Tuesday, May 27, 2014
BENJAMIN F. DeYURRE INTERVIEWED ON WLRN-PBS, CHANNEL 17
Monday, May 26, 2014
NATURAL ENEMIES OF OBAMACARE
PUBLISHED BY EL NUEVO HERALD ON NOVEMBER 14, 2013
When the Social Security and Medicare were created, they emerged with their natural enemies from the beginning who were opposed to its implementation. These included most insurance companies, medium businesses and national chain franchises, private hospitals, and even Republican politicians and thinkers ideologist of all stripes. Now with Obamacare, something similar happens.. Haters always reappear. Broadly speaking, these are the groups who oppose Obamacare, making the proviso, that being many, are not all in each case.
• Health insurance: At first glance it would seem that these businesses would be hardest hit. With Obamacare can not deny coverage to patients with previous stories, which make up almost 50% of the population. They may not charge more to women than men. Obamacare ensures that preventive medicine, such as mammograms and colonoscopies, are free of cost. Also prohibits insurers canceling the policy to their patients, unless fraud is proven. It also forces them to justify to their respective state, if they increase their rates by more than 10%. Finally, prevents insurers limit the benefits that patients may receive in the course of your life, so you can no longer say "your policy benefits were paid in full".
And is that health insurance in just six years, between 2003 and 2009, had their costs increased by 87%. Of course, this led to the uninsured grow exponentially.
Like any law, Obamacare has its exception: health plans purchased before March 23, 2010 need not comply with Obamacare. These plans, known as grandfathered, have the disadvantage that they can deny coverage and limiting benefits if the top of the policy is reached. Have the advantage, if group insurance, which offers greater benefit to patients earning better wages. The new health law prohibits this practice.
All these unlimited spending and regulations that Obamacare requires from insurance companies suggest they will decreases or ceases business. However, it is quite the opposite. Now these companies have more activity and State will compensate them appropriately. They will be an important factor in job creation.
• The medium businesses and national chain franchises: The law requires companies with 50 or more full-time employees must provide health insurance to their workers. These companies mostly prefer to tabulate employees to part-time, to avoid having to comply with the law.
Some agree and some do not. For example, Walmart, the largest employer in the U.S., is doing the opposite, that is, transferring employees from part-time to full-time. Thus the insurance will be cheaper by volume, plus it avoids the high staff turnover and training costs this means.
Others, such as chain Pizza Papa John's, hire stars of football to promote free delivery of two million pizzas, but oppose Obamacare, although one study suggests that an increase of only 4 cents per pizza will be sufficient to insurance cover for their employees.
• Private hospitals: So far private hospitals came charging exorbitant amounts to their patients. And if the patient is one of the 50 million Americans without insurance, payment plans to settle their accounts they were expensive and usually affect your credit history.
In practice it happens that only 12% of the uninsured fully pay their bill. This high risk increases too much the amount of premiums. With Obamacare will change as premiums may not exceed 11% of gross salary. This means that once the insurance market is in full effect, the price of the premium will go down and therefore the hospital coverage is ensured.
• Republican politicians: It is traditional that politicians usually oppose the proposals emanating from the ruling party. And if it is a popular proposal, which involves the entire nation, even more.
Republicans mostly believe that Obamacare will strangle businesses with new costs and force higher unemployment and reduced working hours. They also insist in asking where the funds will coming from for financing.
The truth is that more than 96% of businesses with more than 50 employees already offer health plans to their employees. Obamacare requires that by 2015 companies generating more than $ 250,000 in wages, pay part of the premium for health insurance. Currently, at large firms in the U.S. only 0.2% do not offer health insurance to their employees.
Where are the funds for Obamacare? . According to the Congressional Budget Office in July 2012, $ 741 billion come from cuts in public spending and $ 893 billion in revenue come from extraordinary taxes.
• Ideologists and thinkers: Many individuals oppose Obamacare because they believe it is an attack on free enterprise and democracy. They believe that the state should not force the laws and everything should be left to the free play of supply and demand.
They do not realize that this is precisely Obamacare, an insurance market where natural competition will push prices down, as is already happening. In the 50 states in the nation, Wyoming is the most expensive to purchase health insurance, while Minnesota is the cheapest. The difference is $ 184 monthly. And this is because there are more providers in certain areas, as well as more people with preexisting conditions.
In short, while the U.S. is a developed country with the best technology, is also the worst in obtaining good health results. U.S. spends 12.6% of its GDP on health, the highest percentage among the member countries of the Organization for Economic Cooperation and Development (OECD).
We are of the opinion that the market will we adjusted itself over the years and the costs and current technological problems coming with a gigantic project like Obamacare, will be gone soon. As happened with Social Security and Medicare.
BENJAMIN F. DeYURRE
Economist and Journalist
LA HISTORIA DE LOS SAQUEOS EN VENEZUELA
PUBLISHED BY "LOS TIEMPOS NEWSPAPER" NOVIEMBRE 2013
El
caos reciente en Venezuela, cuando el propio Presidente Maduro
exhortó a la población para que desvalijara a los comercios
legalmente establecidos, no es sino un presagio de la caida inminente
de ese gobernante.
Por
todos es conocido la estrecha vinculación existente entre los
gobiernos de Cuba y Venezuela. También es del conocimiento público
todas las manipulaciones, fraudes y engaños de que ha sido victima
el pueblo Cubano de parte de ese nefasto régimen comunista que
impera en la isla. De igual manera, todos saben que Maduro estudió
en Cuba, donde adquirió todas esas destrezas especiales
inescrupulosas de que hace gala el aparato de inteligencia Cubano.
Estos
saqueos recientes en Venezuela empezaron con el robo a uno de los
principales almacenes de electrodomésticos del pais. Se dice que los
propietarios de dicho almacén son unos inversionistas de origen
Arabe, financiados por el gobierno de Maduro, quien les habría
facilitado los fondos necesarios para establecer negocios similares
en Panamá. No es de extrañar que esos primeros saqueos en Venezuela
fueran producto de un arreglo previo entre el gobierno y esos
Inversionistas, todo bajo un plan maestro fraguado en La Habana.
Estos
saqueos actuales, son diferentes a los acontecidos en Febrero de 1989
en Venezuela, conocidos como el “Sacudón”. En aquella ocasión y
debido al malestar general existente en la población por un aumento
en el precio de la gasolina, los estratos inferiores de la población
junto con algunos aprovechadores de oficio, se lanzaron a saquear
negocios. Utilizaban camiones manejados en reversa para arremeter
contra la fachada de los establecimientos. Muchos propietarios de
negocios, armados, dispararon contra la muchedumbre ante la
desesperación de ver perdido el esfuerzo de toda una vida.
El
balance oficial fué 500 muertos, pero la cifra reportada por las
morgues superaba a los 5.000 muertos.
Exactamente,
el día que se iniciaron esos saqueos, el 27 de Febrero de 1989,
también comenzaba el 1er Congreso Hemisférico de la Cámara de
Comercio Latina (Camacol) que se realizaba fuera de EE.UU.
Los
invitados al acto de la Camacol en Caracas, entre los que se
encontraba el suscrito, pudieron presenciar esa barbarie desde el
piso 20 del Banco Consolidado en La Castellana.
Llama
la atención que esos saqueos se realizaron simultáneamente en
varios estados de Venezuela. Fueron vistos grupos de personas con
altavoces agitando a los ciudadanos. Curiosamente, Fidel Castro tenía
un par de meses que había estado en Venezuela para presenciar la
toma de posesión del entonces Presidente, Carlos Andrés Pérez. Hoy
en día se sabe que aquellos saqueos fueron orquestados desde La
Habana para desestabilizar al pais.
La
diferencia principal entre los saqueos de 1989 y los actuales es que
entonces las Fuerzas Armadas de Venezuela protegían a los
comerciantes y a su vez al estado de derecho. Ahora, los militares
protegen a los saqueadores, e incluso toman el mando de los negocios
regalando productos o vendiéndolos muy por debajo de su costo.
Evidentemente,
la intención manifiesta en Venezuela, es acabar con la propiedad
privada sobre los medios de producción y con el estado de derecho. Y
una vez que lo logren estarán radicalizando un gobierno abiertamente
comunista, que solo intentará emular los fracasados planes
quinquenales de la extinta URSS y el supuesto mar de felicidad que
disfrutan los Cubanos en su isla esclavizada.
Pero
si no logran radicalizar el comunismo, el otrora glorioso ejército
Libertador pudiera despertar de una larga letanía y utilizar sus
reservas morales para salvar al pais de la debacle. Y es muy posible
que esto ocurra, porque el dinero a borbotones para comprar
conciencias y voluntades no es eterno y el caos actual que vive el
pais es insostenible. Veremos que sucede en el corto plazo.
BENJAMIN F. DeYURRE
Economista y Periodista
WHO ARE THE CULPRITS OF DEFICIT ? AND ITS SOLUTION
PUBLISHED BY EL NUEVO HERALD ON OCTOBER 21, 2013
Fortunately, already is reached a bipartisan deal to open government operations again and raise again the debt ceiling until February 7, 2014. Though since 1972 have been made 17 closures of previous governments and since 1962 has risen the debt ceiling 74 times, these two variables have been taken recently as coercive measures to exert political pressure, regardless of the erosion that is caused to the creditworthiness of the country and the obvious consequences on the national scene.
Already in 2011 the rating agency S & P lowered the credit rating of the United States from AAA to AA +. Although this represents a monthly payment of more interest, investor confidence did not deteriorate as the demand for 10-year bond yield and 2.34% did not decrease. This means that buying U.S. bonds remains a guarantee for the investor because in U.S. is absurd to think of the possibility of ignoring the public debt, as indeed has happened in other countries, for example, Cuba in 1959.
Recent temporary closures of government as well as the unfounded doubts about raising the debt limit, doing nothing but undermine confidence in buyers. And this, of course, affects the revenue of the nation, destabilizing its budget. That same budget, which until only twelve years had surplus has deteriorated, among others, for the following factors:
• The wars in Afghanistan and Iraq, which meant high budgetary costs. This is complemented by the costs of medical care for disabled soldiers, whose care is permanent and represented at least 15% of the deficit in 2012. The cost of these wars was monumental because Pentagon contractors achieved extraordinary privileges because the government paid them above the actual market price. . The no-bid contract to Halliburton won for $ 7.000 million at the beginning of the Iraq war is still remembered.
• The tax cuts proposed by Bush and supported by Alan Greenspan in 2001, are responsible for a fifth of the budget deficit in 2012. And this tax was specially applied to the upper class in order to devote more resources to create jobs rather than continue buying properties. However, this effect was not achieved and instead, unemployment increased to reach the 2008 recession.
• The drug costs charged to Medicare formed an important part of the budget deficit. There is a provision of the law stating that the government can not negotiate drug prices with the pharmaceutical industry. This is only enabling this industry to the detriment of the national budget .
We must find a formula that allows us to re-stimulate the economy, without trying to make miracles in the short term.
We all want the deficit could be reduced right now; however, we can start with a strategy whose results have been verified before. This known as the "balanced budget multiplier" strategy is to increase taxes and spending at the same time, so that the deficit ratio is the same. If tax increases and expenditure are chosen intelligently, gross domestic product (GDP) could triple the increase in spending. The deficit will remain the same three years, but the country's debt will be reduced in five.
Of course, the implementation of this strategy has its art. Increasing taxes on the very wealthy reduces spending by 80%. Decreasing to poor increases it by 100%. This means that the wealthy invest 80% less and the poor spend everything down to the last penny. Logically, increasing the consumption of the poor, will also increase the demand for goods and services. Then again the wealthy will invest in order to meet that demand.
As we see, the strategy can be successful. The truth is that the debt problem must be addressed to avoid reaching the Japanese case, where debt is 1 quadrillion yen, exceeding 250% its GDP. We, still, are almost at par.
BENJAMIN F. DeYURRE
Economist and journalist.
Saturday, May 24, 2014
MADURO EL INCAPAZ
Publicado por "Los Tiempos Newpaper" en Septiembre 2013
Persecusiones
implacables, expropiaciones a mansalva, fallos judiciales
manipulados, elecciones Presidenciales, Estatales y Municipales
amañadas, remesas ilegales de grandes cantidades de dólares en
efectivo, envíos y recepción de drogas múltiples. Todo esto es
apenas parte del Panorama que muestra el Socialismo de la Venezuela
actual, comandado por Nicolás Maduro.
A través de la
historia se ha demostrado que el Comunismo ha fracasado en cada pais
donde ha incursionado. Un ejemplo evidente era la comparación de la
Alemania Oriental con la Alemania Occidental. Mientras que la
Oriental aún mostraba los derrumbes de la 2da guerra mundial, la
Occidental era, y actualmente es, la Economía mas pujante en el
mundo. Esto empezó a cambiar trás el derribo del muro de Berlín.
Otro ejemplo, mas actual, nos permite comparar las dos Coreas.
Mientras Seúl es considerada la Capital tecnológica del mundo,
Corea del norte es azotada por la hambruna y el desempleo y sólo la
adoración por su Presidente celestial es una constante obligatoria
en su población.
Venezuela no es una
excepción en este fracaso general del Comunismo, llamado allí el
Socialismo del Siglo XXI. La Venezuela Republicana, previa a la
llegada de Hugo Chávez, era una Venezuela democrática. Existía
pobreza, pero no era extrema como ahora. Existía corrupción, pero
no era galopante como ahora. Existían sus clases sociales, pero las
diferencias no eran tan marcadas como ahora, donde la clase Chavista
es la que tiene todos los privilegios.
Adicionalmente ha
surgido otra casta, la de los nuevos super-ricos, quienes no son
necesariamente Chavistas, pero se hacen pasar por ellos para hacer
grandes negocios fraudulentos. Y con el mayor desparpajo comentan a
sus allegados Democráticos “Yo no soy Chavista sino comerciante”.
Dentro de esa nueva
casta es común ver decenas de muchachos menores de 30 años con una
fortuna superior a los $100 millones cada uno. Son facilmente
reconocibles porque son ostentosos. Algunos son servidores públicos
de mediano nivel. Otros no tienen trabajo fijo. Sin embargo conducen
vehículos Europeos de mas de $100 mil, dejan propinas de $3.000 en
los restaurantes Caraqueños, viajan varias veces al año a Las
Vegas, Orlando y Paris, mantienen costosas amantes, poseen yates que
superan al millón de dólares y tienen inversiones múltiples en
otros paises, que van desde acciones preferidas, terrenos, caballos
de carrera, hasta urbanizaciones enteras bajo nombres de testaferros.
Por supuesto, la
inteligencoa de los paises receptores de esas inversiones deben
conocer a los personajes. Pero como es desarrollo creador de empleo,
se hacen la vista gorda. Total, opinan que si es dinero mal habido,
los fraudes no fueron cometidos en su territorio. Tal como sucede en
Las Bahamas. Allí aceptan a cuanto viajero llega, con tal y deje su
dinero. Y lógicamente, Venezuela no vá a delatar a los
fraudulentos. Tampoco vá a requerirlos con la Interpol. No pueden
hacerlo, porque los que toman esas decisiones van también en la
jugada.
A todas estas, el
Presidente Maduro usurpa el poder con un firme propósito; en el
corto tiempo que se estima permanecerá como jefe, pretende saquear
lo poco que aún queda del Tesoro Nacional. Viejos amigos con hambre
han aparecido. Amigos que lo acompañaron en sus viajes a Cuba y
otros que trabajaron con el en el Metro de Caracas cuando el actual
Presidente era chofer de tren hasta que fuera despedido por sus
continuas faltas al trabajo.
Mientras tanto Maduro
quiere aparecer como el hazmereir del mundo. Sus famosas frases como
“Millones y Millonas” y “La Multiplicación de los Penes” le
han dado la vuelta al planeta. Desde luego, habría que ser muy
inocente para no darse cuenta que maduro pretende hacerse pasar por
incapaz. Y un incapaz, no es capaz de planificar grandes robos al
erario público. !!! A otro perro con ese hueso !!!
BENJAMIN F. DeYURRE
Economista y Periodista
CoCos SAVE THE BIG BANKS ?
Published by El Nuevo Herald on June 07, 2013
There is a big controversy in the U.S. over the banks too big. Some propose to remove its implicit subsidy reducing them in size. Others propose to increase its Legal Reserve and properly design a convertible contingent bond issuing (CoCos).
European banks recently authorized by the European Banking Authority (EBA), launched a bond issue of 5,000 million euros, of which most have been called CoCos Bonds.
There are normal convertible bonds, where the buyer has the option to "convert" these bonds into shares at maturity. The Bonds CoCos have no such option. Automatically converted into shares when the capital of the issuing institution starts to drop to a preset limit.
Of course, for a bank issuing CoCos Bonds, this is big business. Banks in the U.S. are under scrutiny from regulators that require a healthy relationship capital -assets.. When capital starts to fall and the market value is less than 9%, usually a CoCo bond becomes in share, thereby increasing the bank's capital, which thus avoids a possible federal intervention.
The advantage of a buyer CoCos Bond is, interest usually perceived is higher under risk. Obviously, the disadvantage is that such conversion in shares is enforced. In other words, investors in CoCos bonds becomes a shareholder when the share of the company that sold you the CoCo, falls.
Supporters of the "too big to fail" theory say that the big banks, for his great capacity, provide more valuable services. The reality is, these banks for being federally guaranteed, offer a safer investment to depositors. Based in this safety, big Banks pay less interest to the public that small banks to attract customers, who are forced to pay more interest than larges given their lack of collateral.
Those who support the thesis that big banks should disappear too, believe that these financial institutions have received excessive protection and have taken advantage to deliberately profit.
Those who argue that banks too big should continue, are proposing two solutions to prevent its collapse: 1) Issuing CoCos Bonds to offset a fall in capital. 2) increase the legal reserve to 20%. From early 2012 this reserve is 10% for banks with more than 79.5 million in deposits and 0% for time deposits.
There are 29 banks in the world, of which 8 are Americans considered "systemically important." This means that their failure would cause serious trouble to the economy.
We are suggesting that banking procedures should be more flexible to promote greater competition and thus ensure that we'll have more access to credit, and in this way, also invigorating the economy.
And certainly, the CoCos Bond issuing could be a double-edged sword. Indeed, some entities with calculated insolvency, may be involved in the process.
Benjamin F. DeYurre
Economist and Journalist.
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