However, only a limited number of swaps could
be negotiated before foreign central banks understood that the dollar’s
fall in value was not a temporary event that could be propped up with
currency swaps.
As the value of the dollar will fall as countries move away from its
use as reserve currency, the values of dollar-denominated assets also
will fall. The Federal Reserve, even with full cooperation from the
banking system employing every fraud technique known, cannot prevent
interest rates from rising on debt instruments denominated in a currency
whose value is falling.
Think about it this way. A person, fund, or institution owns bonds or
any debt instruments carrying a negative rate of interest, but
continues to hold the instruments because interest rates, despite the
increase in debt, are creeping down, raising bond prices and producing
capital gains in the bonds. What happens when the exchange value of the
currency in which the debt instruments are denominated falls? Can the
price of the bond stay high even though the value of the currency in
which the bond is denominated falls?
The drop in the exchange value of the currency hits the bond price in
a second way. The price of imports rise, and this pushes up prices.
The inflation measures will show higher inflation. How long will people
hold debt instruments paying negative interest rates as inflation rises?
Perhaps there are historical cases in which bond prices continue to
rise indefinitely (or even hold firm) as inflation rises, but I have
never heard of them.
As the Federal Reserve can create money, theoretically the Federal
Reserve’s prop-up schemes could continue until the Federal Reserve owns
all dollar-denominated financial assets. To cover the holes in its own
balance sheet, the Federal Reserve could just print more money.
Some suspect that the Federal Reserve, in order to forestall a
declining dollar and thus declining prices of dollar-denominated
financial instruments, is behind the sales of naked shorts every time
demand for physical bullion drives up the price of gold and silver. The
short sales–paper sales–cancel the impact on price of the increased
demand for bullion.
Some also believe that they see the Federal Reserve’s hand in the
stock market. One day stocks fall 200 points. The next day stocks rise
200 points. This up and down pattern has been ongoing for a long time.
One possible explanation is that as wary investors sell their equity
holdings, the Federal Reserve, or the “plunge protection team,” steps in
and buys.
Just as the “terrorist threat” was used to destroy the laws that
protect US civil liberty, the financial crisis has resulted in the
Federal Reserve moving far outside its charter and normal operating
behavior.
To sum up, what has happened is that irresponsible and thoughtless–in
fact, ideological–deregulation of the financial sector has caused a
financial crisis that can only be managed by fraud. Civil damages might
be paid, but to halt the fraud itself would mean the collapse of the
financial system. Those in charge of the system would prefer the
collapse to come from outside, such as from a collapse in the value of
the dollar that could be blamed on foreigners, because an outside cause
gives them something to blame other than themselves.
Tuesday, April 10, 2012
CONSERVATIVES LOVE "OBAMACARE" BECAUSE IT GUARANTEES BILLIONS OF DOLLARS IN PROFITS TO THE PRIVATE INSURANCE COMPANIES PAID FOR WITH TAXPAYER MONIES. STILL, THEY HOPE TO "HAVE THEIR CAKE AND EAT IT" BY DUPING THOSE TAXPAYERS INTO VOTING OBAMA OUT OF OFFICE BY (MIS)CHARACTERIZING OBAMACARE AS "UNAFFORDABLE SOCIALISM."
What Is ObamaCare?
April 10, 2012 | Original here
Growing up in the post-war era (after the Second World War), I never expected to live in the strange Kafkaesque world that exists today. The US government can assassinate any US citizen that the executive branch thinks could possibly be a “threat” to the US government, or throw the hapless citizen into a dungeon for the rest of his or her life without presenting any evidence to a court or obtaining a conviction of any crime, or send the “threat” to a puppet foreign state to be tortured until the “threat” confesses to a crime that never occurred or dies at the hands of “freedom and democracy” while professing innocence.
It has never been revealed how a single citizen, or any number thereof, could possibly comprise a threat to a government that has a trillion plus dollars to spend each year on security and weapons, the world’s largest navy and air force, 700 plus military bases across the world, large numbers of nuclear weapons, 16 intelligence agencies plus the intelligence agencies of its NATO puppet states and the intelligence service of Israel.
Nevertheless, air travelers are subjected to porno-scanning and sexual groping. Cars traveling on Interstate highways can expect to be stopped, with traffic backed up for miles, while Homeland Security and the federalized state or local police conduct searches.
I witnessed one such warrantless search on Easter Sunday. The south bound lanes of I-185 heading into Columbus, Georgia, were at a standstill while black SUV and police car lights flashed. US citizens were treated by “security” forces that they finance as if they were “terrorists” or “domestic extremists,” another undefined class of Americans devoid of constitutional protections.
These events are Kafkaesque in themselves, but they are ever more so when one considers that these extraordinary violations of the US Constitution fail to be overturned in the Supreme Court. Apparently, American citizens lack standing to defend their civil liberties.
Yet, ObamaCare is before the US Supreme Court. The conservative majority might now utilize the “judicial activism” for which conservatives have criticized liberals. Hypocrisy should no longer surprise us. However, the fight over ObamaCare is not worth five cents.
It is extraordinary that “liberals,” “progressives,” “Democrats,” whatever they are, are defending a “health program” that uses public monies to pay private insurance companies and that raises the cost of health care.
Americans have been brainwashed that “a single-payer system is unaffordable” because it is “socialized medicine.” Despite this propaganda, accepted by many Americans, European countries manage to afford single-payer systems. Health care is not a stress, a trauma, an unaffordable expense for European populations. Among the Western Civilized Nations, only the richest, the US, has no universal health care.
The American health care system is the most expensive of all on earth. The reason for the extraordinary expense is the multiple of entities that must make profits. The private doctors must make profits. The private testing centers must make profits.The private specialists who receive the referrals from general practitioners must make profits. The private hospitals must make profits. The private insurance companies must make profits. The profits are a huge cost of health care.
On top of these profits come the costs of preventing and combatting fraud. Because private insurance companies resist paying and Medicare pays a small fraction of the medical charges, private health care providers charge as much as they possibly can, knowing that the payments will be cut to the bone. But a billing mistake of even $300 can bankrupt a health care provider from legal expenses defending him/her self from fraud accusations.
The beauty of a single-payer system is that it takes the profits out of the system. No one has to make profits. Wall Street cannot threaten insurance companies and private health care companies with being taken over because their profits are too low. No health-provider in a single-payer system has to worry about being displaced in a takeover organized by Wall Street because the profits are too low.
Because a single-payer system eliminates the profits that drive up the costs, Wall Street, Insurance companies, and “free market economists” hate a “socialized” medical care system. They prefer a socialized “private” health care system in which public monies flow into private insurance companies.
To make the costs as high as possible, conservatives and the private insurance companies devised ObamaCare. The bill was written by conservative think tanks and the private insurance companies. What the “socialistic” ObamaCare bill does is to take income taxes paid by citizens and use the taxes to subsidize the private medical premiums charges by private health care providers in order to provide “private” health care to US citizens who cannot afford it.
The extremely high costs of ObamaCare is not “socialistic medicine.” ObamaCare is high-cost privatized medicine that guarantees billions of dollars in profits to private insurance companies.
It remains to be seen whether such a ridiculous health care scheme, nowhere extant on earth except in Romney’s Massachusetts, will provide health care or just private profits.
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