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Friday, September 14, 2012

On Federal Reserve Sponsored Inflation and Obamacare

With Bernanke's new move to pump money into the system, let's not forget what that really means. The dude over at the Economic Collapse Blog knows his Federal Reserve, and what you really need to know is that even though QE1 and QE2 did nothing to help normal people (those NOT on Wall Street) since it grossly inflates the cost of living by devaluing the dollar, making our 1995 level salaries feel even more cramped - not even so much as creating any jobs - this new QE3 is open ended.

That means we can experience inflation ad infinitim! I can't wait to see how far I'll learn to stretch a dollar. To give fair credit, Romney DOES understand what this means for normal people because he asked Bernanke not to do it. Deflate the dollar, that is, by printing as many dollars as he wants in an election year. To make money on Wall Street with his pals the (mostly) Democrat politicians before Romney is elected and replaces him.

One good effect is the common people might just learn enough about the Federal Reserve to support its removal, as Ron Paul suggests. Romney does want it audited, which is at least a start. One bad effect is the US credit rating just dropped again, now to AA-.
In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar.
In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.

Obamacare is more bad news. I know it's not part of any major news cycle, but it is affecting everyone in very real ways because our medical professionals are preparing to enter its servitude. We're talking mountains of paperwork, hours of compliance regulations, studies to see which doctors are using their time most effectively, and ultimately some doctors will be fired. Even though we have an overal doctor shortage.

Why? Because Obamacare changes Medicare reimbursement by giving the hospital one lump sum depending on the diagnosis and it has to be shared between all departments who care for the patient. This will mean fewer diagnostics per patient, fewer examinations, shorter hospital stays.

There is a large penalty on the hospital for readmissions (patients who come back still sick), nor does Obamacare touch tort reform, which would give doctors some peace of mind in our excessivly litiginous society, but you need to understand that this bill is projected to cut most doctors' pay nearly in half, on average, to about $120k. While raising their already-long work hours. While they still go through years and years of education to make a salary at all, and reach a job with hundreds of thousands of dollars in student loans. Yup, Obamacare is a mess.

And it will drive insurance companies slowly but surely out of business by raising the regulatory burdens on insurance companies which necessarily raises the premiums we pay, until we all end up on the government plan. Long wait times, low-quality care that you could get anywhere else in the world. Congratulations, America, for voting for a socialist.

I think the majority of Americans realize they don't want to be in a socialist country where equal outcomes means bad outcomes, so that Romney will win. We need to work to ensure he gets enough help in the House and the Senate - and we may have to keep on them about this - to overturn Obamacare for real.

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