I know, Obama wants his "big health plan"
You do realize that the recent "PayGo" flim-flam ignores (intentionally) up to $2.6 trillion in debt (new deficits) taken on to promote that plan, right?
Do you think we can afford it?
We ran a $189.7 billion deficit this last month folks. Annualized this is a staggering $2.276 trillion dollars - for one year.
That's the difference between tax receipts and spending.
$2.276 trillion dollars.
We cannot keep doing this. Our lenders (the Chinese, Saudis and others) will not permit us to keep doing this.
If we don't stop this stupidity, here and now, interest rates will start to move dramatically higher.
You have already seen mortgage rates rise by some 20% in less than two months.
They could easily double from here.
A $200,000 house that was bought with a 5% mortgage is worth $104,984 if rates rise to 12%.
Let me put this in simple English so you understand what is being done to you with our incompetent, unsustainable and delinquent government policies:
Your home will have its current, depreciated due to the housing bust value, cut in half again if we don't cut this crap out right here and now.
That's right.
But it gets worse.
See, businesses have to borrow too. And their interest costs will double as well, which means lots of job losses, as interest expense is money that can't go to payroll. In fact, it means many millions of additional job losses, and an unemployment rate that will rise to 20% or more.
I realize that nobody is happy about the cost of health care, including me.
But there are some very inconvenient facts related to health care in America that nobody wants to discuss, yet we must discuss them and come to some understanding in this country among all citizens.
As just one example you consume somewhere between 80 and 90% of all health care dollars that you will ever consume in your last year of life. If you do not have the money to pay for this, currently society will pick up the tab. It is in no small part due to this fact that we have the funding problem within Medicare today.
We provide "free" medical care to illegal immigrants. There is, of course, no such thing as "free" medical care - what really happens is you get billed for it as a citizen, either directly in your health insurance costs or in your taxes, yet the illegal immigrant pays nothing and receives the same service you get. Is this just? Is this sustainable?
We have some $53 trillion in unfunded liabilities in the "social programs" in this country right now. We cannot possibly come up with that much money. If we were a bank, we would be shut down as insolvent. Foreigners and others are realizing this and are diversifying out of the dollar, and out of our Treasuries.
This trend will continue until and unless we stop spending more than we make - both individually and as a nation.
At some point the revenue that the government can obtain by borrowing will dwindle and interest costs will rise to the point of being unaffordable.
At that point a very disorderly shutdown of many services that Americans consider essential, such as Social Security and Medicare, will take place - not because the government wants to, but because it is literally out of money.
We can solve this problem, but pandering won't do it. Nor will platitudes. Simply put, that last year can't be yours if you are unable to personally afford it.
Illegals cannot be funded in their health care by citizens.
There is more to a real solution, but these two facts are indeed facts, yet I do not expect our government to face them.
But if we do not, then your home will be destroyed, your job security will be destroyed, and ultimately, your nation may be destroyed.
This is real folks, and the mantra "never waste a crisis" is 180 degrees off from the correct approach.
Don't be suckered, and demand to see the math from all who claim to have an answer, because I can tell you this with certainty: without solving those two primary problems, the math will not work and the bad effects will come.
Count on it.
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