Senate Plan Makes ObamaCare Worse – Ep. 261

The Peter Schiff Show Podcast

Summary: Let the SS ObamaCare Ship Sink The Republicans in the Senate finally unveiled their version of ObamaCare Repeal & Replace. It's very heavy on replace, but there really isn't any repeal. They are replacing it with something that may even be worse. Regardless, we still should let the ObamaCare ship sink while it's called the SS ObamaCare. Senate Bill Leans Toward Socialized Medicine The House already passed their version. The Senate version is even worse; it takes away all penalties for not buying insurance. At least the House version tried to create some kind of penalty. Now, a penalty of any sort would not be necessary if the government did not mandate insurance companies to cover people with preexisting conditions. The only way insurance companies can survive, if the Senate bill were enacted, is with massive government (taxpayer) subsidies. Moral Hazard Of course the Senate does not consider the moral hazard of offering a "medical bill-paying service", so the cost will be enormous. This solution will collapse the health insurance industry and lead to socialized medicine. If the Senate Republicans really want socialized medicine, they should just come out and say it. If you don't believe in the free market, just come out and say it. Something For Nothing If the government can deliver healthcare cheaper and better than the free market, then why not socialize everything? Republicans are afraid to say that they don't believe this because they want to get elected and they know that the voters don't understand that capitalism works. They just want something for nothing. The Senators want to get elected so they are going to provide it for them. It was a relatively quiet week, this week; not a lot of market-driven data Next week, things might pick up a bit; we'll get the final week of Q2 So I have a feeling there may be a little more action as some of the portfolio managers look to window-dress a bit or get their portfolios looking better for the end of Q2 The dollar finished the week on a down note, although it was relatively flat on the week; it was down today The opposite for gold Up about $6.50; it was also flat on the week, but it had a good day Gold stocks were not flat; I think the gold stocks, as a group, the best performing sector in the market I have been noting on this podcast that these stocks have been trading better When they were weak, that precipitated the correction in the price of gold Then gold bottomed out when the gold stocks showed some relative strength That has continued, and I think this was a pretty good week, technically We're close to getting above some key resistance on these stocks So we will see what kind of bid they can pick up next week as we wrap up Q2 I think the significant thing, for the dollar and for gold Is that the dollar is in the process of putting in a very significant top The flip side of that is that gold will be putting in a significant bottom I think the catalyst for breakdowns for the dollar and breakouts in gold Will be some realization, some capitulation on the part of the markets And for the Fed to square perception with reality