ECONOMIES OF SCALE CORRUPTED!

We have been taught all or lives the principal of ECONOMIES OF SCALE. Briefly, it describes the concept that collective initiatives enjoy benefits greater than those of a single entity...or something like that.

Obama has made the argument that by having EVERYONE insured in Health Care, the costs per person will be reduced. Well, that is good, as far as it goes. The problem is more complex, however.

In the case of the Health Care Bill just signed into law, there are extreme consequences related to the extraneous terms included in the bill. Insuring more people will cost money, in and of itself, particularly exacerbated in light of the intent to place more people on Medicaid, costs for which are borne by individual states, taking $560 BILLION from Medicare (plus eliminating Medicare Advantage Supplemental Insurance), increasing Medicare payroll taxes, taxing those whose income is over $200,000/yr. ($250K for couples), most of whom are small business owners, taxing medical equipment (which cost will be passed to patients), taxing, through various means, health insurance (including fines for failure to comply to mandatory insurance)...gosh, the list goes on.

Obama cites benefits, such as guaranteeing health insurance for those with pre-existing conditions, tax breaks for small businesses to help pay for health insurance, portability (keep insurance if losing or changing jobs), and more...these are the major highlights.

NONE of these provisions I have mentioned SAVE MONEY! Everything I mention COSTS somebody something! Either the Government pays for it, the individual pays for it, or Seniors pay for it (through Medicare cuts), or costs are passed on to the states (Medicaid). In the end, the net result is that IT WILL COST THE AMERICAN PEOPLE....ONE WAY, OR THE OTHER!

Lurking behind the scenes is our National Debt. While projected at about $12.3 TRILLION this year, and continuing to rise in coming years, that only is THAT PORTION OF THE DEBT ATTRIBUTABLE TO THE REDERAL OPERATING BUDGET! THAT IS ON A PART OF THE DEBT!

Where do I start? Where is the other debt? Well, for one, Social Security has, since its inception, taken in more money through payroll deductions than it has paid out in benefits, creating a huge Social Security Trust Fund. The purpose of this fund is to cover benefits in any year(s) that payouts exceed income. Great, huh? Currently, there is rough $5 TRILLION in that fund. Oh, but, wait a minute! Do you mean we have $5 TRILLION in RESERVE CASE siting in a bank in Beverly Hills? Well, not exactly! Over the years, as the reserve built up, Congress "borrowed" it to cover programs THEY wanted to spend it on, so they gave Social Security IOU's, in the form of Government Bonds. So that is another $5T in debt!

When Social Security was formed, and throughout its existence, everyone was promised by the Federal Government a GUARANTEED LIFETIME INCOME upon retirement. Today, that PROMISE OF INCOME is projected to be $38 TRILLION!!! Put it this way....that is $38 TRILLION in UNFUNDED LIABILITIES for Social Security! Unfunded liabilities are the same as debt....they are a commitment to pay for something, albeit UNDELIVERED, as opposed to DELIVERED, to someone, which constitutes a debt! Where does that put us? 12.3 + 5 + 38 = 55.5! THE UNITED STATES GOVERNMENT CURRENTLY OWES $55 TRILLION, 500 BILLION!!

Wait a minute! Is that it?.....well, almost. This year, Social Security will pay OUT more than it takes in, for the first time EVER! How much more? Try $49 BILLION! Now, who pays that? The FEDS, of course. 55.5 + .05 = 55.55T

Is that all? Well, not quite. The Health Care Bill cost is estimated be $940 BILLION, not including the "Dr. Fix", which is another $360 BILLION...NOT INCLUDED IN THE CURRENT BUDGET! 55.55 + .36 = 55.91T

Now for the offsets. $560 B from Medicare....wait, that is supposed to pay for adding the uninsured...so that is zero...right? Wrong! It is ALSO supposed to pay for ADDED BENEFITS (GAP COVERAGE) FOR SENIORS ON MEDICARE! Wait a minute! That's double dipping! Spending the same money twice! If all that is paid out, well...that adds another $560 to the debt...but I already counted it once in the above number, so let's ROUND OUR DEBT OUT TO $56 TRILLION!!!!!!!!!!

$ 56,000,000,000,000 ....THAT'S 12 ZEROES!

So that's it, right? WRONG! Each year, the portion of debt outstanding unpaid WILL ADD INTEREST TO THE DEBT! In 2010, that is about $800 BILLION! Oh, and that does NOT include the interest owed to Social Security on the $5 TRILLION owed there!

Whew! I am exhausted! Even though I quoted various sources on these numbers, the total may not be exactly right...but, it is close! So, don't nick-pit me to death over minute details! That is not important! What IS IMPORTANT is the fact that we ALREADY OWE more money than we can pay back! What we DO pay out, over tax income, comes from where? The FEDERAL RESERVE PRINTS MORE MONEY!

That will solve the problem, right? WRONG! That creates INFLATION...remember the Carter days? INFLATION COSTS US MORE FOR EVERYTHING WE BUY! The other effect is to REDUCE THE VALUE OF THE DOLLAR!

Okay, so now we add another 500 or so Government Bureaucracies to administer and regulate the new Health Care Bill and we JUST MIGHT be over the edge!

Oh, Obama tells us NOT TO WORRY! We will save over $ 1 TRILLION in HEALTH CARE COSTS over the next 20 years! If you believe THAT....I know where a bridge is that you should buy! He did not mention that the Federal Budget will ADD more debt each year for years to come, regardless of the health care effect!

What is the bottom line? We OWE more than we can repay...NOW! We continue to ADD to that debt! Social Security has reached a crucial point...it requires Federal payments to cover the shortfall! The Baby Boomers retiring over the next 10 years will INCREASE the number on Social Security, adding to ITS problems, not to mention MEDICARE, that is already BROKE!

Obama and Congress are on a path to spend us into oblivion, as lemmings who rush to drown themselves in the sea! Of course, many contend that is the plan...but....that is another story! Oh, I forgot to mention Cap & Tax and illegal Alien Amnesty, the Iranian situation, Israel/Palestine, Chavez..............

For now, suffice it to say that MORE is not always BETTER, and ECONOMIES OF SCALE are CORRUPTED, when you turn it upside down by SPENDING MORE THAN YOU TAKE IN....CONTINUOUSLY!!!!!! When that happens to us, the result is..... BANKRUPTCY!

LET'S VOW THIS MOMENT TO DEVOTE OUR EFFORTS TO FIGHT THIS TYRANNY AND RESTORE THE PROPER ECONOMIES OF SCALE TO OUR COUNTRY! MAY GOD BLESS THE USA (US)!