Posted tagged ‘Medicare’

Visual Explanation Of The Deficit And The Debt

November 1, 2013

The visual of this chart is outstanding, it jumped off the page when I saw it. The chart shows our Governments yearly revenue, yearly deficit, and total debt. This is from an article titled Great News! The Fiscal Crisis Is Over! by Jon Gabriel, at ricochet.com. I got there from this article at theburningplatform.com.

https://i2.wp.com/cdn1.ricochet.com/var/ezwebin_site/storage/images/media/images/debtchart/4700766-1-eng-US/debtchart_lightbox.png

Here is a quote from Mr. Gaberiel, “…imagine the green is your salary, the yellow is the amount you’re spending over your salary, and the red is your MasterCard statement.”

What is sobering about this chart is how a seemingly small yearly deficit compounds into a massive amount of debt over time. What is it going to look like in three more years if we continue our $1 trillion yearly deficit?

THE REAL DEBT TOTAL

Unfortunately the $17 trillion is really not the actual debt. If you factor in the unfunded liabilities for Social Security, Medicare, and Medicaid, which have been estimated to be between $55 to $222 trillion, look at chart here, the problem gets exponentially worse. What do you think Obamacare will add to this unsustainable mountain, or valley, of debt?

THE FED RIDES TO THE RESCUE?

Fortunately we have the Fed which can electronically print counterfeit money to pay our way out of this mess. Oh yeah, I forgot, the only way a Government can accumulate this amount of debt is because its Central Bank funds the expansion in the first place by buying Government bonds. Without the ability to electronically print counterfeit money, Governments can only grow to the size of what they can steal or mooch through taxing and borrowing. At a certain point, individuals won’t produce above a certain level if they can’t enjoy the fruits of their labor, and they won’t purchase bonds from a seller whose level of debt makes the transaction seem to risky. The Fed can’t print its way out of the economic reality of scarcity. Their denial of this reality is why they printed us into this mess in the first place.

Related ArticleLet The Counterfeiting Continue! The Fed Is Stuck In Their Feedback Loop, at austrianaddict.com.

Related ArticleThe Fed As Giant Counterfeiter, by Robert P. Murphy, at mises.org.

Charles Hugh Smith: When Risk Is Offloaded Or Hidden, It Creates Moral Hazard.

August 23, 2013
Moral hazard

Moral hazard (Photo credit: jcbear2)

Risks have consequences, and when these consequences are divorced from risk, it creates moral hazard. This means the person taking the risk will not be in a position to weigh all the consequences of the risk, before he makes a decision to start, or continue a particular activity. In this article titled, The Source Of Systemic Crisis: Risk And Moral Hazard, Charles Hugh Smith, at oftowminds.com, explains risk and moral hazard as it pertains to how insurance works, as compared to how noninsurance insurance works. There is a big difference between life insurance, fire insurance, car insurance, on the one hand, and Government programs like social security insurance, medicare insurance, medicaid insurance on the other. Here are some excerpts from the article.

There are all sorts of candidates for the root cause of the systemic global financial crisis, but if we separate the wheat from the chaff we’re left with risk and moral hazard. Pointing to human greed and cupidity as the cause doesn’t identify anything useful about this era’s crisis, as human greed, self-interest and opportunism are default settings.”

“The key to understanding risk is to ask where it is being offloaded. Risk cannot disappear, it can only be transferred or cloaked.” (more…)

“The Structural Endgame of the Fiscal Cliff”, by Charles Hugh Smith.

January 14, 2013
Ready to collapse.  An old building in the Wil...

Ready to collapse.  (Photo credit: gbaku)

This article, The Structural Endgame of the fiscal Cliff, at peakprosperity.com, by Charles Hugh Smith, whose site is oftwominds.com, is the sober reality about where we really are economically and politically as a nation. When our political leaders say “the wealthy among us have to pay their fair share” they are trying to get you to think that the primary reason the Government is in so much debt is because these “wealthy” aren’t taxed enough. Like a magician trying to get you to look over here while the exchange is taking place over there, these spend thrift politicians hammer the “wealthy” as greedy because, for some crazy reason, they don’t want to pay more in taxes than what they are legally bound to pay, while these same politicians who greedily spend 1.3 trillion dollars more than they take in taxes, are being ignored, as the primary reason for the debt problem.   Here are some quotes from the article. (more…)

The Economic’s of Health Care vs. The Right to Health Care.

October 9, 2012

This clip, by Illinois state senate candidate Dr. Barbara Bellar, makes you think about the realities which lie ahead, with the implementation of “The Affordable Care Act” aka. “Obama Care”. She states the reality of the situation, then asks, and we all should have asked, “what could possibly go wrong?” Here is another example of a Government solution in search of a problem, a problem which was created by Government in the first place.

Is health care a right? No! Health care is a good or service, provided in the market just like (more…)