“The ObamaCare reform fiasco looks like a tipping point toward a strain of toxic political paralysis that might literally kill the government as we’ve known it. Over the many months of debate, congress never even got around to raising the salient issue: that the 18-or-so-percent of the economy ‘health care’ represents consists largely of outright racketeering.”
Yep.
Oh, and I believe it’s now up to 19% and change, soon be 20.
And somewhere not far from there the entire mess comes apart.
3+% real GDP expansion cannot be achieved when one dollar in five is literally stolen for an alleged “service” that is worthless at best and kills you at worst.
Let us not forget that to consume you must first produce, or convince someone you will in the future (he then lends you what you spend, of course.) The latter has been made easy over the last 30 or so years (since the early 1980s) by a generally-declining interest rate environment.
You take a million dollar loan @15% interest and you have to come up with $150,000 a year or the come take your property.
But when the rate falls to 10%, you can borrow a million and a half, spending the other $500 large.
This post was published at Market-Ticker on 2017-07-21.
Follow on Twitter
Recent Comments