Greetings!
With the current intense discussion of Obamacare's constitutionality and the worsening energy crisis threatening the economy, my two in-depth columns on these subjects are highly recommended reading for UPA's national constituency:
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| Morris Beschloss |
Obamacare Endangers Current Middle Class Healthcare Coverage
When the ostensibly non-partisan Congressional Budget Office recently put the 10-year cost of Obamacare at a projected $2 trillion, it shocked both friend and foe of this controversial legislation. Such information has convinced skeptics that even this unexpected price acceleration may be far short of the real mark.
Since this legislation was passed two years ago, with full implementation in 2014, its impact is increasingly being felt, as insurance companies are inflating their premiums in expectation of costs that will be levied against them. Included in these are the padding of their rolls with an anticipated 30 million additions, many of those young people who have shown no predisposition to be insured. However, it has been a widely-practiced reality that hospital emergency rooms have not been closed to uninsureds needing medical treatment.
Also, those uninsured due to pre-existing conditions would have to be insured once Obamacare is fully enforced. Already, many companies, primarily the preponderant independent businesses, have held back hiring plans due to the yet-undetermined increased benefit costs with which they are bound to be faced.
In my numerous contacts with business people, caregivers, and others involved in the wide-ranging services of the medical profession, the protestations against Obamacare have been unanimous.
Many doctors have indicated early retirement, if they are financially viable, while younger doctors associated with large hospitals are starting to opt for employment by these institutions. Obamacare is already casting a shadow over potential medical school applicants. They see the medical profession under severe stress if Obamacare is implemented.
It is becoming increasingly clear that barring rejection by the U.S. Supreme Court, and the election of an Administration committed to revocation of Obamacare, healthcare as the American people have come to know it, will degenerate rapidly. The ultimate irony is that those becoming the major victims will become the politically championed middle class, which the current Administration professes to primarily care for.
If Canada, the United Kingdom, and even Germany are the exemplars, this massive entitlements will likely minimally meet the caregiving experience of the lowest end of the income spectrum.
Those at the upper levels will have the financial capability to hire concierge physicians and patronize private hospitals catering to privileged patients. An example of this system are several blocks in an exclusive section in London that feature both hospitals and medical specialists to provide exclusive services to those able to pay.
If Obamacare is fully implemented unscathed, you can be sure that its care-rendering dilution will short-change the middle class, while those who can afford it will patronize the medical experts and facilities available at top dollar.
Record US Oil Derivative Exports Instigate Need for Clarification
Those not intimately involved with the constant energy component market's ups and downs have increasingly indicated confusion and a demand for clearing up the puzzling paradox between America's crude oil shortage and the record high export shipments of petroleum products.
The U.S. Department of Energy has added to this confusion by boasting that the year 2011 featured a greater surplus of energy derivative exports (gasoline, heating oil, jet and diesel fuel, etc.) than at any time since 1949, while lagging crude oil imports impacted heavily on the nation's trade deficit. On top of that, surging gasoline prices at the pump seemed to smack of an oil monopoly conspiracy.
The following represents an attempt at clarification of this "puzzlement:"
1) Despite a significant demand drop in the usage of oil derivatives and their refined end products, prices reflect global crude oil demand usage, 90% of which occurs outside of the U.S. This has become increasingly out of kilter as non-oil-producing emerging nations such as China, India, Indonesia, Turkey, etc. have put increasing pressure on ongoing available world crude oil supplies.
2) Although commodity market speculation gets the biggest black eye, the geopolitical anticipation of a major confrontational crisis, hovering over the Mideast (harboring almost 40% of world supplies) pressures "hoarding" in anticipation.
3) The relatively unpublicized, but remarkably productive outburst of America's huge 144 strong refinery complex has taken full advantage of the growing purchase price margin between U.S. crude inventory (primarily inventoried at Cushing Oklahoma) and the world "Brent Crude" price tags on which retail derivatives are based. Much of these profits are plowed back into 'expansion on site,' which has generated U.S. refiners' greatest productivity ever.
4) While a combination of EPA restraints and political decision, such as indefinite postponement of the Canadian-based XL oil pipeline keep a potential one-half million barrels a day of crude from American refineries, conversion of immediate availability from super inventories, such as "Cushing" provides a saleable surplus to the refining sector. Whether one likes it or not, this has allowed the now stigmatized U.S. refiners to ship record amounts to world markets such as neighboring Mexico, which depends on most of its gasoline from U.S. refiners, at world prices.
With President Barack Obama labeling fossil fuels (oil, natural gas, coal) "yesterday's energy," it's relatively certain that the current Administration will continue to restrain the expansion of domestic crude oil production, and that of coal and natural gas, which together comprise the "87% energy solution."