Well Well, Look What We Have Here...
The Market Ticker - Commentary on The Capital Markets
2017-07-21 18:05 by Karl Denninger
in Editorial , 355 references Ignore this thread
Well Well, Look What We Have Here...
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The cat dragged this in..

"The ObamaCare reform fiasco looks like a tipping point toward a strain of toxic political paralysis that might literally kill the government as we’ve known it. Over the many months of debate, congress never even got around to raising the salient issue: that the 18-or-so-percent of the economy “health care” represents consists largely of outright racketeering."

Yep.

Oh, and I believe it's now up to 19% and change, soon be 20.

And somewhere not far from there the entire mess comes apart.

3+% real GDP expansion cannot be achieved when one dollar in five is literally stolen for an alleged "service" that is worthless at best and kills you at worst.

Let us not forget that to consume you must first produce, or convince someone you will in the future (he then lends you what you spend, of course.)  The latter has been made easy over the last 30 or so years (since the early 1980s) by a generally-declining interest rate environment.

You take a million dollar loan @15% interest and you have to come up with $150,000 a year or they come take your property.

But when the rate falls to 10%, you can borrow a million and a half, spending the other $500 large.

Then the rate progressively falls to 1% and that original million dollars is suddenly $15 million, all of which you blow because you no longer feel any need to produce anything.

The problem is visible to anyone who thinks, but nobody ever does.  What happens when the rates stop going down -- or God forbid, go up?

Well, if they go up to a mere 2% then you suddenly have to come up with $7.5 million when the best you can manage is a $150,000 a year coupon payment!

If you don't get this then you don't understand how bad it's going to get.

2008 was a Girl Scout Picnic by comparison since the interest rates on short-term paper have plummeted by some 70% or more since then.  The Federal Government alone has more than doubled its indebtedness.

The racketeering in the health system must be stopped here and now.

Yeah, I know that will get bad.

But it won't be anywhere near what comes in the next few months and years if we don't do it.

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1crzydmnd
Posts: 2873
Incept: 2008-03-26

Bizarro World
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Karl, can you provide the link the quoted material comes from? Thanks

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BFYTW
Tickerguy
Posts: 149426
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A True American Patriot!
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Will fix it in a bit

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Winding it down.
Gmh
Posts: 35
Incept: 2008-10-05

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It's from Howard Kunstler's blog - he and Karl seem to have become more or less simpatico on this issue the past few months.
Tickerguy
Posts: 149426
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A True American Patriot!
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Fixed.

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Winding it down.
Renov8
Posts: 38
Incept: 2016-01-05

Eastern PA
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I think there are many like minded individuals who share the same concerns that you and all of us share regarding the state of healthcare in this country. We need to combine resources and attack this fraud being perpetuated on us with a vengeance. Time is very limited.

On a side note...I suggested another individual contact you regarding his position on healthcare...better to have many heads and voices hitting the airwaves than just one.

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"As a society, we rediscover that the value of a right is not in what it hides, but in what it protects."
Tickerguy
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Cool..


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Winding it down.
Renov8
Posts: 38
Incept: 2016-01-05

Eastern PA
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Found another interesting point of view which seems to point to the malaise affecting our Fn elected officials...

"Because, for the Republican leadership, this is no longer about health care (if it ever really was). It is now about rent-seeking, political positioning, and power consolidation.

The Republican leadership do not see a second term in the cards for Trump (indeed, they will fight to ensure that outcome) and are looking ahead to the next election cycle, where they will require the donations and support of insurance companies who have been trained to suckle at the government teat. That is why the Senate bill is one part reform and ten parts bailout to insurance companies." American thinker dot com...

Draining the swamp doesn't seem like the proper way of dealing with these swamp creatures....Looks like we might have to go in after them and handle individually. Maybe come mid term elections we put in those who have no obligations or corrupt connections to the corporatocracy embedded in our government.




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"As a society, we rediscover that the value of a right is not in what it hides, but in what it protects."
Mangymutt
Posts: 412
Incept: 2015-05-03

Vancouver WA
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Thank you for beating this drum.

Because the harpies have a bigger band with more instruments and all the bells and whistles that go into a full blown concert, it is saddening that so few actually hear the beat you are making.

They will keep dancing until all is stolen from them and us and than exclaim why didn't anyone warn us.

But it is nice to see articles like this one finally making the light of day.

I am sure it has at times been exhausting to get out and beat this drum, but hopefully a few more will understand and finally open their eyes.
Jackrussell
Posts: 9
Incept: 2016-12-10

Austin TX area
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well, well, I regularly read this page, all smugly contented because family has TX Teacher Retirement Health Care (TRS) while "you others" have this huge mess of sky high premiums and deductibles. If any healthcare at all.

WOW, GUESS WHO JUST ANNOUNCED INSOLVENCY? TRS Health Care. Texas, land of oil wells, huge growth, Toyota Plant, booming housing. KD ..DON'T you hate again being RIGHT?

Anyway, NO ONE, NO ONE will touch the real issue. COST.
The press talks about rising premiums but it is never mentioned about how payers/patients are being RIPPED OFF by Chargemaster machines and monopolies as KD has explained at length. Standard of Care is so expensive by design. No one wants to TOUCH the cost issue or they will be accused of "throwing Grandma off the cliff."

And the insurance companies (TRS is Humana) love it cause they can keep raising the premiums and raking in the fees.




Redbrian
Posts: 24
Incept: 2010-06-25

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Most people won't change until they hit rock bottom. Countries are the same way.

The can will continue to be kicked until something breaks. Yes, the longer we wait the worse the accrued consequences but the People in Charge think they'll get their loot and be long gone before the checks bounce.

At least Karl will be able to say "I told you so!".
Inline
Renov8
Posts: 38
Incept: 2016-01-05

Eastern PA
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Karl,

Following up on the premise that several heads are better than one... http://charleshughsmith.blogspot.com/201....

If you really want to get the news out about the real state of affairs in this country, maybe we try a divide and conquer approach. There are many of us who are sick and tired of the Bull**** going on in Wash. We need to have multiple blogs/writers/opinion pieces write about the healthcare mess in a coordinated, series of articles each written by one of you on the varying aspects that are afflicting our country/government from doing the right things needed to ensure our survivability.

I figured if you wrote about the actual healthcare numbers and presented an multi pringed solution that could be part one in the series, followed by Charles Hugh Smith talking about the physcological aspect of lying and the impact on getting anything done. Kenstler can chime in on down side of doing nothing, and so on. There are others I have read and I am sure you are connected with like minded individuals.groups that would lend a hand in getting this sugject/idea off the ground and running on the airwaves. If we could get sites like Breitbart and Drudge, along with Zerohedge and several other financial, NON MSM entities, I think the impact of such an event could be mind blowing.

The truth as Charles, you and many others have pointed out, needs to be addressed head on. No more Bull****.

So, what do you think? I am sure your readers/followers have some input on others we could contact and have this grow exponentially, guaranteeing the impact is noticed.

By the way, I usually sleep in on Saturdays before going to the range, but had this idea and could not shake it...We need a coordinated attack.

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"As a society, we rediscover that the value of a right is not in what it hides, but in what it protects."
Flappingeagle
Posts: 2642
Incept: 2011-04-14

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Going off on a tangent here, the US is just Venezuela in slow motion. We all see what eventually happens to those socialist countries, sooner or later they run out of other people's money. Well, we did "socialist lite" and it just took us longer to run out of other people's money. We pay somewhere around a 50% tax rate, the Fed, state, and local governments have all borrowed to the hilt trying to provide services we can't afford, and it is all going to unravel.

Healthcare is just driving the bus. Even if we get healthcare under control I have this strong suspicion that rising interest rates and demographics will take care of everything anyway.

Flap

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Here are my predictions for everyone to see:
S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu.
No sign that housing, equities, or farmland are in a bubble- Yellen 11/14/13
Trying to leave the Rat Race to the rats...
Keenan
Posts: 251
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Western PA
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Tucker Carlson is talking about healthcare. A bunch of us contacting him at FOX might persuade him to get KD on to refute the National Review's Mr Salam;

https://www.youtube.com/watch?time_conti....
Spence
Posts: 3196
Incept: 2009-09-11

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Steve Hilton on Fox News has also been talking about healthcare costs. He has a segment called Swamp Watch. Tonight he talked about insurance companies.

Below is an earlier one where he talks about pharma companies. He has a third one about hospitals but I can't find the video.

Keenan
Posts: 251
Incept: 2013-01-11

Western PA
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Spence & all RE more Swamp Watch

Steve Hilton on hospitals:
https://www.youtube.com/watch?v=FLFK0624....

on the insurance mafia:
https://www.youtube.com/watch?v=HytR7n7r....

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