No sooner had Representative Paul Ryan presented his budget plan that the Elite Media attacked it. Then on Wednesday April 13, 2011, President Obama invited Rep. Paul Ryan to a front row seat for his speech on the budget deficit. With this invitation, everyone expected a “conciliatory and bipartisan” speech by the President to address the key driver of the future of our country, budget deficits and the growing national debt, now at over $14.3 trillion. To the surprise of many and Mr. Ryan in particular, Obama ripped into Rep. Ryan’s proposed measures to “save” Medicare. The President instead argue that that Ryan’s proposal would take healthcare benefits away from seniors and “end Medicare” as we know it. This was not only disingenuous on the part of the President, but also contrary to his rhetoric since his candidacy for president started in 2007, promising bipartisanship and “civility” in politics. Not only did the President lie about Ryan’s plan, but he conveniently left out the fact that his own Obamacare plan cuts $500 billion from Medicare which by all measures will definitely destroy Medicare as we know it. Obamacare will turn Medicare into “Rationcare”.
This behavior by President Obama is not new. During his State of the Union address in January 2010, Obama verbally chastised the U.S. Supreme Court for its decision that corporations were free to make political contributions, just like Unions and individuals do. This tongue lashing by the president was an inappropriate action an was “not Presidential.”This was not only an embarrassment for members of the Supreme Court seated in the audience, but for all Americans who expect, in particular the President, to respect the separation of powers of the three branches of government as stated in the US Constitution.
Obama shoots from the hip without knowing the facts, or biases his comments to fit his ideology. After the professor Gates incident in Cambridge, MA on July 24, 2009, he called the Police officer involved as acting stupidly. Even more insulting was his immediate reaction to the shooting on Fort Hood by Major Nidal Hassan killing 13 fellow US soldiers on November 5, 2009. Obama immediately asked the American people “not to come to conclusions”, determining, wrongly, and without any facts, that Major Nidal was not a Jihadist, when in fact he was.
It seems that President Obama did not read the less than 100 pages of Paul Ryan’s plan. Compare this to the over 2100 pages of Obamacare and the fact that neither the president nor most of the people who voted for this legislation ever read it. Even the then speaker of the House, Nancy Pelosi said “We have to approve it before we can read it”.
The fact is that Representative Ryan’s plan is a Medicare reform to try to save the program and will not affect anybody who's now over 55. To keep their hold on power, the Democrats and it’s Elite Media allies have resorted to its “old” true and tried tactics of scaring seniors. The Democrats are not telling the American people, and in particular seniors, the fact that Medicare funds will be exhausted by 2024. This was reported by the Medicare Trustees, not a right wing group. That's five years earlier than last year's projection. Nevertheless, the Democrats claim that Republicans want to throw Grandma from the gravy train. An actual Democrat Party add shows a man pushing an elderly lady on a wheel chair off a cliff.
Don't believe a word of it. Medicare as we know it is doomed. The ObamaCare law already slashes at least $500 billion from its future outlays. The status quo is not an option and President Obama, Democrats and his minions in the Elite Media are committing fiscal malfeasance.
As stated above, Medicare own trustees project that the Medicare Hospital Insurance Trust Fund will crash in 2024, right about when the last Baby Boomers are entering the program.
It is astounding that leaders in Washington can boldly lie to our face; the vast majority from those in the farthest left of the Democratic Party, with the President being the “Star” perfumer.. They know there is a problem, but they don’t want to deal with it, so they demagogue anyone who does try to deal with it. Their fear is that if they are the ones to give the voters unpleasant news, they will lose votes. Their plan is to kick the can down the road as far as possible so they will be gone when the issue becomes catastrophic and explodes in our faces. While this subject is Medicare, similar discussions could be held on Social Security and Medicaid. Most egregious issues for Medicare are:
#1 – In his quest to address debt/deficit [in FY 2010, 2011, and 2012, the Obama administration plans borrows 40 cents of each dollar spent and add about $4.5 trillion in just three years to our already problematic and unsustainable National debt. Paul Ryan proposed a restructuring of Medicare. Very brave, very risky, putting on the table a concrete, creative and coherent approach. Now no one knows if this is the best solution, but every one knows the current system is unsustainable and if left unaddressed, not only are we pushed toward bankruptcy, we will end with no Medicare system; and much quicker than most believe [more on that later].
Further, except for a good “outline” by the Simpson – Bowles commission (created by President Obama, but whose recommendations he has also decided to ignore), the Ryan plan is the only detail plan around. The Democratic leadership with no plan at all, responded as expected; running ads showing Republicans literally throwing grandma over a cliff and launching a relentless campaign to scare seniors into believing they would be badly impacted. That is massive lie #1. Truth is the Ryan plan changes absolutely nothing for anyone who is 55 or older at the time it becomes law. Only those 54 and younger would see a new plan for them. In other words, those currently on Medicare and people who go into Medicare for the next ten years will continue on the same Medicare plan as we know it today, not matter how long they live. However, since the program runs out of funds (more real issues with this later) in 2024, unless something is done immediately those seniors will have a Medicare plan on paper only since there will be no money to pay for it.
Further, the new Ryan plan is patterned after what Congress now receives, and is highly consistent with competitive free market solutions that are the root of cost reductions in every corner of America. How come if this plan is good enough for Congress, it is not good enough for the rest of us? Do you believe politicians would give themselves a plan that is not as good or better than what the rest of us get? Not in our lives, or theirs for that matter.
Paul Ryan’s plan may not be perfect, but at least he has had the political courage to tell the truth to the American people, and that is, that we need to do something about these program now in order to have them in the future. This is unlike what President Obama and the Democrats are doing, just scaring seniors that they would be thrown over the cliff (Mediscare). Open for potential improvements and/or changes , the Ryan plan would save Medicare for current, as well as for future generations, not destroy it as the Democratic “do nothing” approach would surely do.
#2 – We are told the Medicare “trust Fund” will be out of money in 2024. WRONG! It is out of money today. Review how this trust fund has been handled by Washington. First, there is a trust fund in name only as a cyber space tabulation tracks the net position of all sums paid into Medicare and all sums paid to Medicare participants. The U. S. government has already spent every penny of Medicare “trust fund” payments by workers and their employers and replaced these funds with treasury bonds. Thus today there is zero cash in a trust fund and in its place, are bond debt that is guaranteed by the full faith and credit of our country, which right now is in shaky ground and even the Credit rating organizations are already talking about downgrading the US debt. The 2024 date is nothing more than an estimate of when the sum of money paid in is equal to the sum of money paid out. The bonds are debt instruments and when needed to pay any Medicare costs, requires the government to borrow additional money to pay off the debt represented by the bonds which is all that is left of our payments.
The only government paths open are; issue new bonds to retire the current set [more borrowing, more debt]; print more money [results in reduction of dollar buying power and inflation, the cruelest tax of all to those on fixed and or low incomes]; raise taxes by a huge amounts and then wind up like Greece.
In the meantime, living in an “Alice in wonderland” world of replacing cash for debt [bonds], the issue is “cash flow” for 2011. We have hit the point, where Medicare taxes into the treasury is less than the year’s Medicare outlays. That is a real today problem. Now, the government has to issue bonds to cover both past sins and the 2011 cash flow shortage. Thus, “Medicare stand alone”, can’t pay its bills today, and to us little folks means Medicare is broke today.
Seniors check this out. Current administration (President Obama) and Senate leadership (Senate Democrat Majority Leader Harry Reid) are not only refusing to create any type of budget, they are on a full scale “Mediscare” path to deceive us, with the hope of getting through the 2012 election and then dropping the bomb. They must be stopped.
We are all in trouble, not just the elderly, unless immediate action is taken to salvage not only Medicare, but also Social Security and Medicaid (health plan for the poor) will cease to exist. Social Security will run out of funds by 2036 and Medicaid is dependent on State Budgets, most of which are going broke (think of California, New York, Michigan, etc, with hundreds of billions of unfunded liabilities).
You do not have to believe what President Obama, his Democrat and elite media lackeys tell you, read the Ryan plan yourself. It is an easy 100 pages to read. Go to the link below and come to your own conclusions. You may not agree with all the nuances, but it does show a path to survival for not only Medicare, Social Security and Medicaid, but also to protect our children and grandchildren from having to paid our unsustainable debt which means descending to economic disaster.
On the other hand the Obamacare Bill plus amendments are over 2100 pages, so if you would like to read it and learn that, in fact, Obamacare cuts $500 billion out of Medicare go to the links below (the first one is the text of the House bill and the second link is what came out of the so-called “Reconciliation” of the House and Senate versions). You will be able, if you have the patience for it, to read that the President is again using “doubletalk” and hiding from you the fact that his own Obamacare bill cuts Medicare by at least $500 billion. Read also how Obamacare puts in place price controls and bureaucratic rationing. It will also pay providers less, which will cause many of these providers to leave the profession and cause longer waits for treatment (similar to what happens in the UK). An unelected Board will decide which treatments to withhold to save money. Obamacare turns Medicare into Rationcare.