Health care costs.....infinite!!!! Where are we headed?

The facts below are from the National Coalition On Health Care, and they point to the fact that the cost of health care are rising so fast that we are going to need to invent new calculators to figure it out in just a few years.  Currently health care costs are 17% of the GDP, that means if you make $100 you are inevitably spending $17 on health insurance and secondary health care costs.  Once the baby boomers retire that cost is going to come closer to 25%.  I have news for you America, there is no legislation that can be passed, no spending cap, nothing can be done to stop this.  Well, I take that back we can stop it of course but I am certain that we won’t.  If we had any fiscal disclipline we would have confronted this recession right now.  Instead we have tried to spend our way out of it, this will work though in the short term.  Just like Greenspan’s interest rate games stopped us from feeling the brunt of the dot.com bust, this government spending free for all will spare us the worst of this recession.

But that doesn’t mean the problem has gone away.  It just means that we had enough leverage left to push it off a for a few years, but when it comes back it will be very painful.  The fact is, is that no more interest rate changes effect the economy anymore, Paul Krugman has pointed this out and boy is it ever true.  Used to be the over night fed funds rate was kept at 0% money would flow down to the people that needed it for capital investments etc.  Now, this not occurring, banks are hoarding this money because most of them are fundamentally unsound or bankrupt themselves.  A few accounting tricks have hidden this from us, but if you want proof just go over to seeking Alpha and listen to actual economists, not cheerleaders and you will get the god’s honest truth.  I would recommend Peter Schiff, but I don’t want to scare you.  He scared me alright, I haven’t slept for months!  Go ahead and google Schiff or go over to his page at seeking Alpha.