Where The Money Went

Just another FYI from your friends at IST….

The money you pay your insurance companies with….

One is ‘on your side’ and another tells you are in ‘good hands’….etc etc….you have heard all the claims and BS from them…..

Are you getting your money’s worth out of these companies?

As Americans grapple with rising healthcare costs, a revealing new study shows where much of that money is going — and it’s not necessarily toward better patient care or medical research. According to research just published in JAMA Internal Medicine, major healthcare companies listed on the S&P 500 have been directing massive amounts of their profits to shareholders, with these payouts more than tripling over the past two decades to reach $170.2 billion in 2022 alone.

To understand the scale of this financial shift, consider that healthcare represents 17% of America’s entire gross domestic product, with total U.S. healthcare spending reaching $5 trillion in 2023. Of this enormous sum, approximately 70% comes from taxpayer dollars through various channels, including tax breaks for employer-based health insurance and direct government funding via Medicare and Medicaid.

Behind the staggering medical bills and insurance premiums that many Americans face lies a financial system that includes substantial payouts to investors. “When shareholders expect greater payouts year in and year out, that has an impact on affordability,” notes lead author Dr. Victor Roy, in a statement. “One of the ways that [health care companies] make money is to keep prices high — or raise them.”

Between 2001 and 2022, 92 major healthcare companies distributed an astronomical $2.60 trillion to shareholders through two main mechanisms: direct dividend payments and share buybacks.

Dividends, of course, are profit-sharing checks sent directly to investors who own shares in these companies. Share buybacks, on the other hand, are more like a company reducing the number of slices in a pie; when a company buys back its own stock, each remaining slice becomes worth more, benefiting the shareholders who still hold shares. Both strategies effectively channel money to investors rather than reinvesting it in healthcare services or innovation.

https://studyfinds.org/healthcare-company-profits-shareholders/

These companies challenge most claims in a way to weasel out of paying out….there must be a way us peasants can come out with our savings intact….

There is and it is called Medicare For All…..

Medicare For All

The time has come and the time is ripe as more Americans are being screwed out of the homes because of outrageous medical expenses.

Any thoughts?

I Read, I Write, You Know

“lego ergo scribo”

Endless War, Endless Greed

Anyone that visits this site already knows just how much I dislike the M-IC….these toads start wars for one reason only….profits.  I know…I know most of this post is common knowledge….but we Americans need things hammered into our minds before we grasp it.

After reading this piece my hatred is just strengthened…….shameful to use the violence of war to make a buck…..and pathetic to use American lives as their cash account……

These days, lamenting the apparently aimless character of Washington’s military operations in the Greater Middle East has become conventional wisdom among administration critics of every sort. Senator John McCain thunders that “this president has no strategy to successfully reverse the tide of slaughter and mayhem” in that region. Anthony Cordesman of the Center for Strategic and International Studies bemoans the “lack of a viable and public strategy.” Andrew Bacevich suggests that “there is no strategy. None. Zilch.”

After 15 years of grinding war with no obvious end in sight, U.S. military operations certainly deserve such obloquy. But the pundit outrage may be misplaced. Focusing on Washington rather than on distant war zones, it becomes clear that the military establishment does indeed have a strategy, a highly successful one, which is to protect and enhance its own prosperity.

Source: Endless War, Endless Greed: The Pentagon Is Lining Its Pockets with Taxpayer Dollars | Alternet

Where does this all end?

I apologize if I sound like a stuck record…but I will continue this pursuit as long as the American public turns a blind eye to the real reasons for all these conflicts that the government feels we MUST fight.

Hate As A Pyramid Scheme

You know hate can be pretty darn lucrative…..hate sells and when it sells it becomes really profitable….I remember the pyramid schemes from years past…you know the ones where you join and work your way up to manager, supervisor or regional director….with each step you would get money from each person you had in your plan……

The reason I bring this up is that the old stand-by for racists and bigots alike….the KKK, the Klan, you know those guys in white sheets and face covers……someone did a bit of historical perspective on the workings of the Klan back in the 1920’s……

Even during its 1920s heyday, the Ku Klux Klan wasn’t a very effective hate group, according to an analysis by Harvard economist Roland G. Fryer and Steven D. Levitt, the latter of Freakonomics fame. However, the Klan was a “wildly successful” pyramid scheme, according to a Priceonomics blog post that rehashes the pair’s 2011 study of the group. In the piece, Rosie Cima writes that KKK leaders “exploited pre-existing, popular racism to make money.” For example, during a time when most in the US made less than $700 annually, the KKK leader in Indiana made some $200,000. He and other leaders managed it through clever marketing and the invention of all kinds of ways to make money off their own members—a classic trait of a pyramid scheme. For instance, the Klan charged members a $10 initiation fee, and Fryer and Levitt provide the breakdown:

  • $4 to the salesman (called a “Kleagle”) who recruited a member
  • $2.50 to the PR firm the Klan had hired to boost membership (it boomed)
  • $2 to the Klan’s self-declared “grand wizard,” William Simmons
  • $1.50 to a regional supervisor (the “Grand Goblin”).

The result, Cima notes, “looked much like a modern multi-level marketing company—with extremely stupid titles.” And it didn’t stop with initiation fees: the Klan leaned on members to buy robes (and robe cleaning), along with Klan-branded life insurance, accessories, bibles, and even candy. The Klan petered out as a genuine national force in the 1940s (the feds got them for back taxes). But small KKK groups are still out there, and, according to Vice, some are using candy as a recruiting tool rather than as a moneymaker. Residents of Cullman City, Arkansas, recently received KKK fliers packaged with Tootsie Rolls and lollipops. Authorities there are investigating the not-so-original scheme.

Like I said…..hate can be very profitable……god bless capitalism…..

Why Intellectuals Hate Capitalism – Reason.com

Back in my younger days I was accused of hating capitalism because I was always writing about the inequalities within the system……not that I hate capitalism the institution but rather hated what it had become…..the very essence of inequality.

My thought was that capitalism could be regulated to the point that everyone was a winner…..the business owners could make their divine profits and the workers could make a living that would make them proud to go to work…..

Below is an interesting interview with the CEO of Whole Foods and his thoughts on capitalism……

Whole Foods CEO John Mackey on entrepreneurship, snobbery, and the minimum wage

Source: Why Intellectuals Hate Capitalism – Reason.com

Any comments about the interview or any insight into capitalism?

It’s Demand, Stupid!

Keeping with my week of jobs and the economic thing……

The Prez made his speech to the joint session of Congress and the American people, after caving in to the political BS, and we now have his plan for jobs……..“intention to lay out a series of bipartisan proposals that the Congress can take immediately to continue to rebuild the American economy by strengthening small businesses, helping Americans get back to work and putting more money in the paychecks of the middle class and working Americans, while still reducing our deficit and getting our fiscal house in order.”

First of all…..YAWN!  This has about as much chance as I have being elected “Miss Teen America”…..

Now for the GOP plan for jobs creation……..a noun, a verb and tax cuts……..

Analysis…..a even bigger YAWN!

Let us try to be realistic….we need demand, not liquidity…….tax cuts will create liquidity and liquidity will create profitability and profitability creates NO jobs!  Is that easy enough for you?

But wait!  What is demand?………..analysis of demand with regard to consumer behavior and rationale when changes occur in variable factors such as price, income, substitute goods.

And then there is liquidity…….the ability to convert assets to cash quickly…….

Back in 2008, at the beginning of this present economic crisis I posted……

Governments in advanced countries have still not recognized this onset of a crash. They have proceeded on the assumption that the injection of liquidity into the system is all that is needed. It was thought initially that this injection could be achieved through the government purchase of “toxic” securities, but widespread opposition to that scheme has now made most governments accept the idea of injection of liquidity in lieu of equity, i.e. through the part-nationalization of financial institutions.

But injection of liquidity, even in this manner, is not enough. Credit will not start flowing simply because banks can access more liquidity. There has to be adequate demand for credit for viable projects by solvent and worthwhile borrowers. And this is not happening. First, the injection of liquidity does not improve the solvency of firms saddled with “toxic” securities, so that the risk associated with lending to them remains prohibitively high. And secondly, quite apart from this, the anticipation of a Depression makes borrowers chary of borrowing and lenders chary of lending.

This anticipation in turn derives from several factors: first, the bursting of one bubble is not necessarily succeeded by the immediate formation of another, so that some recession of a more or less prolonged duration is in any case inevitable. Secondly, the very scale of the current financial crisis is such as to entail an anticipation of a prolonged recession. And thirdly, since the recession has already started, the prospects of crisis-prevention now through the usual monetary instruments (including liquidity injection) appear distinctly dim. The scenario, in which tendencies towards increased liquidity preference on the part of private individuals and institutions and a downward slide in the real economy mutually reinforce one another, has already started unfolding itself and will continue for a prolonged period, unless governments now act to inject demand into the economy directly, apart from injecting liquidity. Until this happens on a large enough scale the Depression will persist.

ZZZZZZZZ….all that is so much mumbo jumbo, right?

I can fix that!  Chuq’s economic law………demand creates jobs; liquidity creates billionaires……see it is that simple!  Let us go back to another theorem…..a theorem that pertains heavily to the jobs debate in Washington…..and since our elected officials are not the sharpest pencils in the box when it comes to economics…..let me make it really, really, really simple for them……..

tax cuts creates liquidity, liquidity creates profitability, profitability creates NO jobs….one more time……PROFITABILITY CREATES NO JOBS!

Without demand there are NO jobs…..without jobs there is NO recovery from a recession…….Very simple……Create Demand, Not Liquidity!

A Sad Day For Vets

Daily Agitator

This is one of the most disgusting stories this year!

Lots have been said about the care of vets and their treatment…..remember the sad condition of the vet hospital in Washington?  Remember the high number of suicides?  Remember the church that protests at the funerals of fallen soldiers?  The list goes on and on….all this is shabby and should be a crime but there is one that I could hardly believe when I first read it………this piece was posted on the Newser website:

It turns out that insurers handling death benefits for American soldiers have got a sweet scam going that enables them to keep profiting from the money even after it is supposedly paid out to families. They tell bereaved relatives that they’ve opened a convenient, interest-bearing account for their money that’s a nice, safe place to keep it and they give them a “checkbook.” But it’s not a normal checkbook, they don’t open individual accounts for each soldier, and they skim off most of the interest the money is making—giving beneficiaries 1% while it’s earning 4%.The military families are getting less than half the interest they would in a normal account, Bloomberg reports. Not only that, the money held in these general corporate accounts at Prudential or MetLife, isn’t insured by the FDIC. Prudential says they make it clear to military families that they can take their money out anytime they want, but an insurance law professor isn’t impressed. “It’s institutionalized bad faith,” he says. “It’s turning death claims into a profit center.”

Read more: http://www.newser.com/story/96760/insurers-rip-off-families-of-fallen-us-soldiers.html#ixzz0v6QzD2fA

Remember the names of the insurance companies….write them and let them know how you feel about their tactics toward the families of fallen soldiers…..this is what capitalism is all about?!  This is just a horrible thing to do to families after their loss.  This is CRIMINAL and these a/holes should be prosecuted and prosecuted hard……As a veteran who lost 9 of my closest friends in war…I find this offensive and unacceptable in all ways….there is a special place in Hell for pricks like these companies!

What A Difference A Hearing Makes

First, it was the good news from Wells Fargo…they made $1+ billion in profits and then Goldman-Sach’s comes out with their news of a profit of $1.8 billion.  All looks well, eh?

Next, I ask, how much of that profit is the taxpayer’s money that was thrown at them?  Now some of these TARP recipients are trying to quickly pay back the TARP cash and get out from under the governments thumb.  Why?

Is it a coincidence, that after the hearings on bonuses and the consideration of limiting those bonuses on any companies that get TARP funds have anything to do with this sudden rise of success from these failing companies?

Personally, I do not believe in coincidence in government or economics.  These bandits are trying to get from under the government scrutiny and the government is helping them do so….

The Taxpayer WILL Make Money

That was the promise when the bailout crap was sold to the American people, that in the long run the taxpayer will make money off the bailout.

Two key Republican lawmakers say there’s a powerful silver lining in the taxpayers’ $700 billion bailout of the financial system: It has already earned the government more than $8 billion in profit.

The problem is, that supposed gain is an illusion. Even the accountant whose research they’re citing says he’s sorry he came up with the numbers.

The government paid $350 billion to buy stock and warrants — similar to stock options — in the nation’s banks. Accountant James A. Bianco said he came up with the profitability figure by assuming those warrants were free. So even though their value has plummeted, they still show up on the plus side of Bianco’s balance sheet.

In a Jan. 4 opinion piece in The Wall Street Journal, Sen. Judd Gregg, R-N.H., wrote, “the estimate to-date is that the (bailout) has actually had a gain of about $8 billion, while recapitalizing the financial system.”

Gregg, the senior Republican on the Senate Budget Committee, is a key backer of President-elect Barack Obama’s effort to gain access to the second half of the bailout money.

Earlier, Rep. Spencer Bachus of Alabama, the top Republican on the House Financial Services Committee, said in a statement that the $8 billion “initial profit for taxpayers … provides cause for optimism” and “demonstrates the value of transparency in the process.”

Financial researcher and writer Barry Ritholtz said the entire approach was flawed.

“It’s laughable — I can’t imagine anyone takes that seriously,” said Ritholtz, who is chief executive officer and director of equity research for the investment firm Fusion IQ. “You can’t take one slice of what the government did out of the trillions invested and say, ‘Look, we’re up billions of dollars!'”

To say the Treasury has made money, he said, “you have to say all the other spending came back,” including guarantees on assets from the now-defunct investment bank Bear Stearns and insurance giant American International Group Inc.

Let us go to another spot……..the taxpayer will make money….just how will that work?  Will I get a check?  Or maybe a direct deposit to my account?  Just how will I make money?

Racism, Immigration and Profit

The nation’s economic crisis could make it tough for President-elect Barack Obama to deliver on his pledge to overhaul the nation’s immigration laws, some analysts predict.

With unemployment rising, foreign workers are less welcome, say immigration restrictionists, who have vowed to oppose offering legal status to the nation’s estimated 12 million undocumented immigrants.

But as the presidential transition goes into high gear, Democratic political insiders still believe that immigration reform has a good chance. Until a comprehensive bill is introduced in Congress, Obama’s pick to head the Department of Homeland Security, Arizona Gov. Janet Napolitano, will play a key role in refocusing the way the government handles immigration.

Let’s take a good look at the immigration issue.

From an article written by Shamus Cooke.

The immigration debate is often tinged or even marred by racism – usually subtly, sometimes openly. This feeling finds a receptive audience not because of prejudice, but out of fear. Indeed, racism cannot exist without fear. We believe that, at bottom, recent immigration-related topics — from ballot measures to border fences — directly or indirectly contain elements of racism and fear. Unraveling the basis for this fear, as well as those in charge of creating it, is essential if one is to make an informed decision on the immigration question. While doing this, we will attempt to uncover the deeper reasons that have created the atmosphere that has projected this issue on to center stage.

There are two main slogans that rally people against immigrants. Both contain elements of truth. The first is simple: “immigrants are illegal.” Crossing the border without proper documentation is in fact illegal in the United States, and becoming a citizen is becoming increasingly difficult for political reasons. Therefore, immigrants are given the loaded label of “criminal,” even though their crime is largely an administrative one — akin to a parking ticket. Because of their generally darker skin, Latino immigrants are easier to target and isolate than others. Negative feelings towards these people are encouraged and eventually accumulate; action is demanded to punish the “felons.” (The 2005 Sensenbrenner bill attempted to make undocumented entry into the US a felony.) Since it is impossible to know who is a citizen, documented, or undocumented, Latinos as a whole are often times labeled “criminals” — the subtle seed of racism has fully sprouted.

The second anti-immigration slogan is the more profound of the two, and is the real reason behind the intense interest in the subject: “They’re taking our jobs.” This motto is effective for many reasons. Some of them are true. If the surface is scratched, the real fear behind the slogan reveals itself: the average American worker is very nervous about the economy and the ability to make a living wage. The negative energy that emerges from this feeling must be channeled somewhere; something must be done, someone must be blamed. Immigrants are being made the scapegoats — the interest groups responsible for blaming them are infinitely guiltier for the problems the country is facing.

The immigration debate also serves as a convenient distraction device for a government — Republican and Democrat alike — that continues to wage an unpopular war, destroys civil liberties, and allows corporations to accumulate billions while the average worker is steadily impoverished. The specific groups that are the most consistent advocates of corporate greed are also the ones most eager to obsess about the immigration debate. These groups are typically conservative, corporate oriented foundations or business groups that channel millions of dollars into television ads, politicians’ hands, and think-tanks in an effort to artificially focus the countries attention on the immigration debate. They are able to publish books, finance radio stations, and promote speaking tours to advance their ideas.

While pushing their anti-immigrant agenda, these elite-driven groups are profiting handsomely from immigrant workers — directly or indirectly. The fact is that immigrant workers are good for corporate profits: they have no legal protection from being paid below minimum wage; or being paid at all! They have no way to defend themselves from unsafe working conditions, or being worked inhuman hours (it is safe to assume that an employer will call the INS if he suspects an immigrant of organizing a union).

To recognize the immigration issue for what it is — a classic example of the divide and conquer tactic — is the first step toward approaching the topic with an informed perspective. Employers benefit from a divided workforce, with the categories of “legal” and “illegal” being especially useful. In the same vein, the mega-corporations who control the government benefit from a divided society. They would rather we fight each other than question their rule or privileges. For the US worker, there can only be one effective response: to fight for equal rights for all working people in the country. The old saying, “an injury to one is an injury to all” has never been more relevant a slogan, nor as necessary to put into action, since the political polarization in the country will continue to match the rapid widening of economic inequality.

Invest Or Not: Shell Under Attack

Royal Dutch Shell PLC warned Friday that oil-facility attacks in Nigeria this past week have substantially reduced its oil and natural-gas production in the West African country and will hurt earnings.

Shell said militants this past week had killed a second person, an employee of the Shell-operated consortium in Nigeria. The company said earlier in the week that a guard had been killed and reiterated Friday that it was evacuating some staff from production facilities.

The Anglo-Dutch oil company said it was concerned about the damage to the facilities but didn’t provide an estimate on the total amount of oil and natural-gas output shut down as a result, or how long the production closures might last. Nigerian oil officials put Shell’s production losses this past week at about 100,000 barrels a day.

The company said the damage will hurt earnings. “This will ultimately add up to increased equipment downtime, repair and remediation costs and deferred earnings for Nigeria and the joint-venture partners,” Shell said.

Clashes between Nigeria’s main militant group — the Movement for the Emancipation of the Niger Delta — and the military helped precipitate the latest attacks on oil infrastructure, coming less than a month after Nigerian President Umaru Yar’Adua shuffled his military leaders.

Some political analysts say Mr. Yar’Adua may be taking a more forceful approach to MEND, which comprises various factions, and other criminal groups that have had a free hand the past few years, bombing pipelines and crude-gathering stations and kidnapping foreign oil workers for ransom.

A tougher line could worsen tensions and problems for the government, foreign energy companies and the region’s people.

So Nigeria is Shell’s only source of oil?  NOT!  Stop!  They are lying so they can either keep their profits or to make stock more appealing when it comes in over expectation.