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  • The Prius Economy [View article]
    Central banks can tax the general populace and transfer that wealth to the financial markets as long as the general populace continues to generate wealth. The threat is when central banks and other gov policies go too far and stifle the wealth creating power of the populace too much. As long as gov policy doesn't do this, then good news for equities will be good news and bad news for equities will be good news, because the bad news means more subsidies for financial markets via the wealth transference mechanisms of central banks. This is, after all, the reason central banks are created.
    Apr 11, 2012. 09:56 AM | 3 Likes Like |Link to Comment
  • U.S. Treasuries Bubble: Beginning To Burst? [View article]
    "It may be that events cause the 10 yr to move back to 1.80"

    Are we heading back to 1.80?
    Apr 10, 2012. 01:29 PM | Likes Like |Link to Comment
  • Bond ETFs To Buy As Rates Rise [View article]
    Looks like the timing for this was a bit premature. We may still have a lot longer for rates to go up than we think.
    Apr 10, 2012. 01:27 PM | Likes Like |Link to Comment
  • U.S. Treasuries: This Is The End? [View article]
    U.S. Treasuries: This Is The End?

    Not just yet.
    Apr 10, 2012. 01:25 PM | Likes Like |Link to Comment
  • Treasury Bond Yields Will Continue Upward Climb [View article]
    Treasury Bond Yields Will Continue Upward Climb

    Apr 10, 2012. 01:24 PM | 1 Like Like |Link to Comment
  • Long-term Treasury yields remain higher as Bernanke hints at additional Fed ease - saying faster growth will be necessary to lock in and add to recent labor market improvements. The long bond +4 bps to 3.35%, the 10-year +3 bps to 2.26%.  [View news story]
    We may still have to wait a while for interest rates to take off. The next opportunity will either be US QE or a big gain in the ECB balance sheet via LTRO.
    Apr 10, 2012. 01:21 PM | Likes Like |Link to Comment
  • U.S. Treasuries: Bears May Be Disappointed Once Again [View article]
    Are we going to settle into the 1.90s as the new range for 10yrs?
    Apr 10, 2012. 01:19 PM | Likes Like |Link to Comment
  • Is The U.S. Healthcare System An Economic Bubble? [View article]
    "insurers lobby government to keep competition out"

    Since gov regulations can do nothing about increasing supply, all they can do is discourage supply via increased fix costs via price blind regulations or they can encourage more demand via subsidies for buyers. Either way the physics of supply meeting demand is polluted via the introduction of force from gov that is blind to physics and the result is a pullback from optimal performance to suboptimal performance.

    Insurance companies are prohibited from crossing state lines, they are exempted from antitrust legislation so they can have virtual monopolies within states so the states can mandate price blind regulations that FORCE insurance companies to cover things based on politics not the physics of supply and demand.

    Think about it, via gov force we subsidize health care buyers and regulate (raise fixed costs) health care providers, and have health care costs been going up or down?

    We subsidize buyers of education and regulate providers of education, and have education costs been going up or down?

    We subsidized real estate buyers and regulated financers of credit for real estate and producers of real estate via urban planning, and did prices of real estate go up or down?

    Gov force cannot regulate with regards to increasing supply because that is a function of technology, and only increases in supply will permit sustained increases in consumption (go from knowing how to catch 1 fish to 5, and you now you can consume 5 - an increase in the standard of living). The same is true for every other endeavor of human beings, including health care. Our abiltiy to consume is based on our ability to produce. Gov only has force, thus gov can do nothing with regards to production, except discourage production by using its force to subsidize consumption.

    Producing is hard, but consuming is easy and it feels good. It feels good because nature has programmed us that way for the sake of survival. Politicians capitalize on this by doing things that feel good because it gets votes and helps them get rich (a survival instinct).

    If your plan is to use gov force to redistribute (another term for subsidizing consumption which is another term for theft), the only outcome will be austerity because the incentives to produce will erode. This is why Cuba and N Korea and much of Europe are so poor.

    The insurance companies will go bankrupt and then be nationalized, and the same efficiency you find in the VA system or the DMV or your local SS office will be brought to healthcare. It means rationing not based on price but rationing as in it will be impossible to find or findint it will be against the law. It will not be utopia it will be desparately poor.

    If you enjoy NPR for its pedistrian entertainment value, then have at it. Just keep in mind that you may only be getting a one sided, two dimensional view of things.

    How about this...Why don't you pay for everyone's healthcare? Does the fact that you aren't willing to do this, mean you are willing to let people die because you are selfish? You could work 90-100 hrs a week 7 days a week for the rest of your life, and give all that extra money away in order to save lives. Wouldn't being true to your ideology require you to do this? After all a failure to share means that someone else doesn't benefit and that benefit means their survival.
    Apr 10, 2012. 12:10 PM | 2 Likes Like |Link to Comment
  • Is The U.S. Healthcare System An Economic Bubble? [View article]
    "we spend too much on services that do too little."

    At last. Force makes all the difference in transactions, this is why force is the preferred method of thieves. It is the ultimate in inflation. You give up everything you have for nothing in return in a theft transaction. The same principle applies when gov force is applied in other transactions. It creates a consumption subsidy. As such, force interferes with the intersection of supply and demand.

    Supply is a funciton of our understanding of physics. The more we know about the natural world, the better we become at being able to produce. The cave man that discovers how to use a net instead of his hands can consume more fish because he can produce more fish. Thus, supply is shifted because of the physics of human nature interacting with the physics of the rest of the natural world. The ABILITY to increase supply is also the ABILITY to increase demand via the ABILITY to increase consumption via the ABILITY to increase supply. It is all interconnected.

    However, force does not produce anything, it merely subsidizes the consumption of one individual at the expense of another. The theft transaction is the only basis for one person to become richer while another person becomes poorer. Only in free markets (markets free from force and fraud) can you have transactions that make both parties richer via voluntary cooperation.

    As such, your statement above is a classic representation of gov subsidies for consumers that allows for demand to shift to right that results in increased prices for the same quantities. However, since supply and demand are connected, the greater demand requires more work which compresses margins, which is a disincentive to produce, thus supply shifts to the left, and the result is higher prices for less quantity.

    Now, consider that people are subsidized for indulging themselves by forcing insurance company to cover them no matter how irresponsible they are, and you have created the situation where people are actually paid to make themselves unhealthy via gov policy because people like to indulge and they will vote for people that pay them to indulge. The result is more and more indulging and more and more poor health resulting in higher and higher costs resulting in more and more subsidies that raise prices higher and higher and the rising prices create more and more unrest then you have price controls which leads to less and less incentive to produce, supply shifts to the right, and the result is higher prices and lower quantities.

    What causes all this is the technology that should drive increases in supply and demand is not occurring. The only thing that is occuring is the interjection of force via gov which cause more consumption without a concomitant increase in production aka the mechanics of the theft transaction. The end result of gov into the health care markets will not result in better health because it won't result in prevention or cures, it will result less prevention and less cures because simple physics apply to both prevention and cures, and ideology will not trump physics.

    If you enjoy NPR for its pedestrian entertainment value, that's fine, just realize it is not a source of credible information, thus make sure you question anything they tell you. In this regard it is just like listening to Rush Limbaugh.
    Apr 10, 2012. 09:28 AM | 1 Like Like |Link to Comment
  • Is The U.S. Healthcare System An Economic Bubble? [View article]
    You think supply comes from magic? NPR takes gov money, thus they have a conflict of interest.
    Apr 10, 2012. 06:02 AM | 2 Likes Like |Link to Comment
  • Euroausterity: Just What Do They Think They Are Doing? [View article]
    I've also read from Randal OToole that in some places the amount of people riding trains compared to how much it costs to build and operate the trains is comparable to buying each of those people a brand new car every year for several years.

    It is also interesting to note that gov builds roads (the lofty infrastructure), roads built by gov are a subsidy for cars, so you have lots and lots of cars, that need lots and lots of gasoline. Then the advocates for gov built infrastructure complain about all the gas those cars use, which are the very cars they advocated subsidizing.

    If you really wanted to reign in the demand for cars, start privatizing roads. What may happen is that we get fewer and fewer roads and more and more trains. All done in half the time and for half the cost.

    Instead what we will get is subsidies for trains along with subsidies for cars, so they can all be built in all the wrong places for three times the cost and for three times the amount of time it should take to build them.
    Apr 9, 2012. 05:16 PM | 2 Likes Like |Link to Comment
  • Is The U.S. Healthcare System An Economic Bubble? [View article]
    Tyrants never tell you they are tyrants the same way con artists never tell you they are con artists. The test for a tyrant is someone that wants to control you, and they way they get you to go along with it is that it is for your own good. Of course, once they have control over you, their incentive to act for your good and not their good evaporates. The same fraud is used for the economy (which is really everything). It must be controlled for our own good, and how do you control an economy, why you control the people. Now that they are controlled, the incentive to act in their interests by those with the control evaporates. The quest for classless societies by giving gov control to create this classless society, always produces two classes. Those who have the control, and those that do not. The do nots also wind up being the have nots.
    Apr 9, 2012. 04:48 PM | 2 Likes Like |Link to Comment
  • Is The U.S. Healthcare System An Economic Bubble? [View article]
    Your facts and stories are based on a tyrannical market, wherein force (gov force) interferes with the pricing mechanism and supply and demand. In order to control markets you must control people and controlling people is tyranny. If you could turn off NPR and MSNBC and do some thinking for yourself, you would understand simple reality.

    Whether gov is socialist, communist, or regulated, it all comes down to gov's ability to produce. Production is a product of learning. What makes gov, gov, is force. Force eliminates the need to learn, thus gov cannot be a producer. It cannot invent better than voluntary cooperation because it doesn't have to learn from mistakes (how long have we been in the middle east now?)

    Gov can only regulate with regards to force and fraud, because the only tool it has is force. It cannot regulate with regards to supply because it does not need to respond to mistakes about production, and without increasing supply it cannot increase consumption and allow demand to shift without affecting price.

    You can use gov force to cause consumption and shift demand, but without affecting the physics that affect supply, the result is people working longer to meet that demand, and thus they work less or raise the price so they can work less. Either way, the end result is eventually higher prices and lower quantities. In other words, healthcare austerity.

    If you used gov for its logical purpose of creating markets that are free of force and fraud, then people would be far healthier because prevention would be cheap and cures would be cheap. Natural markets always punish indulgent behavior and reward efficient behavior. It is only gov when it is misued that indulgent behavior is rewarded, that quite literally creates bubbles, both in markets and in people.

    Again, look at other things besides pedistrian sources like NPR and MSNBC.
    Apr 9, 2012. 04:28 PM | Likes Like |Link to Comment
  • Is The U.S. Healthcare System An Economic Bubble? [View article]
    Lives and business are the same thing. Everything we do is related to survival. The increases in our standard of living are a cushion against nonsurvival. Religion, art, vacations, everything is related to survival, and survival is based on our understanding of how nature works, which is physics.

    As such, supply and demand have everything to do with phyiscs. Supply is a result of what we know how to make because of our understanding of the world around us, and our ability to make things determines what we can consume which determines the ability of demand to shift to the right. You can't consume what you don't produce, whether its is prevention or cures.

    The cheaper you make prevention via a better understanding of physics the more you can supply and the more you can demand because your ability to consume has been increased. What you are suggesting is destroying the incentive to learn about nature, thus lowering the supply, thus lowering the ability to consume, thus lowering demand, with the result being higher prices and lower quantities. If you really cared about people, you wouldn't advocate for policies that will give them less and have it cost more. That's known as austerity.
    Apr 9, 2012. 04:14 PM | 1 Like Like |Link to Comment
  • Is The U.S. Healthcare System An Economic Bubble? [View article]
    Yes but prevention also needs supply. There is research, materials, labor, education, etc. Your proposition is that gov will somehow MAGICALLY produce all of this out of thin air because there is no need for supply. As soon as anything needs to be created, whether it is prevention or cure, needs supply.

    Since you can do nothing for supply, all you can do is use gov guns to force the producers of prevention and cures to work without compensation agreed to via prices. This then affects supply at the same time you are monekying with demand. What you are failing to realize is that supply and demand are interconnected, and it is the rules of physics that control them, not your wild-eyed extremists ideology.

    The end result of your proposed tyranny will be to shift demand to the right and supply to the left with the result being higher prices and lower quantities. In other words, healthcare austerity for both prevention and cures. So in the name of making us all richer, you will be making us all poorer. Now that is stupid.
    Apr 9, 2012. 12:52 PM | 2 Likes Like |Link to Comment