A massive illusion

There is a lot of turmoil in the USA about health care these days.
Better put, how to pay for health care.
For those who can't afford it now.

It is true of course what Barack Obama said last night in his speech to the politicians.
The United States is supposed to be the most prosperous country in the world while millions and millions are without proper health care because it is too expensive.

What meanwhile many people know is that the United States operates as a society based on the capitalist system.
The most explicit one we can find on earth.
And what many people know but what is rarely said in the USA, is that this system there has major flaws.
It has overdeveloped and has become too extreme.

The solution for the problems with the financing of health care cannot be found within capitalism.
Hence, it is true when certain Americans condemn Obama of introducing socialistic principles.
Those opposing applying socialistic ideas in the USA usually are in a comfortable financial situation and have possibly a little to lose of their wealth when the American society becomes less of a free market where making money no matter how is the current morality.

If an American was able to broaden his or her horizon and study how health care is organized in other countries, they will see that a service in a society like health care should never be given only to the free market.
The government must run a basic health care service, paid for by every citizen through taxes, where profit is not a target.
The private health insurance companies will have heavy competition of the Government service and this is a good thing.
Now, in the USA, private health care insurance companies make billions of profit and that is immoral.

A repeating argument against affordable Government health care in the USA often heard is very ugly.
It goes that once a national health service is instituted, millions of undocumented workers and their families will make use of it.
That will be certainly the case.
And what is against that?
An undocumented worker would not be in the USA if that person was unable to find work and make money.
Hence, an undocumented worker is offered work by the American society that profits enormously of this opportunity.
It pays extremely low wages to the undocumented worker boosting the profit of the company.
While the undocumented worker pays taxes like sales tax.
The opposition to having undocumented workers make use of a national health care service must realize that the only correct solution is to fine employers in such a hefty way that either they only hire documented workers or none at all.

The current situation in the USA with health care is not the only flaw of the American capitalist system.
In fact, fundamentally it is flawed.
Because the American way of capitalism is to exist based on credit.
To borrow and not think how ever it will have to be paid back.
A pure capitalist will first make money somehow and once it is in the pocket spend it in a way that the investment will make new money.
And so on.
Not so an American capitalist.
He spends money that is not his.

This is why the current times are so deceiving.
American politicians announcing that the worst of the economic crises is over and that there is a recovery.
That in a year or two everything will be back to normal.

What they don't say is that the American way of capitalism is being reinstated.
Stimulating the economy by borrowing more money.
Sinking deeper into the swamp.

Take as an example the recent subsidy the US Government offered to car buyers.
A car buyer could get up to $ 2.400 when buying a new more energy efficient car.
But where do those $ 2.400 come from?
They are borrowed by the US Government.
And how are those $ 2.400 going to be repaid?
By the Government charging taxes from their flock.
Hence, in the end, it is no subsidy at all.
The $ 2.400 that was lowering the purchase price of the car, will be taken out of the future income through taxes.
Making the tax payer spend $ 2.400 less from the income.
Dragging the economy down because less money can be spend.
It is this short time solutions of politicians that make them look good now, but that on the longer term is devastating for the people.


In capitalism it is not necessarily a bad idea to stimulate the economy by offering all kinds of financial incentives.
But what if Toyota from Japan sells over 20 % more cars over the last two months and GM sells in that same period 20 % less?
The money made available by the US Government flows to Japan and the American economy is not stimulated whatsoever.

This is happening on the widest scale.
Today it was revealed that the US trade deficit shot up in July tot he highest level in six months.
The trade deficit rose 16.3 % to $ 32 billion.
Imports rose by 4.7 % while exports were only 2.2 %.
This means that when more money is pumped by the Government into the economy, people start buying and spending but most of that money goes abroad.
Not creating jobs in the USA.

The conclusion of many financial experts is that the USA is heading for a second economic crises.
That will be more devastating and dramatic than the one we just had.

There is only one way to avoid this economic catastrophe.
To change the attitude to spend when there is no money in the pocket.
This goes for the Government and for every individual.
Americans must learn to first save money after which spending becomes an option.
It will mean that life will drastically change.
It will become more austere and ascetic compared to now.
Spending will not be a daily activity anymore but a rare exception and a well considered decision.

Although it is clear this is the only solution, at the same time it is a massive illusion.
No way the majority of the American population will accept this concept and give up their extreme consumer's attitude.

So, we will see a new economic collapse in the USA in the years to come.
The dollar losing most of its value.
And the Americans falling into painful poverty.

As an American individual you can protect yourself against this total downturn soon to come.
Start saving money.
And put it in Euros or Yuans.




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