Archive for the ‘medicare’ Category

The gathering storm on Social Security and Medicare

May 14, 2009
Earlier this week, the trustees for Social Security and Medicare issued their latest annual report warning of the impending financial catastrophe when the federal government must pay out more in benefits it has promised under the two entitlements than it collects in taxes to pay for the programs. Medicare ran out of cash to pay for hospital benefits last year and now these costs are covered by the U.S. Treasury. By 2017, according to the trustees, Medicare will have exhausted all of its trust funds. Social Security will run dry in 2016. The approach of these doomsdays has accelerated in the past year because of the slow economy and the refusal of Washington politicians in both parties to face reality.

Editorial
Washington Examiner

The trustees have been warning about the coming entitlement crisis for years. President George W. Bush tried in 2005 to mount a campaign to persuade Congress to reform Social Security. But Bush’s heart really wasn’t in it, if only because then-Senate Minority Leader Harry Reid made it clear that congressional Democrats would do what they had always done whenever the issue came up for discussion – scare America’s seniors by claiming those evil Republicans were again trying to take their Social Security away from them. Back then, Reid even went so far as to deny the obvious fact of an entitlement crisis: “Today’s report confirms that the so-called Social Security crisis exists in only one place — the minds of Republicans. In reality, the program is on solid ground for decades to come.”
 
Now President Obama, aided by Reid and House Speaker Nancy Pelosi – has launched the federal government on the biggest deficit spending spree in human history. The federal government will spend at least $3.6 trillion in 2010, with an estimated $1.8 trillion of it borrowed, mainly from overseas creditors like China. Which brings us to the nub of this situation: Former Comptroller General David Walker noted earlier this week in The Financial Times that two years ago, Moody’s threatened to reduce the federal government’s Triple A rating. Doing so would significantly increase the cost of borrowing for the government. Moody’s stayed its hand then, but it’s difficult to see why it will wait much longer to drop the other shoe. China has warned the U.S. that its willingness to fund our deficits is not unlimited. And Washington is having to offer higher interest rates in order to attract sufficient buyers willing to buy more of the bonds needed to finance the deficit. In other words, financial reality is beginning to crash down on the heads of America’s leaders.

Top Ten Reasons The Republican Party Will Recover

May 13, 2009

Here’s our Peace and Freedom list of the top ten reasons to expect the Republican Party to make gains over the course of the next two to four years:

1)  The economy: Despite the huge spending measures already enacted by the Obama administration, including the stimulus and the many ‘bailouts,” the economy may not even start any really significant recovery until this time next year.  Voters are already tiring of the recession and showing discontent.

Related:
Bank of England: Recovery will be slow, starting next year
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New Jobless Claims Rise More Than Expected, as 52,000 Auto Workers Become Unemployed

2)  Democratic leaders like Harry Reid, Nancy Pelosi, and John Murtha.  There is already rumbling that our Congressional leaders are disappointing voters.  Most polls rate congress very poorly even though some 60% like Obama.  Scandals, a lack of integrity and broken promises on transparency can add to the woes of Democrats easily over time.

Related:
Pushy Practices of Pelosi, Murtha Back To Haunt Them?
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Democratic Party a “One Man Show” — After Obama, It’s a “Second-Division Ball Club”
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Pelosi Vehemently Challenges CIA’s Account of Briefings To Her on Waterboarding; Agency “Lied to Congress”
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“Democratic Party is Bought and Paid For By The Unions” Lawmaker Says

House Speaker Nancy Pelosi of Calif. gestures during a news ...

3)  National debt, deficit and spending.

Related:
America’s Ability To Borrow More Questioned, At Risk — Too Much Spending “Breaking the bank”?
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What Did We Get for $180 Billion “Bailout”? AIG Still “Toxic”
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One Hundred Billion Goes To IMF: Money U.S. Taxpayers Will Likely Never See Again
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Obama’s Spending, Debt, Taxes Will Lower America’s Standard of Living

4)  Taxes.  Taxes will go up.  There is just no way to support all our current spending let alone the promises of overhauls to health care, education, and the environment without raising more money and that means raising taxes.

Related:
Taxes: People and Business Flee Higher Rates; Why Can’t Obama, Congress Get That?
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Governors of Texas, South Carolina to Host “Tea Party 2.0″ This Week


Gov. Rick Perry, Texas
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5)  Unexpected world events.  Just as nobody could have predicted 9/11, there could well be an event as yet unknown that unfolds to change the game for everyone before long.  Just as Joe Biden predicted last year, this president will be tested….

Related:
Battles over energy may lead to wars, Russian strategists conclude

China’s Navy Grows and the World Watches Warily
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6)  Democratic Infighting.  This is the party that has, for a long time, been unable to get along with itself, for too long, before all hell breaks loose….

7)  Inflation.  With all the borrowing of the federal government, inflation is indeed likely.  Nobody will like that one bit.  Which will hurt incumbents….

8)  Loss of buying power and credit.  Obama’s current campaign to rein in the credit card companies is admirable but it may result in millions of people unable to get the credit they’ve grown used to….Expect retail sales to lag other indicators of recovery…..

Retail sales remain slow in April:
http://finance.yahoo.com/news/Reta
il-sales-drop-apf-15227744.html?.v=3

9)  Broken Promises.  “Green jobs” won’t be as numerous or high paying as once promised and work for good jobs will dry up as GM and Chrysler and others move more jobs overseas….The health care overhaul may actually harm enough people that there could be a backlash that wants to punish lawmakers…

Related:
Latest News On Social Security, Medicare, Debt Show Inability of Government To Make Accurate Financial Predictions
.
Obama, Daschle and Socialized Medicine: Care of GE
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Fiat threatens to walk away from Chrysler deal unless unions agree to concessions

10) Desire for Change/Hope (The Pendulum): In our American system, the pendulum has been swinging to and fro; from Republicans to Democrats and back again for almost all of time.  People will tire of our current way of doing business and even the euphoria over Obama will wane.

Related:
Republican Party Dead? Hardly. Polls Show Erosion and Doubt in Democratic Advantage

Bonus:

11) Traditional Republican Discipline.  The Republicans in general have traditionally shown much more discipline and togetherness than Democrats.  The current squabbling over Cheney, Powell, Gingrich, Rush et al can be expected to wind down as elections near.

12)  The law of unintended consequences.  President Obama has changed so much, so aggressively, so often, so soon in his presidency that the effort is unprecedented.  But this could mean that there is trouble lurking that has not been foreseen.  And we know how well our government foresees things: like the current recession….

13)  Bad Obama planning and staff work.  Nobody had time to read the stimulus?  This will come back to hurt the president and the Democrats in Congress.  Many other examples of stupidity an ineptitude come to mind…..

14)  The “Tea Parties.”  “The real genesis of the tea party movement was not taxes, but out-of-control spending and the debts we are leaving our children,” wrote Paul Gessing in the Albuquerque Conservative Examiner.  “The tea party movement (at least in Albuquerque) is not simply a bunch of angry Republicans who don’t like Obama and understand their own self-interest. Rather, the tea party here was organized by average citizens who are terrified of what the government is doing to our economy. The fact is that America can’t live on borrowed money forever.”  The fact that people are taking to the streets — people who are both Democrats and republicans — is unprecedented.John E. Carey
Peace and Freedom
In this photograph released by the White House, Air Force One ...

 

Related:
Republicans Determined to Lose?
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Obama Backs Off Promise to Release Abuse Photos
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If you had told me some of these Obama stories three months ago I would have said “impossible!”
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Obama’s Dumb Moves Getting More Difficult to Ignore? On Friday Mainstream Media Realizes Monday’s Cabinet Meeting Was Laughable, Really

Conservatives Need To Recommit to Conservative Values

Michelle Malkin:
http://michellemalkin.com/2009/05/1
3/big-labors-investment-in-obama-pays-off/

http://hotair.com/archives/2009/05/13/
stupid-rnc-to-pass-resolution-rebrand
ing-democrats-the-democrat-socialist-party/

Latest News On Social Security, Medicare, Debt Show Inability of Government To Make Accurate Financial Predictions

May 13, 2009

This is exactly why all Americans should be gravely concerned about the current rates of government spending:

“Today’s report confirms that the so-called Social Security crisis exists in only one place — the minds of Republicans,” said Senate Democratic Leader Harry Reid of Nevada on March 23, 2005. “In reality, the program is on solid ground for decades to come.”
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Yesterday, Social Security trustees said that Social Security will start paying out more in benefits than it collects in taxes in 2016, one year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner than predicted last year.

The trustees said Medicare was in even worse shape. They said that the trust fund for hospital expenses will pay out more in benefits than it collects this year and will be insolvent by 2017, two years earlier than the date projected in last year’s report.

Both of these programs are likely to be adding to the national debt before long.

President Obama has already added to the national debt with the $787 billion stimulus, the omnibus spending bill topping $400 billion, enormous “bailouts,” and budgets in the trillions.

He still wants to fix health care, education and the environment.
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On Monday, the Office of Management and Budget said for the first time ever, the U.S. government is borrowing 50 cents of every dollar it spends.
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This could even still go up.

Barack Obama and democrats will quadruple the U.S. deficit this year, based upon the current rate of spending and receipts.

The receipts of the U.S. government from taxes paid was down 15% in January 2009 compared to January 2008.  In April, receipts were off a full 30%.

April 2009 was the first April since 1983 that the U.S. government spent more than it took in….

Meanwhile, U.S. government spending is way up: up fully $38 billion in April alone over April 2008.

The difference between receipts and money spent is the deficit and that could exceed $1.8 trillion this year; added to the U.S. burden of borrowed money and interest paid.

The massive budget deficit created by democrats this year represents a massive 12.9%of gross domestic product. President Obama expected the deficit level to be 12% of GDP this year. This puts the US above the UK deficit that runs more than 10% of GDP, and puts the US above troubled states Pakistan and Hungary.

As several commentators have said, the U.S. would not be given permission to join the EU with this much debt….

Makes one ask: if the January and February government economic predictions on debt and deficit are $600 billion too low by May 11: what else is wrong and how bad can it get?

All the budget and debt figures in the Obama plan are based upon assumptions and prediction which have already been proven to be way wrong….

Social Security and Medicare Finances Worsen; Likely Will Add To Nation’s Debt
.
Obama Debt, Budget Numbers Stagger Most (One Trillion = Million Million)
.
U.S. Government Borrowing 50 Cents on Every Dollar Spent; Interest Likely To Rise
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America’s Ability To Borrow More Questioned, At Risk — Too Much Spending “Breaking the bank”?

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From CNN Money

The government ran up a $21 billion budget shortfall last month, the first April deficit in 26 years, the Treasury Department said Tuesday.

The total deficit for the first seven months of the fiscal year hit $802 billion, compared to a deficit of $153 billion in the same period a year earlier, the government said in the monthly budget report.

“This is historic,” said Dan Clifton, head of policy research at Strategas Research Partners. “Our country has never seen something like this.”

From October – the beginning of the fiscal year – to April, total revenue declined 19%, Clifton said. That’s the largest drop in revenue and almost double the previous record, he said.

Notably, April is usually a good month for Uncle Sam because many taxpayers file their returns and send checks to the Treasury. But this year, tax receipts have fallen sharply because of the recession and the government’s response to it.

The downturn is a triple whammy to government revenue: fewer people are working and providing income taxdollars; corporation tax receipts are on the wane; and tax cuts aimed at juicing the economy reduce paycheck withholdings.

“It’s a perfect storm of every tax revenue source declining at once,” Clifton said.

At the same time, government is spending massive amounts to try to recapitalize the nation’s financial system and spur economic growth.

In March, the government added $191.6 billion to the deficit.

Spending: The total outlays for April were $287.1 billion, a decrease from $320.5 billion spent in March.

Spending is up 26% year-over-year, according to Clifton, who said the number is “astronomical. Even a fifth of that increase would have been a big deal.”

So far this fiscal year, the government has spent $2.06 trillion and expects to spend $3.94 trillion for the full year ending Sept. 30.

Total receipts for April were $266.2 billion, bringing the total amount that the government has taken in so far this year to $1.3 trillion.

Read the rest:
http://finance.yahoo.com/news/US-budge
t-deficit-jumps-with-cnnm-15222803.html?.v=7

http://hotair.com/archives/2009/0
5/13/us-speeding-towards-financial-crash/

Social Security, Medicare Expected To Announce Huge Cash Shortfalls Today

May 12, 2009

The financial health of the government’s two biggest benefit programs may have slipped over the past year, reflecting the deep recession that has already bitten into other areas of the budget.

Associated Press

The trustees for Social Security and Medicare are scheduled to provide their annual report on the finances of both programs on Tuesday. In advance of the release, many private analysts said they expected both programs could run out of cash sooner than last predicted.

Read the rest:
http://www.foxnews.com/politics/20
09/05/12/social-security-medicare
-seen-failing-faster/