Whose Bubble Will Burst First, The Banks Or The Bolsheviks?

“Fight Against Stupidity And Bureaucracy”

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2014 oil price drop

As 2014 ended, the Russian Rouble was in free fall and so were crude oil prices. Both affected the Russian economy and not in a good way. From a position of great strength Vladimir Putin is now under pressure due to the combined effect of lower oil prices and the sanctions imposed by the west because of the situation in the Ukraine and Crimea.

In the West there have been two notable effects of the drop in oil.

One is good in so far as consumers have to spend a lot less to run their vehicles and heat their homes.

The other, however, is bad – for the banks (tee-hee-hee) although they will no doubt pass on their pain to us.

The reason the banks are in trouble (AGAIN) is because they have lent billions of dollars to fracking operations where oil explorers use expensive techniques to extract oil from underneath American and Canadian soil.

The drop in oil prices means that you can now buy oil on the open market for a lot less than it costs to extract it in the US and Canada.

Therefore the oil exploration companies that obtained these huge loans from the banks, and other money men on Wall St, have little or no chance currently of paying them back.

If the position continues through 2015 expect payment defaults and huge debts written off again by the banks.

Will the government step in (AGAIN) to bail them out by printing more money?

I don’t know. I hope not. It’s time these bankster idiots paid for their own mistakes instead of us having to continually foot the bill.

Don’t count on it though.

So whose bubble do you think will burst first, the banks or the Bolsheviks?

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The Government Just Doesn’t Get It – “Affordable” Means You Can Actually Afford It!

“Fight Against Stupidity And Bureaucracy”

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The Sunday Sermon

So there are more difficulties plaguing the implementation of the Affordable Care Act.

Now there’s a shocker folks!

I’ve already highlighted the mess that the government has made in trying to bring it’s computer systems online to enable enrollment in the new program. (See “What Am I” post from about a month ago)

obamacare-cartoon

Now people who thought they were already adequately insured are finding that this may not be the case, at least not for much longer. The private insurance issue is affecting lots and lots of people all over America, particularly those who were trying to be responsible and had adequate insurance for themselves and their families.

Most of them bought their insurance on the open market. Obama promised that would still be secure after his new Affordable Care Act was implemented.

He said, “If you like your health care plan, you can keep your health care plan.”

He lied.

Obama’s new law actually outlaws all but a small percentage of “grandfathered” individual insurance policies and requires carriers to instead offer coverage that is more comprehensive.

And there’s more trouble ahead. In 2018, an Obamacare tax on high-cost insurance plans kicks in and could cause upheaval in that part of the market as well.

The truth is that the law was designed to gradually eliminate the old system altogether.

The result?

All across the country those who thought they had adequate insurance are being issued with notices from insurers explaining that their plans are ending. Ending thanks to the Affordable Care Act.

It has understandably caused confusion, fear, anxiety and a great deal of anger.

Obamacare cartoon

Losing health insurance can be a terrifying possibility in America. Particularly as one gets older and policies are more difficult and expensive to replace.  

So is this the last of the Obamacare problems?

I think it would be a very safe bet to say no it won’t.

Affordable Health Care is a laudable goal. I’ve always said that. But the way to tackle it is to make the existing system more affordable by curbing the excessive profiteering of drug companies and medics, not burdening this and future generations of ordinary Americans with another government white elephant that the country can’t afford.

Unfortunately the government just doesn’t get it – “affordable” means you can actually afford it!

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