Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Medicare

Hung Jury for New Jersey Democrat Senator Menendez in Corruption Trial

This article appeared online at TheNewAmerican.com on Thursday, November 16, 2017:

Robert Menendez, U.S. Senator from New Jersey.

Robert Menendez, Democrat U.S. Senator from New Jersey

After eight weeks of listening to more than 50 witnesses in the corruption trial of New Jersey Senator Bob Menendez (D) and his friend, Florida eye surgeon Salomon Melgen, the jury couldn’t reach a verdict. This forced the judge in the trial — who has been involved in it since 2015 when the Justice Department first brought charges — to declare a mistrial: “I find that you [the jury] are unable to reach a verdict and that further deliberations would be futile and that there is no alternative but to declare a mistrial.”

When the prosecution asked Judge William Walls to have the jury consider each of the dozen charges separately (called a partial-verdict instruction), Walls declined, holding that

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Combined Social Security Spending for 2017 Tops $1 Trillion for First time

This article appeared online at TheNewAmerican.com on Friday, October 27, 2017: 

The Monthly Treasury Statement issued on Wednesday from the Social Security Administration showed that total spending for the three social welfare programs administered by the agency — the Old Age and Survivors Insurance program, the Disability Insurance program and the Supplemental Security Income program — topped $1 trillion for the first time in history in 2017.

The program first hit $600 billion in spending in 1997, and it took nine years to hit the next benchmark, $700 billion. From there it took between three and four years to hit subsequent $100 billion spending benchmarks. Accordingly, the agency estimates that it will spend $1.6 trillion in 2026. From there it will be just a few short years before all funds are exhausted.

Most sensible observers have been warning for years that the program is in dire jeopardy, with all manner of schemes being proposed to rescue it from oblivion:

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Treasury Department: $666 Billion Deficit; Sixth-highest in History

This article appeared online at TheNewAmerican.com on Monday, October 23, 2017:  

The federal government ran a deficit of $666 billion in 2017, reported the U.S. Treasury Department on Thursday, thanks mainly to increases in budget items that supposedly can’t be cut: Social Security, Medicare, Medicaid, and interest on the national debt. In addition, military spending is due for substantial increases under the Trump administration.

Translation:

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Herb Stein, Meet Mick Mulvaney

This article was published by The McAlvany Intelligence Advisor on Monday, October 23, 2017: 

English: Official portrait of US Rep. Mick Mul...

Mick Mulvaney

University of Virginia professor Herbert Stein, the father of Ben Stein of Ferris Bueller fame, was known as a pragmatic conservative. But he is best known for his cryptic expression, “If something cannot go on forever, it will stop.”

Mick Mulvaney’s hopeful outlook hasn’t yet been tarnished by his experience in Washington. Serving as a member of the House of Representatives from South Carolina prior to accepting the position of President Trump’s Director of Office of Management and Budget, Mulvaney really thinks, based on his public statements, that things really can go on forever. All that is needed is a little tweaking: “We need to grow our economy again and get our fiscal house in order. We can do that through smart spending restraint, tax reform, and cutting red tape.”

A closer look at the size of that fiscal deficit, however, reveals Mr. Mulvaney’s naiveté: on Thursday the Treasury Department announced that the deficit for the fiscal year that ended on September 30 was

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Tax Reform: The Sausage-Making Begins

This article was published by The McAlvany Intelligence Advisor on Friday, September 29, 2017:

Otto von Bismarck is credited, rightly or wrongly, with two famous quotes about laws and sausages: “Laws are like sausages. It’s better not to see them being made.” And “To retain respect for sausages and laws, one must not watch them in the making.”

One of the more insightful comments on the whole business in today’s Washington comes from the President’s son, Donald J. Trump, Jr., (shown above) who said:

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Tax-reform Plan Called “Tremendous” by Trump, “Fake Math” by Schumer

This article appeared online at TheNewAmerican.com on Thursday, September 28, 2017:

In unveiling the tax reform “framework” cobbled together by the Trump administration, the House Ways and Means Committee, and the Senate Finance Committee on Wednesday, President Trump called it “tremendous”: “This is a tremendous change, and the biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor and as wages start going up [to] levels you haven’t seen in many years.”

On cue, House Minority Leader Nancy Pelosi (D-Calif.) expressed her concerns about deficits, perhaps for the first time in her political career:

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Democrats and Fiscal Reality Present Roadblocks for Trump’s Budget

This article appeared online at TheNewAmerican.com on Tuesday, August 1, 2017:

speaking at CPAC in Washington D.C. on Februar...

Deciding to move on following the failure of the Senate to pass the “skinny” ObamaCare repeal bill, the Trump administration announced on Monday its accelerated plans for passing its budget bill. According to Marc Short, President Trump’s director of legislative affairs, background work on the budget will take place in August in preparation for committee action in the House in September. Assuming little resistance there, Short hopes for a floor vote in October, a Senate vote in November, and the president’s signature on it immediately thereafter.

It’s good to dream big.

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Trump Keeps Another Promise: Ignore Social Security’s Impending Shortfalls

This article appeared online at TheNewAmerican.com on Wednesday, July 12, 2017: 

English: Scanned image of author's US Social S...

During his presidential campaign, Republican Party candidate Donald Trump made it abundantly clear that he would not do anything to restore the financial integrity of Social Security:

I’m not going to cut Social Security like every other Republican, and I’m not going to cut Medicare or Medicaid. Every other Republican is going to cut, and even if they wouldn’t, they don’t know what to do because they don’t know where the money is. I do.

Now that he is president, he no doubt has discovered just “where the money is”: It’s been spent by the government. And likely due to the commitment by the Democrats to oppose anything and everything he’d like to do, he’s just going to leave the failing and shrinking program alone.

This has caused angst among realists who see the federal program failing to meet its promises in less than 17 years and offering various ideas and suggestions on how to “fix” it.

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CBO Raises Its Deficit, Debt Forecasts in Latest Revision

This article appeared online at TheNewAmerican.com on Wednesday, July 5, 2017:  

The Congressional Budget Office (CBO) just revised its January report with new data on spending, revenues, and economic growth. The revision isn’t good:

The projected rise in [annual] deficits would be the result of rapid growth in spending for federal retirement and health care programs targeted to older people, and to rising interest payments on the government’s debt, accompanied by only moderate growth in revenue collections.

In other words, the CBO simply doesn’t believe that President Trump’s plans to reduce regulation, cut taxes, and repeal ObamaCare will amount to much. Instead the government programs on autopilot — Social Security, Medicare, and especially debt service on the country’s $20 trillion national debt — will eat up nearly 80 percent of the government’s total budget in less than 10 years. Said the CBO:

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Gov’t Collects Record $240 Billion in May; Still Runs $88 Billion Deficit

This article appeared online at TheNewAmerican.com on Friday, June 16, 2017:

English: Medicare and Medicaid as % GDP Explan...

Medicare and Medicaid as % GDP Explanation: Eventually, Medicare and Medicaid spending absorbs all federal tax revenue.

The U.S. Treasury announced on Thursday that the federal government collected more money in May than in any other month in history: $240.4 billion. In the same breath, it said that the government spent $328.8 billion, creating a deficit of $88.4 billion.

From a wage earner’s perspective, it meant that in May the average worker paid $1,572 in taxes but the government spent $2,149, making up the $577 difference by borrowing. Such deficit spending is making the S&P Global credit rating agency increasingly nervous.

Just a week earlier, the agency affirmed its best rating — A-1+ — for the government’s “short term” debt, which means, in its own parlance, that the federal government’s ability to pay its current bills is “strong.” But in the longer term, the agency is far less sanguine. While holding its current long-term rating at AA+ (one full notch below its best rating), it said it’s unable to give the United States its highest rating (AAA) because of “high general government debt, relatively short-term-oriented policymaking, and uncertainty about policy formulation” for the future. It explained what it meant about that “uncertainty”:

Some of the [Trump] Administration’s policy proposals appear at odds with policies of the traditional Republican leadership and historical base. That, coupled with lack of cohesion, not just across, but within parties, complicates the ability to effectively and proactively advance legislation in Congress, particularly on fiscal policy. Taken together, we don’t expect a meaningful expansion or reduction of the fiscal deficit over the forecast period.

And what does it say about what’s likely to happen over that “forecast period”?

The U.S.’s net general government debt burden (as a share of GDP) remains twice its 2007 level. While, in our view, debt to GDP should hold fairly steady over the next several years, we expect it to rise thereafter absent measures to raise additional revenue and/or cut nondiscretionary expenditures.

What does that phrase “next several years” mean? How much time before the government’s national debt explodes upward? Says S&P:

Although deficits have declined, net general government debt to GDP remains high at about 80% of GDP. Given our growth forecasts and our expectations that credit conditions will remain subdued, thus keeping real interest rates in check, we expect this ratio to hold fairly steady through 2020. At that point, it could deteriorate more sharply, partly as a result of demographic trends.

Translation: Deficit spending will remain “subdued” for three and a half years, and then Katy bar the door!

Here is where S&P bows out of the picture, giving way instead to the Congressional Budget Office (CBO), which completed the picture in its March report:

Federal debt held by the public, defined as the amount that the federal government borrows from financial markets, has ballooned over the last decade. In 2007, the year the recession began, debt held by the public represented 35 percent of GDP. Just five years later, federal debt held by the public has doubled to 70 percent and is projected to continue rising.

“Continue rising”? By how much? And by when? The CBO is blunt:

Debt has not seen a surge this large since the increase in federal spending during World War II, when debt exceeded 70 percent of GDP. The budget office projects that growing budget deficits will cause the debt to increase sharply over the next three decades, hitting 150 percent of GDP by 2047.

So, that ratio of government debt compared to the country’s economic ability to produce goods and services was 35 percent in 2007, is now 70 percent, and will soon be 150 percent.

And what’s the reason?

The majority of the rise in spending is largely the result of programs like Social Security and Medicare in addition to rising interest rates. For example, Social Security and major health care program spending represented 54 percent of all federal noninterest spending, an increase from the average of 37 percent it has been over the past 50 years.

It appears to be an unstoppable locomotive. Non-discretionary spending (spending already locked into place by past Congresses and fully expected to be received by its beneficiaries) is on autopilot. And interest rates now coming off historic lows are only going to increase those annual deficits into the future as far as the eye can see.

The CBO is about as close as one can get to a truly non-partisan federal agency — one that has no partisan political agenda and is considered by many as the most reliable forecaster of future economic events. So it’s not only willing to cover, analyze, and present its findings candidly, it’s also willing to tell the truth. It asked, rhetorically, “What might the consequences be if current laws remain unchanged?” It answered:

Large and growing federal debt over the coming decades would hurt the economy and constrain future budget policy. The amount of debt that is projected under the extended baseline would reduce national saving and income in the long term; increase the government’s interest costs, putting more pressure on the rest of the budget; limit lawmakers’ ability to respond to unforeseen events; and increase the likelihood of a fiscal crisis, an occurrence in which investors become unwilling to finance a government’s borrowing unless they are compensated with very high interest rates.

Which brings one to the ultimate rhetorical question: What happens when even those “very high interest rates” aren’t enough to compensate those investors for the risks they are taking by loaning their money to a government that increasingly isn’t able to pay its bills and must continue to borrow increasingly massive amounts to cover its deficits? What happens next?

Puerto Rico Headed to Bankruptcy Court, Likely Costing Investors Billions

This article appeared online at TheNewAmerican.com on Wednesday, May 3, 2017: 

English: Map of Peuto Rico, with inset showing...

The federal fiscal oversight board created by Congress last June to fix Puerto Rico gave up on Monday, putting the island country into the hands of a federal bankruptcy judge.

The board, created last June, was designed to help newly elected Governor Ricardo Rossello come to terms with mutual funds and hedge fund owners that own the bulk of the island’s $73 billion debt. Rossello’s first effort, which would have applied a one-third financial “haircut” to them was turned down by the board, which called it too generous.

Rossello’s second effort would have applied a 50-percent haircut, but Franklin Advisers and Oppenheimer Fund, the two largest entities holding the island’s debt, pushed back.

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Former Heritage Economist Stephen Moore Refutes CBO’s Doom & Gloom

This article appeared online at TheNewAmerican.com on Wednesday, April 26, 2017:

Stephen Moore by David Shankbone, New York City

Stephen Moore

The Heritage Foundation’s Distinguished Visiting Fellow Stephen Moore, now a CNN economics commentator, thinks the latest report from the Congressional Budget Office (CBO) is far too pessimistic. Instead, he believes that most of the nation’s fiscal problems can be solved just by prodding the economy.

The CBO report, “The 2017 Long-Term Budget Outlook,” assumed that little would change politically over the next 10 to 30 years, despite promises from President Trump that his policies would “make America great again.” It projected that the Baby Boomers would exhaust the resources of Medicare and Social Security, and then those costs would be shifted directly to the Department of the Treasury.

If nothing changes, said the CBO, the percentage of the national debt held by the public (pension plans, mutual funds, foreign governments, and wealthy individuals) would double over the next 30 years, which would “pose substantial risks for the nation.”

The problem is exacerbated, said the CBO, not only by an aging population demanding that the government keeps its promises to them, but also

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Cash-only Medical Care Benefits From IRS Non-enforcement of ObamaCare Mandate

This article appeared online at TheNewAmerican.com on Monday, March 27, 2017:

Exterior of the Internal Revenue Service offic...

Exterior of the Internal Revenue Service office in midtown New York. (Photo credit: Wikipedia)

Following the issuance of President Trump’s executive order in January in which he ordered the Health and Human Services Department to “waive, defer, grant exemptions from, or delay the implementation of any provision or requirement of [ObamaCare, or ACA] that would impose a financial burden on any State, or a cost, fee, tax, penalty, or regulatory burden on individuals, families…” the Internal Revenue Service (IRS) responded last month:

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Trump Preframes the Budget Conversation with His “Blueprint”

This article was published by The McAlvany Intelligence Advisor on Friday, March 17, 2017: 

After reading Donald Trump’s Art of the Deal, “Peter W.” wrote how “The Donald” preframes a conversation with an opponent: “When he makes an opening bid, it is far away from where his deals end. It is a poker game with high stakes, and it is up to the other to negotiate a better position.”

That is what Trump and his OMB Director Mick Mulvaney offered on Wednesday: the opening bid in the budget conversation to take place later on this year. Mulvaney was very clear about that: “This Blueprint is not the full Federal budget, [but] it does provide lawmakers and the public with a view of the priorities of the President and his Administration.”

It also serves to warn the public – the American taxpayer who is the deeply interested third party in that conversation – that the budget is going to be much larger than the one Obama left his office with in 2017, which was $4.15 trillion.

It’s called “America First – A Budget Blueprint to Make America Great Again” and it’s Trump’s attempt to set the parameters of the conversation with Congress after his full budget is released in late May. The strategy might have worked well for Trump – he brags that he successfully closed more than 100 real estate “deals” during his career – but dealing with 535 members of the House and Senate is, to put it mildly, going to be a different cup of tea.

Said Trump:

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Trump’s “Blueprint” Budget Is a Policy Statement; Real Budget to Follow

This article appeared online at TheNewAmerican.com on Thursday, March 16, 2017:

English: Official portrait of US Rep. Mick Mul...

Mick Mulvaney. Trump’s OMB Director

President Donald Trump’s Office of Management and Budget (OMB) unveiled “America First — A Budget Blueprint to Make America Great Again” on Thursday, noting that the president’s actual budget will be released in May. President Trump and his OMB Director Mick Mulvaney joined in outlining the “blueprint” without disclosing hard numbers, revenue projections, or even an economic outlook to back it up. It was, in other words, a policy statement, with details to follow.

Said Trump:

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Trump’s 2018 Budget Won’t Touch Social Security, Medicare

This article appeared online at TheNewAmerican.com on Monday, February 27, 2017:

English: The standard Laffer Curve

The standard Laffer Curve

Treasury Secretary Steven Mnuchin said on Fox News on Sunday that cuts in entitlement programs — i.e., Social Security and Medicare — won’t appear in the president’s budget: “We are not touching those now. So don’t expect to see that as part of this budget, OK? We are very focused on other aspects and that’s what’s very important to us.”

Trump’s budget for fiscal year 2018 (starting October 1, 2017) is expected to be presented to the House on Monday, March 13, just two weeks away. And there are a lot of moving parts that must be glued into place before then.

Those parts include

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ObamaCare Replacement Plan Introduced in Congress

This article appeared online at TheNewAmerican.com on Thursday, February 16, 2017: 

Official portrait of United States Senator (R-KY).

Senator Rand Paul

Senator Rand Paul (R-Ky.) and Representative Mark Sanford (R-S.C.) introduced their ObamaCare Replacement Act (ORA) on Wednesday. It would simultaneously repeal nearly all of ObamaCare’s most onerous demands and mandates while opening up the health-insurance market to individuals to purchase, or not to purchase, coverage. The bill, S.222, might more appropriately be named the “Health Insurance Freedom to Purchase Act,” putting the decision to buy, or not to buy, coverage back in the hands of individual citizens and taking it out of the hands of the federal government.

Senator Paul said,

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Bill to Repeal Obamacare Represents Major Paradigm Shift

This article was published by The McAlvany Intelligence Advisor on Friday, February 17, 2017:

English: A Portrait of Thomas Jefferson as Sec...

Thomas Jefferson

Thomas Jefferson said many things on which classical liberals and libertarians agree. The one most apropos to Obamacare is this: “The natural progress of things is for liberty to yield and government to gain ground.”

Anything that requires government force (or threat of) to gain compliance is, on its face, immoral. But Obamacare did something else: it was a deliberate forced attempt to shift personal responsibility for one’s health care from a citizen to his government. Jefferson had this to say about that:

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Trump’s Regulatory Executive Order: One In, Two Out

This article appeared online at TheNewAmerican.com on Monday, January 30, 2017:

Official Portrait of President Ronald Reagan

White House officials described President Donald Trump’s Executive Order for “Reducing Government Regulations and Controlling Regulatory Cost” as Trump’s “one in, two out” plan: For every regulation promulgated by a federal agency, that agency must “identify” two existing regulations to be targeted for extinction.

The order also sets a cap of $0 for the cost of new regulations, with the only exceptions being military and national security regulations. The president said when signing the order,

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Trump Pick for Management & Budget Talks Raising Retirement Age

This article appeared online at TheNewAmerican.com on Wednesday, January 25, 2017:

Representative Mick Mulvaney (R-S.C., shown), President Donald Trump’s pick to head up the Office of Management and Budget (OMB), touched the famous “third rail” of American politics during his confirmation hearing on Tuesday. Testifying before the Senate Budget Committee, Mulvaney was pressed hard for his views on Social Security by Senator Lindsay Graham (R-S.C.): “Do you think we need to look at adjusting the [retirement] age yet again because we live longer?”

Replied Mulvaney, “I do, yes sir.”

His response was unsettling to Senator Debbie Stabenow (D-Mich.), who declared,

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.