Into the Void

This refers to a previous bailout, not to the latest ripoff.

H. R. 1424: Emergency Economic Stabilization Act of 2008

Here is the full text, and I suggest that everybody read this bill. It was pushed through with only a couple of days debate by lawyers who have little understanding of the workings of Wall Street or The Fed, and who have huge financial interest in the institutions that will benefit from it. To add insult to injury, they tacked a lot of pork barrel spending onto it to BRIBE Congress to agree to it.
http://www.house.gov/apps/list/press/financialsvcs_dem/essabill.pdf

Some comments:

“To amend section 712 of the Employee Retirement Income
Security Act of 1974, section 2705 of the Public Health
Service Act, section 9812 of the Internal Revenue Code
of 1986 to require equity in the provision of mental
health and substance-related disorder benefits under
group health plans, to prohibit discrimination on the
basis of genetic information with respect to health insurance
and employment, and for other purposes.”

This means that you only get parity if your employer provides your insurance AND that insurance already has mental health coverage. It doesn’t seem to require them to cover it. How many of you all work full-time?

There is a cost exemption so to limit mental health coverage if it increases costs by some undetermined amount. The insurance companies can still deny claims bases on their definition of “medical necessity” or by their definition of “reasonable and customary” services.

‘‘(2) COST EXEMPTION.—
6 ‘‘(A) IN GENERAL.—With respect to a
7 group health plan (or health insurance coverage
8 offered in connection with such a plan), if the
9 application of this section to such plan (or cov
10 erage) results in an increase for the plan year
11 involved of the actual total costs of coverage
12 with respect to medical and surgical benefits
13 and mental health and substance use disorder
14 benefits under the plan (as determined and cer
15 tified under subparagraph (C)) by an amount
16 that exceeds the applicable percentage described
17 in subparagraph (B) of the actual total plan
18 costs, the provisions of this section shall not
19 apply to such plan (or coverage) during the fol
20 lowing plan year, and such exemption shall
21 apply to the plan (or coverage) for 1 plan year.”

Discrimination on the basis of genetic information only affects illnesses for which genetic tests have been developed. This bill ignores a lot of of the provisions of the ADA, while modifying ERISA in ways that are completely meaningless. I am concerned that this will weaken the ADA by tightening the definitions to exclude non-genetic diseases.

Specific diagnoses this bill applies to will be determined by the GAO, which has 3 years to study it and present a report.

“(h) GAO STUDY ON COVERAGE AND EXCLUSION OF
4 MENTAL HEALTH AND SUBSTANCE USE DISORDER DIAG5
NOSES.—
6 (1) IN GENERAL.—The Comptroller General of
7 the United States shall conduct a study that ana8
lyzes the specific rates, patterns, and trends in cov9
erage and exclusion of specific mental health and
10 substance use disorder diagnoses by health plans
11 and health insurance.”

Congress can continue to modify this Act.

I doubt this will change anything in the near future.

A few years from now you’re going to hear Congressdroids bitching because they didn’t have enough time to collect the facts before enacting this bill. Listen to them whine about how they were boondoggled into exercising the Bush Doctrine on Iraq.

A friend recently consulted me about a rumor he heard. He wanted to know whether the Muslims are investing money in the US in order to take over. This is my reply:

The simple answer is “No, and if they did it was an amazingly stupid investment.”

But I don’t do simple. :-)

I’ll start by saying, screw the Taliban, they’re stone-age guys with guns and a beautiful book of inspired verses that none of them is educated enough to actually read. And WE put them in power to drive out the Russians.
Third World Traveler: Afghanistan, the CIA, bin Laden,
and the Taliban

Unfortunately, in the late ’90′s the Taliban was opposing an oil pipeline through Uzbekistan that would have had to come down through their country. This incensed oilman George W. Bush.

The Taliban doesn’t own anything but poppies, guns and rocks. Their country was destroyed by years of war against Russia. There is an entire generation of people who can’t read, who have no government records like land deeds, marriage licenses or birth certificates. They aren’t investing in anything but the feudal system that protects them from themselves.

We often boost up third-world, authoritarian regimes when there is something in it for us.

Ok, so one way is to go to an underdeveloped nation with a mineral you need that you can’t get in the U.S. Pay the guys in power so that they have absolute control over the populace and can use them to mine the mineral. **Saudi Arabia** is a prime example of that – and Osama Bin Laden was a Saudi until we enlisted him to organize the Taliban in Afghanistan. The Shah of Iran and Saddam Hussein are also good examples of it. Where’s that photo of Rumsfeld shaking hands with Saddam Hussein after they negotiated an oil deal?

Think of Teddy Roosevelt riding roughshod over Libya, etc. NeoCons are “Teddy Roosevelt Republicans.” Iraq didn’t go so well, but they don’t see it. With “trickle-down economics” the poor and the middle class bear the burden. It doesn’t affect the NeoCons so they don’t even know it exists.

I wrote a couple of blog entries on the public debt recently. You really need to read some of Jefferson’s and Madison’s thoughts on scrip before you read my short, simple answer. Here’s the URL and a quote from it.

In modern terms, the Federal Reserve Bank decides on a dollar amount that it needs to borrow to stimulate the growth of new businesses or to fund a war, then it prints dollars to symbolize the debt. When you and I then borrow the dollars, we take on a portion of the Fed’s debt. Once we own the dollar bills, we pay interest on the dollars that the Fed borrowed. The Fed borrows not just interest-free, but at a profit.

Pull a dollar out of your wallet if you don’t believe me. There is statement in the upper-right corner “This note is legal tender for all debts, public and private.” The dollar bill is an I.O.U.!

Having read that, and knowing that the dollar is (or was) the standard world-wide, you can deduce who owns our public debt. Pretty much the whole world, eh?

Foreign investors own large portions of corporate America. Fortunately, most of them don’t own isn’t enough to actually control the companies, but what if they did? They’d still want to make a profit!

At the same time, convince these investors that real estate is booming and to invest not in the real estate itself, but in the real estate and financial instutions that hold the mortgages. Stocks are more liquid than mortgages, who would want that hassle?

The way to make real estate boom is to make it easier to borrow money, that is, to print money so there can be more debt. It also is necessary to make it easier to buy an overpriced house, like with variable-interest loans.

So here’s how to eliminate large portions of the public debt quickly: We have induced foreign countries take an interest in our biggest industries instead of in cash. That would be financial institutions, mostly.

Make the institutions crash and have the government take over, leaving all the investors with nothing.

The conflict in Iraq has been taking away our pay raises for several years, so many folks were unable to meet the balloon payments. Countrywide Mortgage went first, and the foreign investors said oh shit and started trying to get their money out of our financial institutions. The Wall Street version of a run on the bank, 1929 style. Suddenly dollars aren’t so popular. (That’s why it looks as if oil costs more. It’s the exchange rate, people!!!)

If the dollar is worth less, the debt is less! But simultaneously it gets harder to attract those foreign investments we need so badly to support the opulent lifestyle that we euphemistically call “the American Dream.”

The Fed is trying to control it, so the fall is slow, but we are definitely falling and who the hell knows where the bottom is. Maybe it will stop when Americans have the same lifestyle one of our biggest creditors, the Chinese.

Oooo.

Let’s talk about the Department of the Treasury for a minute. When you buy a Treasury Bond or other instrument, you are borrowing money from the future of the United States financial health. What I meant to say actually is that you are betting the the government will be strong enough to pay the bill with the stated interest at the end of the term of the bill. The shakier the U.S. looks, the harder it gets to sell them.

Thee Treasury department web page maintains a list of what countries hold the Public Debt in Treasury notes. If you want to demonize oil producers by generalizing them as Muslims, then they are #4 on the list. Venezuela is actually Catholic. The Carib and Luxemborg entries actually are world banks that launder money for everywhere. Ditto Switzerland.

As for this bailout, your grandkids will still be paying for the last eight years of laissez-faire economics 30 years from now. Personally, I think that only folks who voted for oilman Bush should have to pay for the bailout.

Basically, your question has no meaning. We have been relying on foreign governments to support our opulent lifestyle for years.

I have been considering picking up some cheap real estate to sell a few years from now when the market picks up. I don’t see why our friends the Saudi Arabians wouldn’t do the same thing. Along with lots of Japanese, Chinese and Russian citizens. I don’t see this as a sinister plot, I see it as good Capitalism.

Which doesn’t means it’s good for you and me.

Did that sort of answer the question?

Got this email from a friend. I howled with laughter when I read it. See the next post for my response.

Dear American:

I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude. I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you. . .

I am working with Mr. Phil Gramm, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transaction is 100% safe.

This is a matter of great urgency. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.

Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.

Yours Faithfully
Minister of Treasury Paulson

http://www.house.gov/apps/list/press/financialsvcs_dem/essabill.pdf

The above link is to the full text of the bailout bill, and I suggest that everybody read this bill. It was pushed through with only a couple of days debate by lawyers who have little understanding of the workings of Wall Street or The Fed. And they tacked a lot of pork barrel spending onto it to BRIBE Congress to agree to it. Unfortunately, mental health parity verbiage was tacked onto the bill with the pork. NAMI, of course, is celebrating the bill for its own sake without regard to what effect it will have, or when. Having appeased the mental health lobby, congress is off the hook as far as enacting any further legislation. Way to go!
http://www.house.gov/apps/list/press/financialsvcs_dem/essabill.pdf

“To amend section 712 of the Employee Retirement Income
Security Act of 1974, section 2705 of the Public Health
Service Act, section 9812 of the Internal Revenue Code
of 1986 to require equity in the provision of mental
health and substance-related disorder benefits under
group health plans, to prohibit discrimination on the
basis of genetic information with respect to health insurance
and employment, and for other purposes.”

This means that you only get parity if your employer provides your insurance AND that insurance already has mental health coverage. It doesn’t seem to require them to cover it in the first place. It also doesn’t appear to apply to private health insurance.

There is a cost exemption so to limit mental health coverage if it increases costs by some undetermined amount. The insurance companies can still deny claims bases on their definition of “medical necessity” or by their definition of “reasonable and customary” services.

??(2) COST EXEMPTION.?
6 ??(A) IN GENERAL.?With respect to a
7 group health plan (or health insurance coverage
8 offered in connection with such a plan), if the
9 application of this section to such plan (or cov
10 erage) results in an increase for the plan year
11 involved of the actual total costs of coverage
12 with respect to medical and surgical benefits
13 and mental health and substance use disorder
14 benefits under the plan (as determined and cer
15 tified under subparagraph (C)) by an amount
16 that exceeds the applicable percentage described
17 in subparagraph (B) of the actual total plan
18 costs, the provisions of this section shall not
19 apply to such plan (or coverage) during the fol
20 lowing plan year, and such exemption shall
21 apply to the plan (or coverage) for 1 plan year.”

Discrimination on the basis of genetic information only affects illnesses for which genetic tests have been developed. This bill ignores a lot of of the provisions of the ADA, while modifying ERISA quite a bit. I am concerned that this will weaken the ADA by tightening the definitions to exclude non-genetic diseases.

Specific diagnoses this bill applies to will be determined by the GAO, which has 3 years to study it and present a report. Once the beancounters are through will this bill, we’ll have no more than we had the day before the bill passed.

(h) GAO STUDY ON COVERAGE AND EXCLUSION OF
4 MENTAL HEALTH AND SUBSTANCE USE DISORDER DIAG5
NOSES.?
6 (1) IN GENERAL.?The Comptroller General of
7 the United States shall conduct a study that ana8
lyzes the specific rates, patterns, and trends in cov9
erage and exclusion of specific mental health and
10 substance use disorder diagnoses by health plans
11 and health insurance.”

I doubt this will change anything in the near future.

A few years from now you’re going to hear Congressdroids bitching because they didn’t have enough time to collect the facts before enacting this bill.

The obverse of the Swiss 1000-franc note, showing the Grim Reaper.

“I don’t know what money is today, and I don’t think anybody at the Fed does either.”
Richard Pratt,
Chairman of the Board of the Federal Home Loan Bank, 1982

“American democracy was founded on the principle, stressed by James Madison in the Constitutional Convention in 1787, that the primary function of government is to protect the minority of the opulent from the majority. Thus he warned that in England, the only quasi-democratic model of the day, if the general population were allowed a say in public affairs, they would implement agrarian reform or other atrocities, and that the American system must be carefully crafted to avoid such crimes against the rights of property, which must be defended (in fact, must prevail).”
Noam Chomsky, Noam Chomsky on Anarchism, Marxism & Hope for the Future, May 1995

“Capitalism works because most of us have swallowed these two big lies:
1) Society is best organized when people look after their own self-interest at the expense of everyone else’s. In fact, this is human nature.
2) A healthy economy can only be based on ever-expanding consumption and production. This can go on forever. Science will overcome all obstacles to the continuation of this process.”
Boog Highberger
“The Two Big Lies of Capitalist Economics”

“What is property, what is capital in their present form? For the capitalist and the property owner they mean the power and the right, guaranteed by the State, to live without working. And since neither property nor capital produces anything when not fertilized by labor – that means the power and the right to live by exploiting the work of someone else…”

by Michael Bakunin, THE CAPITALIST SYSTEM

“The most prominent characteristic of capitalism is the wage system, which in brief amounts to this:- A man, or a group of men, possessing the necessary capital, starts some industrial enterprise; he undertakes to supply the factory or workshops with raw material, to organize production, to pay the employees a fixed wage, and lastly, to pocket the surplus value or profits, under pretext of recouping himself for managing the concern, for running the risks it may involve, and for the fluctuations of price in the market value of the wares
PETER KROPOTKIN, THE CONQUEST OF BREAD

“For my part, I must confess, I never could conceive that an all-wise, just, and benevolent Being would contrive one Part of his Plan to be so contradictory to the other, as here supposed;- that is, would lay us under one Obligation as to Morals, and another as to Trade…”
Dean of Gloucester, Josiah Tucker (1712-1799), A Study In The History Of Economics