Massive $17 Trillion Hole Found In Obamacare

Tyler Durden's picture

Two years ago, when introducing then promptly enacting Obamacare, the president stated that healthcare law reform would not cost a penny over $1 trillion ($900 billion to be precise), and that it would not add ‘one dime’ to the debt. It appears that this estimate may have been slightly optimistic… by a factor of 1700%. Because coincident with the recent Supreme Court debacle, in which a constitutional law president may be about to find that his magnum opus law is, in fact, unconstitutional, someone actually read the whole thing cover to cover, instead of merely relying on the CBO’s, pardon Morgan Stanley and Goldman Sachs’, funding estimates. That someone is Republican Jeff Sessions who after actually running the numbers has uncovered that the true long-term funding gap is a mind-boggling $17 trillion, just a tad more than the original sub $1 trillion forecast. This latest revelation means that total underfunded US welfare liabilities: Medicare, Medicaid and social security now amount to $99 trillion! Add to this total US debt which in 2 months will be $16 trillion, and one can see why Japan, which is about to breach 1 quadrillion in total debt (yen, but who's counting), may want to start looking in the rearview mirror for up and comer competitors. And while Obama may have been taking creative license with a number that is greater than total US GDP, he was most certainly correct when saying that Obamacare would not add a penny to US debt. Because the second the US government comes to market to fund a true total debt/GDP ratio of 750%, it is game over, and the Fed will have its hands full selling Treasury puts every waking nanosecond to have any time left for the daily 3pm stock market ramp.

What is it that brought about this discovery of some inverse cash under the rug? The Daily Caller explains.

The hidden shortfall between new spending and new taxes was revealed just after Supreme Court justices grilled the law’s supporters about its compliance with the Constitution’s limits on government activity. If the court doesn’t strike down the law, it will force taxpayers find another $17 trillion to pay for the increased spending.

 

The $17 trillion in extra promises was revealed by an analysis of the law’s long-term requirements. The additional obligations, when combined with existing Medicare and Medicaid funding shortfalls, leaves taxpayers on the hook for an extra $82 trillion in health care obligations over the next 75 years.

Regular readers are well aware that when it comes to US insolvency, the underfunded American welfare state, whose obligations now amount to $100 trillion!, is the primary cause of this country's ultimate downfall. This latest revelation only makes it that much more certain, and likely, faster.

Currently, the Social Security system is $7 trillion in debt over the next 75 years, according to the Government Accountability Office.

 

Also, Medicare will eat up $38 trillion in future taxes, and Medicaid will consume another $2o trillion of the taxpayer’s wealth, according to estimates prepared by the actuarial office at the Centers for Medicare and Medicaid Services.

 

The short-term cost of the Obamacare law is $2.6 trillion, almost triple the $900 billion cost promised by Obama and his Democratic allies, said Sessions.

 

The extra $17 trillion gap was discovered by applying standard federal estimates and models to the law’s spending obligations, Sessions said.

 

For example, Session’s examination of the health care law’s “premium support” program shows a funding gap $12 billion wider that predicted.

 

The same review also showed the law added another $5 trillion in unfunded obligations for the Medicaid program.

Of course, that this "discovery" happened two years after the law was originally proposed and enacted merely once again confirms that other banana republics have nothing on the US, and that America continues to live in a state of sheer chaos when it comes to understanding that every use of funds must ultimately have a source as well.

Jeff Sessions' full presentation.

As a reminder this is what One trillion looks like.

...Now multiply by 17.

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lolmao500's picture

Galloway is back in the house.

George Galloway tweets ‘long live Palestine’ to supporters after landslide U.K. by-election victory

http://www.haaretz.com/news/international/george-galloway-tweets-long-li...

Also :

George Galloway Owns Nut-Job Neocon David Frum

http://www.youtube.com/watch?v=_vLdB1e3lM4

http://rt.com/politics/nato-ukraine-missile-defense-835/

NATO eyes deploying AMD in Ukraine

The North-Atlantic Treaty Organization (NATO) is holding talks with Kiev over Ukraine’s possible participation in the alliance's planned missile defense system n Europe.

http://english.chosun.com/site/data/html_dir/2012/03/30/2012033001312.html

China Nervous About U.S.-Led Missile Defense System

China is growing nervous after U.S. calls for an Asia-wide missile-defense system against the threat of North Korean intercontinental ballistic missiles.

http://www.sott.net/articles/show/243571-FDA-Deletes-1-Million-Signature...

FDA Deletes 1 Million Signatures for GMO Labeling Campaign

http://articles.orlandosentinel.com/2012-03-30/news/os-george-zimmerman-...

Al Sharpton: Civil disobedience will escalate if Zimmerman remains free

If George Zimmerman is not arrested in the shooting death of Trayvon Martin soon, theRev. Al Sharpton will call for an escalation in peaceful civil disobedience and economic sanctions.

http://www.haaretz.com/news/diplomacy-defense/report-israel-s-mossad-sca...

Report: Israel's Mossad scales back covert operations in Iran

The report further states that according to one official, the reductions have caused “increasing dissatisfaction” inside the Mossad, Israel’s intelligence agency.

ihedgemyhedges's picture

Funny thing TD.  The hole you describe was created by the most prevalent form of hole in DC: the ass kind...............

Oh regional Indian's picture

Actually, equally interesting is that Obamadon'tcare. It is masterful how they have worked out, to perfectiion it seems, how much of a lie they can tell and who is the best man to tell it.

Mind-blowing. Health care in America is the first oxymoron. Obamacare is the next.

Obamadontcare. Spread the meme. Obamadontcare.

ori

/the-death-of-empathy/

xavi1951's picture

Actually, equally interesting is that Obamadon'tcare. It is masterful how they have worked out, to perfectiion it seems.............

 

To all the rest of the maroons out there...............  "We will have to pass it to see what's in it.........."

 

I hope you are smart enough NOT to vote the FN that created this mess.  Fuckin Nitwhit............

Michael's picture

The escalation of a race war is just a mind fuck magic trick the Jew's perfected with the word "antisemitism" to get more tax money, power, and preferential legislative treatment for their group of people. It's the same victimization race card the Al Sharpton's and pink panther's of the world are trying to use with the T Martin case.

Don't let the mind fuck magic trick work on you!

You can see to what extent the Jewish people use the played out race card to stop any criticism of their group and use it to their advantage in this special documentary by an Israeli film maker;

Defamation (2009)

http://wideeyecinema.com/?p=7208

flacon's picture

Don't the Jesuits get any credibility in your book or are Jesuits also Jews?

silverdragon's picture

Arabs are Semites so are they in on it as well?

ElvisDog's picture

And what about the Bildeburgs, Hindenburgs, Free Masons, and Knights Templar. You definitely don't want to look past the Knights Templar. My son plays "Assassin's Creed" and the Knights Templar are always up to no good.

putaipan's picture

freakin' bavarian british masonic jesuit zionist bastards!!

GetZeeGold's picture

 

 

I'm really glad to see everyone is remaining calm about this unforeseen turn of circumstances.

 

smlbizman's picture

ya know...if 17trillion will save just one child...well ok, 2 ...than isnt it all worth while...

GetZeeGold's picture

 

 

I can't take it.....just take the blank check already.

 

Michael's picture

Maybe we should just call it the "JSM", Jew Stream Media?

No,No. Their still pretty entertaining to watch on TV and in movies.

I remember the first favorite TV program I loved as a toddler was The Three Stooges.

In the entertainment industry they give us the best product. But their banking and monetary systems really suck.

Ghordius's picture

"Knights Templar are always up to no good"

Someone should audit them, then inprison them for their misdeed, confiscate their assets and disband them.

cossack55's picture

Good luck.  The Knights renamed themselves the Federal Reserve in 1913.  The Knights were also the first bankers and invented the SWIFT system.  The Holy Grail was actually the first ATM machine.

Oh regional Indian's picture

"The Holy Grail was actually the first ATM machine."

Noice! :-)

ori

DanDaley's picture

"Faith, Hope, Charity...but greater than all these is...banking!"

1492: Conquest of Paradise 

RafterManFMJ's picture

See, here's the thing - the PTB said quite clearly they were going to 

1. Add 23 million more people to the insured - people that now cannot or will not pay.

2. Save money.

OhhhK.  I can clearly see that happening.  But hey in a nation of morons, the man who promises gold from shit gets to be king for a few years.

BandGap's picture

It really isn't hard to see that everything this president does, and everything his minions do, is meant to sow confusion to bring the system down. Obamagivesafuckcare is just a very large stone to go along with the pebbles he and his cohorts constantly add to the pile....

11b40's picture

Hey! I have a great idea! Let's replace it with Romneycare. Problem solved.

tamboo's picture

take back your health! i havent been sick or paid for health insurance for years.

tons of remedies your croaker will never tell you about:

 

http://www.earthclinic.com/ailments.html

 

all docs are owned by big pharma. their pills only suppress symptoms, no cure means you pay for the pills until you die. their vaccines will poison you. why do they get so angry when folks refuse them?

Doctors "fire" patients who refuse vaccines for their children

 

Newborn Seized in Hospital by Police, Social Worker

 

no sickness = no profit       good nutrition = good health      insurance is a ponzi swindle (ie business model) like virtually everything else. artificial complexity is used to disguise the ripoff.

rife cracked the code to curing all diseases, the fda came down hard on him; how surprising.

 

Royal Rife and his Universal Microscope.

 

the jewish doctor is mandated by the talmud to sicken, defraud, and kill the nonjew.

 

Dr. Wu's Anti-Jew Medicine

 

Table of Contents from "The Jewish Religion

 

junk away!


 

 

Edelweiss's picture

  You are clearly a moron.  Yes, some aspects of western medicine are flawed.  Medications don't always have the desired effect, post surgical complications can occur, etc. Somehow (magic?) the longevity of Americans has increased significantly despite the fact that many of them smoke, drink, are more sedentary and eat shitty food.  Not that anything I  write can pierce that delusional bubble you appear to live in. 

Cathartes Aura's picture

actually, no.

Between 2000 and 2007, the researchers found, more than 80% of U.S. counties fell below the life-expectancy bar set by that group of leading nations, even though the U.S. spends more on health care per capita than any other country in the world.

Given the increasing life expectancy in countries like Canada and Australia, the widespread pattern of decline in the U.S. is "a huge surprise," says Christopher Murray, M.D., one of the study's coauthors and the director of the Institute for Health Metrics and Evaluation at the University of Washington, in Seattle.

http://www.cnn.com/2011/HEALTH/06/15/life.expectancy.united.states/index...

maybe if you keep the stats "in house" - but globally, trailing.

monoloco's picture

It's pretty sad that the only two healthcare plans that the congressional dipshits can come up with is one that allows insurance companies to gouge those who can afford their overpriced products without constraint, or one that forces everyone to be gouged by their overpriced product with minimal constraint.

LowProfile's picture

Demoted for threadjacking

lolmao500's picture

Not really threadjacking... just more information.

On the subject of this post, I bet democrats think that this report is made up and think that ``raise taxes on the rich`` will save the whole trainwreck.

CrazyCooter's picture

Ok, so if I am working class yahoo with job skills, can't we just skip to the 1 billion dollar bill so I can pay off my shit and fish for food while I work to stick my employer with insurance benefits?

All this waiting is killing me ...

Regards,

Cooter

Big Slick's picture

"Demoted for threadjacking"

But without threadjacking, my comments would be relegated to page 3 and the ash-heap of Zero-Hedge history.

 

AmericanFUPAcabra's picture

Naw. Check back in a week. Moderators delete all the shit talkers PDF linkery, trolls, those trolled, govt schills, and anything else that would deter someone from this website after reading comments.

citta vritti's picture

Are you kidding? That must be the alternative universe's zero hedge, after the time line has ended

Cathartes Aura's picture

are you perhaps thinking of another site, a certain "metals report" that utilises the memory hole to keep up appearances?

Benjamin Glutton's picture

More information is always appreciated.  Consider the absence of information in this story for example.

 

The extra 17 Trillion gap was discovered by applying standard federal estimates and models to the law’s spending obligations, Sessions said.

 For example, Session’s examination of the health care law’s “premium support” program shows a funding gap $12 billion wider that predicted.

 

How are we to evaluate such vague statements without at least a peek at the numbers and methods used to arrive at what are in the end simple math problems?

"was discovered by applying standard federal estimates and models"

Are we now to believe that politicians have standards beyond self enrichment? Both sides plan on printing approximately the same amount of cash in the future to support the supposedly unsustainable debt with only minor differences in allocation of directed tribute.

steve from virginia's picture

 

Agreed.

The article lost me at the 'Jeff Sessions read the entire bill' part. Sessions doesn't know how to read.

Sessions does know how to collect bribes and payoffs so his place in American politics is secure, that God for that!

dirtbagger's picture

Hey this is from the Daily Caller, it has to be tru - where is your faith?

LowProfile's picture

 

"not really threadjacking... just more information.

On the subject of this post, I bet democrats think that this report is made up and think that ``raise taxes on the rich`` will save the whole trainwreck."

A survey of down arrows says:  You're an idiot!

JoBob's picture

Lolmao500: still having problems understanding the concept of being off-topic, I see.

Element's picture

zh re-defines off-topic.

 

How can you have any pudding if you don't eat you're meat?

j0nx's picture

If you don't eat you're(you are) meat? That doesn't make any sense. Do you mean your meat? How can you have people take you seriously if you don't use correct grammar I think is what you meant to say...

Big Slick's picture

Thumbs down for not recognizing Floyd lyrics

11b40's picture

The 2 are mutually exclusive? Are you from the 'we don't need no education' society?

FrankDrakman's picture

thumbs up to the OP for recognizing poorly transcribed Floyd lyrics.

Element's picture

oh piss-off, do you seriously think I don't know the difference between your and you're?

Ever heard of 'typo' perchance?

nmewn's picture

Thumbs up on pointing out the ruthlessness with which the Spelling Commissar's practice their craft.

(Placing tongue firmly in cheek)...

I have no doubt the "need" for Spelling Commissar's had its beginnings in some obscure attachment to legislation that was passed by our best & brightest (in the dead of night, per usual) under the guise of being for the benefit of all.

But the end result always is, the observation of Spelling Commissar's popping up like weeds in the garden of human discourse. If they're not pulled up by the roots as they appear, the garden will decline to the point where the discussion only involves the appointment of yet another Commissar to oversee a garden of weeds ;-)

Element's picture
   
George Galloway Owns Nut-Job Neocon David Frum

http://www.youtube.com/watch?v=_vLdB1e3lM4

So, David Frum is asserting the US is not really interested in war with Iran?

Oh really?

Hmmm ... let's see ... if planet earth applied such sanctions to Israel, as those the US is imposing on Iran, and is also strong-arming and FORCING the rest of the world to go-along with this extremely unwise and dangerous US-Israeli war incitement farce ... well ... I wonder if Israel would consider such sanctions, if imposed on Israel, a blatant act of outright war, and respond in a warlike way, towards such protracted and wilful US belligerence?

Yeah, they would have no doubt that what the USA is doing to Iran, and intending to keep on doing, is without any doubt a flagrant act of war incitement, designed to prompt and spark an inevitable and eventually necessary armed Iranian response, and create a spiral conflict, as the pretext to create a much wider regional war ... that may go fully global ... easily ... and quickly.

The US not really interested in a war with Iran ... Mister Frum?

A rope is far too good for the likes of you.

i-dog's picture

I gave you an uptick, but note that that video was from about 3 years ago (while Shrub was still president).