Red State Governors Consider Banding Together (On Health Care Reforms)

From John T. Reed on Headline News and Secession and Nullification--News and Information:

Remember my article about red areas seceding?


November 23rd, 2010 by John T. Reed

Copyright 2010 by John T. Reed All rights reserved



Below, you can see an article I recently wrote called “A modest proposal: the Red election precincts should secede from the United States.”



Well, guess what.



The November 22, 2010 Wall Street Journal had an article titled “Some States Weigh the Extraordinary: Ending Medicaid.”



Medicaid is supposedly a state program, but the federal government pays 57% of its costs and says you have to do it the Fed’s way to get that 57%. Furthermore, come 2014, Obamacare orders the states to add 16 million more people to the roles of their Medicaid programs.

Check this sentence from the Journal article out:

Indiana Gov. Mitch Daniels said he put a different proposal before the Republican governors assembled in San Diego: that they all band together to created a multistate insurance pool for the uninsured.



Roughly speaking that means states with Republican governors would secede from the United States and form a new United States for Medicaid purposes only.



The Journal article also presented this idea as a sort of “modest proposal,” that is, only half serious but news that it is even being discussed.



When I write these various articles about the impending bankruptcy of the U.S. government, people smile and say, “You don’t understand how popular Medicaid is and how many people depend on it and the fact that no politician would ever vote to end it” etc., etc.



No, you guys are the ones who do not understand.



When the U.S. became the biggest debtor nation in the world then increased its dependence on borrowing faster than ever before, American voters ceded their sovereignty for government-spending purposes to the world bond market.



If Medicaid is popular AND the world bond market lends us the money to fund Medicaid, we will have Medicaid. If and when the world bond market does not wish to lend us money for the purpose of paying for Medicaid, there will be no Medicaid.



Capeche?



The era when the American people will get from politicians that which they demand from politicians is over. That only applied when the politicians were spending our tax money.



In 2010, the politicians are spending $2 trillion of our tax money and $5 trillion more of money borrowed from the world bond investors. And the world bond investors do not give a shit how popular Medicaid is or how many people depend on it or how many politicians will vote to end it. The bond market only cares whether it will get its money back, with interest, and that it will have the same purchasing power when they do.



When the world bond market “votes” to end Medicaid, with their dollars, it will end—overnight—without so much as an apology or a “howdy do” from those bond investors. All they have to do, and will do, is pick up their phone, call their broker, and say “Sell my U.S. bonds.”



For years, I have been reading stories that many are already doing just that. The Federal Reserve announced earlier this month that they are going to buy another $600 billion of U.S. bonds, plus reinvest another $250 to $300 billion of maturing bond payments in U.S. bonds. That brings the total of U.S. bonds bought by the Fed in the last two years to around $3 trillion. If the world bond market were buying all the bonds the U.S. wanted to sell, the Fed would not have to do that.