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  • Now Is The Time To Be Fearful [View article]
    subsidizing an industry causes costs to go up not down
    Sep 19, 2013. 02:20 PM | 59 Likes Like |Link to Comment
  • Effects Of Obamacare On Employment [View article]
    Obamacare will have numerous other unintended consequences.
    1. as you alluded to fewer full time and more part time workers to avoid the 50 hr threshold
    2. More regulation of the insurance companies that can participate in the exchange.
    a. firing their actuaries (no longer in business of assessing risk) have to provide a "minimum of coverage" as stipulated by CMS
    b. Increasing premiums as high deductible/low premium alternatives will be increasingly hard to find
    c. Increasing the risk in the pool of insured by forcing companies to insure everyone regardless of risk
    3. Increasing overall cost of medicine via forced subsidy
    a. Reduction of price discovery mechanism
    b. More forcibly paying in, and less competition to put downward pressure on costs
    4. Decreasing quality of medicine and innovation
    a. medical homes utilizing more and more mid-level practitioners
    b. stifling R&D as pressure mounts to utilize generics and
    c. penalizing doctors who do not follow CMS quality measures or who think outside of the box and go against USPTF guidelines
    5. Downward pressure on physician salary will cause more physician shortages. Immigrants won't be coming in to practice, less FMG, less demand for the best and brightest. (25% of Britain's doctors leaving for more competitive (non-NHC) markets).

    I could go on and on. Obamacare suffers from the same problem that all statist, big government programs have. The pretense of knowledge, moral hazard, and mis-allocation of capital causing inefficient markets.
    Nov 10, 2012. 10:03 AM | 28 Likes Like |Link to Comment
  • Here's What Happened The Last Time The Fed Owned All Outstanding Treasuries [View article]
    It's hard to extrapolate trends from a pre Gold standard era to todays fiat madness. In the 1940s the FED couldn't monetize, they had to unwind. Not so today. We won't see any unwinding from this FED, we will see monetization instead.
    Apr 4, 2013. 05:19 PM | 25 Likes Like |Link to Comment
  • The Keynesian Depression [View article]
    "Unless the country is running a current account surplus the government must run a deficit greater than the foreign deficit to ensure the private sector is in surplus."

    What's the point of the govt constantly running a deficit to the point of monetization and inflation? This causes malinvestment. Also, if the private sector is in surplus in nominal terms only, they haven't gained wealth, just lost purchase power. The debtors will be happy, but the creditors will have a stronger disincentive to make loans. You would essentially taking purchase power from the savers and giving to those with debt. Wouldn't it be better to allow prices and wages to fall (deflation) and purchase power to increase in line with the economic contraction? Then producers could use the natural price signals to more efficiently allocate capital and savings.

    MMT (modern monetary theory) gets the accounting right, but it is a tautology, I don't see how the policy of endless inflation and monetization benefits us. Who cares if we have a surplus of dollars if they buy less stuff? Maybe a devalued currency would be essential if we were an export dependent economy like China, but we aren't.
    Dec 4, 2012. 09:09 PM | 16 Likes Like |Link to Comment
  • A Sober Wake-Up Call The Morning After [View article]
    Your comments are always right on track. I agree wholeheartedly. Socialism impoverishes. I too will have to take protective action for my family. I will not be risking capital to start a new practice so that uncle Sam can dictate how I run the practice and CMS can dictate how I practice medicine. The author is correct, this is a sobering morning!
    Nov 7, 2012. 09:06 AM | 15 Likes Like |Link to Comment
  • Effects Of Obamacare On Employment [View article]
    Generic insult to your intelligence, Personal attack, Stereotyped Criticism, overgeneralized characterization of your political philosophy, and sarcastic remark concerning recent government-sponsored malinvestment TO YOU! Ok now that I feel better about myself and more secure in my worldview by ridiculing you I can respond.
    I am in no way an advocate of our current system where CMS sets the base price via Medicare by stipulating RVUs and reimbursement on ICD9/CPT codes. The private insurance companies have to compete with a compulsory govt subsidized system and set their prices in accord with CMS, in addition to currently having to adjust prices based on risk pools. This is NOT a free market system. There are NO downward pressures on the costs of medicine due to CMS reimbursing quantity of care instead of quality. They reimburse procedures instead of thorough cognitive work. This is classic pretense of knowledge. To compensate for this they are instituting asinine quality core measures that in effect create about 3 hours of additional paperwork to my day. To give you an example of how Medicare is trying to find ways to decrease reimbursement I would ask you to consider reading up on CMS core measures as they are being rolled out piecewise to the major hospitals. Perhaps read about the 30 day bounce back,CHF core measures, 4 hour admission, or pneumonia antibiotic guidelines. These intrusions into the practice of medicine makes it HARDER to give good care to my patients. Obamacare takes this centralized planning approach to a whole new level. Read it (2.8 million pages), try to understand it, I dare you to call it a good piece of legislation then. Until then, come to my hospital and try to comply with the BS our federal overlords apply to us. I am angry because I CAN'T spend more than 7 minutes with each of my patients just because of the CMS rationing system. I beg you to try to understand how allocation of resources, productivity, and wealth are acutally generated. It is not at the hand of a politician!
    My solution to the problem is dynamic and involves both government subsidy and free market capitalism that would be a good homework assignment for you.
    Nov 10, 2012. 01:28 PM | 12 Likes Like |Link to Comment
  • How Obamacare Could Harm Growth In 2014, Part II [View article]
    I hate to admit it but Paul Ryan was right, We"d be better off with a system of vouchers. Let government money be at least channeled through the constructive forces of the free market. Heaven forbid we give the baby boomers some exposure to the real actual cost of their healthcare!
    Feb 28, 2013. 11:29 PM | 11 Likes Like |Link to Comment
  • Student Debt: A Trillion Dollar Bubble [View article]
    Yes indeed, we should forgive student debt because education is good. We should forgive home loan debt because owning a home is good for the economy. We should subsidize farmers because ethanol is good to put in gas. We should stick it to big tobacco and big pharma. We should raise taxes on investment dividends but exempt those in green energy fields....on and on and on it goes.

    You can't plan economic growth. You don't understand Moral Hazard! Undue intervention and subsidy has caused these bubbles and will continue to do so until the market and price discovery mechanisms are allowed to work!
    Jan 10, 2013. 01:38 PM | 11 Likes Like |Link to Comment
  • Effects Of Obamacare On Employment [View article]
    Ahhh again we're back to government controls. The government, in its infinite wisdom has placed a supply cap on residency training program slots. There is no mechanism for supply and demand for producing physicians. CMS subsidizes only a certain amount of residency progrms each year. The University hospitals will only offer than number of spots each year thus we can't produce more to match demand. We can't charge more for our high demand because of CMS's RVU rules, the Stark laws, and over-regulated insurance giants policies. Wade right in to the cesspool reality of our screwed up medical system.
    Nov 10, 2012. 05:35 PM | 11 Likes Like |Link to Comment
  • The Fed, David Einhorn, And The Search For The Mythical Free Lunch [View article]
    Well said. We need deflation, creative destruction, liquidation of bad assets, bankruptcy of irresponsible banks; so we can have reinvestment on a firm foundation. This, of course, would be painful and I don't think the Fed would ever allow it to happen. BB will continue to print, modeling after the Japanese scenario, all the while hoping and praying for a production explosion to grow us out of this trap. But with baby boomers retiring, and the current Ponzi structure of Medicare and Social Security; an explosion of productivity just won't happen without some miracle.
    By the way, how is it that Japan can continue to run a debt:GDP of > 230% and keep bond yields so low? Why do the Japanese investors and the bank of Japan plow everything back into government debt, the more they put in now, the more they have to put in later. 50% of their tax revenue goes to paying the interest on their debt. What happens when 100% of their federal revenue goes to paying the interest on their debt and the deficit is still not balanced? It that the new insolvency point for central banks?
    Oct 28, 2012. 10:30 PM | 11 Likes Like |Link to Comment
  • Effects Of Obamacare On Employment [View article]
    You are an idiot. You have no clue what you are talking about! I can't even respond to this nonsense, please don't reply to me anymore.
    Nov 10, 2012. 07:01 PM | 10 Likes Like |Link to Comment
  • How Obamacare Could Harm Growth In 2014, Part II [View article]
    Under Obamacare the insurance exchanges are highly regulated and have to meet standards of reimbursement as specified by CMS, you won't be able to find a low premium product like that, the Dems will have regulated them into extinction. Also, the insurance companies (exchanges) will all be offering more or less the same product due to the fact they can't discriminate based on health status/pre-existing conditions ect. The exchanges will fire all their actuaries. Why would an insurance company that Can't lawfully assess risk need actuaries. The exchanges are little government redistribution vehicles. Obamacare, is a step in the wrong direction, a horrible idea!
    Feb 28, 2013. 11:26 PM | 9 Likes Like |Link to Comment
  • The Keynesian Depression [View article]
    You have to pay off a gold-backed debt with productivity (a trade surplus). You can pay back a paper-backed debt with inflation. Which one do you think is better for wealth production in the long run?
    Dec 4, 2012. 10:37 PM | 9 Likes Like |Link to Comment
  • U.S. Dollar: The Biggest Moral Hazard Of Them All [View article]
    It is nice to read another hard money advocate calling a spade a spade. No matter how governments manipulate the digits, unsustainable is unsustainable. Will the western world continue to operate in government issued fiat currencies; my guess is, not for long.
    Nov 29, 2012. 04:38 PM | 9 Likes Like |Link to Comment
  • Why Financial Repression Will Fail [View article]
    If only Frederick Hayek was president, with a cabinent full of Austrians, and Murray Rothbard the Treasurer. Economists used to understand how wealth is created; as compared to present day MMT accounting mumbo jumbo.
    Nov 15, 2012. 04:40 PM | 8 Likes Like |Link to Comment