Monthly Archives: July 2015

Projecting Again

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Recall the union violence threatened and inflicted in Wisconsin when Governor Scott Walker (R) was working to break union strangleholds on the state government and local school districts.

Now, in nearby Illinois, we get this.

The American Federation of State, County and Municipal Employees union sent a memo to its members expressing fear that in the face of union intransigence in negotiations with the State’s government, Governor Bruce Rauner (R) might use the National Guard and retired state workers to keep the government open should the AFSCME decide to strike.

Of what is the union afraid? That the work might actually get done, despite the union’s extortion attempt strike?

Or that the Guard might inflict violence on the strikers? If this, then it seems the union is projecting.

Medicare Funding

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The fund Medicare uses to pay hospitals will run out in the next 15 years, and experts say there are no easy answers to solve it.

Certainly not politically easy answers, and that does matter. However, the practical answer is quite simple, if expensive in the transition.

Keep everyone 55 and older in the current Medicare system, with the individual option to leave that system in favor of the one I’ve proposed many times and summarize here. It’s important to note also that the “experts” are referring only to Medicare Part A, the hospitalization part. My reform is broader and applies to Medicare Parts B, payments to physicians, and D, drug coverage.

Rescind the payroll taxes from both the employer and younger-than-55 employee, while requiring the employee to put his payroll tax equivalent into what would be essentially a Health Savings Account. This New Model HSA would contain investment vehicles of the account owner’s choosing—including stocks, bonds, mutual funds for the same, bank savings accounts, etc—and be held for the benefit of the account holder. Unlike the Old Model HSA, with its shameful limits, the NMHSA would have no income limits on contributions, no annual limits on contributions, no requirement to have a High Deductible Health Coverage Policy, none of those government-mandated limits.

Of course, this can’t happen in a vacuum. In conjunction with this, the bankrupt* Social Security system needs to be similarly privatized, also, and the overly expensive Medicare system blocked granted, on a declining-to-zero schedule, to the States. These need to be done, too, with significant tax rate reductions and Federal spending cuts (and not just one-time gimmicks or reductions in spending growth).

Most, if not all of the cost of the transition can be covered by that spending and taxing reform.

 

*Bankrupt: not strictly so because in a few short years, while the Social Security Trust Fund will be emptied of money, current payroll taxes still will be available to make the payouts, requiring the payouts to drop to 75% of their presently scheduled values.

Update: Corrected an empty reference to Part C to the correct reference to Part D.

The PRC’s Markets

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Beijing thought they could “rescue” the PRC’s stock market. Recall that those markets had tanked collapsed last month, with no bottom in sight. Then the government stepped in:

There is the buying program financed by the central bank. A state pension fund has gone into equities for the first time. Beijing mandated that anyone holding 5% of a company can’t sell for six months. And brokerage firms, directed by regulators, are sitting on a boatload of shares as inventory, notes Erwin Sanft of Macquarie.

There’s also the government rule that stocks aren’t allowed to fall more than 10% in a day—at that threshold, trading in the stock must halt. This, of course, only adds sell-off pressure to the next day…. There are additional overt government interferences, but you get the idea. Associated with this, the markets stopped falling and rose quite a bit. And there’s the PRC buying for its government accounts shares of Chinese blue chip companies, ostensibly to prop up those share prices.

Monday, all that propping up came to a screeching halt. Those markets fell, in that single day, 8.5%, and the representative indices stand at just 5% above the pre-intervention low of three weeks ago.

All of that fall represents investors—at least the ordinary citizenry and those investors not directly under government control—leaving the PRC’s markets. At this pace, the only players left will be the government and its agencies and government run “private” institutions. And the government’s blue chip stock holdings.

That’s a centrally planned economy by another name.

Yet More Dishonesty Regarding the Iran Nuclear Weapons Deal

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John Kerry is at it again. Kerry was speaking to Council on Foreign Relations in New York when he said this:

I fear that what could happen is, if Congress were to overturn it [Kerry’s just concluded deal with Iran], our friends in Israel could actually end up being more isolated and more blamed….

Of course, Kerry knows, and so does his boss, President Barack Obama, that such isolation is entirely this administration’s decision. All the US would need to do is openly stand with Israel on the matter. Kerry is projecting his and Obama’s own behavior.

Kerry also said this to the CFR:

And we would lose Europe and China and Russia with respect to whatever military action we might have to take.

We’ve already lost the PRC and Russia; it’s hard for me to believe Kerry is unaware of that. Europe, in this context, is France and Germany. France publicly wanted a stronger, more measurable, more stringent deal that actually would have required Iran to agree to 24/7 (that’s 24 hour, 7 days per week, not 24 days’ notice with 7 appeals steps in the sequence) inspections and to verifiably completely dismantle its nuclear weapons program. Germany might have demurred, but that’s all. And if German intransigence killed the deal, that would have been better than what we got.

The Republicans are right on this travesty. The Democrats need to figure out whether they’re on the side of us and of Israel or on the side of Obama.

Get the Messenger

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Of course. The Democratic Party of California can’t stand to have their narrative so impertinently disputed. In the present case, the Democrat State Attorney General, Kamala Harris, is going after the Center for Medical Progress for so rudely exposing Planned Parenthood as being, apparently, in the baby body parts business, with those parts carefully harvested from babies carefully aborted so as to preserve those parts. Her claimed purpose is

to see if any law was broken in the filming.

Right. Because exposing aborted baby body part trafficking—whether for profit or out of the “goodness of the woman’s heart”—might be illegal. Never mind the trafficking. Never mind the level of morality involved in destroying a baby’s life in favor of a woman’s convenience.

Harris said she would investigate

allegations that individuals impersonated corporate officials from a fake biologics company, resulting in the release of secretly filmed videos of Planned Parenthood physicians without their consent.

But she hasn’t a syllable about, or a penny for, investigating Planned Parent’s apparent trafficking.

This is the Democratic Party, California style.

Oh, yeah: Harris also is running for California’s Senate seat. She’s looking for votes out of this escapade, too.