Obama Is Wrong on the Economy, Wrong on Healthcare

by: Mike Stathis

If you’ve been following my commentaries, you’ll recall how poor a job I feel Obama is doing. Perhaps you realized this on your own. But just in case you have any doubts, you might want to read an article I wrote a few weeks ago.

But all looks “great” according to the media. In their eyes President Obama can do no wrong. The media uses the same tactic when they hype up Britney Spears and Paris Hilton.
Like many presidents before him, Obama merely serves as the messenger for the men who really run the show.
I’m not going to discuss his reckless decision to allow the private Federal Reserve Banking System to serve as the czar of the financial industry. However, it appears that his appointment of numerous czars without senate approval is unconstitutional.

Let me just say this. It should be clear to anyone who has the slightest idea what’s going on that the Federal Reserve is most responsible for this economic mess. The Federal Reserve strong-armed banks, perhaps even Paulson and others to act in a predatory, defiant, and illegal manner.
And now Obama wants to grant the Fed absolute control of the financial industry? Are you kidding me? I can’t believe what I’m witnessing. I’ve been in disbelief now for over a year. Someone please wake me up when this nightmare ends; but not a minute before.
This very dangerous private bank should be abolished and all of its executives should stand trial for destroying the global economy. But, of course, this simply isn’t going to happen because the Federal Reserve controls Washington. They’re really no different than a mafia. But instead of using guns, the Fed uses power and money as their main weapons.
Consistent with his bait-and-switch tactics, illusions of “change,” and calls for “accountability,” Obama has now put forth early proposals of what he calls “healthcare” reform.
Meanwhile, all of the neo-con pundits and talking head bozos on radio and TV continue to use these reckless policies as a way to fuel momentum against his second term. These hacks will always find something to criticize in order to serve their political agendas.
I want to be clear that my views have absolutely nothing to do with any support for one political party or another. As you may already know, I believe there is only one party in America; Washington. And they answer to the Federal Reserve and corporate America. Perhaps by now, you too realize this.
First of all you need to understand that President Obama’s healthcare plan in no way resembles universal healthcare. At this point, I’m not even sure it will offer universal coverage despite his claims. According to several reports, it will leave 37 million uncovered. You shouldn’t be surprised by this. After all, “bait-and-switch” Obama hasn’t delivered on a single thing promised prior to or since winning the election.
I believe he intended to do many things he promised, like restructure free trade. But ever since being elected, he’s been through a crash course in what it means to be president – smile, talk it up in PR opps, and make everyone feel good. Meanwhile, the real decision makers continue to pull his strings. Obama is virtually powerless. He is a puppet, similar to many presidents before him.
Do you really think he wanted Hillary Clinton to serve in his cabinet? Do you really think he wanted tax cheats and Federal Reserve insiders like Tim Geithner and his mentor, Larry Summers around?
Obama’s advisers have convinced him they know best, so he lets them make all of the decisions. Even before his inauguration, it was clear to me that Obama sold out to the elitists. He should be shamed of himself for selling out so fast.
Universal healthcare means you have one payer, otherwise referred to as a single-payer system. The payer in such a system is typically the government. Meanwhile, universal coverage obviously means EVERYONE is covered.
As many of you know, in order to generate more momentum for his healthcare plan, Obama gave a speech at the annual AMA convention last week.
I’m wondering if he realized that only about 25% of the nations’ physicians are AMA members. Perhaps he knew this (doubtful) but just wanted an opportunity for a media blitz. If you want to reach out to physicians to gain support for a more positive direction for healthcare, the AMA certainly isn’t the first place you’d want to go.
But since Obama decided to address the AMA, I’d like to take the opportunity myself to address this organization. Contrary to reason, the AMA has a long history of blocking positive change for healthcare. When Medicare was first proposed, the AMA tried to stop it by creating scare tactics. This is how the term “socialized medicine” came about.
The AMA was also instrumental in blocking President Clinton’s healthcare plan. It is widely known that the AMA has always been against universal healthcare. This is one of the reasons why other medical associations have grown in number, having benefited from defected AMA members who felt betrayed.
I personally view the political mission of the AMA as a sick disgusting display of what has gone wrong with U.S. healthcare. They have willingly embraced the medical-industrial complex, which encourages physicians to be entrepreneurs over providers. This has eliminated the physician-patient relationship.
The AMA also controls the supply of physicians, which limits medical access and keeps compensation excessive in many cases. Other physicians who refuse to sell out to the greedy hands of the medical-industrial complex are burdened with large costs of doing business.
The shortage of physicians is directly due to the AMA’s own limits for medical school spots. Rather than secure an adequate number of U.S. trained physicians, it seems as if the AMA is more concerned with securing high salaries for physicians.
Do you know any unemployed physicians? Unemployment is virtually nonexistent for physicians because the AMA has such a tight control on medical school slots. Certainly, controlling the supply of trained physicians provides stability to healthcare, but we must question whether this is consistent with free market dynamics. How would things be if training for all occupations was controlled by industry groups?
Consequently, each year, several thousand foreign-trained physicians are offered visas if they agree to serve areas that no other physician will. This isn’t much different from letting illegal aliens into U.S. borders to do the work that Americans don’t want to do for low wages.
The only difference is that foreign-trained physicians often (but not always) build up a nice bank account compliments of U.S. taxpayers since they’re primarily compensated by Medicaid and Medicare.
The AMA is also focused on continuing with policies that promote America’s medical-industrial complex, at the expense of the people. I view the AMA as an agency working for the business of medicine rather than patient care.
Those who have read America’s Financial Apocalypse know well that I highlighted America’s healthcare crisis as the nations’ most formidable economic barrier, next to free trade.
None of the mainstream media’s so-called investment experts even addressed healthcare because they lack a full understanding of America’s problems. Most of these “experts” were more focused on pumping up the stock market or selling you fear in order to line their pockets. The only thing they’re concerned with is making money selling you the dream of riches. I ask you, how much money have you made following the hacks in the media?
If America ever expects to regain its previous economic strength, Washington needs to restructure free trade so that all nations are on a level playing field. Part of this restructuring includes an overhaul of healthcare. But this is still insufficient. Washington must also provide tax incentives for corporations that create domestic manufacturing facilities.
And if Washington is to continue to permit the Federal Reserve to control the nation’s currency, strict regulation and accountability must be established; not BY the Fed for the financial system, but FOR the Fed and the rest of the financial system. Thereafter, the economy would be positioned to start anew, with no further surprises down the road.
It’s a sickening reality to face, but it’s quite clear Washington has been bought off. Already, working-class Americans have seen millions of jobs go overseas over the past few years. As a consequence of outsourcing, Americans have been exposed to dangerous toys, food and other items due to poor regulatory health and safety standards in China.
I would say that most Americans are willing to pay higher prices for goods if these jobs were kept in the United States, if for nothing more than to ensure the safety of consumer goods.
Nothing has changed. And President Obama certainly isn’t going to provide any change other than a change of face.
It’s business as usual in Washington. Don’t let the back and forth bickering fool you. It’s all part of the theatrics designed to attract your support for the next election. Each side is bargaining for more chips, similar to the way two wealthy tycoons fight for the last dollar. It’s a game of winners. Each side wins regardless. All of the fighting is just for bragging rights and to set each party up for the next election. If you don’t realize that, perhaps you need to stop paying attention to the mainstream media and start thinking for yourself.
You should note that prior to winning the election, Obama mentioned the critical need to restructure free trade. But once his advisers got hold of him, he dismissed the idea. Instead, he has been echoing warnings by other leaders about protectionism, but only because his puppet masters have told him to say this. It should be clear by now what is going on and who is running the show. It certainly isn’t Obama.

These elitists could care less about working-class Americans. They don’t care that millions are suffering. They only care to preserve and strengthen their power and wealth. That is specifically why free trade will never be restructured. It’s too lucrative for corporate America.

Perhaps the most obvious sign of weakness, Obama’s healthcare proposal specifically ignores the number one problem with healthcare in America – cost. Providing greater access to medical insurance falls short of fixing the crisis in healthcare.

Obama’s proposal is fundamentally no different than Bush’s because in the end, taxpayers subsidize the excessive profits of the industry.
Similar to presidents before him, Obama’s remedy can be likened to trying to put out a large fire with a blanket. In the beginning, it will look like the fire has been contained. But soon after, the blanket will only make the problem worse. It’s the same manner by which Obama has dealt with the economy. Soon we will see the effects of these reckless policies. Most likely, the media will continue to praise Obama as they did Greenspan. Later they’ll have to eat their own words, as is often the case.
Until the healthcare industry is held to cost controls, spending for medical services will continue its ramped growth, threatening the long-term prospects for America’s economy.
But cost controls comprise only a small part of the answer. The complete solution has many components. Despite the backlash from the insurance industry for Obama’s proposed insurance exchange, the fact is that it really isn’t going to do much. Yet, he has convinced his allies and most consumers that it will.
It seems apparent to me that it’s impossible for a truly competitive situation to exist between private and public insurers. As they have been doing for decades, private insurers will find ways to cheat the system, shifting less healthy individuals into government-run insurance and defrauding public healthcare (see article).
To be clear, the insurance industry must be regulated at the federal level. I will not go into this point any further because it would consume too much space, but consider this. All insurance companies are financial firms. They invest their cash flows in the stock and bond markets. AIG should serve as an example of what can happen when you allow an insurance company to be regulated primarily at the state level.
Part of the solution to America’s healthcare crisis includes providing basic coverage for every American. One option to achieve this would be to establish a single-payer system, otherwise known as universal healthcare. The cost savings alone from the elimination of massive overhead from the private system would slash costs by up to $350 billion per year. Many additional costs would also decline, as the system is streamlined and held to strict measures of accountability.
But we certainly would not want to eliminate the private insurers. They would serve a important role by offering medical services above and beyond those provided by a universal system. Those who can afford private insurance could exclude themselves from the government plan altogether. These changes would provide sufficient business to keep the private insurance system alive.
No doubt, many jobs would be lost from universal healthcare; jobs that were subsidized by excessive healthcare costs. Similar to the financial industry, America’s healthcare industry is bloated and has formed a bubble of sorts. In this case, it’s a bubble of contingent liabilities and employment. We need to cut the fat and improve efficiency. This is the only chance we have.
Universal healthcare would be the least costly and easiest route towards fixing America’s healthcare crisis, but it’s not the only option. That’s quite fortunate because I do not see universal healthcare as a reality anytime soon. The healthcare lobbyists are simply too numerous and powerful in Washington.
In fact, I do not see free trade being restructured adequately until lobbyist activities have been banned. And that simply isn’t going to happen. Hell, Washington hasn’t even indicted the banking executives for fraud. Instead, these criminals are using taxpayer money for undeserved bonuses. If I didn’t know better, I’d think America had become a banana republic. No matter how you look at it, no one can deny that America has been transformed into crony capitalism.
America’s healthcare crisis also has a free market solution. But many changes will be needed to align healthcare within free market dynamics because as it stands today, America’s healthcare system does not bear much resemblance to the free markets.
There are several other changes needed to fix healthcare. Besides radical policy change which would address problems with the FDA and the food industry, America’s healthcare must transform itself into the information age. Telemedicine offers a huge amount of direct savings. Perhaps more important, it positions consumers to be more accountable for their health. This will help realign healthcare to operate under real free market dynamics instead of industry collusion.
But we must be very careful that politicians do not position telemedicine as a turn-key solution because it isn’t. Without proper policy change, regulation and accountability, no improvements will help.
While it is impossible to know for certain what this all means for investors, the healthcare industry is unlikely to deliver the tremendous returns of past years. This is especially true for drug makers. But we should not be a nation that caters to investors. We need a healthcare system that provides a reasonable assurance of medical assistance to our citizens so that we can be more productive.
However, if you agree with my premise that the healthcare industry has a stronghold on Washington, you can be sure that this industry will continue to be one to invest in for the long-term. It’s sad to think of it this way but the reality for many is that an investment in the healthcare industry might well represent your primary means of paying for healthcare; but only if your investment horizon is a few decades.
You might be asking who I am to assert these bold views on healthcare. Allow me to give you a brief description as to what I do. Some of you may know me from my bold forecasts provide in 2006 with the release of America’s Financial Apocalypse and Cashing in on the Real Estate Bubble. Both books continue to be the most accurate and insightful on the market. But most of you have never heard of me or these books because the media has engaged in a widespread campaign to keep me out of reach from the public eye. And they have continued to do so in order to protect their financial and political agendas.
Rather than selling securities, I provide business and investment intelligence to institutions, corporations, venture capital firms and recently to the retail public. In other words, I HAVE NO AGENDAS or BIAS. As a part of this mission, healthcare has been my number one industry focus for several years, so my insights are not sporadic.
For more than five years now, I’ve been working in a specific area of healthcare called telemedicine; not as a healthcare administrator or provider, but along side venture capitalists and healthcare corporations. I’ve drawn upon this work to form the basis of my solution to America’s healthcare crisis.
Regardless of the political direction healthcare takes, the one common element absolutely critical for a successful remedy to America’s healthcare crisis is a rapid build out of telemedicine and healthcare IT.
As some of you know, I’ve been working on a book to address both the problems deeply embedded within America’s healthcare system as well as the solutions. After more than two years of work on this book, the release is expected in the Fall. As you might agree, my timing couldn’t be any better.
But don’t bother looking for it in your local bookstore. Large publishers are only concerned with publishing books that sell many copies. Sadly, these books are almost always useless because they are for the masses, which sadly, in America are quite unintelligent.
If you want to sell books, you have to dumb things down so the average American brain can understand it. When you do this, much of the value of any content that might initially be intended gets lost or deleted. Furthermore, because the mainstream media sees me as a threat to crashing its party of lies and manipulation, this book will not be published by a large publisher.
If you want to get published in non-fiction, you have to either already be in the “media” club” or else qualify as a candidate of this deceitful group. What that means is that you have to be a liar, hack or idiot as I’ve mentioned many times over. Hopefully, you’re beginning to understand how it all works. Sure, there are some exceptions as with everything.
You might already know that the mainstream media has black-balled me ever since the 2006 release of “America’s Financial Apocalypse.” What I had to say in that book certainly didn’t bode well for their financial sponsors (Wall Street). But it positioned all who read it with tremendous insight and investment returns. In my biased opinion, it remains as the most insightful and prognostic investment book written in at least the past five years. And I expect it to continue to serve investors for many years to come.
Don’t expect to see raving reviews of my healthcare book either. The reviewers are almost never genuine. Authors and publishers solicit favorable reviews from their associates a rule of thumb. Often, they even pay people to write favorable reviews. This is a fact.
In this book, you aren’t going to find arguments for or against universal healthcare. What you will find is what I believe to be the most comprehensive presentation of America’s healthcare problems, accompanied by proposed solutions. The most prominent element of this solution involves telemedicine. This is a subject that has never been written about to the lay audience, so it will be a first of its kind.
I wish I could anticipate this book would reach the hands of every American; at the very least, every member of Congress and every state politician.
On second thought, it really wouldn’t matter. Most Americans continue to be brainwashed by the media. And politicians don’t act on reason, responsibility or equity. They act on money. And as long as you continue to follow the mainstream media, you will be fooled and your life will be negatively impacted. As long as lobbyists are permitted to exist, the demands of American voters will continue to be flushed down the drain. These are some harsh realities, but it’s past time to face the truth.

Disclosure: No positions