On Thursday, the U.S. House of Representatives finally approved a bill that would repeal and replace significant portions of the law that created Obamacare. But it was a very close vote. On Donald Trump’s 105th day in the White House, 217 members of the House voted in favor of the bill, and 213 members of the House voted against the bill. Of course “Trumpcare” is far from perfect, and it actually does very little to fix our rapidly failing healthcare system, but the reason why this is the best thing that Trump has done so far is because this bill would greatly reduce federal funding for Planned Parenthood. But first this bill must get through the Senate before it can become law, and that is looking extremely doubtful at this point. In fact, The Hill is reporting that one Republican Senator has said that this bill has less than a 20 percent chance of succeeding in the Senate…
A senior GOP senator said the chances of getting 51 votes for legislation based on the House healthcare bill are less than 1 in 5.
The senator also put the chances that the House bill will meet Senate budgetary rules preventing a filibuster at less than 1 in 5, meaning portions of the legislation would have to be removed.
Lawmakers are keeping quiet about their concerns because they want to help Speaker Paul Ryan (R-Wis.), whose job they fear may be in jeopardy if the House fails again to approve an ObamaCare repeal bill.
Yes, I know that Trump and the Republicans in the House were greatly celebrating on Thursday, but there really isn’t anything to celebrate yet.
The Senate is probably going to come up with an entirely different version of this legislation, and it is likely to look far different from the bill that just passed the House.
If a bill of some sort can actually get through the Senate, and that is a huge “if”, then an attempt would be made to reconcile the differences between the two bills, and then the final version would be submitted to both the House and the Senate for an up or down vote.
The problem is that the Senate is not going to pass anything like the version that the House just came up with, and conservatives in the House are likely to balk at anything that the Senate comes up with.
So please don’t think that an Obamacare repeal is a done deal.
The truth is that it probably is not going to happen any time soon.
But for the moment, I am going to applaud President Trump and House Republicans for doing something right. I have been very tough on them in recent weeks, and rightly so, but when they do something good I am certainly going to give them the praise that they are due.
The bill that the House just passed would greatly reduce federal funding for Planned Parenthood, and that fact alone more than makes up for all of the other flaws in it. The following comes from CNS News…
The American Health Care Act—the Obamacare repeal-and-replace bill that the House of Representatives passed by a 217-to-213 vote this afternoon–will temporarily and significantly reduce, but not eliminate, federal funding for Planned Parenthood.
The bill will prevent Planned Parenthood from receiving funding through “mandatory” federal funding streams—primarily Medicaid—for exactly one calendar year after the president signs it.
But it does not prevent Planned Parenthood from getting “discretionary” funding through the Title X family planning program.
It is just for one year, which is far from ideal, but at least for 12 months Planned Parenthood would see their funding go down by hundreds of millions of dollars…
The pro-life bill would eliminate more than $390 million (over 86%) of over $450 million in annual federal funding to Planned Parenthood, from all mandatory spending programs. The measure also redirects funding to community health centers which outnumber Planned Parenthood facilities 20 to 1 and offer a wider array of health care services, but not abortion.
Of course this is one of the provisions in the bill that some Republicans in the Senate want to eliminate.
It is extremely unlikely that any bill that even defunds Planned Parenthood in part will ever get through the Senate, but Trump should make an all-out effort to get this accomplished anyway.
And if Republican leadership can somehow get a bill through the Senate and signed into law that at least significantly reduces federal funding for Planned Parenthood, I will officially take back all of the negative things that I have said about the Republicans so far this year.
This week President Trump also signed a landmark executive order that does a great deal to protect religious liberty…
The order, signed during a ceremony in the White House Rose Garden, directs the Internal Revenue Service to exercise “maximum enforcement discretion” over the so-called Johnson amendment, which prevents churches and other tax-exempt religious organizations from endorsing or opposing political candidates. The order also provides “regulatory relief” for organizations that object on religious grounds to a provision in Obamacare that mandates employers provide certain health services, including coverage for contraception.
All Americans, including Christians, should be free to express their political beliefs without fearing repercussions from the federal government. The Johnson Amendment was probably always unconstitutional, and that is one of the reasons why it has never really been enforced. Congress should go even farther and completely repeal it, and hopefully that will happen someday.
So once again I want to take this opportunity to applaud Trump for doing something right. This is a good executive order, although it doesn’t quite go far enough. A major war against people of faith is being waged by very powerful forces in this country, and I am thankful for a president that is at least trying to keep some of the heat off of our backs.
I tend to get criticized by both the pro-Trump and anti-Trump camps because I try to be objective.
When our politicians do things that are wrong, I am going to say that they are wrong.
And when our politicians do things that are right, I am going to say that they are right.
We lose credibility when we act as cheerleaders for politicians that are “on our side” no matter what they say or do.
In our society today, there is a desperate need for people that are willing to think critically and that are willing to cling objectively to the truth.
Because once we let go of the truth we are all in trouble…
Top Republicans are now publicly saying that Obamacare will never be fully repealed. In fact, many Republicans in Congress are already using the term “repair” instead of “repeal” to describe what is going to happen to Barack Obama’s signature healthcare law. Without a doubt, the Republicans in Congress are eventually going to do something, but strategists in both parties are now suggesting that most of the key elements of Obamacare are going to remain once everything is all said and done. It will be put into a more “conservative” package, but it will still be Obamacare.
On Thursday, former House Speaker John Boehner made headlines all over the country when he said that a complete repeal of Obamacare is “not what’s going to happen”. Instead, Boehner said that Republicans are going to “fix Obamacare” and that they will “put a more conservative box around it” in order to keep their constituents happy.
Of course this isn’t what we voted for. For years, Republican politicians all across the country have been promising that Obamacare would be repealed once they got control of Congress, but now Boehner is telling us that all of that was just “happy talk”…
Earlier in the panel discussion, Boehner said he “started laughing” when Republicans started talking about moving lightning fast on repeal and then coming up with an alternative.
“In the 25 years that I served in the United States Congress, Republicans never, ever, one time agreed on what a health care proposal should look like. Not once,” Boehner said. “And all this happy talk that went on in November and December and January about repeal, repeal, repeal—yeah, we’ll do replace, replace—I started laughing, because if you pass repeal without replace, first, anything that happens is your fault. You broke it.”
When the Republicans finally get around to doing something, they will inevitably declare it to be a great victory, but will it actually be that much different from what we have now?
Yes, the IRS penalty for not having health insurance will probably go. But there will still be coverage for children up to the age of 26, there will still be mandatory coverage for preexisting conditions, there will still be mandatory coverage for maternity expenses, there will still be some form of Medicaid expansion and there will still be subsidies for the poor.
In the end, we are still going to have a healthcare system where half the country pays for the healthcare for the other half of the country.
That isn’t fair, and it never will be. One half of the country shouldn’t have to pay much higher rates for their own health insurance and also pay for the healthcare of everyone else in the nation as well. Either we should go back to a free market system, or they might as well go ahead and socialize the entire thing.
The thought of sticking with what we have right now is utter insanity, but unfortunately that is what top Republicans mean when they speak of “repairing” Obamacare. The following comes from the New York Times…
“When you talk about ‘repeal,’ you have just used a word that is very polarizing,” said Representative Tom MacArthur, Republican of New Jersey, who meets weekly with moderate Republicans and Democrats of equal number. “When you go to Democrats and say, ‘Help us repeal,’ that puts them in a box. If you say, ‘Would you help us repair something?’ people start listening in a whole other way.”
How in the world do you “repair” a steaming pile of garbage?
I just don’t understand.
What the Republicans need to do is very simple. As Jim Demint has suggested, the Republicans in Congress simply need to pass the same Obamacare repeal that Barack Obama vetoed not too long ago…
Heritage Foundation President Jim DeMint, the former South Carolina Republican senator, called on activists attending the Conservative Political Action Conference to push their members of Congress to send to President Donald Trump the same legislation that dismantled the law and was vetoed by President Barack Obama with all due haste.
“We must and we can repeal Obamacare now,” DeMint said. “They should send that same bill to President Trump right now.”
So what is keeping Republicans in Congress from moving forward?
One thing is the defunding of Planned Parenthood. Some liberal Republicans are promising to vote against any Obamacare repeal bill that defunds Planned Parenthood…
Sen. Lisa Murkowski (R-Alaska) says she will not vote for an ObamaCare repeal bill that defunds Planned Parenthood.
In her address to Alaska’s state legislature Wednesday, the moderate Republican offered her firmest commitment yet that she will not support defunding Planned Parenthood.
“I, for one, do not believe that Planned Parenthood has any place in our deliberations on the Affordable Care Act,” she said.
Another thing that is giving some Republicans pause are the angry protesters that they are running into at town hall meetings…
U.S. Sen. Charles Grassley of Iowa and Reps. Jason Chaffetz of Utah, Marsha Blackburn of Tennessee and Tom McClintock of California are among Republicans who faced hostile audiences at recent town hall meetings.
This comes after the Women’s March on Washington that drew hundreds of thousands of protestors the day after President Donald Trump’s inauguration.
“Republicans need to be paying attention and doing their best to understand the energy from the town halls,” said Nathan Gonzales, editor and publisher of Inside Elections, a Washington-based publication that tracks congressional races.
Of course a lot of those “angry protesters” are from Barack Obama’s private army of more than 30,000 volunteers that are being deployed around the nation in a desperate attempt to defend Obamacare.
In the end, the truth is that the Republicans should be listening to the voters that sent them to Washington in the first place. Most of those voters expected an immediate Obamacare repeal, and now that it has not happened it is making for a very confusing tax season. The following comes from Politico…
Republicans’ stalled campaign to repeal the Affordable Care Act is sowing confusion among those now trying to do their taxes.
Many taxpayers believe Republicans have already repealed the law, tax preparers say, and they’re surprised and upset to learn they are still subject to Obamacare’s penalty for failing to have health insurance — a charge that climbed this year to more than $2,000 per family.
Until it is repealed, Obamacare will continue to kill jobs and will continue to kill the middle class.
It was one of the worst pieces of legislation ever written, and it boggles the mind that so many Republicans in Congress are hesitant about repealing it.
Unfortunately, just as I portray in my novel, America is rapidly going crazy.
We have been given over to a reprobate mind, and our leaders can’t even seem to think straight any longer.
If Obamacare is going to be repealed, now is the time. Please contact your representatives in Congress and tell them that a “fix” will not work and that we want Obamacare to be completely repealed and replaced with a free market alternative.
The critics of Obamacare have been proven right. The Obama administration promised that health insurance premiums would go down. Instead, they have absolutely skyrocketed. The Obama administration promised that Obamacare would not kill jobs. Instead, firms are hiring fewer workers because of suffocating health care costs. As you will see below, even the Federal Reserve is admitting this. The Obama administration also promised that the big health insurance companies would love the new Obamacare plans and would eagerly compete with one another to win customers in the new health insurance marketplaces. Instead, many of the big health insurance companies are now dropping Obamacare plans altogether.
We witnessed the latest stunning example of this phenomenon just a few days ago. It turns out that Aetna has been losing hundreds of millions of dollars on plans sold through the health exchanges, and now they plan to pull out of the program almost entirely…
Earlier this week, Aetna, which covers about 900,000 people through the health exchanges created under Obamacare, announced that it would dramatically reduce its presence those exchanges. Instead of expanding into five new states this year, as the insurer had previously planned, the company said that it would drop out of 11 of the 15 states in which it currently sells under the law.
Aetna’s decision follows similar moves from other insurers: UnitedHealth announced in April that it would cease selling plans on most exchanges. Shortly after, Humana pulled out of two states, Virginia and Alabama. More than a dozen of the nonprofit health insurance cooperatives set up under the law—health insurance carriers created using government-back loans in order to spur competition—have failed entirely. While some insurers are entering the exchanges, even more are leaving.
Another one of “the big five”, UnitedHealth, is going to lose more than half a billion dollars on Obamacare plans. So just a few months ago they also announced that they would be dramatically scaling back their participation in the program.
Because of the ridiculous costs, health insurance companies are either going to have to abandon the exchanges completely or they will have to raise rates substantially.
Needless to say, the people that are going to ultimately feel the pain from all of this are consumers…
Customers who are now forced to obtain insurance or pay a hefty fine that grows more costly over time are being left in a difficult position. Americans are essentially stuck between a rock and hard place, either losing coverage entirely, or having to cough up money for a plan they can’t afford.
“Something has to give,” said Larry Levitt, a healthcare law expert at the Kaiser Family Foundation. “Either insurers will drop out or insurers will raise premiums.“
On the low end of the spectrum, tens of millions of poor Americans benefit from government programs that provide health care at little or no cost.
On the other end of the spectrum, the very wealthy can afford to pay the ridiculously high health insurance premiums that we are seeing under Obamacare.
So what this means is that the people that are being hurt the most by Obamacare are those that belong to the middle class.
As I mentioned above, employers are now hiring less workers because of Obamacare, and that is very bad news for the middle class. One recent study conducted by the Federal Reserve Bank of New York discovered that nearly one out of every five firms is “employing fewer workers” because of this insidious law…
According to a new survey by the Federal Reserve Bank of New York, 20.9% of manufacturing firms in the state said they were employing fewer workers because of the Affordable Care Act, the healthcare law known as Obamacare, while 16.8% of respondents in the service sector said the same.
And middle class Americans that have to pay for their own health insurance are being hit with much higher bills these days. According to one recent study, it is being projected that the average Obamacare premium will go up 24 percent in 2016…
Now, courtesy of a new study by independent analyst Charles Gaba – who has crunched the numbers for insurers participating in the ACA exchanges in all 50 states – we can also calculate what the average Obamacare premium increase across the entire US will be: using proposed and approved rate increase requests, the average Obamacare premium is expected to surge by a whopping 24% this year.
Even NBC News, which is about as pro-Obama as you can get, is reporting on the crippling premium increases that are devastating the middle class…
Millions of people who pay the full cost of their health insurance will face the sting of rising premiums next year, with no financial help from government subsidies.
Renewal notices bearing the bad news will go out this fall, just as the presidential election is in the home stretch.
“I don’t know if I could swallow another 30 or 40 percent without severely cutting into other things I’m trying to do, like retirement savings or reducing debt,” said Bob Byrnes, of Blaine, Minnesota, a Twin Cities suburb. His monthly premium of $524 is already about 50 percent more than he was paying in 2015, and he has a higher deductible.
All over the nation people are getting hit like this.
Personally, my health insurance company wanted to nearly double the rate I was paying when Obamacare fully kicked in. So I searched around and found another plan that was only about a 30 percent increase, but at least it wasn’t nearly double what I had been paying before.
But when the time came to renew that plan, they wanted to jump my premium up another 50 percent per month.
Those of us that are in the middle are being crushed by Obamacare. We aren’t poor enough to qualify for government assistance, and we aren’t wealthy enough for these ridiculous health insurance premiums not to matter.
Just about everything that Barack Obama promised us about Obamacare has turned out to be a lie.
So where in the accountability?
This is one of the big reasons why nearly one out of every five U.S. adults lives with their parents or their grandparents these days. Many young adults cannot afford the basics of life such as health insurance, and so they have got to find a way to cut back expenses somewhere. If that means moving back in with Mom and Dad, that is what some of them are going to do.
I am astounded that our system of health care has become so messed up. But this is just more evidence of how our society is falling apart in thousands of different ways, and I am not optimistic that things will be turned around any time soon.
Did you know that some Americans are being hit with health insurance rate increases of more than 500 percent? Taking advantage of “the stupidity of the American voter”, the Democrats succeeded in ramming through one of the worst pieces of legislation that has ever come before Congress. The full implementation of Obamacare has been repeatedly delayed, but now we are finally starting to see the true horror of this terrible law. Thanks to Obamacare, millions of American families are losing health plans that they were very happy with, health insurance rates are skyrocketing, millions of workers are having their full-time hours cut back to part-time hours, rural hospitals all over the country are dying, and thousands of doctors are being driven out of the industry thus intensifying the greatest doctor shortage in U.S. history. Obamacare is a slow-motion train wreck of epic proportions, and the full effect of this law is only beginning to be felt. In the end, the economic impact of this law will likely be measured in the trillions of dollars.
One of the primary reasons why Democrats experienced so much pain during the recent elections was because millions of Americans are receiving some very disturbing letters from their health insurance providers. At a time when U.S. incomes are stagnating, health insurance rates are rising to absolutely ridiculous levels.
As the New York Times recently reported, even the Obama administration is admitting that “substantial price increases” are on the way…
The Obama administration on Friday unveiled data showing that many Americans with health insurance bought under the Affordable Care Act could face substantial price increases next year — in some cases as much as 20 percent — unless they switch plans.
The data became available just hours before the health insurance marketplace was to open to buyers seeking insurance for 2015.
An analysis of the data by The New York Times suggests that although consumers will often be able to find new health plans with prices comparable to those they now pay, the situation varies greatly from state to state and even among counties in the same state.
Originally, Barack Obama promised that if we liked our current health plans that we could keep them. Well, it turns out that was not true at all. Instead, the vast majority of us will eventually have to move to new plans if we have not done so already. This is particularly true for those that purchase health insurance individually. The following is an excerpt from an NBC News investigation…
Four sources deeply involved in the Affordable Care Act tell NBC News that 50 to 75 percent of the 14 million consumers who buy their insurance individually can expect to receive a “cancellation” letter or the equivalent over the next year because their existing policies don’t meet the standards mandated by the new health care law. One expert predicts that number could reach as high as 80 percent. And all say that many of those forced to buy pricier new policies will experience “sticker shock.”
This is something that actually happened to me. I received a letter in the mail informing me that my new health insurance policy which meets the requirements of Obamacare will cost me nearly twice as much as my old one.
Needless to say, I was not too thrilled about that.
Other Americans are being hit even harder. For instance, one family down in Texas got hammered with a 539 percent rate increase…
Obamacare is named the “Affordable Care Act,” after all, and the President promised the rates would be “as low as a phone bill.” But I just received a confirmed letter from a friend in Texas showing a 539% rate increase on an existing policy that’s been in good standing for years.
As the letter reveals (see below), the cost for this couple’s policy under Humana is increasing from $212.10 per month to $1,356.60 per month. This is for a couple in good health whose combined income is less than $70K — a middle-class family, in other words.
These rate increases are coming at a time when the middle class in the U.S. is already steadily shrinking. A lot of families that are already stretched to the breaking point are making the very painful decision to give up health insurance entirely. At this point, there are millions of families that simply cannot afford it.
But Obama is not about to let those people off the hook. In fact, huge tax penalties are on the way for those that do not participate in the new system…
Penalties for failing to secure a health-insurance plan will rise steeply next year, which could take a big bite out of some families’ pocketbooks.
“The penalty is meant to incentivize people to get coverage,” said senior analyst Laura Adams of InsuranceQuotes.com. “This year, I think a lot of people are going to be in for a shock.”
In 2014, Obamacare’s first year, individuals are facing a penalty of $95 per person, or 1 percent of their income, depending on which is higher. If an American failed to get coverage this year, that penalty will be taken out of their tax refund in early 2015, Adams noted.
While that might be painful to some uninsured Americans who are counting on their tax refunds in early 2015, the penalty for going uninsured next year is even harsher. The financial penalty for skipping out on health coverage will more than triple to $325 per person in 2015, or 2 percent of income, depending on whichever is higher.
Children will be fined at half the adult rate, or $162.50 for those under 18 years old.
No wonder so many people are so angry with the Democrats.
And as Massachusetts Institute of Technology professor Jonathan Gruber has so infamously observed, Obamacare never would have become law if the American people had been told the truth about what it would do to them.
It has been documented that Gruber has visited the White House about a dozen times since 2009, and he has been one of the leading intellectual proponents of Obamacare. A video in which he states that “the stupidity of the American voter” was “really critical” to the passage of Obamacare has gone viral over the past week. I have posted a copy of this video below…
What he is essentially saying is that the Democrats purposely deceived the American people because it was the only way that Obamacare was going to become law.
And this is a man that has become very wealthy advising government on healthcare matters. According to an article in the Washington Post, he has made millions of dollars from “consulting” in recent years…
Not all of the contracts could be found on public Web sites, but here is a sampling. In some cases, Gruber worked with other consultants, so the fees were shared. These figures also might not represent the final payout, and of course these are gross figures, before expenses. But it’s safe to say that about $400,000 appears to be the standard rate for gaining access to the Gruber Microsimulation Model.
Gruber has also earned more than $2 million over the last seven years for an ongoing contract with HHS to assess choices made by the elderly in Medicare’s prescription-drug plan.
If you are Gruber, life is quite good.
But for most of the rest of America, the economic pain continues.
For example, one recent study found that almost half of all Floridians cannot even afford “to pay for basic necessities”…
Nearly half of Florida households do not earn enough to pay for basic necessities, according to a report released Tuesday by the United Way that seeks to cast a light on the large group of state residents who struggle financially but do not meet the official criteria for being in poverty.
While 15 percent of Florida households are below the poverty level, another 30 percent are financially insecure — a figure that also applies to Sarasota and Manatee counties — based on a new measurement developed by the United Way.
If all those people cannot even afford the basics, how are they going to pay for Obamacare?
This law is going to financially cripple millions of American families. It truly is a death panel for the U.S. economy. And because Barack Obama can veto anything that the Republicans in Congress do, we are stuck with it for at least another two years (and probably longer).
So what about you?
Have your health insurance premiums gone up yet?
Please feel free to add to the discussion by posting a comment below…
Most Americans have a deep aversion to the phrase “redistribution of wealth”, and rightly so. On a fundamental level, it is just not right to take the money that one man has worked so hard to earn and “redistribute” it to someone else. In the political realm, the phrase “a redistribution of wealth” is usually a reference to our ballooning social programs, but what most Americans don’t realize is that one of the biggest redistributions of wealth in world history took place during the Wall Street bailouts of a couple years ago. Trillions of dollars of our money and of money that belongs to future generations was redistributed to the Wall Street bankers. The Wall Street bankers did not earn this money and they did not deserve this money. We were told that if Wall Street did not get this money that the global economy would collapse and that there would be martial law in the streets. We were promised that this money would “fix” Wall Street and then the prosperity would “trickle down” to Main Street. So did this happen? Of course not.
What ended up happening is that Wall Street hoarded all of this cash. Lending to individuals and small businesses actually decreased. The Federal Reserve started handing out gigantic piles of nearly interest-free money which many of these big Wall Street banks immediately loaned back to the U.S. government at a significantly higher rate of interest.
Talk about easy money.
Now the big Wall Street banks and the ultra-wealthy are swimming in cash and sales of luxury goods in the United States are absolutely skyrocketing. Meanwhile, millions of “ordinary” Americans continue to slip into poverty.
So is the answer to all of this just to “tax the rich” and redistribute the wealth again by giving more handouts to the poor?
Of course not.
The American people don’t need more handouts.
What the American people desperately need are some good jobs.
But Wall Street is hoarding the cash they got during the bailouts.
It would be one thing if these big Wall Street banks had made a ton of money based on their own efforts. It is a very American thing to be able to enjoy the fruits of hard work.
However, the truth is that many big Wall Street banks and financial institutions may have completely imploded if not for the bailouts.
They were “too big to fail” and our politicians jumped to their service.
Our politicians redistributed wealth by taking trillions of dollars that belonged to us and to future generations and handed it to the folks on Wall Street.
So now the boys and girls over on Wall Street are thriving while tens of millions of “average” Americans are desperately suffering.
Does that seem right to you?
Isn’t it about time that the U.S. government gets out of the “redistribution of wealth” business altogether?
Just consider the following statistics. Even as the economic suffering of ordinary Americans continues to deepen, those who got big piles of bailout money are living the high life….
#1 According to Stephen Lewis of Monument Securities, luxury retailers in the United States have seen an 8.1 percent increase in sales compared to a year ago, while “discount stores” that cater to the poor and the middle class have only seen a 1.2 percent increase in sales compared to a year ago.
#2 The sad truth is that just about every company that deals in luxury goods is booming, while those that primarily serve ordinary Americans are not doing nearly as well. Just consider the following quote from a recent article by Ambrose Evans-Pritchard of the Telegraph….
Tiffany’s, Nordstrom, and Saks Fifth Avenue are booming. Sales of Cadillac cars have jumped 35pc, while Porsche’s US sales are up 29pc.
Cartier and Louis Vuitton have helped boost the luxury goods stock index by almost 50pc since October. Yet Best Buy, Target, and Walmart have languished.
#3 Elderly Americans in particular are really having a hard time of it right now. A recent study by a law professor from the University of Michigan found that Americans that are 55 years of age or older now account for 20 percent of all bankruptcies in the United States. Back in 2001, they only accounted for 12 percent of all bankruptcies.
#4 The number of Americans on food stamps has hit another all-time record. There are now 43.2 million Americans enrolled in the food stamp program.
#5 According to the U.S. Conference of Mayors, visits to soup kitchens are up 24 percent over the past year.
#6 Meanwhile, the price of food continues to go up. This hits poor and middle class Americans much harder than it hits the wealthy. According to a report on 55 top food commodities by the Food and Agriculture Organization, global food prices reached a new record high during December.
#7 Lester Brown, the president of the Washington-based Earth Policy Institute, is publicly declaring that the world is just “one poor harvest” away from total chaos….
“The reality is that the world is only one poor harvest away from chaos. We are so close to the edge that politically destabilizing food prices could come at any time.”
#8 The price of clothes is also increasing dramatically. It turns out that cotton is 80% more expensive now than it was back at the beginning of 2010.
#9 Americans will also be paying more at the gas pump this upcoming year. In fact, former Shell Oil President John Hofmeister recently stated that Americans could be paying 5 dollars for a gallon of gasoline by the end of this upcoming year.
#10 Health insurance rates are also skyrocketing. Blue Shield of California recently announced plans to raise health insurance rates by an average of 30% to 35% this year, and some individual policy holders could actually see their health insurance premiums rise by a whopping 59 percent.
#11 On top of everything else, the U.S. Census is now telling us that there are millions more poor people in America than they had previously calculated. The U.S. Census Bureau recently revealed that the figure of 43.6 million Americans living in poverty that they announced last September was way too low and that actually 47.8 million Americans are now living in poverty.
#12 If all of these economic problems were not bad enough, now many state and local governments are seriously considering raising taxes. In Illinois, there is now a proposal to raise state income tax rates by 75 percent. A recent article that appeared on the CNBC website explained why Illinois is so desperate for cash….
In a moment when states around the country are wrestling with withered revenues, Illinois faces a deficit of at least $13 billion; more than $6 billion in unpaid bills to social service agencies, schools and funeral homes; the most underfinanced state pension system; and growing signs of concern from bond investors.
So won’t the big Wall Street banks and the ultra-wealthy get hit by these tax increases too?
Some of them will, but many of them have learned to “play the game” so well that they barely pay any taxes at all.
As I have written about previously, a third of all the wealth in the world is now held in offshore banks. When taxes go up, the ultra-wealthy are not the ones that have their wealth “redistributed”. Instead, it is poor saps like you and I that have our wealth “redistributed”.
In fact, the next time another “financial crisis” comes along, the financial “powers that be” will once again come running to Congress and come running to the Federal Reserve begging for more bailouts.
Now that the precedent has been set, it will only seem natural to redistribute even more of our wealth to the folks over on Wall Street so that we can “save” the financial system.
But the truth is that our financial system is completely doomed to fail in the long run and throwing our money into the financial system is like throwing our money into a black hole.
In the end, all of us are going to greatly suffer when the financial system finally crashes. But for the moment the wealthy are partying with all of the money that they have looted from the rest of America, and the rest of us which were “small enough to fail” have been left to scratch and claw and fight with each other as we desperately try to survive in this horrible economy.