[Rhodes22-list] Economics and Health Care

[Herb Parsons]

I want to see if I understand your point correctly - when reporting the 
news that the Moody credit rating was risked being lowered because of 
their (Moody's) concern over the costs of Medicare and Medicaid, that 
the reporter should have also inserted concerns (that Moody didn't 
state) about two wars, borrowing money to pay for them, interest on the 
national debt, etc?

Or is it your point that reporting Moody's concerns was "one sided 
conservative press"?

Rob Lowe wrote:
> Man, talk about a one sided conservative press.  No mention of all about
> starting two wars and paying for them by borrowing money.  No mention of tax
> cuts (mostly for the rich) paid for with borrowed money.  No mention of the
> interest on the national debt eating up all discretionary spending in
> another decade.  No mention that most of the national debt occurred during
> the Regan and Bush years.  Sure health care spending is a problem.  But tell
> the whole story. - rob
>
>
> ----- Original Message ----- 
> From: "Brad Haslett" <flybrad at gmail.com>
> To: "The Rhodes 22 mail list" <rhodes22-list at rhodes22.org>
> Sent: Friday, January 11, 2008 8:46 AM
> Subject: [Rhodes22-list] Economics and Health Care
>
>
>   
>> Here is the 900 pound elephant in the room that refuses to go away.
>> "Elephant?  What elephant?" When a candidate promises you a new benefit,
>>     
> the
>   
>> question you should be asking is, "how are we going to pay for that when
>>     
> we
>   
>> can't pay for what we've already promised?" Happy talk and wishful
>>     
> thinking
>   
>> is not going to solve this!  Brad
>>
>> --------------------------------
>>
>> from the Financial Times
>>
>> US's triple-A credit rating 'under threat'
>>
>> By Francesco Guerrera, Aline van Duyn and Daniel Pimlott,in New York
>>
>> Published: January 11 2008 02:00 | Last updated: January 11 2008 02:00
>>
>> The US is at risk of losing its top-notch triple-A credit rating within a
>> decade unless it takes radical action to curb soaring healthcare and
>>     
> social
>   
>> security spending, Moody's, the credit rating agency, said yesterday.
>>
>> The warning over the future of the triple-A rating - granted to US
>> government debt since it was first assessed in 1917 - reflects growing
>> concerns over the country's ability to retain its financial and economic
>> supremacy.
>>
>> It could also put further pressure on candidates from both the Republican
>> and Democratic parties to sharpen their focus on healthcare and pensions
>>     
> in
>   
>> the run-up to November's presidential election.
>>
>> Most analysts expect future administrations to deal with the costs of
>> healthcare and social security and there is no reflection of any long-term
>> concern about the US's financial health in the value of its debt.
>>
>> But Moody's warning comes at a time when US confidence in its economic
>> prowess has been challenged by the rising threat of a recession, a weak
>> dollar and the credit crunch.
>>
>> In its annual report on the US, Moody's signalled increased concern that
>> rapid rises in Medicare and Medicaid - the government-funded healthcare
>> programmes for the old and the poor - would "cause major fiscal pressures"
>> in years to come.
>>
>> Unlike Moody's previous assessment of US government debt in 2005,
>> yesterday's report specifically links rises in healthcare and social
>> security spending to the credit rating.
>>
>> "The combination of the medical programmes and social security is the most
>> important threat to the triple-A rating over the long term," it said.
>>
>> Steven Hess, Moody's lead analyst for the US, told the Financial Times
>>     
> that
>   
>> in order to protect the country's top rating, future administrations would
>> have to rein in healthcare and social security costs.
>>
>> "If no policy changes are made, in 10 years from now we would have to look
>> very seriously at whether the US is still a triple-A credit," he said.
>>
>> Mr Hess said any downgrade in the US rating would have serious
>>     
> consequences
>   
>> for the global economy. "The US rating is the anchor of the world's
>> financial system. If you have a downgrade, you have a problem," he said.
>>
>> Moody's did once threaten to cut the rating of some of the US Treasury's
>> debt when Congress refused to pass the president's budget in the
>>     
> mid-1990s.
>   
>> Other large economies, notably Japan in the 1990s, have had to suffer the
>> symbolic blow of losing their top-notch credit rating.
>>
>> Last year, David Walker, comptroller general of the US, caused controversy
>> when he compared America's current situation with the dying days of the
>> Roman empire and warned the country was on "a burning platform" of
>> unsustainable policies.
>>
>> Medicare and Medicaid spending, which has risen sharply over the past few
>> decades and now accounts for about 45 per cent of total federal spending,
>>     
> up
>   
>> from about 25 per cent in 1975, has long been a source of concern.
>>
>> Last month, Peter Orszag, director of the Congressional Budget Office,
>>     
> which
>   
>> advises Congress on the federal budget, said the issue was "the central
>> fiscal challenge" facing the US.
>>
>> Most presidential candidates have vowed to reform the healthcare system
>>     
> but
>   
>> many of them, especially on the Democratic side, have focused on extending
>> coverage to the 40m-plus uninsured Americans rather than on cutting costs
>> __________________________________________________
>> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>>     
>
>
> __________________________________________________
> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>
>
>
>   

-- 
Herb Parsons
S/V O'Jure - O'Day 25
S/V Reve de Pappa - Coronado 35