Sunday, June 5, 2011

FED LAWYER ALVAREZ: “THE FEDERAL RESERVE DOES NOT OWN ANY GOLD AT ALL”

dear friends & family,

those who do take part in voting in this self-governing nation we still call "America" might find interesting this six minute video clip excerpt from the recent monetary policy hearing.

then ask yourself whether or not the dismal economic management of America over the last 100 years is not the single most important current national issue which not only affects us all, but our future generations.  how can any nation do any good for its people, or anyone on this planet for that matter, if it doesn't have a sound and transparent financial system?

shall we continue to travel down the same road we've been for nearly a century?  or shall we finally take a turn for the better?

the People of a self-governing nation deserve the government they elect.  while the election system in America has been corrupted by the partisan duopoly, we still have the opportunity to search out those candidates who understand the truth about our financial condition and willing to correct it, and support them in the Primaries.

if the People wait until the General election, the political parties will have already selected their favorites among whom the masses can choose to lead this country, all of whom are beholden to the party itself and Wall Street, rather than to the People.

no, i don't think we humans can or will fix everything in this present world... but i do think we should try our best to do so!

8-)

bernard baruch carman
* * *
Ron Paul Revolution 2012 - AVL/WNC
* * *
- truth seeker/seeder • SeedsOfTruth.org • ∞Liberty
- infinity games ∞ audio/Mac specialist
∞∞∞



Thats right. The Fed owns NO gold. Zero, zip, ziltch.

For those of you who did not watch yesterday’s monetary policy hearing in the house of representatives, you most likely missed this bombshell exchange between Federal Reserve lawyer Scott Alvarez and committee chairman Dr. Ron Paul. My jaw literally dropped when I heard the Fed’s general counsel declare that the Federal Reserve owns no gold. After 1934, Alvarez explains that the Fed handed its gold over to the Treasury in exchange for gold certificates. When pressed further, Alvarez noted that the gold certificates do not represent any interest whatsoever in the gold itself. He explained the gold certificate listings on the Fed balance sheet, not as a claim to gold, but at most a claim to dollars from the Treasury. See the quotes here (and watch the videos at the bottom of the post):

Scott Alvarez: “The Federal Reserve does not own any gold at all… we have not owned gold since 1934, um, so we have not engaged in any gold swap. Before 1934 the Federal Reserve did, we did own gold. We turned that over by law to the Treasury and received in return for that gold certificates.”

Ron Paul: “…You have the securities for essentially all the gold?”

Scott Alvarez: “No. No we have no interest in the gold that is owned by the Treasury. We have simply an accounting document that is called gold certificates that represents the value at a statutory rate that we gave to the Treasury in 1934″

This issue is even more complicated than may appear and after doing some research we seem to have settled some of the quirks in this odd Treasury-Fed scheme. Bare with us when reading through this.

What appears to have happened under the Gold Reserve Act of 1934 is the Treasury seized the Fed’s gold, taking full ownership and claim to its proceeds. The Treasury as an aside transferred a sum of special 1934 series gold certificates to the Fed amounting to the statutory value of gold ($20.67 per ounce) times the quantity of gold transfered from the Fed to the Treasury. The official gold price was later revalued to $35 an ounce, an effective devaluation of the currency, but the quantity of gold certificates issued to the Fed was not amended to reflect revaluation until the passing of the Par Value Modification Act of 1972. Under this act, gold was revalued again, this time to $38 an oz, and the Fed’s gold certificate account was credited upwards by $822 million worth of certificates to reflect the change in the gold price from $35 to $38. The gold was revalued one last time in 1973 to $42.22 and again the Federal Reserve was credited with more gold certificates, $1.157 billion to be exact, to account for this. After everything, the Federal Reserve was left with $11.16 billion dollars worth of gold certificates.

So what exactly are the gold certificates the Fed holds? For one, the Fed’s gold certificates are unlike previous gold certificate issues, and are not publicly trade-able. They are also not direct claims to gold, but rather reflect claims only to US issued currency or coin held by the Treasury. The Fed can take claim to this currency on demand, and their certificates are an accounted for liability of the Treasury as listed in Note 19. Treasury’s “Other Liabilities”. In addition, if the Treasury is unable to satisfy a demand by the Fed for the funds, the Fed is able to gain access to the gold, since the gold stands as collateral for the gold certificates issued by the Treasury. This fact is taken from this statement in Note 2, from the Treasury’s balance sheet:

“Gold totaling $11.1 billion as of September 30, 2010, and 2009, was pledged as collateral for gold certificates issued and authorized to the FRBs by the Secretary of the Treasury.“

Given that the Fed has an indirect claim to the Treasury’s gold, it is questionable what line of reasoning the Fed’s general counsel was using when stating so broadly that the Fed has “no interest in the gold that is owned by the treasury”.

In any case, we can analyze the implications of the basic facts and come to a couple of conclusions:

1) The widespread notion that the Fed owns gold is false. The corollary to this is the mistaken belief that the Fed understates its gold holdings on its balance sheet by only reporting certificates based on the $42.22 statutory gold value. The Fed does not in fact own the US gold stock multiplied by the market price of gold, unless the Treasury defaults and even then its not clear. The Fed does, however, own a claim to currency totaling $11.1 billion and this value has a remote chance of going up significantly if the Treasury revalues its gold and maintains the practice initiated in the Par Value Modification Act.

2) The fact that the Fed owns no gold, nor claims to any gold, means the fundamental value of the dollar lacks any backing besides dollars themselves, not including Fed building and equipment. Dollars are in essence worth a lot less than many people thought, and the Fed is much more impotent in using the prowess of their assets, and conducting monetary policy in general, than many believed. In all, Alvarez’s clarification strengthens the case for gold’s high dollar value immensely.

see the specific exchange between Alvarez and Ron Paul about the Fed’s gold here:

http://goldnews.com/2011/06/02/fed-lawyer-alvarez-the-federal-reserve-does-not-own-any-gold-at-all/

###

Tuesday, March 22, 2011

Another Example of Hypocrisy & Tyranny at the Highest Level...

But what else can we expect from this UN-Constitutionally unlimited and unaccountable government We the People have created and allowed to fester over centuries?

Let's see how unjust and hypocritical the Neo-Amerikan INjustice system has acted this time, shall we?

Bernard von NotHaus of 67 years, a man who shares my first name and whom I've enjoyed the pleasure of meeting — a true patriot, unlike the unlawful band of criminals who currently hold public offices at all levels and departments of government — now faces a 15 year jail term for minting real silver coins called "Liberty Dollars" via his minting company NORFED, and selling them to voluntary customers who would rather hold real "money", rather than the fraudulent "Federal Reserve Notes" which the masses of Americans use daily for "legal tender".

Of course, NORFED never called Liberty Dollars "legal tender", nor pushed them on people as being such, yet included in his indictment he was charged with, "conspiracy with uttering and passing, a coin of silver in resemblance of genuine coins of the United States in the denominations of five dollars and greater, and intended for use as current money."

In announcing the verdict, prosecuting US Attorney Anne Tompkins is quoted as saying:

“Attempts to undermine the legitimate currency* of this country are simply a unique form of domestic terrorism. While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country. We are determined to meet these threats through infiltration, disruption, and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government."

* "Legitimate Currency"?  What is legitimate at all about Federal Reserve Notes?

Dear Miss Tompkins and your ilk who are currently holding power over a would be otherwise free people of America, and who have been aiding and abetting the real domestic terrorists, if you truly wish to dismantle insidious organizations that represent a clear and present danger to the economic stability of this country and which seek to challenge the legitimacy of our democratic form of government while operating outside of the US Constitution, then why not put Ben Bernanke and the entire lot of those running the Federal Reserve on trial for high treason against We the People of the United States of America???

After all, the Federal Reserve has been in total control over the coinage of money, even though the US Constitution grants this power to Congress only.  That fact that the Federal Reserve — a private organization not much different than NORFED, except they are run by crooks — has been unlawfully controlling the money system of the American people, is one of the long running violation against the US Constitution, and has been cited by the We the People Foundation & Congress, chaired by Bob Schulz, as part of the process of repeated attempts to hold the US government accountable through the Accountability (Petitioning for Redress) Clause of the First Amendment.

And of course, not only have our efforts in exercising the Accountability Clause been ignored, but the US Supreme Court has also refused to perform its duty in officially defining the clause.  Yet there are still Americans who remain entirely oblivious to such injustices at the highest levels of government and would rather blame some supposed opposing political party?

Now, here we are witness to the US Attorney sentencing an innocent man of 67 years to prison for 15 years for legally minting legitimate silver coins having real value and selling them to voluntary customers, while it turns a blind eye to another private organization whom since 1913 has been engaging in the fraudulent act of fractional reserve banking and usurping power and authority over Congrss' power to coin money via fraudulent "US Dollars".

In other words, you send an innocent man to prison for acting legally, while you do nothing to stop the illegal actions of the Federal Reserve...

HYPOCRISY ABOUNDS!!!

This verdict by the US Attorney's Office (Western District of NC), further exemplifies that this so called "US Federal Government" has been hijacked by criminals posing to be defenders of freedom that are actually hypocrites who either apparently forgot they took an oath of office to uphold the US Constitution and defend the unalienable rights of the individual, or are violating their duties deliberately and should also be tried for high treason against the American People, the US Constitution, and the Creator Himself.

The word "God" should be removed from Federal Reserve Notes to prevent the attempt of making our Creator an accomplice to theft of countless Americans in past and future generations!

The article below by one Chris Duane is worth reading.  Too bad no one in the US Attorney's office will probably read any of this, but then again, it remains apparent that the overwhelming majority of anti-liberty & anti-American individuals within these various so called "American" alphabet soup organizations running ruining this country give a damn anyway.

In Liberty, wherever it's permitted...

8-)

bernard baruch carman
* * *
- truth seeker/seeder • SeedsOfTruth.org • ∞Liberty
- infinity games ∞ audio/Mac specialist
∞∞∞


Begin forwarded message:

When one understands the true nature of the Federal Reserve system, one rightfully asks who is the Patriot and who is the terrorist? How much longer, I wonder, before the People wake up?
-------------------------------

The New Face Of Terror
Chris Duane


Look into the eyes of terror...
 This man looks as dangerous as Osama bin Laden and Hitler all rolled into one. This "Domestic Terrorist" was convicted today by the Federal Government for conspiracy against the United States.The world hit a whole new level of crazy today. So crazy that even I might be at a loss for words to describe how screwed up this is
He faces 15 years in jail for this horrendous crime. What was this "Domestic Terrorist’s" crime? Was he complicit in 9/11? How about the Oklahoma City bombing? Or the Anthrax attacks? Or the collapse of the housing or stock markets?
No, this 67 year olds crime was minting silver coins call the Liberty Dollar.
"Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism," U.S. Attorney Tompkins said in announcing the verdict. (Source)
Bernard von NotHaus was convicted for making, possessing and selling his own coins by a Federal Jury
 
Von NotHaus was the driving force behind the Liberty Dollar program that created real silver and gold coins for people to use as money. The Liberty Dollar was more of an intellectual assault on our money paradigm than anything else. He marketed coins with real intrinsic value so that people could "inflation proof" their savings. His company educated people about what real money was all about while minted these high grade coins.
Money can be anything provided that it has three characteristics; 1. medium of exchange, 2. unit of account, 3. store of Value
Legal tender is government-sanctioned money. The Liberty Dollar never claimed to be legal tender. In his indictment he was charged with "conspiracy with uttering and passing, a coin of silver in resemblance of genuine coins of the United States in the denominations of five dollars and greater, and intended for use as current money." With that indictment, the Feds conducted a pre-dawn raid on von NotHaus and confiscated $4,000,000 in gold, silver and cash on June 6th, 2009. In the press release about his conviction they claimed that his coins had features associated with legitimate U.S. coinage. Among the features that von NotHaus had on his coins was a dollar sign "$" and the word "dollar" on it. The Constitutional definition of a dollar which was defined in the Coinage Act of 1792 as either 24.75 gr. (troy) of fine gold or 371.25 gr. (troy) of fine silver. These Liberty Dollars are actually a lot closer to the Constitutional version of the dollar, than the dirty green toilet paper the Federal Reserve creates out of thin air.
If having the word "dollar" on money is a conspiracy against the United States and is now "domestic terrorism", I have very important information to tell the authorities

Detailed Satellite Images Of the "Terrorist" Compound


There is a multi billion dollar well-funded "domestic terrorist" organization in Central Florida, right now. They have their own compound that spans 47 square miles that is very difficult to get into, at least during the summer. They are very secretive about future actions and pump out very slick propaganda so that the world sees things their way. The real "terrorism" comes from a huge multi-national money laundering operation that takes in billions of US Dollars and some of these dollars get recycled into their own subversive terror "dollars". Somebody in the US Attorney’s office can make a huge career for himself or herself by taking down these much larger "domestic terrorists". I estimate that their assets are 20,000 times the size of that "Domestic Terrorist" Mastermind Bernard von NotHaus. I even have all the evidence for you for an open and shut, slam-dunk case. So here is the evidence of their "dollars" that Americans might confuse for real money. Make sure I get some Presidential Medal of Freedom out of this deal.


Bomb, Bomb, Bomb Saint Lucia!



 


That is just the domestic threat, what about the foreign threat?
I also have evidence that there is a subversive coalition of countries that are also seeking to destroy the American’s faith in our dollar by creating their own "dollars". Instead of wasting our time in Iraq, and Libya with their weird dinars, we should conduct pre-dawn raids to seize the assets of these "dollar" countries. I think we should get approval from the UN, since apparently the Congress does not have the power anymore, to invade these countries immediately. Here is the list of the new Axis of Evil that use the subversive "dollar" on their currency; Canada, Grenada, Ecuador, Suriname, El Salvador, Panama, Belize, Singapore, Hong Kong, Taiwan, Brunei, East Timor, Australia, New Zealand and the very "evil nation" of Saint Lucia. Furthermore, I would suggest that the US Government seize all assets of any American citizen conspiring with this enemy by having this "fraudulent" money in their possession. To be safe, we should conduct pre-dawn raids on all US citizens that live within a day’s drive of Canada. These traitors may have given aid, comfort and funding to this new Axis of Evil by having Canadian Dollars in their cup holders of their cars or worse their coin jar. We would not want to these Canadian dollars to be confused with our legal tender. Shudder the thought!
"In coordination with the Department of Justice, on September 14, 2006, the United States Mint issued a press release and warning to American citizens that the Liberty Dollar was "not legal tender." The U.S. Mint press release and public service announcement stated that the Department of Justice had determined that the use of Liberty Dollars as circulating money was a federal crime." (Source)


I wrote a very sarcastic piece a week or so ago called, "In Pizza We Trust"
I wrote to the US Mint and said that if they were no longer going to create Silver Eagles, they should create the next best thing, Chuck E. Cheese tokens. This funny but sad article struck at the heart of the problem, our government seems much more concerned with destroying it’s citizen’s money than protecting future generations from crushing debt. In fact any citizen that did buy the Liberty Dollar, actually made money instead of letting inflation destroy their savings. For the US Mint to claim that the Liberty Dollars are not "legal tender" is so stupid. None of his coins said "legal tender" on them. The US Mint has a hard enough time convincing Americans that their real legal tender coins are real money. Legal tender laws are when governments force garbage money on its citizens with institutional intimidation and possible violence to force the citizens to only use that money. They also make it illegal to have any competition to their garbage money. Without the treat of violence from the state, no human in the world would use monopoly money as real money. You certainly would not have to make silver and gold legal tender to force Americans to see the real intrinsic value of these precious metals.



Bernard von NotHaus did not claim his Liberty Dollars were legal tender and no person buying them thought they were
He sold one ounce gold coins for $500, and that coin is now worth $1,400. Meanwhile the dollar has probably lost 50% or more of its value in the past 10 years and now have the purchasing power of $250. Since the creation of the FRN legal tender, the dollar has lost 98% of its value. If you had 5 $20 ($100) St Guadens Double Eagle coins in 1913 they would be worth $7,000 just in gold content value.
If you saved $100 in 1913 Federal Reserve Notes, would have the equivalent purchasing power of $2 now. That is what inflation by the privately owned Federal Reserve has done to our country. This case against von NotHaus was simply about the big bad Elite squashing some guy from challenging the Empire of Lies this country has turned into.
"Article I, section 8, clause 5 of the United States Constitution delegates to Congress the power to coin money and to regulate the value thereof. This power was delegated to Congress in order to establish and preserve a uniform standard of value and to insure a singular monetary system for all purchases and debts in the United States, public and private. Along with the power to coin money, Congress has the concurrent power to restrain the circulation of money, which is not issued under its own authority in order to protect and preserve the constitutional currency for the benefit of all citizens of the nation. It is a violation of federal law for individuals, such as von NotHaus, or organizations, such as NORFED, to create private coin or currency systems to compete with the official coinage and currency of the United States. " (Source)

Please Shut Silver Shield Up!!!
 


The prosecution cites the Constitution for justification for this case and yet cannot see the quadrillion-dollar monster in our sight, the Federal Reserve
Ben Bernanke has caused more financial terrorism than any other human in history. The Federal Reserve has confiscated the entire wealth of this once great country with their privately owned debt based monetary system. Think about this, the average American is poorer than the average Bangladeshi peasant. The average American has tens of thousands of debt and the average Bangladeshi is just poor with NO debt.
Even if you are one of the few Americans that are debt free or your assets are more than your debts, if you include all of the unfunded liabilities and public debt that is written on your family’s heads, you are much poorer in real terms than some beggar in Bangladesh. Don’t worry about that debt, because it is going to disappear in a hyper-inflationary depression that will make the Dark Ages look like child’s play.
When it all goes down you can look no further than the criminal mastermind domestic terrorist Bernard von NotHaus for the cause of the collapse of the world economy. Just kidding...
 
Of course I am being sarcastic about this whole affair, because this whole case is a joke

This country is Trillions of dollars in debt to a group of private bankers who create money out of thin air and then have the chutzpah to charge us interest on this money. To make matters worse, when their buddies get this money in their local banks, they then can create more money out of thin air by using fractional reserve banking. The United States Constitution mandates in Article I, Section 10, Clause 1: "No State shall...make any Thing but gold and silver Coin a Tender in Payment of Debt." Bernard vonNotHaus created a private company to bring money that actually has value and no debt attached to it. Not one person in a million would think that his money had any thing to do with the legal tender monopoly money the Fed pumps out and our poor country is choking on.
"While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country,"she added. (Source)

We are running Trillion dollar deficits every year and she is worried about some old guy minting silver and gold coins?! We have 25%+ unemployment because of the policies of the Federal Reserve and .gov, and Bernard von NotHaus is a "domestic terrorist"?! We have inflation running at it’s highest levels since 1974 and silver coins that say "dollar" on them are a conspiracy against the United States?! We have $700 billion dollar bankster bailouts while Americans are getting thrown out of their houses and the Liberty Dollar is insidious?! Shame on you US Attorney Anne M. Tompkins! Even more shameful is the jury that handed down this ridiculous decision. The jury could have sent a powerful message to the Elite by saying these charges are dismissed. Or maybe even awarded the defendant a $100 million judgment in his favor. I guess that is what you get when people are ignorant of the economic realities of our world. Unfortunately those that are most ignorant, are also the ones most at risk when the dollar collapses.Clear and present danger to the economic stability of this country?! What the hell is this girl smoking?!
"We are determined to meet these threats through infiltration, disruption, and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government."(Source)

First, we are a Constitutional Republic not a democracy; there is a huge difference
 
One is a rule of law, the other is mob rule. All government officials swear to preserve and protect the Constitution of the United States and the Republic for which it stands from enemies, foreign and domestic; not democracy. What a crazy world we live in where I have to remind a US Attorney of that basic fact! This above quote also telegraphs to us slaves that the government will use CoIntelPro on any organization that undermines this criminal system of inflation and intimidation.
What happened to ‘home of the brave and land of the free?’ This is quote is so outrageous, where do they get the authority to conspire against American citizens like this? What is this Nazi Germany or Stalinist Russia? Do we have to fear government intimidation in the United States of America?
I am probably on some government watch list because I had the audacity to write the US Mint that they should coin Chuck E. Cheese coins as legal tender. If I should disappear one night to Guantanamo, have a slice of pizza in my name.
 
In an ironic twist of this case, in the very same state where Bernard von NotHaus was convicted of this "domestic terrorism", a Republican Legislator Rep. Glen Bradley wants North Carolina to issue its ownlegal tender backed by silver and gold
Rep. Bradley said that, "I think we’re in the process of inflating a dollar bubble that could be very devastating." This legislation would seek to do what von NotHaus did not do, create another legal tender. Rep. Bradley is correct that we are about to enter a period of hyper-inflation that will destroy the savings of all Americans. This hyper-inflation is true financial terrorism. When a private group of individuals can create money out of thin air and destroy the value of money throughout the world. This is on the back of Utah passing similar legislation. We should encourage this political action at all levels of government and look to create community currencies. You could even use pre-1964 US legal tender, which has 90% silver, to use as your savings.
I would encourage every American to not wait until some sense comes to your local, state and federal government
Take action now to divest yourself of all paper assets and get real tangible assets in your possession. Let the banksters print their toilet paper to infinity, we will continue to change it in for real assets like food, water, supplies, guns, ammo, gold and silver. Buying physical silver is the greatest thing you can and should be doing right now. (Do your own due diligence and study why. Read The Silver Bullet and the Silver Shield, I Get It Now, The Silver Rocket and the Silver Door is Closing.)

US Attorney Anne Tompkins
American’s should not sit idly by and accept these intimidating government actions
I mean if this is accepted without objection, it is a slippery slope before they come for your bullion, guns, hoard of food or worse.. Call and email these civil servants and educated them on economic realities of the world. This is a great time to help open people’s eyes and maybe bring some of them to our fight for freedom. United States Attorney’s Office Western District of North Carolina Contact: (704) 344-6222 orCharlotte.public@ic.fbi.gov. I would love to hear about their future prosecution Walt Disney for "Domestic Terrorism" because of the Disney Dollars. At the very least I would want them to tone down the intimidating rhetoric of calling Bernard von NotHaus a "Domestic Terrorist." Maybe they can clarify what other groups the government plans on infiltrating, disrupting, and dismantling? I wonder what we cannot say in this new world order? We sat by quietly when the government tried to cover up Abu Ghraib. If we do not say enough is enough, one day they will use that terror on us at home. (Force yourself to see these pictures of our torture. NSFW.)
"Those that did not see this coming will not know what to do when it gets here." Jim Puplava.
Watch out! A "Domestic Terrorist" with a sword!
The collapse of the dollar is a mathematically inevitable event. Those politicians and prosecutors who get ahead of this curve will make historic careers fighting for freedom. I believe that in the 2016 or 2020 presidential election we will have an Aware politician who rose to the highest level of power. This will because he had the courage to fight against the very powerful banking interests that have destroyed this country with their corrupt money. Those that awaken their fellow citizens to this most dramatic event in human history, will be doing the greatest service to their fellow man. If you want to become one of the Awakened, the best and fastest way is through the free Sons of Liberty Academy.
"When you are aware, you can prepare." -Chris Duane

Tuesday, March 15, 2011

MoveOn.org: Defend the American Dream Rally

this is my letter to MoveOn.org, regarding its "Defend the American Dream Rally this week.

reference:  http://pol.moveon.org/event/events/index.html?action_id=239&id=&search_distance=200&search_zip=28801&submit=Search

———

Dear MoveOn.org,

I'm not a "Republican" nor "Democrat", and I just want to ask your organization how long it plans to contribute to America's great divide?

Regarding recent budget cut proposals, or "Republican attacks" as you call them in your "Defend the American Dream Rallies" campaign this week, I'm certain that there are errors in whatever cutbacks the Republicans have put on the table. I'm also certain there are TONS of government cuts needed to be made at ALL levels.

Over time, We the People have allowed government to become bloated by bureaucrats serving their own interests on BOTH sides of the political divide, rather than the People's interests. Left out in the middle are the rest of us who suffer the consequences of poor governance.

I ask both "D" and "R" leaning groups the same question, because frankly, the growing dichotomy is sickening to my stomach as it continues to tear Americans apart, rather than bring them together in unity: united we stand, divided we fall (it's true).

So rather than perpetuating the "blame game", perhaps consider the reality that government waste has to stop because America simply cannot afford it any longer, and help ALL our elected officials figure out what needs to be done to restore the American Dream which has already been destroyed by government that violates our unalienable liberties and robs from our future generations.

Bernard B. Carman
http://infinityliberty.blogspot.com


PS: Because public school cuts are on the table, it sounds as if the MoveOn.org leadership is in great need of seeing the movie "Waiting for Superman", to learn just how messed up the American public school system really is, and how our own bureaucrats (R&D) in government have not only caused, but continue to perpetuate the problem.

Upon watching the film, it is my opinion that the head of the National Education Association should be fired immediately, if not eliminate the union altogether. That one action would serve to help ALL American children.


———

of course, i don't expect MoveOn.org to reply, but i hope someone there will read this and something valuable will sink in.

8-)


bernard baruch carman
* * *
- truth seeker/seeder • SeedsOfTruth.org • ∞Liberty
- infinity games ∞ audio/Mac specialist
∞∞∞

Friday, March 4, 2011

Medicare Loses Nearly Four Times as Much Money as Health Insurers Make

yet another example of government lacking efficiency.  as i've been saying for many years now, bureaucracy costs money... OUR money, and a LOT of it!

included below the article is a comment by my friend, Ewin, who sent me the link.  i believe he nails the issue on the head.

my question is, what's it going to take for the masses to realize that we are only hurting ourselves and all future generations — our children — by continuing down this path of economic disaster in allowing government to infiltrate various economic aspects of the private sector, while it simultaneously violates the sanctity of the individual's private life itself?

———

In a newly released report, the Government Accountability Office (GAO) estimates that, in fiscal year 2010, $48 billion in taxpayer money was squandered on fraudulent or improper Medicare claims. Meanwhile, the nation’s ten largest health insurance companies made combined profits of $12.7 billion in 2010 (according to Fortune 500). In other words, for every $1 made by the nation’s ten largest insurers, Medicare lost nearly $4.

This is sobering news for the minority of Americans who (for some reason) continue to think that government-run health care is a model of efficiency and cost-effectiveness. Last year, total outlays for Medicare were $509 billion; therefore, Medicare spent nearly 10 percent of its outlays on fraudulent or improper claims. Actually, it may have been even worse than that: The GAO writes that this $48 billion in taxpayer money that went down the drain doesn’t even represent Medicare’s full tally of lost revenue, since it “did not include improper payments in its Part D prescription drug benefit, for which the agency has not yet estimated a total amount.”

The combined profits of the nation’s ten largest health insurers are down 2 percent from 2008. In fact, the nation's ten largest health insurers’ combined profits last year were less than the profits that Walmart — a supporter of Obamacare — made all by itself.  Walmart made $14.3 billion last year, up 12 percent from 2008. (On the Fortune 500 list, Walmart’s profits also dwarf the profits of all but one oil company.)
True, private insurers may never manage to make nearly as much money as government-run heath care programs manage to lose. Still, there is good news on the horizon for insurers: If Obamacare isn’t repealed, then, as of 2014, every American will be required to buy their product (or a federally mandated version of it) under penalty of law. Moreover, the Congressional Budget Office estimates that $1 trillion would be funneled from taxpayers, through Washington, to those same insurers, from 2014 to 2025. Ever wonder why insurers didn’t oppose Obamacare?
———
Ewin's comment:

The plain truth is that government is a political animal and not an economic one.  When we allow government to be involved in any economic activity, the economic aspects of it are only important as they impact the political aspects.  And when government does some economic activity, it always does it less efficiently than when private business does it.  Case in point: when it gives a class of citizen all the health care it demands, of course it costs way more than anyone expects.

We were assured by supporters of ObamaCare that it would be a way to reduce the federal deficit.  One reason the left supported ObamaCare was because of their visceral hated at the idea of a health insurance company would make a profit.  What they were ignorant of was that profit was actually the sign of efficiency.  High profits would attract competitors and thus over time the industry leaders provoked each other to improve and become more efficient. There is no such provocation or competitive pressure for a single payer government bureaucracy.
———

8-)

bernard baruch carman
* * *
- truth seeker/seeder • SeedsOfTruth.org • ∞Liberty
- infinity games ∞ audio/Mac specialist
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