Economics

An Update on healthcare reform.

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Cash medical practice or, in the phrase favored by leftists critics, “Concierge Medicine,” seems to be growing.

Becker is shifting to a new style of practice, sometimes called concierge or retainer medicine. With the help of a company that has been helping physicians make such shifts for over 13 years, he will cease caring for a total of 2,500 patients and instead cut back to about 600. These patients will pay an annual fee of $1,650. In exchange, they will receive a two-hour annual visit with a complete physical exam, same-day appointments, 24-hour physician phone access, and personalized, web-based resources to promote wellness.

The article suggest that all these doctors choosing to drop insurance and Medicare are primary care. Many are but I know orthopedists and even general surgeons who are dropping all insurance.

The concierge model of practice is growing, and it is estimated that more than 4,000 U.S. physicians have adopted some variation of it. Most are general internists, with family practitioners second. It is attractive to physicians because they are relieved of much of the pressure to move patients through quickly, and they can devote more time to prevention and wellness.

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Afghanistan and Pakistan.

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I have been unhappy about our role in Afghanistan for several years. This goes back to at least 2009. Then there was this.

Watching the last two weeks or so in the White House, gives me the sense that the decision is going to be the wrong one. There are three possible choices that Obama has; one is to take his hand-picked general’s advice and send 40,000 more troops. It will stress our military and the logistical challenges are serious. Afghanistan is land-locked and the neighbors are not friendly. Russia will try to create problems, as they already have in Kyrgyzstan. They do not want us to succeed yet they may fear total failure. In the meantime, they are making serious trouble.

And then, this development.

it’s an open secret the Taliban are headquartered across the border in the city of Quetta, Pakistan, where they operate openly under the aegis of Pakistani intelligence — and the financial sponsorship of the Saudis.

Sending more troops to Afghanistan is a necessary, albeit unfortunate, rear-guard action against marauding Taliban fighters armed, trained, supplied and deployed from Quetta — and funded from Riyadh.

NATO and U.S. military command know this. They’ve complained about it over and over in military action reports. So have Treasury officials regarding Saudi funding of the Taliban.

“Saudi Arabia today remains the location where more money is going to terrorism — to Sunni terror groups and the Taliban — than any other place in the world,” testified Stuart Levey, Treasury undersecretary.

This is Viet Nam all over again. The enemy has a sanctuary and our allies are siding secretly with our enemies.

Well, today, there is another bit of information

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Is Venezuela Collapsing ?

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UPDATE #2: The western bloc is growing while the Atlantic bloc stagnates.

Venezuela, Brazil and Argentina are languishing in differing shades of turmoil, steadily losing ground to regional underdogs. The Pacific Alliance, an historic trade agreement between Mexico, Peru, Chile, and Colombia (and coming soon: Costa Rica), has the potential to recolor Latin America’s economic map and introduce some new regional powerhouses to the world stage.

More here.

Four nations are developing an initiative that could add new dynamism to Latin America, redraw the economic map of the region, and boost its connections with the rest of the world—especially Asia. It could also offer neighboring countries a pragmatic alternative to the more political groupings dominated by Brazil, Cuba, and Venezuela.

UPDATE: More on the role Cuba is playing in Venezuela now.

Belmont Club has a good post today on the collapse of Venezuela. The car manufacturers have announced they are closing their plants.

Toyota Motor Co. said it would shut down its assembly operations in Venezuela due to the government’s foreign exchange controls that have crippled imports and made it impossible to bring in parts needed to build its vehicles.

The country’s other car manufacturers, including General Motors and Ford, haven’t even started operations this year, while waiting for needed parts to arrive.

The oil field workers left years ago when the Chavez government cut oil workers’ pay.

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The Depression may be here.

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I have believed for some time that we were entering another Depression. I have previously posted about it.

The Great Depression did not really get going until the Roosevelt Administration got its anti-business agenda enacted after 1932. The 1929 crash was a single event, much like the 2008 panic. It took major errors in economic policy to make matters worse. Some were made by Hoover, who was a “progressive” but they continued under Roosevelt.

I posted that statement earlier and it got a rather vigorous rebuttal. I still believe it, however. I think a depression is coming soon. What is more, I am not the only one. Or even only one of two.

The second article preceded the election of 2012 but is still valid.

When employment hit an air pocket in December, most analysts brushed off the dreadful jobs number as an anomaly, or a function of the weather. They chose to believe Ben Bernanke rather than their lying eyes. It’s hard to ignore a second signal that the U.S. economy is dead in the water, though: on Monday the Institute for Supply Management reported the steepest drop in manufacturing orders since December 1980:

fredgraph

In January, only 51% of manufacturers reported a rise in new orders, vs. 64% in December. Not only did the U.S. economy stop hiring in December, with just 74,000 workers added to payrolls; it stopped ordering new equipment. The drop in orders is something that only has occurred during recessions (denoted by the shaded blue portions of the chart). The Commerce Department earlier reported a sharp drop in December orders for durable goods. In current dollars, durable goods orders are unchanged from a year ago, which is to say they are lower after inflation.

So, the economy stopped hiring, even at the poor pace the past five years have seen, but business also stopped buying.

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Kipling on income inequality

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AN IMPERIAL RESCRIPT

Now this is the tale of the Council the German Kaiser decreed,
To ease the strong of their burden, to help the weak in their need…

And the young King said: — “I have found it, the road to the rest ye seek:
The strong shall wait for the weary, the hale shall halt for the weak:
With the even tramp of an army where no man breaks from the line,
Ye shall march to peace and plenty in the bond of brotherhood — sign!”
….
And the men drew back from the paper, as a Yankee delegate spoke: —

“There’s a girl in Jersey City who works on the telephone;
We’re going to hitch our horses and dig for a house of our own,
With gas and water connections, and steam-heat through to the top;
And, W. Hohenzollern, I guess I shall work till I drop.”

And an English delegate thundered: — “The weak an’ the lame be blowed!
I’ve a berth in the Sou’-West workshops, a home in the Wandsworth Road;
And till the ‘sociation has footed my buryin’ bill,
I work for the kids an’ the missus. Pull up? I be damned if I will!”

And over the German benches the bearded whisper ran: —
“Lager, der girls und der dollars, dey makes or dey breaks a man.
If Schmitt haf collared der dollars, he collars der girl deremit;
But if Schmitt bust in der pizness, we collars der girl from Schmitt.”