Obamacare will Lead to Rationing and Longer Wait Times just like in the NHS

Posted by PITHOCRATES - August 17th, 2013

Week in Review

Britain has a problem with their national health care.  They have an aging population where people are living longer.  And because they are people are having more hospital stays than people were a generation earlier.  As that last decade or so of life requires a lot of medical care.  And this increase in demand for health care is happening at the same time fewer people are entering the workforce to replace the people leaving it.

So you have falling tax revenue at a time of soaring health care expenditures.  So what do you do when you have a demand that is greater than the available resources?  You ration those precious resources.  And cut costs.  By having fewer people handling a greater workload.  Which, of course, increases the waiting times to see a doctor (see GPs predict longer waiting times – survey by Nick Triggle posted 8/16/2013 on BBC News Health).

A Royal College of General Practitioners poll of 206 UK GPs found that more than 70% were forecasting longer waiting times within two years.

Eight in 10 also said they did not have enough resources to provide high-quality care, the survey showed.

A Patients Association report this year suggested that people were already having to wait longer.

Six in 10 of those polled by the royal college said patients in England were waiting longer than the recommended 48 hours…

Chairman Dr Clare Gerada said: “GPs are grappling with a double whammy of spiralling workloads and dwindling resources, and big cracks are starting to appear in the care and services that we can deliver for our patients.

In the NHS 60% of the people have to wait longer than 48 hours to see a doctor.  Unless they go to an accident and emergency department (A/E).  Where they may only have to wait 4 hours or so.  This is national health care.  And this is where Obamacare is trying to take us.  Even Harry Raid admitted this on the PBS program “Nevada Week in Review.”

So this is the future of Obamacare.  As the US has the same problems the UK has.  An aging population with people living longer into retirement.  With fewer people entering the workforce to pay for them.  So the inevitable future of Obamacare is rationing.  And longer waiting times.  Just as it is the reality in the NHS.

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Building Wind Farms for a Quick Buck despite Public Opposition

Posted by PITHOCRATES - August 17th, 2013

Week in Review

If you ever went hiking in a state park you’ve probably seen signs admonishing you to tread lightly.  To stay on paths only.  So as not to disturb the pristine environment.  Because environmentalists love this planet so much they will take all precaution to keep it pristine.  Except when it comes to putting these ugly things all over the place (see Locals get the wind up as turbines advance in Ireland by Geoffrey Lean posted 8/9/2013 on The Telegraph).

Some six per cent of the country’s electricity is now generated from the wind, and wind farms are a common sight in much of the country. In parts of inland West Cork, for example, it is rare to find a view that does not contain them, and there are places where four or five encircle you on surrounding hills. But so far there has been relatively little of the opposition to them that has become common on the other side of the Irish Sea.

Imagine that.  Only 6% of electricity comes from wind yet it’s rare to find a view without a wind turbine in it.  A much larger percentage of electricity comes from coal-fired power plants but it is a rare view indeed that includes a coal-fired power plant.  For they are much harder to find.

Angry scenes broke out last week at a “public information” meeting on plans to erect twelve 131 metre high turbines near the iconic mountain of Shehy More between the town and the upper Lee valley to the north. It would be visible for miles around in popular hiking territory and is, locals say, the third wind farm to be proposed in the last year for the hills around picturesque Loch Allua between the villages of Inchigeela and Ballingeary.

If everyone hates these turbines then why are they building so many?

Dave Edmond, of the appropriately named nearby alternative community of Coolmountain, led the revolt, accusing the wind industry of “just wanting a quick buck.” He added: “They have figured out how to get the grants and ‘shemoz’ the authorities” and predicted that the turbines would soon be “as obsolete and curious looking as the Easter island statues.”

Imagine that.  It’s greed.  In the form of fat government grants to build these white elephants to appease the global warming enthusiasts.  And they will become obsolete and curious.  As there are so many now that you can’t look in any direction without seeing one.  Yet they only provide 6% of their electricity.  Just imagine how many it will take to actually replace coal-fired power plants.  Probably so many that they will kill every living flying thing.  As no airspace will be free of these spinning killing machines.

Again, odd.  For someone who loves the environment so much to tread all over it.

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Vietnamese Coffee Industry suffers because Communist Vietnam puts People before Profits

Posted by PITHOCRATES - August 17th, 2013

Week in Review

The American left wants more government intervention into the free market.  Because they hate and don’t trust corporations.  Because they are motivated by profit.  Even putting profits before people.  Whereas government puts people before profits.  So everything is better when government intervenes.  Which is why the left loved Hugo Chávez in Venezuela.  They love Cuba.  They loved the former Soviet Union.  Because they were all socialist utopias.  Where they put people before profits.  Of course, people are robbing women of their hair in Venezuelan streets.  Cubans have risked their lives crossing the ocean to reach Florida on just about anything that floats.  And the Soviet Union is no more.  Because they couldn’t provide for their people.  Despite putting their people before profits.

Another communist country the left likes is Vietnam.  Especially since the communists got the Americans to give up and go home.  Vietnam is still communist.  But like China they add a sprinkling of capitalism to the communist stew.  A sort of state-capitalism.  Capitalism with the heavy hand of the government involved.  The way the American left likes it.  And how are things there?  Well, they are having quite the problem in their coffee industry (see Crippling debts brew a coffee crisis in Vietnam by Nguyen Phuong Linh, Ho Binh Minh and Lewa Pardomuan posted 8/15/2013 on The Globe and Mail).

But its coffee industry is now in crisis, plagued by tax evasion, mismanagement, insolvency, high interest rates and a credit squeeze. Many coffee operators are trapped with crippling debt and banks are reluctant to lend them more money.

Vietnam’s credit crunch is blamed largely on state-owned enterprises that borrowed big during the economic boom of the past decade and squandered cash on failed investments, which has left banks crippled by one of Asia’s highest bad-debt ratios…

Few coffee exporters are willing to talk about their financial problems. In communist Vietnam, people are often reluctant to speak publicly about politics and business, especially to foreign media…

Vietnam’s 2013-2014 coffee crop is forecast to be a bumper harvest, around 17 million to 29.5 million 60-kg bags, based on a Reuters poll. This will add to a global oversupply and pressure coffee prices which have lost about 10 per cent since October…

A government assessment of the coffee industry paints a bleak picture. The value of non-performing loans or debts in the sector likely to go unpaid stands at 8 trillion dong ($379-million), or 60 per cent of all coffee industry loans, said a July circular signed by the Deputy Agriculture Minister Vu Van Tam…

Unscrupulous middlemen have also played a part in the crisis, cheating exporters by selling them weighted coffee bags and inferior beans which are difficult to sell or fetch lower prices.

“What I found out is the market there is quite dirty. Middlemen often sell poor beans to exporters. They even put metal bolts in the bags to outweigh them,” said Joyce Liu, an investment analyst at Phillip Futures in Singapore.

You don’t have middlemen putting bolts into bags to make them heavier in free market capitalism.  For any inferior product in a free market doesn’t remain long in a free market.  As people will simply stop buying an inferior product.  And it could take years for a company to rebuild its tarnished image.  If they ever can.  This is what happens when you put profits before people.  People win.

So who caused the credit crunch?  State-owned enterprises.  As people in government are horrible at business.  For if they were good at it they would be in it.  But they’re not so they regulate it.  Or run a state-owned business.  Not because of their business acumen.  But because they had friends in higher places in government than anyone else.

Loans are important in any agricultural business.  Because all of your expenses come long before you can sell anything.  So they take on big debts at the beginning of the season.  That they plan on repaying after the harvest.  As long as prices don’t fall because there is a bumper crop.  But if they do they may not be able to earn enough to repay their bank loans.  Which is why 60% of all coffee industry loans will likely go unpaid.  And why bankers don’t want to loan them any more money.  Or charge a really high interest rate when they do.  For if a banker knows that every other loan he or she writes will never be repaid it makes a banker very reluctant to loan any money.  And what they do loan has to have such high interest rates to cover the loans that are never paid back.

This is why governments should not interfere with free markets.  For when they do they just make everything worse.  Because they’re just not good at it.  Unlike oppressing their people.  That they’re very good at.  Which is why people are “reluctant to speak publicly about politics and business, especially to foreign media.”  Something unheard of in free market economies.  But quite common in these socialist utopias.  Yet the left still favors them over free market capitalism.  Go figure.

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Rand Paul says Milton Friedman would oppose the Fed’s Bond Buying Program

Posted by PITHOCRATES - August 17th, 2013

Week in Review

What’s the difference between hard money (gold, silver, etc.) and paper money?  You can’t print hard money.  Which is why big-spending governments hate hard money.  And love paper money.  They use lofty economic explanations like having the money supply grow at a rate to support an expanding economy.  But the real reason they love paper money is because there is no limit on what they can spend.

This is why some people would prefer bringing back the gold standard.  To make the government as responsible as the rest of us.  Governments and their liberal friends hate this kind of talk.  And try to dismiss it with all-knowing condescension.  Because they sound so learned in their defense of their monetary policies despite a long record of failure they get to keep trying the same failed policies of the past.

Now it’s Rand Paul talking about the gold standard.  Invoking the name of Milton Friedman.  A monetarist.  And receiving the expected criticism (see Rand Paul is dead wrong about Milton Friedman by James Pethokoukis posted 8/13/2013 on the guardian).

Friedman understood the power of monetary policy, for both good and ill. He would almost certainly have been aghast that the Fed blew it again in 2008 by its tight money policies that possibly turned a modest downturn into the Great Recession. And he almost certainly would have been appalled at Republicans pushing for tight money – or, heaven help us, a return to the gold standard – with the economy barely growing and inflation low. It is certainly inconvenient for Paul that Friedman – a libertarian, Nobel-laureate economist – would have little use for the senator’s supposedly Hayekian take on the Fed or monetary policy.

Although the Bernanke Fed has imperfectly executed its QE programs, they are a big reason why the US is growing and adding jobs – despite President’s Obama’s regulatory onslaught and tax hikes – and the EU (and the inflation hawk ECB) is back in recession. Paul is wrong on Friedman and wrong on the Fed. It’s not even close.

One of Friedman’s criticisms of the gold standard is that to maintain the international price of gold—and price stability—governments would have to give up control of their domestic policies.  As a gold standard would prevent them from expanding the money supply at will.  So they couldn’t print money and devalue their currency to increase government spending.  To give themselves an unfair trade advantage.  And to monetize their debt from past irresponsible government spending.  But governments being governments they will do these things even with a gold standard.  As Richard Nixon and the US government did in the 1970s.  Rapidly devaluing the dollar.  Causing a great outflow of gold from the US as our trading partners preferred to hold onto gold instead of devalued US dollars.

The idea of monetarism was to have something similar like a gold standard while having the ability to expand the money supply to keep up with the growth in GDP.  And this would work if responsible people were in charge.  Who would resist the urge to print money.  Like Ronald Reagan.  Under the advice from none other than Milton Friedman.  Who served on the President Reagan’s Economic Policy Advisory Board.  Reagan shared Friedman’s economic views.  Believed in a limited government that left the free market alone.  So Reagan cut taxes, reduced government spending (other than defense) and deregulated an overregulated free market wherever he could.  All things Friedman endorsed.

It is unlikely that Friedman would endorse any quantitative easing.  Because a lack of credit is not causing our economic woes.  It’s a complicated tax code.  High tax rates.  And way too much governmental regulation and interference into the free market.  Especially Obamacare.  That has frozen all new hiring.  And pushed full-time workers into part-time positions.  Or out of a job entirely.  More money in the economy is not going to fix this anti-business climate of the Obama administration.  In fact, the only people making any money now are rich people.  Who are using all that new money to make more money in the stock market.  And when the government shuts off the quantitative easing tap those rich people are going to bail out of the stock market.  To lock in their profits.  Causing the stock market to crash.  And putting an end to the phony illusion of an economic recovery.  And the worst economic recovery since that following the Great Depression will get worse.

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North Korea may not be able to Light up the Night or Feed her People but they now have their own Smartphone

Posted by PITHOCRATES - August 17th, 2013

Week in Review

You know the machines are taking over the world when everyone must have a smartphone these days.  Even the North Koreans (see Skepticism as NKorea shows home-grown smartphone by Youkyung Lee, AP Technology Writer, posted 8/16/2013 on Yahoo! Finance).

North Korea’s announcement that it is mass producing a home-grown smartphone has been met with skepticism in the tech industry in South Korea and abroad.

The North’s state media last week showed leader Kim Jong Un inspecting “Arirang” phones at a Pyongyang factory. The Korean Central News Agency’s Aug. 10 report said the factory began manufacturing smartphones “a few days ago” and they were already in high demand.

No.  They’re not.

…access to the global Internet is severely restricted and mobile phones used on the state-authorized network cannot make overseas calls. The North’s Intranet gives access to government sanctioned sites and works with its own browsers, search engine and email programs, according to South Korea’s Unification Ministry.

So, in other words, people can use these smartphones to only access the state propaganda that they are already being bombarded with.  Not the rich entertainment environment available just south of the border in South Korea.  Where people actually want smartphones.  Well, not smartphones per se.  But the cyberworld the smartphones bring to them.  A cyberworld strictly FORBIDDEN for the average North Korean.  So, yeah, there is a high demand for smartphones in North Korea.  Just as there is a high demand for famine and state-oppression.  Which, sadly, are the only things North Korea has an abundance of.

The 1950-53 Korean War ended in a truce and the Korean Peninsula remains technically at war. Since then, the South has prospered and produced giant corporations such as Samsung Electronics Co., which is the world’s biggest maker of smartphones, computer memory chips and displays. The North’s economy has languished under socialist central planning though the capital Pyongyang is an oasis of relative affluence.

And there’s the problem.  Socialist central planning.  If that would ever go away the people could use smartphone like their neighbors to the south.  As well as losing their constant fear of famine.  And state-oppression.  Of course for that to happen will require the reunification of the Korean Peninsula.  With the North becoming like the South, of course.

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