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How The Fed Views Obamacare
By now the general public has long made up its mind about Obamacare, aka the ACA, either positive or negative, and as such any anecdotes about its impact on the broader economy are usually covered by layers of political and ideological bias. One place, however, where the views on the ACA should be impartial is the Federal Reserve. Which is why we were surprised to note that in the just released Beige Book, whose market-moving impact is now absolutely irrelevant as the importance of fundamentals in a time of central planning is "modest to moderate" at best, there were no less than eight instances of "Affordable Care Act." So in order to further the discussion and debate of Obamacare's impact on the economy from a purportedly apolitical entity, here is what the latest Beige Book had to say about Obama's crowning achievement.
Select Beige Book excerpts:
- Employment growth remained modest in September. Several Districts reported that contacts were cautious to expand payrolls, citing uncertainty surrounding the implementation of the Affordable Care Act and fiscal policy more generally.
- In regard to hiring and capital expenditure plans, firms continued to expand cautiously, as they face ongoing uncertainty from the federal government shutdown and implementation of the Affordable Care Act.
- Most bankers remained optimistic, although they expressed uncertainty on behalf of their business customers and for themselves over the implications of both the Affordable Care Act and a prolonged government shutdown.
- Most of our contacts are cautiously optimistic and expect little change in demand, although many were uneasy about fiscal issues and implications of the Affordable Care Act on their businesses.
- There is anxiety about rising health insurance premiums, which was attributed to the Affordable Care Act.
- Many of our contacts are concerned about the implementation of the Affordable Care Act and the effect it will have on their total labor cost.
- Many contacts also commented on reluctance to expand due to uncertainty surrounding the Affordable Care Act; some employers cut hours or employees.
- A number of contacts voiced concern about the uncertainty surrounding future employer and employee healthcare costs. In addition, several reported changing their health insurance enrollment periods this year in order to match the deadlines of the Affordable Care Act.
- Staffing services firms noted flat demand overall since the last report but saw an unexpected decline in direct hires. One contact saw a few signed contracts designed to circumvent the Affordable Care Act (ACA) by utilizing a temporary employee full time, then hiring that person on a permanent but part-time basis when the ACA goes into effect.
The following "explanatory" schematic may explain why even the Fed sees "uncertainty" abound:
Source: Fed
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Sounds like the Fed needs some more "contacts" - preferably those found in the real world.
Anyone with any optimism over the implementation of ObamaCare needs to visit the homeless shelter, underpasses and soup kitchens, and ask how many there are there because of ObamaCare. The answers would inform the Fed's proceedings considerably.
Obummer Don't Care and student loans are teaching the young that government is the enemy and a slave master.
Truth has consequences.
If you look closely, you will note that the patient and the doctor are buried UNDER all of that bureaucratic insanity - at opposite ends and not the center or focus of the system.
Where’s Wally question… find the death panel.
Oh, that's easy, far left side "IPAB" and "IPAB consumer advisory council".
Or ... nowhere PHYSICAL, just a mailbox / empty office to receive mail, while the villains hide in the shadows, and are never held accountable for their actions.
As Iowahawk said, its not Affordable and there is no Care involved, but at least it is an Act. One out of three ain't bad.
What is so infuriating is how dumbcrats decry ANYTHING that comes between a "woman and her doctor" when it comes to "women's rights, and abortion", but put the biggest govt bureacracy ever implmented in place between ALL CITIZENS, INCLUDING WOMEN, and their doctor, and the govt response is "EAT YOUR PEAS!" And the reply is... women love it most of all! This is so insane it doesn't even qualify for Einstein's Definition of Insanity.
The purpose of all of this nonsense is to get the sheep screaming for single payer.
Insurance companies will get the shaft soon enough.
If you really believe that, then I have a bridge in the USSR I would like to sell you.
I was wondering whether it wasn't the insurance companies who talked the GOP into doing this little worthless farce because they do see single payer as the result
Oh single payer is coming all right, but it will actually be single provider (govt. insurance) run by a VERY select few PRIVATE enterprises awarded the business via NON-BID CONTRACTS to administer the Fed Govt. Mandated Single Payer Healthcare System. It's going to be the greatest redistribution of wealth since the Federal Reserve Act and will move us to the endgame of total oligarch control. The banks via the Federal Reserve have effectively used the finance and real property system to make debt slaves of all middle class citizens. The SNAP/School Lunch/Welfare system has made nourishment slaves of vast swaths of poor citizens whose number is growing everyday. 0zer0care fills in the gaps that the first 2 schemes have missed since EVERYONE has to have govt. mandated insurance. When completed, no one will ever be able to escape the govt tenticals. The only resistance possible will be armed resistance, and the attack by the govt on the 2nd amendment and the rise of the police state is quickly neutralizing that threat, and then it will Fait Accompli.
No policy works unless you kill the lawyers and insurance companies.
Let doctors work with patients, and tell anyone they wish to fuck off. If some land whale on food stamps and crack comes into their clinic, any doctor should be able to write a subcription to go home and die on the couch.
Good medicine will not go anywhere with so may dead beats, red tape and lawyers. Get your malpractice insurance when you enter the hospital, just like car insurance!
word! I have been saying this for years - lawyers, lawsuits driving up the cost of malpractice insurance is the root problem. IMHO anyway. until they fix THAT, nothing will change. from a financial standpoint, thats where all the damn $$$ is going.
I can't even imagine why anyone would put themselves $500,000 in debt to be a doctor and then be unable make that money back eventually because the cost of doing business is cost prohibitive.
everyone lies to their doctors - oh no, I don't drink a 12 pack every night, of course I'm a non-smoker, etc. and then when something goes wrong (because you lied) its all the doctors fault! simplistic example, but you get my point. if doctors are forced to treat anyone and everyone is the govt going to start paying med student tuition? because I would never sign up for a program designed to make me fail/broke....
Is there concern?
The only concern I have is that I seem to be running out of popcorn.
As usual, the Fed is great at reporting the obvious, well after the fact, but incredibly inept at looking forward to the implications of monetary and fiscal policies.
No one I know in the private sector, small business owners, has had anything to say but bad things about Obamacare. They don't like it and they are not hiring, period. Some have laid off workers or converted full time to part time. None have any interest in capital investment and expansion; most are looking to downsize into early retirement.
If millions of households sign up, expect consumer spending to drop by $400/month/household to offset the jacking due to ACA. Knock 3% off of GDP instantly. The "Obamacare recession of 2014" will be one for the record and history books.
Not sure of the dollar amount - but you are definitely on target with the impact. In addition, worse health care is heading our way.
We are taking a look at splitting our company into various pieces and limit the number of employees in each "company", that way each company, and its employees, could be exempt from the piece of SHIT ACA.
All of our part-time workers have been converted to agency workers.
Dr. Richard, I encourage you to look further @ the ACA language regarding spin-offs to work-around conforming to ACA.
It won't work as you describe. They knew that would happen and they specifically wrote that the Parent will be charged for the total of subsidiaries employees.
Exactly. It has nothing to do with health care. It's just a shiny new corral at the slaughterhouse.
Ah yes, the great and powerful fed speaks.
If it rapes and pillages the people financially, we're all for it.
rapes, and pillages, and plunders
as i recall
What's the ACA?
Are they referring to Barry The Emperor Health Care?
Sounds like more modest, moderate, and cautious printing. BTFD!
You would've earned green if you've ended it with 'Buy gold!'
Obamacare is a distraction of marginal importance in the scheme of things. The real storm is coming. Get ready for the mother of all resets....
These poor, poor business owners and CEO's. How can they afford to pay for their employees health care AND put a solid gold toilet on their private jet?
http://www.forbes.com/pictures/ehii45khf/bob-nardelli-at-home-depot-223-million/
Well they don't have to worry about it if they have more than 50 employees because Obama gave them a 1 year break.... so far. We'll see what they get next year.
I don't have a jet
I don't have a gold toilet
The guys who do don't have a problem with the ACA.
Us folks trying to scratch out a living with ZIRP are the ones getting hurt
The Fed always gets everything right.
Technically, not the Fed's views, but those of the people SURVEYED by the Fed.
And of course they hate the ACA. Nobody likes to be told how to run their business.
The Fed should just PRINT some new contacts - that's been their fucking answer to every fucking thing else. Fuck you Bernanke.
Everyone adversely affected by the ACA/Obamacare: Write your state governors and legislature members and ask that they take action against the adverse provisions through any means available, including state legislative nullification. The Affordable Care Act is anything but affordable, and affects everyone, including those currently getting insurance through their employer (you know this if you are the employer!). Small business owners who buy individual insurance are seeing their premiums double and triple. Action folks...action.
My communications have fallen on deaf ears. Congress doesn't give a shit about the middle class They operate for the benefit of the bankers, financial elite, Wall St. Casino, and, of course, themselves. They attempt to placate the masses by enlarging and enhancing the welfare state. All brought to you through the pillaging of the middle-class.
ACA is more short term wealth distribution, with baked-in inefficiencies.
More like long-term wealth redistribution (until you're dead).
Want to know who won the economic battle over the Obamacare controversy? Watch Chuck Schumer’s smile. That will tell you that the owners of the Federal Reserve won today over the American people, because it’s Schumer, more so than any member of Congress, who lives and breathes the instructions of the Fed.
When the smoke clears and Obamacare survives, the Beige Book today, this October 16th, provides a look at what the Fed knew all along.
Want to know why the Democrats are so rabid for their spending programs? Want to know why the Republicans shout and scream and then cave? It’s because most of them are card carrying, full membership foot soldiers for the Federal Reserve.
On this day of surrender, the market goes up and the resources and estate value for the people goes down.
Follow the money. Oh, wait. You can’t. It’s all printed and delivered in secret.
Who is John Galt?
A fictional character in a book that offers entertaining characterizations, but no real or practical solutions.
Ray screens? Unlimited clean power from static electricity?
You realize, of course, that the book was released in 1957? John Galt is as real as we want him to be. As an aside, what happened to the original hedgeless_horseman? What have you done to him? We'll eventually find out, you know.
There is only one way out of a goddamned abortion like that flowchart; off the wire to the extent possible.
This is how I view Obamacare, tried everyday for 16 days...
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We have healthcare, but can't eat, buy gas, pay the mortgage, buy i-phones, pay power and light, pay property taxes or buy toilet paper...but other than that, we're okay.
Rube Goldberg Health Care. What could go wrong?
My fucking eyes are burning!!!!
Damn, now I have to go puke again!!!
Apart from a very complicated (and very interconnected) flowchart, I note the expansion in "New Government" and "Expanded Government" positions.
Seems a lot of (presumably) adequately paid positions for the "New Bureaucracy", which will be funded by . . . . . .? ? ? ?
So much for a "Slimline" and "Downsized" central administration . . . .
Hope they used Japanese capacitors on that.
Does anyone have a diagram of how the world views the Fed?
Wait up ya'll. I'm havin a brain fart here. We already kinda sorta know that our "leaders" are merely shepherds, right? We also kinda sorta know that somebody we can't quite identify (but not the shepherds) actually owns the plantation, right? *it's the fuckin' banks*. Did I say that out loud?
So, in between wars, but particularly after WWII, the US had the most badass wool producing motha-fuckas on the face of the earth, and the owners couldn't help but notice this. The owners had created a class of independent, fuck you and everybody else that looks like you, nation. Today, that remnant is known as "middle class".
This development was horrifying for them. And so it came to pass- JFK was eliminated, and in his place we got ("I'll have those niggers votin' democrat for the next hundred years"), Johnson. Lyndon, I dunno if it'll last 100 years, but it's lasted long enough to destroy a once great republic- and fuck you very much.
So anyway, the once defiant, fuck you and everybody that looks like you republic was transformed, into a dependent mass of dung. The owners simply don't care about this plantation anymore- there's far more fertile ground- east. It's been quite a few generations since they were the livestock. They will become the "new" middle class, and Americans who almost unequivocally believe they are exceptional, will continually clamor for more of what they had, only to find their chains a bit heavier, each day.
Serendipity, it is called.
AFA is another hole in americas bucket. We can not pump water fast enough to fill it. And we have to pump water (money) from another county to try.
My company is trying to market more overseas where some economies are still functioning. My trips to Poland and Russia have shown economies that are growing. My business travels around the US and the stories I hear show a loss of US vitality that appears to keep trending down. My personal opinion is that over the last 30 years the quality of american thinkers, workers, citizens, and leaders have all declined, and this demographic dygenics is accelerating down. Sorry for the pessamism, as an american I like to be optimistic, but criminal Obama is just a symptom.