If you’ve read my former post on healthcare, Health Insurance is a Misnomer you are sure to conclude that the current healthcare reform bill will reform nothing. In fact, it ensures a near certain escalation of health care costs in the coming years.
The reason is because by increasing the premiums to health insurance companies via subsidized health “insurance” for the uninsured (as opposed to a true public plan which sadly has been shelved), the overall financing available for health care will increase dramatically. As I mentioned, the availability of “financing” to private entities always increases prices of the underlying products/assets being financed. This is an economic law.
So, if you’re not afraid about inflation yet, you should now be very afraid. The government does a good job of keeping inflation in check for everything we don’t need to live, such as electronic gadgets. However, when it comes to things we all need to actually live, e.g. food, energy, health care, the sole intent of a government-controlled by big corporations and finance is to encourage inflation. Ironically, the government removes some of these critical items from the CPI! How this inflation is accomplished is subject for another post, but suffice to say, it is done thru the Fantasy of Finance.
Of course, I don’t have a clue how to best combat this inflation, especially in healthcare, since unfortunately it’s now clear that Obama and his team are hell bent on keeping the status quo for every damaging aspect of our economy. First it was the big bank casinos, and now the healthcare insurance clan. Both industries are totally broken and damaging to society, yet everything is being done to uphold and increase the power of these socially reprehensible institutions, while simultaneously richly (beyond imagination) rewarding the managers who run these companies.
OK enough politics. Now back to speculating in stocks, which incidentally remain the best way of increasing your capital above the rate of inflation.
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