Obamacare myths, facts and unknowns - cost $3.5tn+, 800,000 fewer jobs, lower GDP and higher unemployment

Advocates of Obamacare frequently mention the increased coverage that comes with Obamacare. 
What they never mention is how much all this extra coverage will cost.
The insurers are not going to give all this extra coverage away for free.
Indeed insurers are taking advantage of the changes that come with Obamacare to dramatically increase (the pre subsidized) premiums and the amount of deductibles.

Obamacare is estimated to increase Healthcare spending by $400bn+ a year.
Government subsidies are expected to be around $300bn a year from 2014 - rising each year.
Cost $3.5tn+ over 10 years.

A significant slice of the extra spending will go in increased profits for the large insurers and large pharmaceutical companies, which is an inherent feature of how Obamacare has been set up (and designed in by the Heritage Foundation who came up with the basic scheme in the mid 1980's). 
 
Nearly all of this extra spending will be paid for by the middle classes who earn just above the Obamacare subsidy limits - 400% of the poverty level. Around $46,000 for an individual and $92,000 for a multi income family in 2014.

Some of this additional spending will be reflected in much higher (pre subsidy) premiums and deductibles.
Some of the cost will go on increased deficit spending that will have to be paid for eventually through taxes - these additional taxes will be paid by middle earners and above.    

Some of the extra spending will come from the young who are already struggling to pay off large student loan debts.
Obamacare has been set up so that the young who are relatively poor are forced to subsidize the relatively well off middle class elderly. 

There will also be indirect costs in the form of lower GDP growth.
The CBO estimates that Obamacare will cost 800,000 American jobs over the next few years.
This will cause higher unemployment, lower tax revenues and higher welfare costs.

Taking apart the CBO estimates of Obamacare costs
http://ian56.blogspot.com/2013/10/taking-apart-cbo-estimates-of-net-costs.html

Insurers are taking advantage of the changes brought about by Obamacare to dramatically increase premiums and deductibles.

If you think the Obamacare Exchanges and increase in premiums were bad, wait until you see the increase in deductibles.
http://hotair.com/archives/2013/10/14/if-you-think-the-obamacare-exchanges-and-premiums-were-bad/

Most of the current personal Health insurance policies are ineligible for Obamacare.
Insurers are taking advantage by scrapping the existing schemes and marketing new schemes at much higher prices.
Obamacare has already wiped out more than 1 million existing plans
http://www.wnd.com/2013/10/obamacare-wipes-out-more-than-1-million-plans/

The problem with American Healthcare is that it costs far too much, due to a lack of competition in the Healthcare market.
American Healthcare already costs double what it costs in all other developed countries with worse outcomes. (A lot of other countries have nationalized healthcare where the government controls the budget and hence total spending. There are no total spending controls in Obamacare.)

Obamacare makes a very bad situation much worse by lowering competition even further.
There are many many ways in which American Healthcare could be made much more efficient - Obamacare goes in exactly the opposite direction.
http://www.nytimes.com/2013/10/24/business/health-law-fails-to-keep-prices-low-in-rural-areas.html?smid=tw-share&_r=0
Obamacare effect - 9 insurers exit the healthcare market in Nebraska 
http://www.foxnews.com/politics/2013/10/11/obamacare-effect-companies-exit-nebraskas-health-insurance-market/

Pre subsidy premiums are expected to rise by an average of between 30% and 100% - it varies a lot depending on the State.
http://market-ticker.org/akcs-www?post=218947

Obamacare's Website Is Crashing Because It Doesn't Want You To Know How Costly Its Plans Are
http://www.forbes.com/sites/theapothecary/2013/10/14/obamacares-website-is-crashing-because-it-doesnt-want-you-to-know-health-plans-true-costs/

More Obamacare myths, facts and unknowns
http://ian56.blogspot.com/2013/10/obamacare-myths-facts-and-unknowns.html

The facts about Obamacare that Obama does not want you to see
http://ian56.blogspot.com/2013/01/the-affordable-care-act-should-be.html 

Obamacare is going to be a disaster for the American economy.
Which is the major reason why Obama delayed the business fines until after the 2014 mid-term elections.

Obama is now hiding that the very poor can obtain free healthcare through government (read taxpayer) funded healthcare clinics, in order to try and raise the currently very poor enrollment rates.
The explanation of how to obtain free healthcare through these clinics has been removed (or hidden) from the healthcare.gov Obamacare website.
Who cares if the poor will be worse off by not having access to full information - they will be voting Democrat anyway.

Update 10/25 

A few of the ways that Healthcare could be made more affordable in America

Allow healthcare insurance across state lines to make it more competitive and reduce the cost.
Motor insurance can be carried out across state lines and that is a FAR MORE competitive industry than health insurance.
Motor insurance pays out more than 100% of premiums in claims.
Obamacare specifies that the insurers can make no more than 20% of profits on premiums (but that is easily got around).

Drastically reduce the price of prescription drugs or go generic earlier.
Total savings around $100bn a year.
Take a look at the REAL price of drugs by seeing what is charged in Mexico or Canada.
The drugs companies charge double in America and sometimes a lot more.
America is artificially boosting the profits of the large drugs companies, half of which are foreign owned, from protectionist measures by the United States government.
Congress is forever passing new laws protecting a large pharmaceutical company's profits from a new drug.

Reduce the over $100bn of Medicare fraud a year.

Stop the over treatment and over prescription. 
Sick Money: How Mitt Romney's Bain Investments Are Exploding the Deficit and Harming Our Health
http://ian56.blogspot.com/2012/09/sick-money-how-mitt-romneys-bain.html
A large number of tests are not required, or are of very dubious value, but the healthcare provider makes a large profit if they are carried out.
Over 10% of the American population are on Prozac or similar anti-depressants and often people are on them for years - a far higher proportion than other countries.
Similarly a huge number of kids are now on Ritalin or some other ADHD treatment - it's now a huge industry. Kids used to let off some steam playing ball in the park and get their excess energy out of their system. Probably half of the kids being medically treated just need to let off some steam.

Routine tests, treatments and procedures often cost 10 times as much as they do in other countries.
Find out why and cut the cost by 90%. 

Reform the system where doctors spend half their time filling in insurance forms instead of treating patients.

Reduce the cost of malpractice insurance.
The costs are several times higher than they are in other developed countries. 

Get a group of experienced healthcare professionals together (front line doctors and nurses), that do not derive a substantial portion of their income from the drugs companies, and see what suggestions they can come up with.
I am sure they would come up with LOADS of good ideas. The suggestions here are just a taste of what could be done.

It should be relatively easy to at least double the efficiency of American Healthcare (halve the total cost).
France does it.
Since when have the French been able to do something better than Americans?
   

Read More

There are numerous errors in Huffington Post's article on the latest job report

1. The economy has averaged an average of 80,000 jobs per month from July through September (Household Survey) - not the 143,000 claimed in the article.

This is far below the required rate of around 180,000 new jobs per month just to keep up with population growth.

Since June there are an additional 892,000 people of working age, that are not working and are not looking for work, because decent paying jobs are not out there.
This shows the real extent of America's lack of jobs crisis. 

The number of people of working age increased by 616,00 during the same period. 

2. The Federal Reserve's bonds purchases are not boosting borrowing and spending. 

They are being used to bail out insolvent American and European banks.
The money is sitting on banks balance sheets. 
The bond and mortgage debt purchases are free money for the big banks, which they are using to boost their profits by speculation in the markets (which is the reason the stock market is so high).
No additional lending by the banks is happening.
American banks already have $1.7tn of "excess" reserves - they don't need any more for lending.
$1tn of the Fed's QE printing is being used to bail out insolvent European banks. 

The only increase in borrowings that are happening are :-
Government borrowings
Student loan debt (borrowed from the government)
Subsidized car loans

3. Inflation
Real cpi inflation is over 6%, not the 1.5% quoted.
This is well above the 2.1% increase in wages.
We also have to take account of the additional $200bn a year middle class and working poor taxes in the Fiscal Cliff deal.
Real incomes are continuing the steep downward descent that we have seen for the last 5 years.

4. Fed tapering
The reasons that the Federal Reserve held off from tapering their $85bn of printing each month are :-

The dire employment situation, which is worsening not improving
The lack of economic growth

Tapering would result in a stock market crash (there was a mini crash in May when the Fed first hinted at the idea of tapering).
The stock market is currently hugely over valued and in a huge bubble created by the Federal Reserve's massive printing.

This is the Huffington Post article in question
http://www.huffingtonpost.com/2013/10/22/september-jobs-report-unemployment-rate_n_4137842.html

Read More

September jobs report highlights - only 18,000 jobs were created for Aug & Sep

September jobs report highlights (Household Survey)

A total of only 18,000 jobs were created in August and September. 
(Not the 341,000 being reported in the media headlines from the deliberately inaccurate Establishment Survey.)

Another 652,000 people dropped out of the labor force in Aug and Sep, hence the tick down in the headline unemployment rate. 
Presumably because they cannot find any decent paying jobs. 





Labor participation rates continue their relentless decline. 
The number of non-working adult Americans just hit a new record of over 90 million people.

 
 
7.5 million people remain in part time working for economic reasons. 
Either they have been put on short hours by their company or, they can only find a part time job but want to work in a full time job.

Until there is a meaningful reduction in the huge number of part time workers there will be no noticeable improvement in the labor market. 

U6 unemployment is now at 13.6%, down very slightly from the 13.8% in May. 
(Table A-15 of the BLS reports. 
This takes out some of the seasonal blips due to the large number of school and college leavers over the summer.) 

U6 unemployment is a much better measure of the real world employment situation. 

The overall employment situation remains dire. 

References

Employment Situation Summary Table A. Household data, seasonally adjusted 
http://www.bls.gov/news.release/empsit.a.htm

Table A-15. Alternative measures of labor underutilization
http://www.bls.gov/news.release/empsit.t15.htm

The full BLS News Release intended for media and public consumption
http://www.bls.gov/news.release/empsit.nr0.htm

Read More

How Big Business and Big Government is Taking Over America and subjugating Americans

The REAL story on the Debt Ceiling deal

The liberal media is crowing about some kind of "victory" on the debt ceiling deal.
Of course McConnell and Boehner agreed to raise the debt ceiling without pre-conditions. 
Since when did they do anything against large Corporate interests? 

ALL major policies by both parties are designed to further the Corporate Takeover of America and are against the interests of the American economy and over 99% of Americans. 

BOTH parties agree on the following major policies:- 

$1.3tn of annual Corporate Welfare. 

Astronomical levels of military spending (higher than Bush). 

TPP & TAFTA  "trade" deals which are designed to subjugate National Sovereignty in favor of large Corporate interests. 

NSA mass surveillance and the gradual erosion of civil rights as defined in the Bill of Rights (not much is left) - designed for domestic control and to suppress domestic political dissent. 

Quantitative Easing which gives free money to the big banks to bail them out & give them more money for speculation which increases inflation. 
$1tn has also been loaned to the ECB to bail out Europe's banks.

The current financial and monetary system, designed to enrich financial elites at the expense of the rest. 

The nett effect is to enrich the top crony 0.1% at the expense of the rest - the middle class is getting wiped out and there is very high real unemployment. 
Current policies will lead to massive debts - deficits of over $3tn a year and a National Debt of over $40tn by 2023.  
It will lead to the US Dollar losing Reserve status, which will cause economic carnage. 

America's problems are easy to fix. 
Neither party is remotely interested in fixing them. 
It would hurt the profits of their large Corporate donors.


Major Policies 

Corporate Welfare
The continuation of the spending of over $1.3tn a year on Corporate Welfare.
This continues the trend of enriching the the top 0.1% cronies while impoverishing the rest.
It has a devastating effect on the U.S. economy and the living standards of over 95% of Americans.
http://ian56.blogspot.com/2013/10/the-disastrous-fiscal-cliff-backroom.html

Foreign Policy and War
America's Foreign Policy is specifically designed to create more hatred, war and conflict around the world.
This increases global arms spending, to the benefit of the arms companies.
It also benefits the banks as it leads to higher deficits.
The American government is now spending $1.2tn a year on the military or 8% of GDP.
For comparison China is only spending 2% on it's military or just over $100bn a year on it's million strong army that is mostly used for domestic control.
Obama is now spending more on the military than even Bush did.

Arms Spending
http://ian56.blogspot.com/2013/10/in-light-of-current-debt-crisis-who.html

Drones
The drone warfare program is specifically designed to recruit more Islamic Extremists and Terrorists
Witness Malala's recent comments to Obama in the White House and the Yemeni testimony to Congress in April 2013.
http://ian56.blogspot.com/2013/07/the-purpose-of-drone-warfare-program-is.html

Trans Pacific Partnership deal (TPP) 
This deal currently being negotiated in secret between 12 Pacific Rim countries is specifically designed to further the interests of crony Corporations at the expense of National Sovereignty and America's economy.

The Trans-Pacific Partnership: The Most Sinister Corporate Power Grab Yet
http://ian56.blogspot.com/2013/10/the-trans-pacific-partnership.html

Only 5 of the 29 clauses in TPP are actually about trade.
The rest are about enhancing Corporate profits and power.
It is also about restricting communications and the information available on the internet.

A similar deal to enhance Corporate power is also being negotiated between the U.S. and Europe - it's called TAFTA.
http://www.globalresearch.ca/the-us-eu-transatlantic-free-trade-agreement-tafta-big-business-corporate-power-grab/5352885

NSA Mass Surveillance and civil rights 
The REAL purpose of NSA Mass Surveillance is to undermine democracy in America & the West to promote the interests of large crony Corporations
http://ian56.blogspot.com/2013/09/the-primary-purpose-of-nsas-mass.html

America is tearing down all the laws that protect it's citizens (the Bill of Rights) in a so called pursuit of some mythical devil, the American government itself has promulgated - Islamic Terrorism.
In reality the laws are being torn down to subjugate Americans themselves. 
At some point in the future the government is expecting some push back from ordinary Americans in the form of mass demonstrations as a result of their continuing impoverishment - similar, but more intense, to the protests that have already started in Greece, Spain, Italy and Portugal.
http://ian56.blogspot.com/2012/11/obamas-civil-rights-violations.html

Quantitative Easing 
This gives free money to the big banks to bail out their insolvent balance sheets and increase their profits from speculation, at the expense of higher inflation, lower GDP growth, higher unemployment and the impoverishment of 99% of Americans.
This money is also being used to bail out the 500+ insolvent European banks (about $1tn so far - around another $20tn is required in Europe to bail out all their insolvent banks and governments).
At some point in the future the Federal Reserve private bank will ask U.S. taxpayers (via the Treasury) to pay for the Federal Reserve's multi trillion dollar losses that they are sure to accrue from their policies.
http://ian56.blogspot.com/2013/02/there-is-no-way-out-for-federal-reserve.html

How Quantitative Easing raises inflation and lowers GDP growth.
(There is still a billion or so over supply of people in the global labor market as a result of globalization, so Western wages are more or less stagnant, hiding most of the inflationary effects.)
http://ian56.blogspot.com/2013/01/the-2tn-of-excess-bank-reserves-is.html

There are still a billion or so over supply of people in the global labor market as a result of globalization, so Western wages are more or less stagnant, hiding most of the inflationary effects - for the time being.
http://ian56.blogspot.com/2013/01/a-global-economic-summary-why-paul.html

The Monetary System that has been in place since 1913
This system was set up so the big banks could charge interest on the money the government borrowed. (Instead of the government issuing it's own money for it's borrowings at zero interest as was previously the case and could become the system again.)
The Income Tax was also set up in 1913 as the means for the government to raise the revenues required to pay this interest.

The biggest scam in the history of mankind

What Everybody Needs to Know About the Federal Reserve private bank
http://ian56.blogspot.com/2013/07/what-every-student-and-citizen-in.html

Superb educational video of how the world & politics really work
http://ian56.blogspot.com/2013/03/connecting-dots-this-guy-is-awesome-at.html

The NETT Result of these Major policies

The Nett result of these policies is the impoverishment of the American people, the enrichment of the crony top 0.1% and the relative decline in America's wealth, economy and power.

Household median incomes are now back to 1995 levels and rapidly falling.

When there was REAL economic growth in America in the 1950's and 1960's and there were low government deficits and little money supply expansion, EVERYBODY'S income and standard of living rose dramatically.

When economic growth is fuelled by an exponential rise in debts and money supply expansion (as from circa 1980) only the rich benefit. 
The total amount of debt (the total money supply) rose from about $6tn in 1980 to $68tn in 2007.

Total money supply 1970 to 2012
While the Federal Reserve continues to pump out $1tn of new money a year, inflation of the money supply has "stopped working". 
The government is still borrowing heavily, but people and Corporations are not - bank loan books are not increasing exponentially as they did in the past.   

Real median wages are declining rapidly in the West.
In America they are now back below the level of 1970.

Real wages are at record lows, while Corporate profits are at record highs

The top 1%'s share of national income is at highs not seen since the late 1920's

There is no longer any control over Executive Pay.
This steals corporate profits from the owners of companies - owners like pension funds of ordinary people and investment funds.

Real Unemployment is Very High
The headline number reported in the media is 7.3%.

U6 unemployment is at 14%
This includes people who can no longer claim unemployment but want to work and part time workers that want full time work

http://www.shadowstats.com/alternate_data/unemployment-charts

REAL unemployment is at 23% - this includes people that have given up looking for work because well paid jobs are just not available.
They would work (in a decent paying job) if they could.

Most of the jobs that have been created during Obama's first term are low paid or part time jobs.
http://www.nytimes.com/2012/08/31/business/majority-of-new-jobs-pay-low-wages-study-finds.html?_r=0 

Real Inflation is dramatically under stated in official numbers

Real CPI is now at 9% using 1980 models - not the official 2%.
If we use the inflation models that were in place in 1990, the current inflation rate is about 6%.
The truth is probably somewhere between 6% and 9% or at least 3 times higher than the reported official numbers.
All governments lie about the true rate of inflation - it makes them look better.
The American government just lies more than most with their hedonic adjustments etc.

America's lost decade

The number of people on Food Stamps is now 47 million or nearly 1 in 6 of the population.
One child in four is now in a Household claiming Food Stamps.
http://ian56.blogspot.co.uk/2012/11/the-number-of-people-on-food-stamps.html

The Medium Term Future 

(With current policies)

A huge increase in government spending, deficits and the National Debt

By 2023 :- 

Spending is expected to be around $6tn a year

The deficit will be $3tn+ a year

The National Debt will be $40tn+ or 250% of GDP 

http://ian56.blogspot.com/2013/03/cbo-projections-of-future-gdp-growth.html

The Replacement of the US Dollar as the Global Reserve Currency

China is already working on plans for this, in an economic coalition with the BRICS

When the dollar loses it's reserve status it's value will halve within a short while, causing the price of all imports to double.

Wages in America will remain roughly static - there will still be an over supply of basic labor.
This will cause economic carnage - Americans will no longer be able to afford to buy imported goods.
History is littered with examples of a country's currency halving in value in a short period of time.
It has always caused high price inflation, mass unemployment, mass poverty and economic carnage. 

Other countries will no longer accept payment for their goods (imports) in increasingly worthless US Dollars - they will demand payment in Gold or some other hard asset (e.g. America's oil reserves longer term).
The current circa $600bn trade deficit that America currently has with the rest of the world, will have to adjust to zero within a short period - America does not have enough Gold to run a trade deficit for very long.  
If the government continues to live beyond it's means and the Federal Reserve's printing presses continue to roll, there will be hyper inflation - as per the recent case of Zimbabwe and the case of the Weimer Republic after WW1.

So basically the U.S. government can choose to live within it's means now, to prevent the loss of Reserve Status, or it will be forced to do so after the rest of the American economy has been devastated. 

The above chart drastically under states America's rapid decline, the estimates are from 2009.

America's share of global GDP was already down to 21.5% at the end of 2011. 

Read more at :-

http://ian56.blogspot.com/2013/10/chinas-medium-term-plans-are-to-replace.html

So why isn't the media actively engaged in questioning the government and raising all these problems? 

The Corporate owned media is part of the same Corporate controlled system.

http://ian56.blogspot.com/2013/09/the-conspiracy-of-silence-in-media.html

It is relatively easy to solve ALL of America's problems 

Neither party is remotely interested in solving anything, it would harm the profits of their large Corporate sponsors, at least in the short term. 

These are the steps that need to be taken.

Start by :-

cutting $1.3tn a year of Corporate Welfare

lowering taxes on the lower paid 

lowering taxes on small and medium sized businesses

get bottom up spending again 

get recruitment going again 

http://ian56.blogspot.com/2013/10/the-disastrous-fiscal-cliff-backroom.html

Reinstate the Bill of Rights. 

Reinstate the Rule of Law on large Corporations and wealthy elites.

Break up the Corporate cartels.

End the Federal Reserve system.

Read More

China's medium term plans are to replace the US Dollar as Reserve Currency by forming a coalition with the BRICS - Debt Ceiling deal helps China

When the dollar loses it's reserve status it's value will halve within a short while, causing the price of all imports to double.
Wages in America will remain roughly static - there will still be an over supply of basic labor.
This will cause economic carnage - Americans will no longer be able to afford to buy imported goods.
History is littered with examples of a country's currency halving in value in a short period of time.
It has always caused high price inflation, mass unemployment, mass poverty and economic carnage.

Other countries will no longer accept payment for their goods (imports) in increasingly worthless US Dollars - they will demand payment in Gold or some other hard asset (e.g. America's oil reserves longer term).
The current circa $600bn trade deficit that America currently has with the rest of the world, will have to adjust to zero within a short period - America does not have enough Gold to run a trade deficit for very long. 
If the government continues to live beyond it's means and the Federal Reserve's printing presses continue to roll, there will be hyper inflation - as per the recent case of Zimbabwe and the case of the Weimer Republic after WW1.

So basically the U.S. government can choose to live within it's means now, to prevent the loss of Reserve Status, or it will be forced to do so after the rest of the American economy has been devastated.

$328bn has already been added to the National Debt on the day after the debt ceiling deal was struck.
This is the reversal of the "emergency measures" in place since May, whereby the government borrowed money from other funds, e.g. the Federal Employee retirement fund.

Other money is being spent too - like $1.6bn in new "aid" to Pakistan, that has just been announced.

The longer that QE goes on for, the larger the Federal Reserve's losses will eventually be from buying $1tn of debt a year at record high prices.
The Federal Reserve private bank will eventually try and charge these multi trillion dollar losses to the taxpayer.

The debt ceiling deal, the extremely high levels of government spending and deficits, and QE printing all help China in it's medium term aim to replace the US Dollar as Reserve Currency.
All of these issues are relatively easy to solve but neither party wants to tackle them - they would hurt the profits of their crony Corporate sponsors in the short term.
The first step is to stop spending $1.3tn a year on Corporate Welfare.



China has already taken multiple steps towards ending the U.S. Dollar status as Reserve Currency over the last 2 years.
These are it's latest moves :-

China downgrades U.S. credit rating
http://www.france24.com/en/20131017-chinese-agency-downgrades-us-credit-rating

China announces a new $60bn currency swap deal with the Euro.
China is wooing the Euro in order to further marginalize and isolate the US Dollar.
http://www.cnbc.com/id/101102163#_gus

China Calls For New Reserve Currency, And a "De-Americanized World"
http://www.globalresearch.ca/china-agency-calls-for-new-reserve-currency-and-new-world-order/5354190

Global Reserve Currencies have limited life spans - there have been several reserve currencies since 1450.
The US Dollar is just the latest example.

China has already embarked on discussions with the other BRICS about setting up a "BRICS bank".
The goal of this new bank is to eventually replace the Federal Reserve as the world's leading influencer of global monetary policy and to replace the World Bank and the IMF in international loan agreements.
The BRICS have already agreed to take the initial steps to create this new bank (at their meeting in South Africa March 2013), but so far the amounts are extremely small - around $10bn each.

China has announced it will bolster the amount of funds in this new bank by issuing it's own Yuan denominated international loans in order to further it's own international trade agreements and to further marginalize the dollar.

It is not only the BRICS that are involved in these new agreements to avoid using the dollar in international trade.
Japan, Australia, Chile and the Eurozone are signing deals too - as well as China, Russia, India, Brazil and South Africa.
Half of Africa is interested in signing non US dollar trade deals with China as well.

Even Germany is considering it's options.
It is in discussions with China to set up direct Yuan denominated trade deals to bypass the dollar.
The latest $60bn Euro swap deal with China, just announced, is the latest iteration of this process.
Germany has asked for it's gold to be returned from storage at the Federal Reserve bank in New York.
It has also asked France to return all of Germany's gold from Paris.

China has already conducted surveys to determine the rough value of America's natural resources, farmland and water assets.
It is not known what total value China has put on these assets.

Other commentators have put the total value of America's oil, coal, gas, gold, other minerals and farmland etc. at around $250tn (minus the cost of getting these assets out of the ground).
$100tn to $240tn is roughly the value of America's current unfunded liabilities (with current policies) plus it's National Debt.

China is expecting a fire sale of America's natural resource assets at some point in the medium term future.
It has already taken some initial steps to be ready for this eventuality.
It has bought 3 smallish retail bank chains in America - to get a foot in the door in American banking and finance.
It has bought a sizable chunk of Idaho farmland in order to get a foot in the door of owning American land and real estate.    

OPEC is the current major influence on dollar denominated trade and in keeping the dollar as the global reserve currency.
The deal with Saudi Arabia for all of OPEC to only sell oil in dollars was made in 1971 when Nixon took the dollar off the gold standard. The US Dollar is known as the petrodollar for good reason.

There have been two or three fairly recent major push backs against all oil being sold in dollars.
Saddam Hussein threatened to price Iraq's oil in Euros in 2000 and called for all of OPEC to do the same.
Colonel Gaddafi in Libya was having some success in promoting the Gold Dinar for international trade, especially amongst some of the Gulf Oil States and black Africa.
We all know what happened to them.

Iran is now selling oil in something other than US dollars to China and India.
Either by direct trade in gold or by barter arrangements with India.
When the U.S. called for India to impose stricter sanctions on Iran a couple of years back, India's response was to ignore the U.S. request and to broaden it's initial barter arrangements and buy more of Iran's oil.

U.S. threats and intimidation against the BRICS are no longer seen as credible by the BRICS.
This is a sea change in global relations that has only happened very recently.
Other countries will become more emboldened to act against U.S. interests, by conducting more trade in something other than US Dollars.

Meanwhile China is wooing the lynchpin of OPEC - Saudi Arabia.
China has signed a joint venture to build a huge refining and export facility in Saudi Arabia.
Saudi Arabia has difficulty in selling more of it's oil to the rest of the world because of the lack of global capacity to refine it's heavy, sulfur rich oil.
This joint venture is aimed at addressing this issue and to sell more of Saudi Arabia's oil to China.
China was also in discussions for a joint venture to build a trans Saudi Arabian rail line, but I have seen no further recent news on this.

Watch for further news on Chinese trade deals with other OPEC members.
Nigeria could become the next battleground.
There have been battles for several years in South America to maintain US Dollar denominated oil trades - in Venezuela and Ecuador for example.

Syria is already a battleground.
A deal was signed in July 2013 by Iran, Iraq and Syria to build a large capacity pipeline from Iran's South Farsi gas field (the world's largest) to the coastline of Syria or Lebanon for onward export to Europe.
Saudi Arabia and Qatar want to build their own gas pipeline through Syria and Turkey to Europe.

N.B. it looks like America has already lost control of the puppet government it set up in Iraq, with the signing of the gas pipeline deal with Iran and Syria.

Both America and the UK are having trouble in trade relations with India.
David Cameron (UK Prime Minister) visited India earlier this year to try and sell more UK manufactured weapons to India, but no new arms deals (or any other new trade deals) were announced as a result of the visit.

Meanwhile China continues to do numerous natural resource deals throughout Africa.
It would be a natural extension of these deals if some of them were to start being conducted in something other than US Dollars.

Meanwhile America's politicians continue on their current path to America's economic self destruction, with crony Corporatism and unsustainable levels of spending, deficits, debt levels and unfunded liabilities.
A collapse in the dollar and economic ruin at some point in the future is inevitable with the current policies of both parties.
Federal spending is expected to almost double to $6tn by 2023.
The Federal deficit is expected to be $3tn+.
The National Debt is expected to rise to $40tn+ or 250% of GDP.
Unfunded liabilities continue to grow at around $5tn a year. Current estimates of unfunded liabilities are anywhere between $80tn and $220tn depending on how far into the future you look.

Providing the rest of the world has not already called foul by 2023 and has already refused to accept payment of America's $600bn a year trade deficit in newly printed US Dollars.

Yes, the Chinese have their own major problems.
They have their own fall out from bad loans from their own collapsing property bubble.
They have major over capacity in a number of industries.
They have built ghost towns - they are ghost towns because of lower than expected GDP growth and dire centralized economic planning.
There is increasing social unrest due to less than required jobs growth.

China is suffering the fall out from a slowdown in exports due to the economic slowdown in Europe and America.
China's GDP growth has officially fallen to 6% (from 9 or 10% previously).
In reality China's GDP growth is now probably 3% or less.

China's problems are nowhere near as great as Europe's or America's problems.
China's leaders do plan long term (unlike the West) and despite the numerous mistakes that they make, they and South East Asia are in prime position to take over the world economically.
Chinese politicians make fewer mistakes than the totally idiotic politicians and policies of America and Europe.

The Neocons tried to take over the world militarily (they are still trying - neither party is talking about drastically cutting America's current astronomical levels of military spending- 8% of GDP in 2013).
The Chinese are trying to take over the world economically, the Chinese are only spending 2% of GDP on their military.

Guess who's winning.

The above chart drastically under states America's rapid decline, the estimates are from 2009.
America's share of global GDP was already down to 21.5% at the end of 2011.

America's strategic decline accelerates with the Corporatist neocon agenda (of both parties).
America now ranks only 16th for the best country to be born in, from 1st in 1988
http://ian56.blogspot.com/2013/01/americas-strategic-decline-accelerates.html


References 

The greatest threat to US National Security is a new Global Reserve Currency.
The details of non US Dollar trade deals and other Chinese and BRICS actions towards replacing the US Dollar as the Global Reserve Currency taken over the last 2 years.
http://ian56.blogspot.com/2012/02/the-greatest-threat-to-us-national.html

The unsustainable increase in government spending from $1.5tn in 2000 to $3.5tn now.
But it's going to get FAR Worse, by 2023 :-
Spending will be $6tn a year
The deficit will be $3tn+
The National Debt will be $40tn+ or 250% of GDP.
CBO projections of future GDP growth rates, deficits and the National Debt are pure fantasy
http://ian56.blogspot.com/2013/09/the-unsustainable-increase-in-govt.html

The frightening path that the government and the Federal Reserve has set out upon.
The future multi trillion dollar losses that the Federal Reserve private bank will try and charge to taxpayers.
http://ian56.blogspot.com/2013/02/there-is-no-way-out-for-federal-reserve.html

The current unsustainable path of increasing debts and unfunded liabilities that America is currently on.
What is required to turn things around, to create jobs and prosperity once again and to get Federal spending and unfunded liabilities back under control.
http://ian56.blogspot.com/2013/10/the-disastrous-fiscal-cliff-backroom.html

Read More

The forces that wish to defeat Fascism & the impoverishment of the American people have suffered a disaster with the debt shenanighans

There is no doubt that the uninformed masses have become even more partisan and split once again between the Dems and the GOP, when both parties act in the interests of crony Corporations, the banksters and the financial elites against the interests of America, over 99% of Americans and the American economy.

The forces for common sense, the Constitution and the 99% had made some recent significant gains with the developing NSA scandal and the scale of opposition to starting a new war in Syria.

These gains are now in danger of being completely undone.

We need to point out time and time again that the only winners from the debt ceiling deal were the forces of Fascism and the main losers were over 99% of the American people.

Read More

Debt Ceiling deal - winners and losers

The debt ceiling deal suspended the debt ceiling until January with no cuts to the over $1.3tn a year of Corporate Welfare.
The government will now issue new Treasury Notes to reverse the "emergency measures" in place since May.
$300bn+ of new borrowing to replace the funds borrowed from Federal Employee retirement funds etc.

Biggest Winners

Banksters
Arrms companies
Big pharma
Big oil
Big food
Big Health Insurance companies
Top 0.1%
Mitch McConnell - $2bn of more Pork for Kentucky was included in the bill
Mitt Romney - Bain Capital are set up to make a fortune out of Obamacare
http://ian56.blogspot.com/2012/09/sick-money-how-mitt-romneys-bain.html

The Neocon Fascists who currently control DC.
They have successfully split the people straight down the middle again on a so called partisan divide, when both party leaders agree on everything of importance - see the debt ceiling deal.
They had suffered a couple of setbacks with the developing NSA scandal and the opposition to starting a war in Syria.
There really is only one major party in America - the big business party.

When MSNBC present people like John McCain, Peter King and the American Enterprise Institute as "moderates" you know you are being conned.

Biggest Losers 

The American people
The American economy

China downgrades American debt.
http://www.france24.com/en/20131017-chinese-agency-downgrades-us-credit-rating
China knows it is only a matter of time before the U.S. defaults on it's unsustainable debts.
GDP growth of $320bn a year and an increase in the National Debt of $750bn+ a year is unsustainable.

And it is only going to get worse due to demographics, by 2023:
Spending is expected to be around $6tn
The annual deficit is expected to be $3tn+
The National Debt is expected to be over $40tn or 250% of GDP (providing the rest of the world has not already called foul and forced a dollar collapse and debt default).

The unsustainable increase in gov't spending from $1.5tn in 2000 to $3.5tn now. But it's going to get FAR Worse 
http://ian56.blogspot.com/2013/09/the-unsustainable-increase-in-govt.html
The government is being INCREDIBLY STUPID. It is allowing the Federal Reserve private bank to behave INCREDIBLY STUPIDLY as well.
http://ian56.blogspot.com/2013/03/the-government-is-being-incredibly.html

How to fix America's economy & create jobs & prosperity again
http://ian56.blogspot.com/2013/05/how-to-fix-americas-economy-create-jobs.html

The disastrous Fiscal Cliff deal needs to be completely reversed.
How to fix the deficits and the economy long term.
http://ian56.blogspot.com/2013/10/the-disastrous-fiscal-cliff-backroom.html

Read More

Federal Reserve going to be busy buying up $300bn+ of new Treasuries

Looks like the Federal Reserve is going to be busy buying up $300bn+ of new Treasury Notes when the "emergency measures" in place since May are reversed. 
(Congress voted for a limitless rise in the National Debt until January.)

After all nobody else is buying them now. 
Nobody except Japan buying a few with their own printing presses in overdrive. 
Foreigners are now net sellers. 

No cuts in spending. 
No cuts in the $1.3tn a year of Corporate Welfare. 

With current policies Federal spending will be over $6tn in 2023. 
Over $3tn deficit expected in 2023. 
$40tn+ National Debt expected by 2023 - 250% of GDP. 
Dollar collapse and government debt default are just a matter of time. .

Read More

Reid & McConnell do a deal on behalf of crony Corporations, against the interests of the American economy and over 99% of Americans

http://www.huffingtonpost.com/2013/10/16/senate-deal_n_4107578.html

Reid and McConnell solve absolutely nothing. 
We will be back here again in 3 or 4 months time. 
Arguments over raising the debt ceiling will happen every year.

The government has to get it's spending under control. 
It's going to get far worse in the future, CBO projections are for spending to reach nearly $6tn in 2023. 
if current policies are not drastically changed, the deficit will be over $3tn in 2023 and the National Debt will be over $40tn. 

Start by cutting $1.3tn of annual Corporate Welfare.
Current policies by BOTH parties favor crony corporations and the top 0.1%. 
They are against the interests of the American economy and over 99% of Americans.
http://ian56.blogspot.com/2013/10/the-disastrous-fiscal-cliff-backroom.html

CBO projections of future growth, spending and deficits
http://ian56.blogspot.com/2013/03/cbo-projections-of-future-gdp-growth.html

Future debt and interest rates
http://ian56.blogspot.com/2013/02/there-is-no-way-out-for-federal-reserve.html 

Read More