If Social Security and Medicare went bankrupt medical costs would plummet because doctors and medicine makers have to eat too.

Social Security and Medicare face an increasingly dismal fiscal future; the federal government reported Friday in its annual review of the two mammoth entitlement programs. The problem is that it fully covers people who never worked and contributed to the program. If Social Security and Medicare went bankrupt medical costs would plummet because doctors and medicine makers have to eat too. Medicare, which now provides health insurance to some 47 million elderly and disabled Americans, could begin running a deficit in 2024, five years earlier than projected last year. When social security was created people lived just two years beyond retirement. Thanks to the programs people now live much longer with expensive programs like state paid new knees and hips and free AIDS medication so that the individuals who take high risks live longer and infect more people until the system goes bankrupt. Social Security, which last year began paying out more in benefits than it collected in taxes, now faces insolvency in 2036, compared to 2037 in last year’s projections.

Here are two of the many many reasons for American deficits and Obama is doing nothing about it. If American health care is so bad why don’t the people stay in their own countries. Do you know one American who pays to have treatment in Britain, Germany, France, Japan or China? We don’t. Yet we get people from all those countries coming for operations in the USA.

http://www.youtube.com/watch?v=bLJxmJZXgNI
http://www.youtube.com/watch?v=U_ZnX9JRo5M&feature=related

Obama celebrates cop killers at the White House. These Obama friends are worse than Rev. Wright is.
http://libertylog.org/?p=2791
http://blog.jetsettingmagazine.com/?p=14311

NLRB joins with European socialists, union communists and OBAMA illegal aliens to demand Boeing nationalization now or face bankruptcy. Boeing is attempting to open a plant in South Carolina but the unions are upset that Boeing is opening a plant in a “right to work” state. Then employees will not be forced to pay a portion of their income to union bosses nor will they be required to tell the leftists how they vote in union elections. The NLRB just said Boeing cannot open the Dreamliner plant in SC. When the government discriminates against states in favor of unions and decides where industry can move that is called nationalization.


World Markets:

Dominique Strauss-Khan, the socialist head of the International Monetary Fund, an EU appointee, was arrested in NYC for attempted rape of a hotel maid. The USA created and was the IMF head for many years and now the socialists have corrupted the organization. It is time either for the USA to take back control of the IMF or to withdraw all USA funding.

Sen. John Kerry gave Pakistan's army chief a list of "specific demands" relating to Pakistan's harboring of Islamic jihadists ahead of meetings that could put an end to nuclear weapons in Pakistan. China has apparently expressed an interest is removing atomic bombs held by certifiably insane socialist Islamists on their border.


US Economic Highlights
End of last week summary
Trade Balance Mar -$48.2B worse still than -$45.8B last month
Continuing Claims 04/30 3756K up from 3733K last week
ProdPriceIndx Apr 0.8% up from 0.7% last month
Core ProdPriceIndx Apr 0.3% same as last month a 3.6%inflation rate well above the FED’s 2.5% target.
Retail Sales Apr 0.5% down from 0.9% last month.
Retail Sales ex-auto Apr 0.6% down from 1.2% last month.
Business Inventories Mar 1.0% up from 0.5% last month. Very bad once more.
ConsumerPriceI Apr 0.4% down slightly from 0.5% last month.
Core CPI Apr 0ndex.2% up from 0.1% last month., and 2.4%/yr now
Michigan Sentiment May 72.4 improved from 69.8 last month.

Today
May 16 8:30 AM Empire Manufacturing May
May 16 9:00 AM Net Long-Term TIC Flows Mar
May 16 10:00 AM NAHB Housing Market Index May
This week
May 17 8:30 AM Housing Starts Apr
May 17 8:30 AM Building Permits Apr
May 17 9:15 AM Industrial Production Apr
May 17 9:15 AM Capacity Utilization Apr
May 18 7:00 AM MBA Mortgage Index 05/13
May 18 10:30 AM Crude Inventories 05/14
May 18 2:00 PM FOMC Minutes May
May 19 8:30 AM Initial Claims 05/14 -
May 19 8:30 AM Continuing Claims 05/07
May 19 10:00 AM Existing Home Sales Apr
May 19 10:00 AM Philadelphia Fed May
May 19 10:00 AM Leading Indicators

Market Outlook May 16, 2011
Wider market swings occur as volatility/risk increases.

Geithner keeps changing the date for raising the debt limit making it obvious it is just another game Obama is playing. Every day taxes are flooding in to the Treasury since April 15 implying that after April 15 there is virtually no problem until next year.

The stock market is again testing the lower resistance line. With QE2 ending there is less chance of a bounce. On a cashflow (not price basis) there was now new high after the last breakdown. That is why we are not in at this time.
http://finance.yahoo.com/q/ta?s=%5ENYA&t=6m&l=on&z=m&q=l&p=m20%2Ce50&a=m26-12-9&c=

Obama gave over $30Billion to black constituents who fraudulently claimed they were owed reparations because their ancestors did not get all the corrupt handouts they were “entitled” to under previous administrations. This Obama corruption of the farm bureau alone is justification for firing that entire government office.

The depressed real estate market is killing the American economy. And homeowners are considered too rich to help against the influential banking community that contributes so much to the $1 Billion Obama wants to raise for the next election of socialists. Come-on $1Billion to elect a socialist president? That is obscene like the first $1 Billion dollar bonus package for an incumbent! That is sick greed and selfishness at its worst.

World Markets
International trade shows that the world economy has still only revived about 25% not the 70% shown by the stock and commodities markets. QE2 is created the current stock market and commodity bubble. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate quickly. See:

http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Click on the 3yr chart.

Asian markets were down sharply last night. China down –0.7%, Hong Kong down –1.4%, India down -1.13%, Taiwan down -1%, Seoul down –0.7%, and Japan down –1%.

European markets are down sharply this morning in a range of about -0.6% to –1.4% half way through their day.

US pre-market futures are up today about 0.5% at 7 AM EST