Free Markets, Free People

Daily Archives: October 2, 2009


UK’s NHS In Deep Financial Trouble (update)

The IMF has called out the UK’s NHS as “unsustainable”.

Gordon Brown was warned last night to raise the retirement age above 65 and introduce NHS charges to tackle the soaring state deficit.

In a devastating intervention, the International Monetary Fund called for radical changes to the pension system and spending cuts that go far beyond the plans outlined by the Prime Minister this week.

The global watchdog said root and branch changes to public sector spending would be necessary to ‘help keep a lid on the debt’ and restore financial stability.

And yet despite that example and the fact that our “pension” and government run health care system (Medicaid/Medicare) together have some 57 trillion dollars in unfunded liabilities and are riddled with waste, fraud and abuse, we’re considering allowing government to intervene in more of the market?

Brilliant. Just freakin’ brilliant.

UPDATE: I didn’t mean to step on Michael’s post, I just flat missed the fact that he’d posted on this.  I’m not sure how I missed it but I did.  He and I have done this before. Be sure to read his take as well.  Obviously we both came to the conclusion that this story was important.

~McQ


Laugh of the Day

We’ve had the “Quote of the Day” and the “Headline of the Day“, now its time for the “Laugh of the Day”.

It starts with McCain campaign manager Steve Schmidt saying that it would be a catastrophe in 2012 if the GOP picked Sarah Palin as their candidate.

My question is compared to what?

John McCain?

Which segues perfectly into the laugh of the day – John McCain has decided he’s going to remake the GOP:

Fresh from a humbling loss in last year’s presidential election, Sen. John McCain is working behind-the-scenes to reshape the Republican Party in his own center-right image.

Good lord … that’s like Jimmy Carter wanting to reshape the Democratic party.  McCain stands for everything that is wrong with the GOP today.  If ever there was someone who found the wrong message for presenting the GOP to the voters, it was John McCain. And the economic problems the country has gone thorough since his defeat have only made his message less acceptable. Schmidt can bellyache all he wants about Sarah Palin, but without her McCain’s election night returns would have been much more dismal than they were.

Smaller and less intrusive government, fewer taxes and much less spending is what the GOP must put forward as its platform. John McCain, despite his claims to the contrary, does not represent that platform. And he’s not much of a friend of the First Amendment either. He is a big government Republican.

John McCain was rejected because he was seen as a light version of the Democratic candidate. Why compromise when you can have the real thing? Well now we’ve seen the real thing and voters aren’t going to want anything to do with the toned down “moderate” Republican model. And the base certainly won’t be enthusiastic about him. This is not the time for the GOP to even consider someone like John McCain or a surrogate if the GOP is at all serious about 2012. It’s time for a principled stand to reduce the size and intrusiveness of government and to let the citizens of the US retain more of what they earn and more control over their lives than they now do. Find a candidate to articulate that and lay out the freedom and liberty platform and the GOP has a decent shot in 2012 if what I think is going to happen happens.

John McCain is certainly not the candidate for that platform. Thank goodness, his day has passed. Where and even if Sarah Palin plays into this for Republicans remains to be seen. To many, she’s yet to prove she’s ready for the job. But it certainly isn’t too early now for the GOP to say ‘no’ to John McCain.  It’s time for the GOP to take a chance and stand up as the party to return us to our small government roots.  Maybe it’s just me, but it sure seems like the timing is right.

~McQ


IMF to UK: Universal Health Care Unsustainable

While Pres. Obama and Congress go merrily about their way cramming some sort of government funded and controlled health care down the throats of an American public who doesn’t want it, the IMF is sending drastic warnings to Britain about its system:

Gordon Brown was warned last night to raise the retirement age above 65 and introduce NHS charges to tackle the soaring state deficit.

In a devastating intervention, the International Monetary Fund called for radical changes to the pension system and spending cuts that go far beyond the plans outlined by the Prime Minister this week.

The global watchdog said root and branch changes to public sector spending would be necessary to ‘help keep a lid on the debt’ and restore financial stability.

The IMF’s broadside is highly unusual ahead of an election and reflects grave concern at the debt mountain built up by the Brown government.

[...]

Oliver Blanchard, the IMF’s top economist, told a press conference at a joint annual meeting with the World Bank that the next British government will ‘have to take measures that improve the medium-term debt outlook’.

He added: ‘That means reforms of the retirement system, that means reform of the healthcare system.’

[...]

Mr Blanchard said reform was vital, adding that it would be ‘a joke’ if the Government settled instead for new fiscal rules that might be torn up at times of crisis.

The IMF estimated that by next year Britain’s debt will represent 81.7 per cent of output.

Even with planned cuts and tax increases, it predicted a figure of 98.3 per cent by 2014.

Supporters of ObamaCare will try to differentiate the crumbling NHS system, and the IMF’s prescription for it, by pointing out that the bills proposed here would require premium payments for health insurance. But that ignores the (highly front-loaded) $900 Billion price tag vaunted by the president himself which, when added to the costs of the already bankrupt Medicare and Medicaid programs, will balloon far beyond anything being promised. Combined with the also bankrupt Social Security system that is about to see a lot more beneficiaries come of age, the “Stimulus”, bailout funds, and whatever other pet projects the government finds to waste our tax dollars on, it’s difficult to see how we can avoid a similar diagnosis to that of the UK.

[HT: WTH]


It Is Not Chicago! (updated)

Wow.

The city didn’t even make it into the final round of voting to host the 2016 summer Olympics.  Tokyo went down in the second round of voting – another surprise as that city was deemed to have the worst chance of getting the games.

There was speculation that this was a done deal or President Obama wouldn’t have put his presidential prestige on the line as he has.  However, to be fair, heads of state have been part of the winning delegation for a number of the past Olympic games and it has almost become expected they attend if they’re in the final 4 cities.

I think, however, the biggest surprise is Chicago didn’t even make it through the first round of voting.

I’d like to see Rio get it, but my money is on Madrid (because of Spain’s Juan Antonio Samaranch, former head of he IOC – or as we in Atlanta derisively called him “Juan Antonio Hamsandwich” (what a putz) – a reward from the IOC for service – just watch).

UPDATE: It’s Rio!  Good (same time zone – no delayed broadcasts).

UPDATE II: It’s the “conservatives” fault.  Well hey, they have to blame someone, and since Bush is no longer available, “conservatives” will do.  You can’t help but appreciate the irony of Think Progress lecturing anyone about “root[ing] against America” though.

~McQ


Waxman-Markey. Boxer-Kerry. Let’s Call The Whole Thing Off (update)

That is if we’re committed to using science as the basis for our determination of whether or not the House or Senate versions of cap-and-trade are needed. And, as we’ve been pointing out for the last couple of weeks, the science of AGW is shaky at best and continuing to come apart at the seams.

But that hasn’t stopped ye olde sausage factory in the Senate from grinding out another version of CO2 emissions control. The Boxer-Kerry (BK) cap-and-trade bill has emerged with even more stringent caps on CO2 than the Waxman-Markey (WM) bill. BK calls for a 20% overall reduction of 2005 levels by 2020 (17% in WM) and 83% by 2050.

You can get an idea of how BK plans on administering the carbon offset market here. But, like WM, it targets those industries which fuel and power the nation (although unlike WM, it does give a nod to nuclear power and “clean” coal).  However there is evidence that the administration is trying to hide the real impact of such legislation from the American people:

Meanwhile, the Competitive Enterprise Institute (CEI) today accused the Treasury Department of continuing to hide information on the cost of climate legislation. In a news release, CEI said it had notified the Treasury Department of its intent to sue over the administration’s “inadequate disclosure of documents” recently requested under the Freedom of Information Act.

Documents released by the Treasury Department two weeks ago show the administration believed climate legislation could cost as much as $300 billion per year, which was much higher than the government’s public estimates, and could result in companies moving overseas. Studies have shown that the Waxman-Markey bill could eliminate 2 million American jobs a year.

2 million jobs a year? See the post below. Add the cost of 300 billion a year and then try to imagine a manufacturer that is a heavy user of energy trying to justify staying here instead of going somewhere else where not only energy, but labor, are cheaper than here.

Thus far BK has about 45 Senators who’ve signed on. Kerry is giddy (this would most likely be his first substantial accomplishment during his Senatorial tenure and naturally it would do more harm than good) saying he thinks the bill has a good shot of passing. But a senior Republican says he knows of no Republicans who would support the bill as written.

Senator Lamar Alexander seems to represent the prevailing thinking of the Senate’s Republicans:

“The Kerry-Boxer bill has fancy, complicated words that add up to high energy costs that will drive U.S. jobs overseas looking for cheap energy,” said Lamar Alexander of Tennessee.

But John Kerry see’s it differently:

Kerry said the event was the “beginning of one of the most important battles we will ever face as legislators and citizens.”

For once, Kerry is right about something, but not for the reason he believes. It is the beginning of one of the most important battle we well ever face and the importance lies in the fact that if passed, this legislation will kill jobs, push companies out of the US and drive our economy off the cliff. That makes it very important in my book. And with Copenhagen’s climate talks coming up in December, Democrats are going to try to push this turkey through so President Obama doesn’t show up empty handed.

The short term goal should be to ensure he does show up empty handed and the long term goal should be to defeat this outright. It’s based on shaky science, it is an economy killer and it will cost us far more than it will ever accomplish in terms of the environment. A much more sensible course would be a comprehensive energy policy which begins to use nuclear power and natural gas as the basis of a transition to clean energy with viable renewable brought on line as they become available while continuing to use and exploit the resources we have available.

Instead we’re being threatened with legislation that’s real purpose is to create a multi-billion dollar revenue stream out of thin air which will cost us jobs, income and our standard of living.

UPDATE: Speaking of Copenhagen and the desire to show up at the climate conference with something positive, it appears that the Obama administration has decided it will act unilaterally instead of wait on Congress.

Unwilling to wait for Congress to act, the Obama administration announced on Wednesday that it was moving forward on new rules to regulate greenhouse gas emissions from hundreds of power plants and large industrial facilities.

[...]

But he has authorized the Environmental Protection Agency to begin moving toward regulation, which could goad lawmakers into reaching an agreement. It could also provide evidence of the United States’ seriousness as negotiators prepare for United Nations talks in Copenhagen in December intended to produce an international agreement to combat global warming.

“We are not going to continue with business as usual,” Lisa P. Jackson, the E.P.A. administrator, said Wednesday in a conference call with reporters. “We have the tools and the technology to move forward today, and we are using them.”

The proposed rules, which could take effect as early as 2011, would place the greatest burden on 400 power plants, new ones and those undergoing substantial renovation, by requiring them to prove that they have applied the best available technology to reduce emissions or face penalties.

Phaaa, Congress … who need’s them?

~McQ


Unemployment Reaches 9.8%

While unemployment continue to climb at numbers higher than experts expected, and signaling the so-called “stimulus” isn’t working despite claims to the contrary, it seems the only program the president can come up with to boost employment is shilling for the Chicago Olympics.

Meanwhile here in the real world:

U.S. employers cut a deeper-than-expected 263,000 jobs in September, lifting the unemployment rate to 9.8 percent, according to a government report on Friday that fueled fears the weak labor market could undermine economic recovery.

Ya think? And, of course, as Dale has pointed out, if we calculated unemployment as we did in the past, the true number would be somewhere in the 16-17% area. Even the one area that was showing growth – government employment – is shedding jobs. 53,000 in this last reporting period.

This has even Paul Krugman upset:

[T]he administration’s own economic projection — a projection that takes into account the extra jobs the administration says its policies will create — is that the unemployment rate, which was below 5 percent just two years ago, will average 9.8 percent in 2010, 8.6 percent in 2011, and 7.7 percent in 2012.

This should not be considered an acceptable outlook. For one thing, it implies an enormous amount of suffering over the next few years. Moreover, unemployment that remains that high, that long, will cast long shadows over America’s future.

Krugman’s solution is as predictable as Iran stalling the P5+1 until it has a nuclear weapon – more spending. Specifically a 2nd stimulus. But weren’t we all assured that the first stimulus would stem the tide of unemployment and keep it under 8%? So Krugman’s plan has us repeat what hasn’t worked to this point. No talk of cutting corporate income taxes to spur hiring, in fact no talk of any other method which might actually spur the market instead of providing temporary spending for temporary jobs.

Or, more succinctly, they haven’t a clue and while Rome burns, Nero is in Copenhagen fiddling away.

~McQ


Headline of the Day

The headline in the Washington Times this morning: “Exclusive: Obama Agrees To Keep Israel’s Nuke Secret”:

President Obama has reaffirmed a 4-decade-old secret understanding that has allowed Israel to keep a nuclear arsenal without opening it to international inspections, three officials familiar with the understanding said.

The officials, who spoke on the condition that they not be named because they were discussing private conversations, said Mr. Obama pledged to maintain the agreement when he first hosted Israeli Prime Minister Benjamin Netanyahu at the White House in May.

With that headline you have to ask “what secret?” Admittedly it is probably one of the world’s worst kept secrets. But it is interesting given our present stance on Iran that we’re exempting Israel from the same sort of international inspection regime – if, of course, the “secret” is true. And if true, and I’m sure Iran believes it is, why would Iran give up their pursuit of a nuclear weapon. They would most likely believe their acquisition of one would restore the regional balance. So why wouldn’t they agree to allow inspectors into a facility they had just voluntarily revealed to the IAEA. Why else reveal it? It certainly doesn’t mean there aren’t more hidden away in the mountains of Iran.

And why wouldn’t they agree to talks? It gives them the room, without sanctions, to continue what they’ve been doing for decades with no further penalty. String along the US and EU with “talks” while pursing the bomb.

I’d guess right now, Iran’s pretty happy with the way things are going.

~McQ