Category: zerohedge

Those following the Euro FX pairs saw a plunge at 6 am Eastern, when Eurostat released the latest Eurozone unemployment and inflation statistics. They were, in a word, abysmal. After the August unemployment data finally saw a modest drop forcing many to announce the end of the European depression, not only did the the September number revise the August print from 12.0% to 12.2%, a new record high as 73,000 thousand people became unemployed, but more importantly made the September unemployment rate 12.2% as well following another 60,000 Eurozoneans losing their jobs, effectively meaning that for all the talk of a European recovery, its unemployment rate keeps hitting new all time record highs every single month.

Broken down by country:

And yes, that sudden housing mecca for all rental condo flippers, Spain, was just found to also have a record high unemployment rate of 26.6%. So much for that.

But the worst print for Europe is not in any of the above charts or tables, but is and has always been its youth unemployment, as an entire generation is unable to find a productive life. In this case, the EA17 Under 25 unemployment just rose to a new record high 24.1%, from 24.0% in August, driven by Spain at 56.5%, Cyprus 43.9% (was 28.0% a year ago – thanks template), Portugal at 36.9%, and Greece somewhere in the 58% ballpark.

 

Finally, rounding out the abysmal picture was the Euro area’s just reported October CPI, which tumbled to 0.7%Y/Y, down from 1.1% in September and below the 1.1% expected. This was the weakest annual inflation print in the continent since 2009, and is a bright red flag for Draghi that everything he has done so far has failed to stimulate inflation, but at least his precious EUR is at 2 year highs against the dollar. Alas, not for much longer as the time to reprice the European currency has arrived.

 

End result of all of the above:

And going much lower.

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/QyKAEbDvWog/story01.htm Tyler Durden

It seems like it was an eternity ago that Obama was doing his post-government shutdown gloating media tour, when day after day the world was bombarded with news of the GOP’s record low popularity rating, paradoxically following their attempt to do what even the president is now desperate to achieve: delay Obamacare. Well, the tables have turned and now that the government shutdown is history, at least until January, and the public focus has shifted to where it should have been in the first place – namely the embarrassing ponzi scheme experiment that is Obamacare, and the epic failure surrounding its rushed rollout – it is Obama’s turn to suffer a record low rating, which is precisely what happened according to a just concluded WSJ/NBC News poll.

The WSJ reports that “the popular discontent that engulfed Republicans amid the partial government shutdown has now washed over President Barack Obama, whose job approval rating has sunk to an all-time low. Americans just weeks ago heaped scorn largely on congressional Republicans over the dysfunction in Washington. But the new poll found a sharp turn against Mr. Obama, during a month in which lawmakers tiptoed up to a potential debt default and the White House fumbled the rollout of its signature health-care law.

Specifically:

Mr. Obama’s job approval fell to 42%, with 51% of respondents disapproving of his performance as president. That marked a drop in his approval rating from 47% in early October and 53% at the end of 2012.

 

At the same time, more Americans now view Mr. Obama negatively than positively, for the first time since he emerged as a national political candidate.

 

In all, the poll of 800 Americans captured an extraordinarily deep and widespread public distaste for the two political parties, those parties’ leaders and the state of politics in the nation’s capital.

Elsewhere, it appears that Americans just have given up on the government system, whose increasing corruption and cooption by moneyed interests is now obvious to everyone:

Optimism about the U.S. system of government, at 30%, was at the lowest ebb in 40 years. Just 29% said their congressional representative deserved re-election—a new low—while nearly three-quarters said Congress was contributing to the problems in Washington instead of working to solve them.

 

House Speaker John Boehner and Senate Minority Leader Mitch McConnell, both Republicans, hit their highest negative ratings, as did Senate Majority Leader Harry Reid, a Democrat.

 

“Americans are voicing their frustration at a Congress that cannot keep the government open for business and an administration that cannot get health care open for enrollment,” Mr. Hart said.

 

Republican pollster Bill McInturff, who conducts the survey along with Democrat Fred Yang, described the findings as a “shock wave” that showed the depth of “anger and frustration with everybody in Washington.”

Frustration… and yet nobody will dare to change anything for fear of losing their precious entitlements, which are unsustainable as is and like in Detroit will end up with pennies on the dollar, or for fear of infringing on their Dancing with the Stars TV time.

Visually:

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/vSwcEhzPfSk/story01.htm Tyler Durden

Submitted by Michael Krieger of Liberty Blitzkrieg blog,

Just when you think the Obama Administration can’t stoop any lower they immediately come in and surprise you. In this incredible clip from CNN, we learn that insurance company executives are being threatened with retribution if they publicly criticize the rollout of ObamaCare, or inform the public about some of the most pressing issues with the disastrous healthcare plan.

In the most powerful part of the clip, Robert Laszewski, the President of Health Policy and Strategy Associates, LLC claims that healthcare executives warned the Obama Administration about severe problems with the rollout ahead of time, and that they were completely ignored. Our government in an inept mafia. Nothing more, nothing less.

 

 

I highlighted some of the issues with the plan back in June of last year in the piece: Thoughts on Obamacare from a Surgeon and Friend.

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Bm0ZzhtiHdY/story01.htm Tyler Durden

Following Japan’s scrambling of fighter jets for the 3rd day in a row, China has revealed that its first fleet of nuclear submarines has started sea patrols, in the latest sign of its military’s growing confidence which has raised concerns in the region. As The FT reports, Xinhua, China’s official news agency, released photographs of what appeared to be Xia-class vessels – China’s first generation of nuclear-armed submarines, which are several decades old – saying they were being “declassified” for the first time, adding with supremely colorful language that, the subs would “gallop to the depths of the ocean, serving as mysterious forces igniting the sound of thunder in the deep sea”, and be an “assassin’s mace that would make adversaries tremble”.

 

 

Via The FT,

…

 

While the submarines displayed on Sunday were the older generation of nuclear vessels that are part of China’s northern fleet – and not the more advanced Jin-class based at the southern Chinese island of Hainan – the display in the domestic media nonetheless reflects the Chinese military’s growing confidence.

 

“It is still the first time that the Xia class has been discussed in such detail in China’s state-run media,” said Taylor Fravel, an expert on Chinese security at the Massachusetts Institute of Technology in the US. “As China’s military modernisation continues to advance, the PLA has become more willing to discuss its capabilities.”

 

…

 

In recent years, the People’s Liberation Army Navy has become increasingly active in the Pacific, particularly in staking Chinese claims to disputed maritime territory in the South China Sea.

 

Chinese ships and aircraft have also become more aggressive in challenging Japanese control of the Senkaku Islands – which China calls the Diaoyu – in the East China Sea. Japan has administered the uninhabited group for decades, but China and Taiwan both claim sovereignty.

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/GZRzr6_P9eI/story01.htm Tyler Durden

Following Japan’s scrambling of fighter jets for the 3rd day in a row, China has revealed that its first fleet of nuclear submarines has started sea patrols, in the latest sign of its military’s growing confidence which has raised concerns in the region. As The FT reports, Xinhua, China’s official news agency, released photographs of what appeared to be Xia-class vessels – China’s first generation of nuclear-armed submarines, which are several decades old – saying they were being “declassified” for the first time, adding with supremely colorful language that, the subs would “gallop to the depths of the ocean, serving as mysterious forces igniting the sound of thunder in the deep sea”, and be an “assassin’s mace that would make adversaries tremble”.

 

 

Via The FT,

…

 

While the submarines displayed on Sunday were the older generation of nuclear vessels that are part of China’s northern fleet – and not the more advanced Jin-class based at the southern Chinese island of Hainan – the display in the domestic media nonetheless reflects the Chinese military’s growing confidence.

 

“It is still the first time that the Xia class has been discussed in such detail in China’s state-run media,” said Taylor Fravel, an expert on Chinese security at the Massachusetts Institute of Technology in the US. “As China’s military modernisation continues to advance, the PLA has become more willing to discuss its capabilities.”

 

…

 

In recent years, the People’s Liberation Army Navy has become increasingly active in the Pacific, particularly in staking Chinese claims to disputed maritime territory in the South China Sea.

 

Chinese ships and aircraft have also become more aggressive in challenging Japanese control of the Senkaku Islands – which China calls the Diaoyu – in the East China Sea. Japan has administered the uninhabited group for decades, but China and Taiwan both claim sovereignty.

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/GZRzr6_P9eI/story01.htm Tyler Durden

When will the U.S. labor market start to accelerate?  That is the single most critical question for global capital markets, for it speaks directly to both economic growth and Federal Reserve monetary policy.  But, as ConvergEx’s Nick Colas notes, just as important, however, is the question “Where do people actually want to work?”

Via ConvergEx’s Nick Colas,

In today’s note we address both topics with a range of Google Trends analysis, looking at what both employers and prospective employees plug into the ubiquitous online search engine.  Key conclusions: there is no evidence of any faster pace of hiring, and the trend of hiring part time labor over full time is both strong (a 3:1 ratio) and accelerating.  As far as where online interest in available jobs runs deepest, Google outpaces Facebook and Apple by over 2:1, but interest in working at Twitter just surpassed searches for “Work at Microsoft”.  Stock markets clearly guide how a society allocates its intellectual capital, perhaps more than historical experience would indicate.

The good times in U.S. equities – and many other global stock markets – are undeniable, but it will be time to worry again soon enough.  Rallies – such as the one we’re seeing at the moment – create future obligations.  In this case, the +23% return for 2013, plus whatever we tack on between now and the end of the year, is essentially a promise of good news to come.  Markets discount the prevailing view for growth in the economy and corporate earnings.  And right now, the market weatherman is calling for sunny skies and fair weather for 2014.

The linchpin issue for global stock returns in 2014 centers on one group of people: the 11.3 million unemployed workers in the United States.  That isn’t to dismiss those suffering from unemployment in Europe, for example, or elsewhere in the world.  That 4.5% of the U.S. adult non-institutionalized population does, however play a critical role in the future returns for stocks globally.  Here is why:

U.S. labor markets have been stuck in first gear since 2011, generating an average of only 170-180,000 jobs over the past 12 months.  After natural population growth (100,000/month) that means only 70-80,000 jobs added, or 0.05% of the population.

 

The Federal Reserve has tried to juice the economy with Quantitative Easing, pushing capital into the financial system by buying Treasury and mortgage backed bonds.  That has kept interest rates low, spurred the purchase of autos and homes, and helped give the U.S. the limited employment growth we mentioned above.

 

The ebbs and flows of the Fed’s commentary regarding QE – its ongoing duration and amount – have become heavily correlated with global equity returns.  You don’t have to look any further than the June Fed press conference or the last FOMC meeting to prove that.  Chatter about “Tapering” the QE program causes a pullback, while confidence that it will continue lifts risk assets higher.  I am sure you can find academics or market watchers who will tell you this is just ‘Correlation’ and not ‘causation’.  Feel free to listen to them, but don’t invest with them.  Ever.

 

Given the anemic October employment report, the recent government shutdown, and concerns over the U.S. consumer, it seems unlikely the Federal Reserve will reduce its bond buying until 2014.  That leaves stocks to rally into the end of the year.  Easy peasy, right?

 

But then what?  The U.S. economy and public companies will have to deliver on the implicit promise of record high stock prices with a combination of faster economic growth and better earnings.  The connective tissue between those aspirations is incremental domestic job growth.

 

Can’t the Fed just keep lifting stocks higher with more QE, regardless of where the U.S. economy ends up?  They can try, but there has been enough reporting on the opinions of the members of the Federal Open Market Committee for us to know that the Fed is growing concerned over the chance for a bubble in risk assets, including stocks.  The world gives the U.S. a lot of collective slack because of its reserve currency status, but everything has a limit.  As the Fed approaches a $4 trillion balance sheet ($3.8 trillion as of October 13, or 24% of GDP), policymakers know they are closer to the end of QE than the beginning.

 

That might all sound like bad news – QE is coming to an end, watch out below! – but it also makes U.S. stocks essentially a one-decision asset class.  Job growth here simply has to get better.  Maybe not today, maybe not tomorrow, but soon, and for the rest of our lives (spurious Casablanca quote there).

With that in mind, we turned to Google’s Trends product to give us a sense of where the U.S. labor market is heading.  This free service allows you to see how many people have searched for a given phrase back to 2005 and also compare those search tallies with other phrases.  With a global search market share of 67%, Google is as clear a window onto the soul of society as you will likely ever find.  And, therefore, a good window into the soul of employer and employee alike.

Here’s what we found:

Search terms: “Hire workers” and “Fire workers”.  Figuring that employers would search terms like “Hire” and “Fire” more than workers, we started with these simply keywords.  More “Hires”
than “Fires” entered into the Google search box would be a good sign of hiring to come.

 

The Trends data supports that the U.S. jobs market is improving – “Hire workers” gets more searches than “Fire workers” and has since the beginning of 2011.  The two still move closely together, however, indicating that there is little momentum in American labor markets.

 

Search terms: “Hiring part time” and “Hiring full time”.  As of the most recent Jobs Report, 7.9 million Americans are stuck working part time when they would prefer to have full time employment.  Department of Labor statistics show that the increasing reason for this “Part time recovery” is that these individuals could only find part time work, rather than being put on a part time schedule by their employer due to slack demand.

 

The Google Trends data shows the magnitude of the problem: searches for the phrase “Hiring part time” outnumber “Hiring full time” by 3:1.  Google Trends allows you to see which U.S. states have the greatest number of searches for each term.  The best states for “Full time hiring”: Texas, Missouri, North Carolina, and Georgia.  “Hiring part time” is popular in South Carolina, Kentucky, and Alabama.

 

Simply put, there is a lot more interest on the part of employers to advertise part time jobs than full time employment, and the gap between the two is growing.  Part time employment may serve to reduce the unemployment rate, but it will do less to improve consumer spending or confidence.

 

Search term: “Jobs for seniors”.  If you want to see growth in the U.S. labor market, just focus on the AARP set.  Those workers 55 and older have roped in the lion’s share of the jobs in the last year – 962,000 of th
e 1.3 million total positions added since September 2013.

 

Older Americans were early to the employment party in the current anemic economic recover, knowing that they would need to work even as they hit their golden years.  The Trends data for “Jobs for Seniors” shows a distinct pickup in 2009 and has stayed at these elevated levels since then.  Top states for the senior job search set?   Ohio, Arizona, and (of course) Florida.

 

Search terms: “Jobs at Microsoft” and “Jobs at Twitter”.  The Google Trends data is also useful for examining where people want to work.  Microsoft, for example, has been a popular employment search-related query on Google since 2005, when the data begins.  Twitter’s impending IPO has, for the moment, made the social media company a hotter employment ticket, however.    The ratio of searches for employment at Twitter as compared to Microsoft was 75:60 last month.

 

Search terms: “Jobs at Google”, “Jobs at Facebook” and “Jobs at Apple.”  Between these three, the number of queries by people search employment at landmark tech companies skews heavily to Google.  Interestingly, this is not a new phenomenon.  All the way back to 2005, the search engine company received multiple more interest in employment opportunities than either Facebook or Apple.  The ratio even now is still healthily in Google’s favor: a Trends score of 71 for Google, versus 24 for Facebook and 21 for Apple.

In summary, we see two trends in this data:

U.S. stocks are getting a free pass as we close out 2013, lifted by performance chasing at the end of a strong year and little threat of Federal Reserve tapering.  At the same time, 2014 is going to have to deliver some actual employment growth to support elevated stock prices.  We don’t see any sign of that in the Google data.

 

As far as where people want to work, stock market chatter does seem to have an impact.  It is easy to say that this is just performance chasing as well, with the hopes of easy millions from options and stock grants.  Still, it also shows that equity markets influence where a society’s intellectual capital chooses to hang its collective hat. 

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/hfBZqBLv5fM/story01.htm Tyler Durden

.

 

THE RAVEN (Debts No More)
(Edgar Allen Poe, The Raven)
WilliamBanzai7

Once upon a midnight dreary, while insolvent weak and weary,
O’r a balance sheet covered in a cloud of debts galore,
While I nodded, nearly napping, suddenly there came a tapping,
As of some one gently rapping, rapping at my chamber door.
`’Tis some visitor,’ I muttered, `tapping at my chamber door –
Only this, and nothing more.’

Ah, distinctly I remember it was bleak as Lehman’s September,
And each despicable creditor wrought its ghost upon the floor.
Eagerly I wished the morrow; – vainly I sought more to borrow
From my books surcease of sorrow – sorrow for the abundant days of yore –
And the rare and hidden debts of toxic bailout whores –
Nameless here for evermore.

And the silken sad uncertain rustling of each indentured debt just
Thrilled me – thrilled me with fantastic plastic Sino-crap never bought before;
So that now, to still the beating of my heart, I stood repeating
‘Tis some banksta entreating entrance at my chamber door –
My late payments entreating his entrance at my chamber door; –
This it is, and nothing more,’

Presently my soul grew stronger; hesitating then no longer,
`Sir,’ said I, `or Madam, truly your debt forgiveness I implore;
But the fact is I was napping, and so gently you came rapping,
And so faintly you came tapping, tapping at my chamber door,
That I scarce was sure I heard you’ – here I opened wide the door; –
Darkness there, and nothing more.

Deep into that darkness peering, long I stood there wondering, fearing,
Doubting, dreaming dreams no debt bloated mortal ever dared to dream before;
But the silence was unbroken, and the darkness gave no token,
And the only word there spoken was the whispered word, `Debts No More!’
This I whispered, and an echo murmured back the word, `Debts No More!’
Merely this and nothing more.

Back into the chamber turning, my bankrupt soul within me burning,
Soon again I heard a tapping somewhat louder than before.
`Surely,’ said I, `surely that is something at my window lattice;
Let me see then, what thereat is, and this mystery explore –
Let my heart be still a moment and this mystery explore; –
‘Tis the wind of regretted debts and nothing more!’

Open here I flung the shutter, when, with many a flirt and flutter,
In there stepped a stately raven of the saintly solvent days of yore.
Not the least obeisance made he; not a minute stopped or stayed he;
But, with mien of lord or lady, perched above my chamber door –
Perched upon a bust of Subprime Croesus just above my chamber door –
Perched, and sat, and nothing more.

Then this ebony bird beguiling my sad fancy into smiling,
By the grave and stern decorum of the counterclaim it wore,
`Though thy crest be shorn and shaven, thou,’ I said, `art sure no Wall Street schemer.
Ghastly grim and ancient raven wandering in my open chamber –
Tell me what unlordly crime now comes from those Wall Street whores!’
Quoth the raven, `Debts No More!’

Much I marvelled this ungainly fowl to hear discourse so plainly,
Though its answer little meaning – little relevancy bore;
For we cannot help agreeing that no insolvent human being
Ever yet was blessed with seeing bird above his chamber door –
Bird or beast above the sculptured bust above his chamber door,
With such name as `Debts No More.’

But the raven, sitting lonely on the placid bust, spoke only,
Those simple words, as if his soul in that one phrase he did outpour.
Nothing further then he uttered – not a feather then he fluttered –
Till I scarcely more than muttered `Other friends have drowned in debt before –
On the morrow he will leave me, as my hopes have flown before.’
Then again the bird said, `Debts No More.’

Startled at the stillness broken by reply so aptly spoken,
`Doubtless,’ said I, `what it utters is its only stock and store,
Caught from some unhappy master whom financial disaster
Followed fast and followed faster till his songs one burden bore –
Till the dirges of his hope that melancholy burden bore
Of “Debts No More.”‘

But the raven still beguiling all my bankrupt soul to smiling,
Straight I wheeled a cushioned seat in front of bird and bust and door;
Then, upon the velvet sinking, I betook myself to linking
Fancy unto fancy, thinking what this ominous bird of yore –
What this grim, ungainly, ghastly, gaunt, and ominous bird of yore
Meant in croaking `Debts No More.’

Thus I sat engaged in guessing, but no syllable expressing
To the fowl whose fiery eyes now burned into my bankrupt core;
This and more I sat divining, with my head at ease reclining
On the cushion’s velvet lining that the lamp-light gloated o’er,
But whose velvet violet lining with the lamp-light gloating o’er,
He shall press, ah, Debts N
o More!

Then, methought, the air grew denser, perfumed from an unseen censer
Swung by the House of Greenspans’s sacred liens whose foot-falls tinkled on the subprime floor.
`Wretch,’ I cried, `thy God hath lent thee – by these angels he has sent thee
Respite – respite and nepenthe from thy proposition of Debts No More!
Quaff, oh quaff this kind nepenthe, and forget this silliness of Debts No More!’
Quoth the raven, `Debts No More.’

`Prophet!’ said I, `thing of evil! – prophet still, if bird or devil! –
Whether tempter sent, or whether tempest tossed thee here ashore,
Desolate yet all undaunted, on this debt spoiled land all fraudclosure haunted –
On this subprime home by horror haunted – tell me truly, I implore –
Is there – is there a cancer in the Bernanks brain? – tell me – tell me, I implore!’
Quoth the raven, `Debts No More.’

`Prophet!’ said I, `thing of evil! – prophet still, if bird or devil!
By that Heaven that bends above us – by that God we both adore –
Tell this lost soul with unpaid debts laden if, within the distant Eden,
It shall clasp a sainted maiden whom the angels named Debts No More –
Clasp a rare and radiant maiden, whom the angels named Debts No More?’
Quoth the raven, `Debts No More.’

`Be that word our sign of parting, bird or fiend!’ I shrieked upstarting –
`Get thee back into the tempest and the usurious shore!
Leave fraudclosure doom as a token of the words thy soul hath spoken!
Leave my credit score unbroken! – quit the bust above my door!
Take thy beak from out my wallet, and take thy form from off my door!’
Quoth the raven, `Debts No More.’

And the raven, never flitting, still is sitting, still is sitting
On the pallid bust of Subprime Croesus just above my chamber door;
And his eyes have all the seeming of a demon’s that is screaming,
And the lamp-light o’er him streaming throws his shadow on the floor;
And my net worth from out that debtless shadow that lies floating on the floor
Shall be lifted, nevermore!

 

.

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/dGSTjhJKA5g/story01.htm williambanzai7

If one watches (or reads) any of the mainstream media, it might seem ‘obvious’ that Europe is doing well; it’s recovering; and the crisis is over (almost over..). However, as Punk Economic‘s David McWilliams explains in this excellent overview of the European delusion and Merkel’s dilemma, there is a “wedge” of unreality between the so-called “markets” and the reality of economic progress. From playing with Germany’s money to moar bailouts, and from Merkel’s enabling of Draghi’s excess to the reality that nothing has changed across the European region, in under 9 minutes, McWilliams brief tour-de-force is a must-watch before you ‘chase’ more performance with the herd. McWilliams concludes, however, with a darker edge of the inevitable endgame of a “slow trudge” to federalization (and loss of sovereignty) that will likely see Nigel Farage (and many others) apoplectic.

 

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/b6_NEZJJb3s/story01.htm Tyler Durden

If one watches (or reads) any of the mainstream media, it might seem ‘obvious’ that Europe is doing well; it’s recovering; and the crisis is over (almost over..). However, as Punk Economic‘s David McWilliams explains in this excellent overview of the European delusion and Merkel’s dilemma, there is a “wedge” of unreality between the so-called “markets” and the reality of economic progress. From playing with Germany’s money to moar bailouts, and from Merkel’s enabling of Draghi’s excess to the reality that nothing has changed across the European region, in under 9 minutes, McWilliams brief tour-de-force is a must-watch before you ‘chase’ more performance with the herd. McWilliams concludes, however, with a darker edge of the inevitable endgame of a “slow trudge” to federalization (and loss of sovereignty) that will likely see Nigel Farage (and many others) apoplectic.

 

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/b6_NEZJJb3s/story01.htm Tyler Durden

Submitted by Michael Snyder of The Economic Collapse blog,

It is hard to find the words to adequately describe how much of a disaster Obamacare is turning out to be.  The debut of Healthcare.gov has been probably the worst launch of a major website in history, millions of Americans are having their current health insurance policies canceled, millions of others are seeing the size of their health insurance premiums absolutely explode, and this new law is going to result in massive numbers of jobs being lost.  It is almost as if Obamacare was specifically designed to wreck the U.S. economy.  Not that what we had before Obamacare was great.  In fact, I have long argued that the U.S. health care system is a complete and total train wreck.  But now Obamacare is making everything that was bad about our system much, much worse. 

Americans are going to pay far more for health care, the quality of that care is going to go down, they are going to have to deal with far more medical red tape, and thousands upon thousands of U.S. employers are considering getting rid of the health plans that they offer to employees altogether due to Obamacare.  If the U.S. health care system was a separate nation, it would be the 6th largest economy on the entire planet, and now Obamacare is going to absolutely cripple it.  To say that Obamacare is an "economic catastrophe" would be a massive understatement.

Of course we were assured that it wouldn't turn out this way.  We were promised over and over that we were going to pay less for health care, get better coverage, and be able to keep our current health plans if we were pleased with them.  The following is what Obama said at a rally in 2009…

"First of all, if you’ve got health insurance, you like your doctors, you like your plan, you can keep your doctor, you can keep your plan. Nobody is talking about taking that away from you."

Oh really?

That was such a dramatic lie that even NBC News is turning on him.  They discovered that Obama has known for three years that most people that rely on individual health insurance policies would not be able to keep them…

Buried in Obamacare regulations from July 2010 is an estimate that because of normal turnover in the individual insurance market, “40 to 67 percent” of customers will not be able to keep their policy. And because many policies will have been changed since the key date, “the percentage of individual market policies losing grandfather status in a given year exceeds the 40 to 67 percent range.”

 

That means the administration knew that more than 40 to 67 percent of those in the individual market would not be able to keep their plans, even if they liked them.

Pretty much everything that Obama told us when he was selling us on his plan has turned out to be a lie.

So what can we expect from Obamacare moving forward?  The following are 10 signs that Obamacare is going to wreck the U.S. economy…

#1 It is being projected that millions upon millions of Americans are going to lose their current health insurance plans thanks to Obamacare.  Most will be faced with the choice of either purchasing much more expensive health insurance or going uninsured.  This will put even more stress on a middle class that is already disintegrating rapidly.  The following is from the recent NBC News investigation mentioned above…

Four sources deeply involved in the Affordable Care Act tell NBC News that 50 to 75 percent of the 14 million consumers who buy their insurance individually can expect to receive a “cancellation” letter or the equivalent over the next year because their existing policies don’t meet the standards mandated by the new health care law. One expert predicts that number could reach as high as 80 percent. And all say that many of those forced to buy pricier new policies will experience “sticker shock.”

#2 The health insurance premium increases that some families are experiencing are absolutely mind boggling.  According to Mike Adams of Natural News, one family in Texas just got hit with a 539% rate increase…

Obamacare is named the "Affordable Care Act," after all, and the President promised the rates would be "as low as a phone bill." But I just received a confirmed letter from a friend in Texas showing a 539% rate increase on an existing policy that's been in good standing for years.

 

As the letter reveals (see below), the cost for this couple's policy under Humana is increasing from $212.10 per month to $1,356.60 per month. This is for a couple in good health whose combined income is less than $70K — a middle-class family, in other words.

According to NBC News, an elderly couple in North Carolina was hit with a similar rate increase…

George Schwab, 62, of North Carolina, said he was "perfectly happy" with his plan from Blue Cross Blue Shield, which also insured his wife for a $228 monthly premium. But this past September, he was surprised to receive a letter saying his policy was no longer available. The "comparable" plan the insurance company offered him carried a $1,208 monthly premium and a $5,500 deductible.

Many Americans that were formerly in favor of Obamacare are now against it after they have seen what it is going to do to their budgets.  The following is one example of this from a recent Los Angeles Times article…

Pam Ke
haly, president of Anthem Blue Cross in California, said she received a recent letter from a young woman complaining about a 50% rate hike related to the healthcare law.

 

"She said, 'I was all for Obamacare until I found out I was paying for it,'" Kehaly said.

#3 Obamacare actually includes incentives for people to work less and make less money.  The following is one example from a recent article by Sean Davis…

In California, a couple earning $64,000 a year would not qualify for health care subsidies. A bronze plan for them through Kaiser would cost them about $1,300 each month, or $15,600 a year. But if that same family earned just $2,000 less, it would qualify for over $14,000 in annual health care subsidies, dropping their premiums for that same Kaiser plan to less than $100 per month.

#4 Thankfully the employer mandate in Obamacare was delayed for a little while, but it will ultimately result in widespread job losses all over the country.  In fact, we are already starting to see this happen.  The following is from a recent article in the Economist…

BEFORE the recession, Richard Clark’s cleaning company in Florida had 200 employees, about half of them working full time. These days it has about 150, with 80% part-time. The downturn explains some of this. But Mr Clark also blames Barack Obama’s health reform. When it comes into effect in January 2015, Obamacare will require firms with 50 or more full-time employees to offer them affordable health insurance or pay a fine of $2,000-3,000 per worker. That is a daunting prospect for firms that do not already offer coverage. But for many, there is a way round the law.

 

Mr Clark says he is “very careful with the threshold”. To keep his full-time workforce below the magic number of 50, he is relying more on part-timers. He is not alone. More than one in ten firms surveyed by Mercer, a consultancy—and one in five retail and hospitality companies—say they will cut workers’ hours because of Obamacare. A hundred part-timers can flip as many burgers as 50 full-timers, and the former will soon be much cheaper.

You can find a very long list of some of the employers that have either eliminated jobs or cut hours because of Obamacare right here.

#5 Even if you are able to keep your job, there is no guarantee that your employer will continue to offer health insurance as an employee benefit.  In fact, it is being reported that large numbers of employers have already decided to no longer offer health insurance to their employees because of Obamacare.

#6 According to CBS News, so far the number of people that have had their health insurance policies canceled is more than three times greater than the number of people that have signed up for new policies under Obamacare…

CBS News has learned more than two million Americans have been told they cannot renew their current insurance policies — more than triple the number of people said to be buying insurance under the new Affordable Care Act, commonly known as Obamacare.

#7 If what is going on in New York is any indication, those that are signing up for health insurance under Obamacare are going to have a really, really hard time finding a doctor…

New York doctors are treating ObamaCare like the plague, a new survey reveals.

 

A poll conducted by the New York State Medical Society finds that 44 percent of MDs said they are not participating in the nation’s new health-care plan.

Another 33 percent say they’re still not sure whether to become ObamaCare providers.

 

Only 23 percent of the 409 physicians queried said they’re taking patients who signed up through health exchanges.

#8 Obamacare is turning out to be a gold mine for hackers and identity thieves.  The personal information of millions of Americans could potentially end up being compromised.  According to CNN, Healthcare.gov was found to be teeming with security holes…

The Obamacare website has more than annoying bugs. A cybersecurity expert found a way to hack into users' accounts.

 

Until the Department of Health fixed the security hole last week, anyone could easily reset your Healthcare.gov password without your knowledge and potentially hijack your account.

And according to the New York Post, Healthcare.gov has been designed so badly from a security standpoint that it might have to be "rebuilt from scratch"…

The chairman of the House Intelligence Committee said ObamaCare’s website, already a tangled mess, might need to be rebuilt from scratch to to protect against cyber-thieves because he fears it’s not a safe place right now for health-care consumers to deposit their personal information.

 

“I know that they’ve called in another private entity to try to help with the security of it. The problem is, they may have to redesign the entire system,” Rep. Mike Rogers said on Sunday on CNN’s “State of the Union” political talk show. “The way the system is designed, it is not secure.”

#9 As I noted in a previous article, approximately 60 percent of all personal bankruptcies in the United States are related to medical bills.  Because millions of Americans are now losing their health insurance policies and millions of others will choose to pay the fine rather than sign up for Obamacare, more Americans than ever will find themselves overwhelmed with medical bills when they get seriously sick.  This will result in even more personal bankruptcies.

#10 In the end, the burden for paying for the subsidies that Obamacare offers is going to overwhelmingly fall on the taxpayers.  This is going to cause our nightmarish national debt to get even worse.  Peter Schiff recently explained why this is going to happen…

It is also ironic that high-deductible, catastrophic plans are precisely what young people should be buying in the first place. They are inexpensive because they provide coverage for unlikely, but expensive, events. Routine care is best paid for out-of-pocket by value conscious consumers. But Obamacare outlaws these plans, in favor of what amounts to prepaid medical treatment that shifts the cost of services to taxpayers. In such a system, patients have no incentive to contain costs. Since the biggest factor driving health care costs higher in the first place has been the over use of insurance that results from government-provided tax incentives, and the lack of cost accountability that results from a third-party payer system, Obamacare will bend the cost curve even higher. The fact that Obamacare does nothing to rein in costs while providing an open-ended insurance subsidy may be good news for hospitals and insurance companies, but it's bad news for taxpayers, on whom this increased burden will ultimately fall.

So what do you think of Obamacare?

Has it directly affected your life yet?

via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/wcaIyqWmDOw/story01.htm Tyler Durden