Democracy at work --U.S. government shuts down after political deadlock
First partial U.S. government shutdown in 17 years
Congress has missed the deadline for averting the first partial U.S. government shutdown in 17 years.
A government shutdown won’t mean the entire country will grind to a halt, but it will have an impact on the daily lives of Americans.
The rules governing a shutdown say federal workers must be classified as essential or non-essential, so that key government functions can carry on in the event of a fiscal crisis.
Some 800,000 government workers could be told to stay home and go without pay.
Air traffic control, the military, prisons, border security, mail delivery, anything related to national security and public safety, social security cheques, emergency medical care, and food safety inspection are examples of things that would be unaffected.
how long the shutdown will last? Until an agreement is reached....it can take a day or a week or a month or..
The shutdown would also mean an interruption in services. Visa and passport applications, for example, wouldn’t be processed.
Debt-ceiling crisis also looming
The potential government shutdown isn’t the only fiscal crisis looming for the U.S. The other is the debt ceiling, which is far more concerning.
Under U.S. law, the government must stay below a certain debt limit and Congress must pass legislation to allow the government to exceed that limit. If it doesn’t, the government can’t pay its bills and would have to default on its legal obligations.
That would have "catastrophic" consequences on the economy, according the the U.S. Treasury, which expects the government to reach the debt ceiling — currently sitting at around $16 trillion — by mid-October.
The U.S. federal government has never defaulted before so no one knows exactly how severe its effects could be, but there’s little doubt it would cause severe economic damage.
Congress has until Oct. 17 to figure out a plan for the debt ceiling, and until midnight Monday to deal with the budget spending bill. The clocks in Washington are ticking loudly.
What Stops If the Government Shuts Down
By Mary Silver, Epoch Times | September 27, 2013
A government shutdown would mean vacations to national parks canceled, FBI investigations stalled, and medical experiments abandoned. It could mean worse hardships for military families than they already endure.
Civilian military employees would be sent home. The people who process new Medicare, Social Security, and Medicaid applications would stay home. A person who already gets Social Security would still get it, but a new 62- to 66-year-old would face a delay starting the program.
In Washington, D.C., it could mean trash piling up in the streets, and people unable to get marriage licenses, work permits, or other documents. D.C. is unique in the nation. Its local budget requires congressional appropriations.
President Obama has the power to declare certain federal services essential and exempt them from a shutdown. Disaster aid is exempt. So is “Obamacare.”
Service members would get IOUs, but still be required to report for duty. It’s common for soldiers, sailors, marines, and their families to live paycheck to paycheck. No check can mean an empty pantry, an empty gas tank, or a punitive late fee on an unpaid bill.
Reyna Levine of the National Press Foundation described a multiplier effect of losses from a shutdown. Workers on military bases or at big federal agencies stay home. The coffee shop nearby sells far fewer muffins. The bakery that supplies the muffins loses income, she said. That would happen across the country in big and small ways.
Stalled scientific research and law enforcement investigations represent losses impossible to quantify, according to Levine.
Buildings would have to be closed safely, with climate control in place and security patrolling them, said Levine.
When the government shut down in 1995 and 1996, it cost Americans $1.5 billion dollars, according to Project Vote Smart, a nonpartisan group.
During the 1995–1996 shutdowns, 7 million people were turned away from 368 closed national parks. That represents a cost as well as an inconvenience, according to George Condon, a White House correspondent for National Journal. “It’s hard to get reservations for these parks,” said Condon. For a popular park, people have to reserve a stay months in advance, take vacation time, and then drive the family there, he said. To find the gates closed is a real loss.
The beleaguered USPS will continue to deliver mail. It’s not part of the government. In addition, U.S. citizens’ travel plans may have to be changed if they do not yet have a U.S. passport as no one would be able to process a passport application.
There are future losses. Government contractors would not get paid. It amounts to forcing them to front a loan to the government, according to Stan Collender, national director of financial communications at Qorvis. They could respond to that by insisting on higher interest rates or late fees in future contracts, he said.
This time around, unlike the 1990s, no one is saying they want a shutdown, yet no one is really negotiating, said Collender. “They are using the budget process, but it’s not really about the budget,” he said.
As US Government Shuts Down in part, what to expect..
Posted 30 September 2013 - 11:02 PM
Democracy at work --U.S. government shuts down after political deadlock
Posted 08 October 2013 - 07:33 AM
House Speaker John Boehner has said he won’t let the government default on its debt by October 17th. "I don't want the United States to default on its debt," Boehner said. "But I'm not going to raise the debt limit without a serious conversation about dealing with problems that are driving the debt up. It would be irresponsible of me to do this."
On Oct 17 US runs out of ability to borrow. On Sunday Boehner told ABC's "This Week," that there were not enough votes in the House of Representatives to pass a "clean" debt limit bill, without any conditions attached. Asked if that meant the United States was headed towards a default if President Barack Obama did not negotiate ahead of an October 17 deadline to raise the debt ceiling, Boehner said: "That's the path we're on."
(US debt is raised by mostly issuing bonds)
US debt is presently $16.7 trillion in bonds. The second biggest holder of Treasuries (at about 12% of the total) is the Federal Reserve, which has 91% of its assets backed by US government debt. (Eleven-percent of all US debt is owned by the Chinese, 1.4 trillion)
A plunge in Treasuries would also devalue the dollar, which would instantly make everything we buy more expensive, and in turn destabilize countries and economies all over the world.
Reuter is reporting that: Republicans are looking for three things before raising the debt ceiling --a significant structural plan to reduce government spending, no new taxes, and measures to "mitigate the harm from Obamacare."
Democrats vow not to negotiate on the funding bill or the debt ceiling, arguing that it is the job of Congress to pay its bills.
Consequences of a US Default Explained
Posted on October 7, 2013 by Soren Dreier
As we close out the first week of the government shutdown, a bigger and even more toxic disaster is creeping into the fray that could make the contentious budget battle look like a slap fight. The Treasury Department said Uncle Sam will be broke by October 17th unless something is done. Treasury secretary Jack Lew hammered home that point Thursday by releasing an unusually ominous statement that warned of catastrophic risks to the economy.
House Speaker John Boehner has said he won’t let the government default on its debt, but until steps are taken to raise the nation’s debt ceiling, the possibility of default is still theoretically alive.
“If they seriously default on the debt, what we’re really talking about is a depression,” says veteran financial sector analyst Richard Bove, VP of research at Rafferty Capital Markets.
“The first thing you have to do is look at who holds the debt,” Bove says of the $16.7 trillion of bonds the US currently has outstanding. “The first, biggest owner (of US debt) is the social security fund, so you’d have all of these people who are receiving social security payments who now have to question whether they’ll get their payments.”
Clearly, that would cause a huge disruption to millions of Americans. But Bove says that is only the beginning since the second biggest holder of Treasuries (at about 12% of the total) is the Federal Reserve, which has “91% of its assets backed by US government debt.”
If the value of those assets were to decline, which they indisputably would in a default, Bove says the net effect would be that “we have nothing of value backing the dollar.”
They’re actually “Federal Reserve Notes” as well as the number one asset of choice held in the reserves of governments and businesses all over the world. A plunge in Treasuries would also devalue the dollar, which would instantly make everything we buy more expensive, and in turn destabilize countries and economies all over the world. [plunging most of the world into depression]
“Eleven-percent of all US debt is owned by the Chinese,” he says. “That $1.4 trillion represents about a third of the reserves of the People’s Bank of China, so what we’ve now said to the PBOC is, ‘Watch out, we may hit the value of a third of your assets and you can’t do anything about it.’”
And this isn’t even half of it.
As Bove explains, money market funds, which are used by virtually every person with a savings or investment account, are also “heavily loaded with Treasuries.” So are most bond funds and so-called balanced funds (growth and income funds). A default on US debt would not only cause money funds to “break the buck” — not be able to pay 100-cents for each dollar invested) — but would also cause forced selling by countless other funds that are mandated to immediately sell any asset that has defaulted.
“That could easily put $750 billion of Treasuries on to the market” Bove says, inferring that rates interest rates would also spike, and normal borrowing/lending transactions would end.
Speaking of banks, the US banking industry holds over a trillion dollars worth of Treasuries and another trillion dollars of government issued mortgage-backed securities, Bove says. If those bonds were to go down in value, he says the banks would also have to “write down the value of those assets and, in essence, wipe out their equity.” It would make the banks insolvent.
To summarize, Bove asserts that a default is unthinkable because it would trigger a huge reduction in the value of US debt, which would go beyond disrupting social security payments. A default would upend money markets, destroy bond funds, slam the brakes on lending, cause interest rates to spiral, make our banks insolvent, and deal a blow to our foreign trading partners and creditors around the globe; all of which would throw the US and the world into economic disarray.
Posted 09 October 2013 - 09:36 AM
"Clock is ticking", says Chinese minister, as US fails to break deadlock over government shutdown and fast-approaching ‘debt ceiling’ deadline. But there is still a week in which the government certainly will solve the the debt-ceiling by raising it since in the event of default the whole US administration with both houses will not get paid (as if congressmen & senators need their salaries since most are very rich and can do away without their salaries).
But the problem would be China, which is the biggest foreign creditor of the United States, and it already has waded into the American budget crisis, warning on Monday that Congress must resolve the political impasse over the debt ceiling without further delay. Or else what?
One solution being considered is to give China all the national parks of America (they are already closed now because of the crisis) in return of $1.3 trillion Chinese investment in US or in return of $1.4 trillion of American debt to China. Overcrowded China then would bring its citizens to populate those lands of national parks and build their houses there. This would be overtaking a country partially and peacefully, without firing a shot.
The Chinese Vice Foreign Minister, Zhu Guangyao, told America’s deadlocked politicians on Monday October 7 that “the clock is ticking” and called on them to approve an extension of the national borrowing limit before the federal government is projected to run out of cash on 17 October.
“We ask that the United States earnestly takes steps to resolve in a timely way the political issues around the debt ceiling and prevent a US debt default to ensure the safety of Chinese investments in the United States,” Mr Zhu told reporters in Beijing. “This is the United States’ responsibility,” he added.
In a diplomatic way, the FM did NOT refer to American lands to be given to them in return for cancellation of America's debt to China. And this is understandable since the Americans would have started hanging-high any Chinese they could get their hands on..
I should have put this one in the HUMOR section
Posted 15 October 2013 - 09:09 PM
The sun is setting on dollar supremacy, and with it, American power
A serious alternative to the dollar is still a long way off, but the latest shenanigans on Capitol Hill have given the search for them renewed momentum
By Jeremy Warner, Assistant Editor
14 Oct 2013
All great empires – from the Greek, to the Roman, the Spanish and the British - have at their heart a dominant means of exchange which is very much part of their political and social hegemony. Once upon a time, it was Roman coinage which was the world's pre-eminent currency. In more recent times it was the British pound. Today, it's the US dollar to which international investors flock as a safe haven for their money. Highly liquid and apparently reliable – until recently at least – nothing else comes even remotely close to the greenback's dominant position in the international monetary system.
That this position – what Giscard d'Estaing referred to as America's "exorbitant privilege" – could so casually be put at risk by politicians on Capitol Hill is an extraordinary spectacle that may be indicative of a great power already seriously on the wane.
With the pound, the fall from grace was swift. Britain emerged from the devastation of the First World War an irreparably damaged economic and military power, with crushing debts and a deeply impaired manufacturing sector.
The dollar was able quickly to usurp the pound's position. Final defeat for sterling came with Britain's decision to leave the gold standard in 1931 – an economically sensible decision but a psychological turning point for sterling from which it never recovered.
Lack of any credible alternative means it won't happen so quickly with the dollar. For all the progress of the last 30 years, China for now remains a much smaller economy than the US and in any case is nowhere near ready financially to assume such a role. As for the euro, the dollar needn't trouble itself much about this one-time pretender to the throne.
Yet rarely before has international dissatisfaction with the dollar's role as reserve currency to the world been as great as it is now. The most visible anger comes from China, with more than $3 trillion of dollar foreign exchange reserves, $1.3 trillion of them held in US Treasuries. For ordinary Chinese, it has come as a revelation to discover they own so much American debt. That they own it in a country which because of political brinkmanship may actually default has provoked understandable fury.
"It is perhaps a good time for the befuddled world to start considering building a de-Americanised world", China's official government news agency has said.
A steady erosion of trust which began with the financial crisis five years ago has reached apparent breaking point with the pantomime antics on Capitol Hill. The search for long-term alternatives to the dollar is on as never before. Regrettably, there aren't any, or not for the time being in any case. Everyone can only look on in horror as the US commits apparent economic suicide.
Such is the dollar's dominance that, to begin with at least, investors might simply have to take default on the chin. More than 60pc of global foreign exchange reserves are held in US dollars, which also account for more than 80 per cent of global foreign exchange trading.
So important is dollar liquidity in global trade that if, for instance, you wanted to sell Singapore dollars and buy South African rand, your forex dealer would first typically buy US dollars with your Singapore dollars and then use them to buy the South African rand. The dollar is the middle currency in the vast bulk of international transactions.
By the same token, US Treasuries are the very backbone of the global financial system. They are the supposed "risk-free asset" against which everything else is benchmarked, and as such are the collateral of choice in a huge array of financial market transactions. The dollar is also the currency used to price most commodities, from oil to gold.
The dollar's hegemony is all pervasive. This has given the greenback a degree of leverage unmatched by any other reserve currency in history. If China starts to sell dollar assets, it will only weaken the dollar, undermining Chinese exports and reducing the value of its remaining portfolio of dollar assets.
I'd been part of the received wisdom that any act of US default would set off a devastating chain reaction of bankruptcies that would provoke a second global financial crisis. But David Bloom, chief currency strategist at HSBC, has convinced me that dollar hegemony might perversely act in the opposite way, at least initially.
Unlike a generalised credit event, where all instruments default at the same time, the US would initially engage in a series of little, self contained defaults, or "selective defaults", whose individual impact would probably not be that great.
Each bond has a life and coupon of its own. The missed coupon payment might therefore be regarded as not so bad – especially as this is a case of "won't pay", rather than "can't pay".
Markets see such defaults differently, with missed payments expected to be made up eventually once a political resolution is found. It's also very likely that the Federal Reserve would attempt to counter the damage in financial markets with more QE, buying up the Treasuries that investors dumped.
Furthermore, the financial uncertainty created by default would likely drive investors towards past safe havens of choice – in particular, US dollar assets. Alternative safe havens, such as Japan and Switzerland, have been rendered defunct by central bank money printing. Ironically, emerging markets are likely be more damaged by default than the US itself, with further capital flight.
Such is the degree of "exorbitant privilege" enjoyed by the dollar that it might therefore be the first currency in history to see an asset price rally on the back of a default. However, if there were repeated selective defaults, a second, less benign phase would eventually set in. Spooked markets would begin to sell off the dollar.
The consequent stronger euro and pound would have powerfully deflationary consequences for Europe. Internal demand in the US would also collapse as a result of the wrenching fiscal squeeze that would result from federal government attempts to match expenditures with tax revenues.
Dollar hegemony has long been a destabilising force at the centre of the international monetary system; it's a major part of the sharp build-up in global current account imbalances and cross border capital flows that have been at the heart of so many of the problems in the world economy. The unprecedented accumulation of dollar foreign exchange reserves has in turn caused new challenges for the US, making it more difficult to maintain fiscal and financial stability within its own borders.
Policies that may or may not be good for the US are in all probability bad for everyone else. Loose monetary policy in the US since the crisis began has induced unwanted demand and asset bubbles elsewhere in the world.
Serious alternatives to the dollar, such as a global reserve currency, are still a long way off, but the latest shenanigans on Capitol Hill have given the search for them renewed and added momentum. The US is recklessly throwing away its future.
As the chaos in Washington and global markets continues, in a piece written by Richard Russell earlier this year we read:
“Bear market? Sure, back in the year 2000, for only 273 dollars you could buy one ounce of gold. But by 2012, you needed over 1600 dollars to buy the same one ounce of gold. The eternal value of gold doesn't change. It's the purchasing power of the Federal reserve note that has changed.
Dates & Gold Prices
Ben Bernanke's Federal Reserve is systematically shaving off the purchasing power of the dollar in the same way that you can peel the layers off an onion. The US has been in the process of constructing the greatest credit bubble in history.
No fiat money has lasted for as long as a century. The US has had prior experience with fiat money -- the Civil War Greenbacks, the “Bills of Credit” of the original American colonies, the ill-fated Continentals during the Civil War. None of these have survived, and neither will the Federal Reserve notes that we now refer to as “dollars.”
[Today] some academic working for the Federal Reserve can press some keys on a computer and create ten billion dollars instantly without working up a sweat.
When the Federal Reserve note [the dollar] goes down the drain, all fiat money in the world will go down with it.
Posted 15 October 2013 - 09:41 PM
I still do not believe that US will run out of money to pay its bills this Thursday and that Congress will authorize an increase in federal borrowing limits in the last moment.
There were much talk about what if not! Here is an example, this forecast if does not happen this week it may happen the next time when US again will surely run out of money to pay its bill and will default, if not next time then the next time after that --this is like a Damocles' sword hanging on the head of US..
In China, Xinhua, the official government news agency, said that as American politicians continued to flounder over a deal to break the impasse, “it is perhaps a good time for the befuddled world to start considering building a de-Americanised world”.
The jibe came as Christine Lagarde, the International Monetary Fund chief, raised the spectre of a repeat of the 2008 financial crash as hopes dwindled for a resolution of the crisis over the debt ceiling and partial government shutdown.
Ms Lagarde repeated her warning about the impact of failing to raise the debt ceiling following the fund’s annual meeting of finance ministers in Washington.
“If there is that degree of disruption, that lack of certainty, that lack of trust in the US signature, it would mean massive disruption the world over,” she told NBC’s Meet the Press programme. “And we would be at risk of tipping, yet again, into recession.”
Xinhua attacked America’s pre-eminent position in the world, adding that “such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated”.
State-run newspapers nonetheless have also noted the inseparable economic ties which bind China and the US together. China is the biggest foreign holder of US Treasury bonds, worth a total of $1.28 trillion according to American government data.
“The cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations’ tremendous dollar assets in jeopardy and the international community highly agonised,” said the commentary.
President Barack Obama is rejecting the proposal of Republican congressmen from the House of Representatives (which would have to approve any deal) for a stop-gap six-week extension of the federal debt ceiling unless his Obamacare program is also approved which will increase taxes on most Americans except the poor.
Back To BEIJING — The political standoff in Washington has spawned frustration and growing worries in China, which remains the largest holder of U.S. government debt.
“The world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites,” the commentary said. “Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated.”
“The congressmen are behaving irresponsibly not only for other countries but also for” the United States’ “own creditors,” said Mei Xinyu at the Chinese Academy of International Trade and Economic Cooperation, which has ties to the Commerce Ministry. “They are gambling the U.S. future on their political-struggle interests.”
Others, such as Zhao Xijun, deputy dean at Beijing’s Renmin University School of Finance, have gone further. He likens Congress to kidnappers holding global investment for ransom.
“The two political parties in the U.S. have disregarded the interest of the rest of their country and the world,” he said.
Meanwhile, Japan — the second-largest holder of U.S. debt, with $1.14 trillion — has expressed similar concerns. “The U.S. must avoid a situation where it cannot pay and its triple-A ranking plunges all of a sudden,” Japan’s finance minister, Taro Aso, said last week.
For China, a U.S. default could mean a shock to China’s assets, effects on its currency-issuing and exchange-rate fluctuations, Mei said.
Reaction in China’s financial world, however, has stopped well short of panic, with many believing that last-minute negotiations will defuse the crisis. But that doesn’t mean there isn’t anger, Chinese experts said.
Chinese leaders have remained reserved in their official comments. Last week, Vice Finance Minister Zhu Guangyao noted that the “clock is ticking,” and Chinese Premier Li Keqiang said China is paying “great attention.”
But frustration within China has encouraged further discussion about measures such as diversifying the country’s holdings.
Sunday’s Xinhua opinion piece pushed for establishing a new international reserve currency to replace the dominant U.S. dollar, “so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.”
But the reality, many here acknowledge, is that the United States and China are inexorably intertwined.
For all the talk of de-Americanization, moving away from the U.S. dollar anytime soon is unlikely, Chinese experts say. And while Chinese economists say diversification of the country’s holdings is a good idea regardless of the current crisis, it could happen only incrementally or risk volatility.
The manufactured, political nature of the looming debt crisis, however, has flummoxed many here, who are struggling to understand what appear to them to be self-inflicted wounds by U.S. leaders.
“If the U.S. debt default happens, China and other investors will face great risks in their dollar-denominated assets,” Zhao said. “But I think it will hurt the U.S. itself the most. . . . A debt default will only cause a sharp fall in U.S. credibility.”
Posted 16 October 2013 - 07:52 AM
At midnight today Oct.16 and if there is no deal yet in Washington, over the debt crisis, the outstanding bills of the government of US would come before the senators & congressmen of US in order to stamp "yes" or "no". Yes for paying that bill and No for not paying. If the crisis lingers on, without solution at hand, widespread revolts will start inside US, something that the enemies of US have been waiting for, for a long time, to suddenly attack US military and take away the leadership of the world from USA. The wars that US has been involving since 1999 (starting from Yugoslavia, Iraq, Afghanistan, Libya, Syria (and Iran, Israel) were designed to make US bankrupt and soft for attack and takeover.
The prospect of the U.S. government running out of money to pay its bills and, eventually, finding it difficult to make payments on the debt itself, has dire consequences, in the worst case scenario, as commented by economists:
1- A global stock market crash: if the U.S. fails to make an interest payment on its debt, stock markets around the world will immediately crash.
2-A global recession and economic slowdown.
3-Money market funds collapse.
4-A run on the banks.
5- Some financial institutions will fail, only the strongest will survive.
6-Lending seizes up. Banks and other financial institutions will hoard the cash they have and will be wary of lending it out. Mutual funds, which are not allowed to hold defaulted securities, may have to dump masses of U.S. treasuries
Ratings agency Fitch fired a warning shot Tuesday that it may downgrade the country's AAA credit rating to AA+ over the political brinksmanship and bickering in Washington that have brought the government to this point.
That could help raise interest rates on U.S. debt, putting the country deeper into the red.
Rating agency Standard & Poor's cut the U.S. credit rating from AAA to AA+ after the 2011 debt ceiling crisis. Moody's still has the U.S. rated AAA.
According to multiple sources, the House plan would have called for funding the government through December 15 to end the partial shutdown. It also would have increased the federal debt ceiling until February 7.
The rumored Senate proposal would give Republicans some concessions while being closer to what Obama and fellow Democrats have long pushed for regarding government funding and the debt ceiling.
None of the proposals so far has offered a grand bargain that would fund government and allow for borrowing for more than a few months.
The ball game is the Obama-healthcare program that obligates universal health insurance for all Americans of all ages, the government paying this insurance for the poor who can not afford it, and the rest who can afford it will be paying from their own pockets. Tax would certainly rise in order to cover what the government will be paying for the insurance cost of the poor who are unable to pay their own because they are poor. In a nation that today one of four are getting food-stamps because they are poor, the tax increase will be enormous, it means that the government will pay the health insurance of one out of four or five of its total inhabitants. Divide the population of USA by 5, then multiply that fourth by $150, and you get an idea of the amount of tax increase per year. Unless the sky starts raining dollars in the USA, the number of poor will increase each year and eventually the US will turn out to be a socialist state like the former Soviet Union. Freedom will be a thing of the past!
Posted 16 October 2013 - 11:24 PM
Republicans fought the good fight, they just didn't win!
The Senate overwhelmingly ratified the deal to open Gov. & raise the debt limit on Wednesday evening, 81 to 18, with more than half of Senate Republicans voting yes. A few hours later, Congress followed suit, approving the measure 285 to 144. Eighty-seven Republicans joined a united Democratic caucus in approving the measure. Obama signed the measure into law shortly after midnight returning everything to normal again. Obama got more, he got plus exactly what he requested months ago: a bill to fund the government and increase the Treasury Dept’s borrowing power with no strings attached, so that the same thing will not happen in the near future. And of course Obama got his universal health insurance for Americans known as ObamaCare:
“We’ve been locked in a fight over here, trying to bring government down to size, trying to do our best to stop Obamacare,” Republican House Speaker John A. Boehner (R-Ohio) said, “We fought the good fight. We just didn’t win.”
Posted 16 October 2013 - 11:42 PM
Obamacare is not a FREE healthcare like in Canada and Germany where health care is free and universal. Americans of all ages are NOW obligated to buy their own health insurance or face fines starting from Jan. 2014. The whole thing will get the private health insurers rich and lower the quality of health care for Americans as there would be a run on doctors and to hospitals much more than before and each patient has to wait for their treatment, sometimes in long lines. Doctors will be disheartened because of the load and look to patients as being some kind of animal species in place of human beings. America will be turned to a nation of robots!
Posted 23 October 2013 - 09:25 PM
When this healthcare programme goes into effect expect doctors to look frustrated because their load will increase; from the people side they will be frustrated also because it will be difficult to get appointments from the doctors because they will always be busy. There are going to be few doctors and many more patients. Doctors will look rushed and stressed out and will not be able to give the quality healthcare as before.
October 23, 2013
Socialist healthcare, the prophetic demise of America?
by Bill Wilson
Back in the day, I covered agricultural and economic news for Knight-Ridder. The Soviet Union had a five year plan. They rarely, if ever, met the goals of the plan. For example, every year the communists would say they were going to be food self-sufficient. And every year, they had hungry people because they could not feed them. The collective farms were not producing at capacity. Moreover, the communists, using military trucks, lost high percentages of what was produced in transport to the grain elevators. The system imploded every year and they had to buy from America. Socialized healthcare in America is no different. No incentive plus government incompetency equals suffering people.
With socialist medicine, Americans are already seeing a similar system to Soviet agriculture. The people are unable to sign up because the government website doesn't work. Health plans are far more expensive for less coverage. Government subsidies (translated: wealth redistribution) are to be handed out to those who can't afford it. Kaiser Health News reports that major insurance carriers such as Florida Blue, Kaiser Permanente, Highmark and Blue Cross will drop millions of customers who were promised by the occupant of the Oval Office that they could keep their policies. These cancellations, already totaling over half a million, are due to the requirements of socialist medicine.
In the end, there are higher deductibles, higher premiums, higher taxes, and a system where government employees will decide who gets to receive healthcare treatment and when they get it. Tax money will support abortion, euthanasia, and subsidize a huge and ever growing government bureaucracy that is designed to control your freedom using your health as leverage. Meanwhile, the occupant is pushing for millions of illegals to have citizenship through amnesty, which will further use socialist healthcare for wealth redistribution and voter control. When the news media presses the White House on these issues of socialized medicine, the press secretary says he is not a computer expert and walks out.
The Communist Manifesto calls for abolishing all religion and all morals. It creates a godless society where people have no hope, no incentive, no desire to live out life in the excellence of Christ. Therefore, what they do is go to work and come home to a substandard quality of life, the leaders get richer, the middle class disappears. That is what will happen in America if this is allowed to continue. Psalm 33:12 says, "Blessed is the nation whose God is the LORD." When the people allow government to become god, they suffer the consequences. And yes, it rains on the just as well as the unjust. God has given us freedom in choosing our rulers. We are held to a higher accountability with such responsibility.
Have a Blessed and Powerful Day!
Posted 24 October 2013 - 02:00 PM
According to a recent University of Berkeley/University of Illinois study, 52% of fast food workers rely on federal programs like Medicaid, food stamps, the Earned Income Tax Credit, and Temporary Assistance for Needy Families to provide for their children. This is due partly to poverty-level wages and partly to heavy reliance by fast food outlets on part time workers (under 30 hours per week). MacDonald’s et all are reluctant to take on full time employees owing to the new requirement (under Obamacare) that they provide health insurance for full time workers. .
Under Obamacare, employers are only required to provide health insurance if workers put in more than 30 hours a week. Investors.com has been tracking employers that are either cutting work hours or only hiring part time workers to reduce their obligation under the new law.
When employers cut back their full time workers, Obamacare shifts responsibility to the federal government (through expanded Medicaid programs and premium subsidies) to provide health coverage for minimum wage workers.
The Government Accountability Office reports that Obamacare will increase the federal deficit by $6.2 trillion. $709 billion of this will fund Medicaid expansion (from 2014-2023). The rest will take the form of direct subsidies to insurance companies.
Owners of individual health-insurance policies already have received millions in cancellation notices, according to a compilation of news reports because because those policies does not cover all the essential benefits required by the Affordable Care Act or Obamacare. Those who try to sign up for new ones are learning the cost may be significantly higher.
"The U.S. individual health insurance market currently totals about 19 million people. Because the Obama administration's regulations on grandfathering existing plans were so stringent about 85% of those, 16 million, are not grandfathered and must comply with Obamacare at their next renewal." says Robert Laszewski in his blog http://healthpolicya...ealth.html#more
he adds: "These 16 million people are now receiving letters from their carriers saying they are losing their current coverage and must re-enroll in order to avoid a break in coverage and comply with the new health law's benefit mandates––the vast majority by January 1. Most of these will be seeing some pretty big rate increases."
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