USA Health Care Bill - Healthcare Construction of America's National Debt Line

The US healthcare construction bill, (or deconstruction bill) has brought a lot of hoopla to land Barack Obama as a President of his time. This they say cements his legacy, but what of the healthcare construction of America’s national debt line?

Speaker Pelosi rhetoric seems to have hit a new level. Her dreams see even bigger government around the corner.

This scares at least half of this deeply divided nation. They should be scared. Whichever where you cut it this new government initiative to even more spending move that national debt line higher and more vulnerable to unsustainability (if it isn’t already).

One can’t underestimate the shaky ground we stand on now, not just in America but also worldwide. Greece is teetering and threatening to take much of Europe with it and America is saturated by debt. It is the largest shear volume of debt in America’s history. The current Federal budget deficit seems to accelerating at US$1.4 trillion, impressive I guess given there is an accumulated deficit of $7.5 trillion. 

If the sheer magnitude of the debt doesn’t scare you what about the fact that America’s total public and private debt in the US is roughly 380% of US GDP. Incredible really, yes our debt is nearly four times our national economy. Oh and America is still the biggest economy in the world. Stands to reason we have the biggest debt in what seems an economic ponzi scheme to rival them all.

So where does the healthcare construction of America’s national debt line all fit in?  It seems people haven't grasped the depth of the problem and are waiting for a superhero to come to our rescue. Today’s report from World illusion in TradersCommunity.com, Healthcare Engineering Pins National Debt Help addresses this indelible connection.

The article investigates the relationship between health care costs and national debt.  Citing the most prestigious medical magazine in the United States, ” The New England Journal of Medicine”.

The title of the article cited is “The specter of financial Armageddon – health care and federal debt in the United States.”  That is eerie enough in itself but the conclusions are even bleaker when you realize this was written before the new healthcare construction bill.

The article elaborates for us; “The United States has a substantial, growing structural deficit, much of which reflects current and projected increases in federal spending on Medicare and Medicaid. This federal healthcare spending amounted to 5 percent of the gross domestic product (GDP) and 20 percent of federal outlays in 2009 and is forecast to rise to 12 percent of the GDP by 2050” This surely spells danger for our national debt line.

I have queried before, how are we going to pay for this, the Fed has already said they are going to being the curtain down on massive bailout spending. Though who knows with the Federal Reserve, they hardly been ones to put the foot down. So here we are with a new healthcare bill, massive interest rate bills and ten percent of the country on the dole line. What is going to turn this around?

Where is the money going to come from, Europe looks tapped out? China isn’t exactly impressed with America with the Taiwan arms deal and now threats to call them currency manipulators. Saudis aren’t exactly falling over themselves to join the US debt queue and Japan is taking pump priming and raising rates at home.

The conclusion of the ‘The New England Journal of Medicine’ article was “The sooner we start to rein in healthcare spending, the less painful the changes may be…”

This healthcare construction threatens the complete obvious, yes I know the Budget Office says it will decrease the budget. Right this will be achieved by decreasing fraud and increase efficiency, this is the federal government we are talking about. Does anyone count on that? I think what we can count on is the national debt line moving further away.

Where do we go from here?