The International Monetary Fund (IMF) is dictating the policies that are being implemented in Greece these days including: layoffs of government employees, garage sale of islands and whatever else is worth a dime, cuts in pensions, the minimum wage, the defense spending and finally… implementing ObamaCare.
OK. I admit, the IMF does not call it ObamaCare, but the health care ‘cost cutting’ measures in Greece have eerie resemblance with the ‘historical’ achievement of President Obama . The cost reduction in Greece will come mostly from less care for the seniors (ObamaCare cut $500 billion from Medicare). The IMF is sponsoring also transition to electronic medical records. Officially they are supposed to help eliminate unnecessary procedures. My guess, based on the IMF work in other places around the globe, is that the electronic records will facilitate the tracking of one’s contribution to health care (resembling the individual mandate in ObamaCare) and will make more efficient the collection of taxes related to medical care in the near future. The Greek health care reform pushes the use of generic drugs (which is cost cutting, but in the US it is already leading to shortage of life-saving drugs).
The IMF has a creepy record of pushing over the cliff and then saving countries using its ‘expert’ authority. The victims are usually corrupt and fiscally undisciplined countries that are not too big to fail and with GDP small enough for the IMF bureaucrats to feel important next to some prime minister with hard-to-pronounce-name. Until the European economic crisis the annual US contribution to the IMF budget was about the size of the Obama Stimulus slice for the US Department of Education. That unimportant! The IMF had the money to ruin and ‘save’ Greece or Egypt, but Spain, Italy and France are way bigger than the International ‘Monster’ Fund. Let’s be honest, those countries are as corrupt and indepted as Greece, only the IMF doesn’t have the money power to provide alternative to the status quo. When S&P downgraded the US credit rating the market decided there is no better alternative than the US Treasury. The IMF can bully the small and the weak, but is no match to the big national economies and the big banks, yet.
The scary part for EU and America is that IMF is growing its budget and growing it fast. The new, but still French, IMF Managing Director Christine Lagarde has already succeeded to secure additional $500 billion in landing power. It is still not enough to kick the bucket under Spain and France, but the woman is so determined that she is asking China, Russia and Saudi Arabia to fill the gap to $2 trillion, which is her dream target. If Lagarde can bundle that much cash, then some big European nations may join Greece on the wagon of misery forced by the IMF inspired economic shock therapy.
The possible growth of the IMF budget to $2trillion should not pass unnoticed.
The US is already implementing ObamaCare and the chances of repeal of the policy are as strong (or as weak) as the next Republican presidential nominee.
It is possible that the Washington DC elite would prefer to have President Obama for another four years while setting the rest of the Greek reforms in America: which translates in military cuts, Social Security cuts, federal and state workforce cuts, privatization of assets. After all, if the ObamaCare was named BushCare and was proposed by republican president, the protests would not be a-la-church-gathering- style, but more like Occupy DC bloodbath. About two thirds of the voters in America would support their R or D team and attack the other no matter what. So, to implement unpopular social reforms, the Washington DC career experts would prefer Democrat in the White House to keep the social unrest away from the streets. It is no coincidence that Bill Clinton reformed welfare and Barack Obama passed cuts in Medicare, health care rationing and taxation inspired by republicans like Mitt Romney, while Ronald Reagan gave America the earned income credit, free phones for the poor and amnesty for illegals. George Bush gave away drug benefits and was pushing immigration reform.
Judging by history, the almost $16 trillion US debt will require President Obama staying in office for four more years of ‘creative’ taxation and benefit cuts.
It doesn’t have to be that way, of course, but so far the team of inspiring superheroes that would bring prosperity instead of Greek tragedy to America is nowhere to be seen. We have Romney, Santorum, Gingrich and Paul instead. Bummer!