Donald Trump Is Amazed to Discover That Health Policy Is Complicated

Donald Trump has finally discovered that health policy isn’t easy. Speaking to reporters yesterday, he shared his revelation. “It’s an unbelievably complex subject. Nobody knew that health care could be so complicated.”

Nobody knew! Nobody, except, perhaps, President Obama, congressional legislators, health insurance executives, hospital administrators, doctors who manage practices, individual humans trying to navigate the system, or literally anyone who has ever interacted with American health care in any way whatsoever. The complexity of both the health care delivery and policy is the defining aspect of the system.

On the one hand, Trump’s statement is yet another reminder of both his deep aversion to specific policy knowledge, and his habit of describing any new piece of knowledge or understanding he gains as a unique personal revelation.

At the same time, it also reveals the very real problem that Republicans are encountering as they attempt to repeal, replace, and reform Obamacare. The policy issues are complex, and the politics are, if anything, even more complicated, and the interaction between the two creates an additional layer of complexity that Republicans have yet to really solve.

Just to take one example: One of the biggest parts of Obamacare was an expansion of Medicaid. A 2012 Supreme Court decision gave states a choice about whether to expand the program, which provides coverage for the poor and disabled, and 31 states said yes. A full repeal, or even a repeal of all the spending in the law, would roll back that expansion.

But Trump himself has repeatedly promised not to touch Medicaid, one of the nation’s biggest entitlements. And just this weekend, Trump’s Treasury Secretary, Steve Mnuchin, also said that the administration’s budget plan won’t touch entitlements. And as Trump found out at a meeting with state governors over the weekend, lots of governors, including some Republicans, are wary about rolling back or Medicaid as well. Hospitals, which get a lot of money from the Medicaid expansion, have also pushed for caution when it comes to repeal. And that’s just the inside-Washington forces.

In any case, if Trump agreed to a full repeal of Obamacare, he would be going back on his promise to not cut entitlements, and if he agreed to leave some version of the Medicaid expansion in place, he would be reneging on his promise to repeal Obamacare. Trump has stayed away from embracing any specific plan so far, allowing him to maintain this contradiction. But at some point, he’ll have to make a decision.

Of course, a full repeal isn’t really what’s on the table. That’s because Republicans are planning to use the reconciliation process to repeal the law, and that process only allows them to touch provisions with a non-trivial budgetary impact. That means that the subsidy spending and the mandate can go, but the rules prohibiting insurers from discriminating against people with preexisting conditions stay on the books.

Now, there are some reasonably strong arguments that the GOP could repeal the law’s insurance regulations through the reconciliation process if they wanted to. As the Mercatus Center’s Charles Blahaus recently pointed out, the Congressional Budget Office has said in the past that those provisions have a clear budgetary impact. In theory, Republicans could use this as evidence when making the case for including the repeal of those rules. At the very least, they could try. But so far they haven’t.

One problem is that those regulations are among the most popular parts of the law. Another related problem is that Trump said after the election that he wants to preserve Obamacare’s preexisting conditions protections. Even some Congressional Republicans are on board. GOP Sen. Chuck Grassley recently told a townhall questioner that, “There are a lot of consensus in Washington that the one issue that you brought up — pre-existing conditions — should not be changed.”

Trump and his top advisers have also said that he wants to preserve coverage for everyone who currently has it under Obamacare, but the GOP plans currently being drafted wouldn’t do that. And even if they eventually led to a system with roughly equivalent coverage numbers, there would be a huge amount of short-term disruption.

These sorts of difficulties are why the repeal effort has bogged down, and why Republican leadership is, according to a Wall Street Journal report, now intent on holding a vote on the reconciliation bill, and essentially daring their fellow Republicans to oppose it. That’s a high-risk strategy, because there isn’t much margin for error: The GOP can sustain just two defections in the Senate, and 22 in the House, so any sizeable opposition could derail the plan. In fact, it may already have been derailed: Last night, Rep. Mark Meadows, who heads the House Freedom Caucus, has said his faction cannot support the current legislative draft. Presuming no support from Democrats, the bill won’t survive without them.

The interlocking complexity of the system is one of the reasons that Obamacare is such a frustrating law: It built on top of an already-labyrinthine system that had been created and modified over years, and it was crafted and influenced by an array of factions with competing interests.

It’s also why, with Trump’s big address to the joint Congress looming, some Republicans are now looking to Trump to guide them out of this mess. “The president can play a major role in endorsing a plan he wants to sign into law, and I think it’s absolutely essential that he takes a lead role,” Rep. Chris Collins told Politico. Given Trump’s near total lack of engagement with the various policy mechanisms and trade-offs involved, I wouldn’t raise expectations too high. Even if he does endorse some specifics in his speech, it’s always possible he’ll reverse himself.

In any case, though, Trump’s essential point is right: Health care is indeed complicated. And not only is it complicated, Trump’s inconsistent and uninformed statements on the matter have made it even more so.

from Hit & Run http://ift.tt/2lko9Qu
via IFTTT

WTF Chart Of The Day: American Consumer Confidence Soars To 16 Year Highs As Real Wages Plunge

Continuing the trend of 'soft' survey data strong performance and expectation beats, The Conference Board's Consumer Confidence surged above the highest analyst's expectation to 114.8 – the best print since July 2001.

 

Consumers’ assessment of current conditions held relatively steady in February. Those saying business conditions are “good” declined slightly from 29.0 percent to 28.7 percent, while those saying business conditions are “bad” also decreased, from 15.9 percent to 13.2 percent.

Consumers’ assessment of the labor market was also mixed. Those stating jobs are “plentiful” declined from 27.1 percent to 26.2 percent, while those claiming jobs are “hard to get” also decreased, from 21.1 percent to 20.3 percent.

Consumers were more optimistic about the short-term outlook in February. The percentage of consumers expecting business conditions to improve over the next six months increased from 22.9 percent to 24.0 percent, however those expecting business conditions to worsen also rose slightly from 10.8 percent to 11.1 percent.

Consumers’ outlook for the labor market was also moderately more upbeat. The proportion expecting more jobs in the months ahead increased from 19.7 percent to 20.4 percent, while those anticipating fewer jobs declined from 14.4 percent to 13.6 percent. The percentage of consumers expecting their incomes to increase rose marginally from 18.1 percent to 18.3 percent, while the proportion expecting a decrease declined from 9.4 percent to 8.2 percent.

We have one question for these euphoric American consumers – do you not care about wages?

 

As The Conference Board details…

“Consumer confidence increased in February and remains at a 15-year high (July 2001, 116.3),” said Lynn Franco, Director of Economic Indicators at The Conference Board.

 

“Consumers rated current business and labor market conditions more favorably this month than in January. Expectations improved regarding the short-term outlook for business, and to a lesser degree jobs and income prospects. Overall, consumers expect the economy to continue expanding in the months ahead.” 

 

via http://ift.tt/2m8BxvA Tyler Durden

Have Central Banks Finally Unleashed Inflation?

Globally inflation is on the rise.

On Monday Spain reported a year over year 7.5% jump in its PPI reading (a measure of inflation). Take a look at that chart.

Spain is just the latest major economy to join the inflationary tide.

German also saw a recent spike in PPI.

 

In the US, inflation is now well above the Fed’s target 2%, having ripped over 3% higher in the last six months alone.

This is much bigger than Trump or any single factor. After eight years of low interest rates and Trillions of Dollars in QE spent, global Central banks have finally unleashed inflation…

The big problem with this is that inflation is like ketchup in a bottle. It always takes longer to get achieve than you'd predict… but once it hits, you usually get more than you hoped for.

This is the sort of environment in which a major market event could happen. Over $100 trillion in bonds are at risk of entering a bear market if inflation REALLY takes hold.

And while the odds are low that we get an actual Crash… this environment is more conducive to Black Swan events than any other in the last seven years.

On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.

In it, we outline how the coming crash will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.

We are giving away just 1,000 copies of this report for FREE to the public.

To pick up yours, swing by:

http://ift.tt/1HW1LSz

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

via http://ift.tt/2m33i8a Phoenix Capital Research

“I Didn’t Say The Media Is The Enemy, I Said The Fake Media” Trump Tells Breitbart

In his first official interview with Breitbart, the controversial site formerly run by his chief advisor Steve Bannon, President Trump clarified his hostile stance towards the mass media, explaining that what he actually opposes is media that spreads “fake news”, a term ironically coined by the conventional press to describe the “alt-right” media which fails to follow the conventional narrative. He also outlined some of the topics he’ll touch upon at his upcoming address to Congress.

“I didn’t say the media is the enemy—I said the ‘fake media’,” Trump told Breitbart in the exclusive interview on Monday according to the posted transcript.

“There’s a difference. The fake media is the opposition party. The fake media is the enemy of the American people. There’s tremendous fake media out there. Tremendous fake stories. The problem is the people that aren’t involved in the story don’t know that.”  In recent attacks against the press, Trump has marked the New York Times as an example of “failing” media that “writes lies,” stressing that the outlet’s approval ratings are already in serious decline due to this stance.

Trump also stressed that competition is essential for the media to work properly, but did not comment specifically on the possible merger between AT&T and Time Warner, which if successful would unite a handful of news networks under one owner and which was criticized by Trump during pre-election days.

“I don’t want to comment on any specific deal, but I do believe there has to be competition in the marketplace and maybe even more so with the media because it would be awfully bad after years if we ended up having one voice out there. You have to have competition in the marketplace and you have to have competition among the media,” the president said.

Trump also commented on Sunday’s Oscars ceremony coverage, during which he was the target of a number of jokes by Oscar-winners, while Oscars host Jimmy Kimmel openly trolled him during the live broadcast. The president said the focus of the event on politics instead of cinematography ruined it and was the reason for the unfortunate mistake that was made when announcing Best Picture. “I think they were focused so hard on politics that they didn’t get the act together at the end. It was a little sad. It took away from the glamour of the Oscars…. There was something very special missing, and then to end that way was sad,” Trump said.

Trump’s interview to Breitbart came ahead of his first address to a joint session of Congress as president, which is to take place later on Tuesday. Outlining the focal points for that speech, Trump said there will be a number of them, from healthcare to foreign affairs, as he “inherited a mess” from the previous administration.

We’re going to be talking about healthcare. We’re going to be talking about Obamacare, and what we’re going to do about the disaster known as Obamacare because it’s a complete and total disaster. We’re going to be talking about taxes. We’re going to be talking about the economy generally. We’re going to be talking about the military and spending money on the military, and the border.”

“I inherited a mess. […] The Middle East is a mess. North Korea is treading on very dangerous territory. North Korea is a mess. Our border is a total disaster. Our trade deals are beyond bad — beyond bad. The result looks like they were negotiated by children. We’ll fix them.”

Trump also spoke about his intent to “increase military spending significantly” to soon “have the finest military that the United States has ever had by far” and once again stressed the need to put up the wall on the border with Mexico, which he said is already ahead of schedule.

“We’re going to have a wall and it will be a great wall and it will stop the drugs from pouring in and destroying our youth. And it will stop people from coming in that aren’t allowed to come in. We’re going to have a wall and it’s ahead of schedule already now, and [Secretary of Homeland Security] General Kelly wants it badly now and everybody wants it.”

Regarding trade deals, Trump said that instead of taking part in partnerships like the free-trade TPP, he will look to bilateral deals with “individual countries.”

“We’re going to do it bilaterally, we’re not going to have a big mosh pit. We’re going to do it bilaterally, have deals with — we’ve already started the process. We’re going to do individual deals with individual countries so we don’t get bogged down,” the president said.

via http://ift.tt/2m321OM Tyler Durden

Chicago PMI Rebounds To 2-Year Highs After January Crash

After crashing to its lowest print in a year (in January), MNI’s Chicago PMI soared in February to 57.4 – well above the highest expectation – to the highest since Jan 2015.

The median estimate of 35 economists was 53.5 – this surge to 57.4 is above the highest of those expectations with 6 of the sub-components rising.

 

The biggest spike was in Prices Paid – surging to 68.6 – as stagflation once again rears its ugly head.

Another ‘soft’ survey data beat to go with the ‘hard’ data misses.

via http://ift.tt/2mAzaip Tyler Durden

Islam Without Extremes: The Muslim Case for Liberty (New at Reason)

“There is a tradition of Islam that actually values enterprise and free trade,” says Mustafa Akyol, a New York Times columnist and author of Islam Without Extremes: A Muslim Case for Liberty. “Islam was born as a very trade-friendly religion. Prophet Muhammad was a merchant himself.”

Akyol says the current state of affairs in the Islamic world can lead people to feel pessimistic about its future and the prospect of a free society. But “to extrapolate this out to all Muslims and to say ‘this is what Islam probably is,’ would be the biggest mistake,” Akyol says. “What Islam can be, and what Islam was in the past, is a different discussion.”

While the historical basis for compatibility with the West exists, there are still many challenges that face the Islamic world. Akyol says a change to Islam along the lines of the Protestant Reformation isn’t necessarily what’s needed. “What we need is the Enlightenment…not Luther, but John Locke.”

Nick Gillespie sat down with Akyol at the International Students for Liberty Conference to discuss the historical relationship between Islam and free trade, how Islamists reshaped the religion into political authoritarianism, and whether or not Islam needs a reformation or an enlightenment.

Produced by Mark McDaniel. Cameras by McDaniel, Joshua Swain, and Todd Krainin.

Click below for full text, links, and downloadable versions.

Subscribe to our YouTube channel.

Like us on Facebook.

Follow us on Twitter.

Subscribe to our podcast at iTunes.

View this article.

from Hit & Run http://ift.tt/2lSDcTv
via IFTTT

The Paranoid Presidency

Donald Trump is famously prone to conspiracy theories, but that in itself isn’t unusual for a president. “Indeed, there’s a long history of presidents and their inner circles obsessing about malevolent cabals. What’s different about Trump isn’t the fact that he talks about dubious conspiracies. It’s the way he talks about them.”

Who am I quoting there? Why, I’m quoting myself! Yep, this is one of those Hit & Run posts where we promote a piece we published elsewhere. In this case, The New Republic asked me to write something about presidential paranoia, and I obliged with a story that hops from John Quincy Adams’ obsession with Masonic plots to Richard Nixon stewing about the Jews to Donald Trump’s dark speculations about the death of Antonin Scalia. What makes Trump stand out, I argue, isn’t the content of his theories so much as the fact that he spouts them without regard for elite mores:

Conspiracy theories tend to be disreputable. Indeed, in most circles of respectable opinion, the very phrase conspiracy theory is used as a pejorative. So when high-level officials embrace a position considered to be taboo, they often prefer not to talk about it. John Kerry has long rejected the official story about JFK’s assassination, but when Meet the Press brought up the subject in 2013, the secretary of state clammed up. “I just have a point of view,” Kerry demurred. “And I’m not going to get into that.”

Our new president, to the delight of his supporters, presents himself as a man unshackled by such mores of polite society. Richard Nixon may have been prone to seeing plots everywhere, but it’s hard to imagine him publicly promoting a transparently phony theory tying Rafael Cruz to Lee Harvey Oswald; it’s harder still to picture him backing up his claims by citing the National Enquirer. For Trump, neither the story nor the source is something to be ashamed of.

There’s a strong chance, of course, that Trump doesn’t actually believe the Enquirer story, and that he only brought it up because Ted Cruz happened to be his chief political foe that day. That’s where his cynicism comes in. Trump doesn’t just spout unsubstantiated accusations; he often drops them as quickly as he brings them up, as though it never really mattered if they were true.

The full article is here. My book on conspiracy theories is here. And the last article I wrote for The New Republic is here. It’s from March of 1998, so my appearances there, like the ancient Greek calendar, appear to be based on a 19-year cycle.

from Hit & Run http://ift.tt/2m8mu4U
via IFTTT

Trump to Demand $54 Billion Hike in Military Spending, But “Austerity Makes the Best Auditor”

President Trump promised a “historic increase in defense spending” in remarks to the National Governor’s Association (NGA), suggesting concomitant cuts in non-defense spending (excluding entitlements) would cover the increase. Trump described what would be his first federal budget proposal as a “public safety and national security budget.”

The Trump budget is set to propose a $54 billion dollar increase (nearly 10 percent) in defense spending, to $603 billion, and a cut in non-defense discretionary spending to $462 billion, according to White House Office of Management and Budget (OMB) Director Mick Mulvaney.

Mulvaney described the budget, which will be submitted to Congress next month, as an expression of Trump’s campaign agenda. “It will show the president is keeping his promises and doing exactly what he said he was going to do,” Mulvaney said, according to The New York Times. “We are taking his words and turning them into policies and dollars.”

Mulvaney’s December appointment to lead OMB was hailed by budget hawks, as he had been a vocal advocate for spending cuts while a member of Congress. As recently as last summer, Mulvaney campaigned on the idea that military spending should not be exempt. “If we are going to balance the budget, then all spending needs to be scrutinized, including the Pentagon,” Mulvaney wrote in a Facebook post, according to the Greenville News. Mulvaney’s congressional Facebook page has since been deactivated.

Mulvaney’s 2016 Democratic opponent attacked him for his position on military spending cuts, saying the 2011 sequester that Mulvaney supported, which slowed down the rate of growth of military spending, meant Republicans had “gutted the military when it was needed the most.” The position illustrates the difficulty any remaining budget hawks will have in resisting Trump’s budget proposals or offering politically-feasible counter-proposals.

Trump’s proposed massive military spending increase cannot even be reasonably interpreted as an extreme first offer meant to spur negotiations, because there is little will in Congress for spending cuts of any kind, let alone those of the military. That’s unfortunate, because, as Benjamin Friedman wrote in Foreign Affairs in 2011, “austerity is the best auditor.” Responsible, managed cuts in military spending could improve military readiness by forcing much-needed reprioritizations. The president’s proposed military spending increase is unfortunate, especially given Trump’s early focus on a number of military contracts he considered overpriced. Those contracts are a kind of microcosm of the wider military budget. Increasing military spending will only make such contracts more bloated.

Outside of the military, Trump appears to understand the value of spending cuts in increasing government efficiency, or at least to have a grasp on the rhetoric. “We’re going to do more with less and make government lean and accountable to the people,” Trump said in his NGA remarks. “The government must learn to tighten its belt, something families all across the country have had to learn to do,” Trump said, “unfortunately, but they’ve had to learn to do it and they’ve done it well.”

As William Ruger, the Charles Koch Institute’s vice president of policy and research explained at a CPAC panel this weekend, conservatives have a tendency to treat the military bureaucracy as an “honorary member of the private sector,” ignoring that it was prone to the same waste and inefficiency as the rest of government. Throughout the presidential campaign, many conservatives questioned Trump’s credentials. He certainly shares the blind spot of many conservatives when it comes to military spending, and seems to have helped Mulvaney develop one of his own.

from Hit & Run http://ift.tt/2lSnCHh
via IFTTT

The Greek “Bank Jog” Is Back: Bank Deposits Tumble To Lowest Since 2001

It didn’t take much for the Greek bank run jog to return: with Greece once again stuck between an IMF rock and a Schauble hard case, and whispers that another bailout may be on the horizon, the local population took advantage of whatever capital controls loopholes they could find, and withdrew money from the local banking sector, which to this day remains on ECB life support, almost two years after the 3rd Greek bailout in the summer of 2015.

According to Greece central bank data, Greek private sector bank deposits declined in January for the second month in a row, driven by renewed concerns over the country’s neverending bailout. Business and household deposits fell by €1.63 billion, or 1.34% month-on-month to €119.75 billion ($126.8 billion), the lowest level since November 2001. The January outflow follows a “jog” of €3.4 billion in December, making the two-month drop the worst since the latest Greek bailout panic in July of 2015.

And as concerns about the Greek fate only grew in February, it is likely that the next month’s data will show another acceleration in outflows, especially since Greek non-performing loans remain at a staggering 70% of total bank assets and continue to grow.

As Reuters further notes, starting in December, the Bank of Greece stopped counting deposits of 4.2 billion euros held in the Loans & Consignment Fund and another 2.1 billion euros in the Deposit Guarantee Fund (TEKE) as private sector deposits. The move followed a reclassification by the country’s statistics service ELSTAT, which groups the two institutions under the general government sector.

The latest two months of outflows put an end to a period of relative stability during which Greek banks had seen small deposit inflows in more than a year after the country clinched a third bailout to stay in the euro zone. Local banks, for the most part insolvent, remain dependent on central bank borrowing to plug their funding gaps. The gap between outstanding loans and deposits has forced banks to rely on borrowing from the European Central Bank and the Bank of Greece to plug their funding holes.

Greece’s banking sector saw a 42 billion euro deposit outflow from December 2015 to July last year. Capital controls imposed on June 2015 helped contain the flight but sharply increased banks’ dependence on emergency liquidity assistance (ELA) from the Bank of Greece.

Prior to the latest outflows, to signal confidence in the banking system the government has eased capital restrictions after making headway on
bailout-mandated reforms and improved confidence in the banking system. Following the latest deposit outflow data, that may soon change.

As part of the relaxation of controls, “mattress” cash that are returned to banks are not subject to the restrictions, meaning amounts deposited can be fully withdrawn. That is, of course, assuming the upcoming showdown between the members of the Troika ends amicably. Should the outflows persist as this rate, Greece will be back on the front pages, and demanding a 4th bailout by mid-Spring, and certainly ahead of the looming July 2017 debt maturities.

via http://ift.tt/2luAbYy Tyler Durden

FRESH: DNA Tests Reveal Subway’s Chicken Sandwiches Are Just Half Chicken

Subway’s prides themselves on serving the ‘freshest’ ingredients. The main question is, what exactly are in the ingredients?

According to DNA tests conducted by Trent University and the Canadian Broadcasting Corporation (CBC), Subway’s chicken fillets, found in their Oven Roasted Chicken sandwich, had just 53.6% chicken in it, while their sumptuous strips, found in their delicious Sweet Onion Chicken Teriyaki sandwich, contained only 42.8% chicken.

In case you’re wondering, the remainder of the ‘chicken’ substance is made from soy.

Subway’s Canada responded to the findings with the following statement.

“SUBWAY Canada cannot confirm the veracity of the results of the lab testing you had conducted,” the company said, adding, “Our chicken strips and oven roasted chicken contain 1% or less of soy protein. We use this ingredient in these products as a means to help stabilize the texture and moisture. All of our chicken items are made from 100% white meat chicken which is marinated, oven roasted and grilled.”

Related: CBC and Trend also tested the chicken from fast food chains, including A&W, McDonald’s, Tim Horton’s and Wendy’s — most of which contained 80-90% chicken.

Here’s a video of the results below.

Stop eating fast food.
Content originally generated at iBankCoin.com

via http://ift.tt/2l7RNgt The_Real_Fly