September 29, 2011 § Leave a comment
A correspondent tasks me to explain a 4 percent costs increase prior to private health insurer’s “strong earnings”.
I am happy to inform all that premiums climbed 9 percent ie somewhat more than costs, hence my earlier reference to Matt Borsch whose keener concern was greater profits from those earnings. The price hikes with more limited cover – as, let’s be clear on this, americans went for Medicaid/Medicare instead of private insurers.. exercising choice if you will – amount to deliberately limiting supply in this game.
September 29, 2011 § Leave a comment
Which may be a nice way of saying what Matt Borsch@Goldman Sachs recently explained in relation to US private health insurer’s pow in back of Repugnants’ positions on so-called Obamacare (aka Affordable Care Act)..
To wit: that private insurers had been conservatively* pricing their premiums, and overshooting in this regard because no doubt about it most of their reports were “reflecting strong earnings”.
* aka supply-side code and resulting limited/controlled supply, thus – whole point of the exercise – higher prices.
Smile some may, tho SHOT ought be the order of the day!
Blogged about here since so seldom has the true definition of supplyside economics been stated. Yes, we know of demand, supply and knowledge economies (so-called). Unknown to many folks, however, is its origins in London for instance back around 1986. Whence the catchcry Big Bang was coined. To effect financial deregulation, rather than Fred Hoyle’s scientific issue.
Yes, kiwis had it earlier still, but being relatively small could get over the ’87 equity calamities somewhat quicker… move on. As risk averse professionals surely did.
Not to be distracted… DO GET THIS — managed economies in the neocon vision effected control over supply so as to set prices. That attained, absolutely in some cases, relatively in others, and financial deregulation emplaced, the price-setting order was to generate a whole new industry devoted to building and sustaining this end.
Therein the problem. Now writ large. And before us all.
Oh yes, even kiwis. For instance, web-based global milk powder market pricing would be renderable if but one dominant supplier were in the market. Which I understand to have been the case these past several years. And even if not one dominant but rather a very large potential market with limited supply…
Hopefully, not to be overlooked in the present debate on RNZ news or omitted from powers-that-be commentary.
Not finger-pointing, y’understand, merely explanatory..
Been some week, huh. Blacks played well agin the French and pool plays winding up has left breathing space.. tho several have suggested anti-climax.. next being a rebuild of sorts for the League players—for which the best of luck all round!
ps: another use of OVERSHOOT.. hey we could have started something 🙂
September 26, 2011 § Leave a comment
and they don’t need tunnels.. plus look at the width of THOSE ‘roads’.. and, according to my sender “Heathrow Airport in London has unveiled the future of public transportation with these new shuttle pods. Laser-guided and battery-operated, they go 25 mph and are said to be impossible to crash”
so there.. now how about here..?
September 23, 2011 § Leave a comment
I’d commented the other day at hottopic – to effect that Randy Wray@Levy Institute in the US and chair Prof at a Kansas campus and heavyweight hitter on long term commodities trading.
Quite expert he was in pointing to unexplainable deviations – standard-thru-factorial 4 or 5 (ie sometimes influencing values up to exceeding rare events) – on prices. What’s more the vastly greater incidence of such stuff in recent times. Pointing to more than market behavior… more likely human behavior… but oh such a sweet explanation… to wit, not hedgers and speculators pumping prices so much as ‘buy-and-hold’ dogma in actual practice on futures contract (eg. appreciated) methodology, which — and DO GET THIS — serves to lower prices in the supply-demand basic economics. Why so, or more to the point, so what! Answer: lower prices delivers those margins these operators are profiting from.
Growth, for makers, manufacturers, is a mirage.
Having read Wray’s doco myself I was left wandering well, could this lowering account for a seeming blindness by victims toward those who oft claim themselves as the hand that feeds them?
Then, tonight Chandran Nair of GIFT – h/t: ianfraser.org – with his clear HongKong perspective stepped up to say:—
With the end of colonies, we had the globalisation argument of economic growth and then the globalisation of finance.
When I speak about this in Europe, they say there has been 30 years of over-leverage, but I say they should multiply that by 10 and look at 300 years of essentially exploited growth.
What we need to recognise now is that the world is a very different place from what it was 100 years ago when we had one billion people. With a current population approaching seven billion, things will have to change.
A fundamental issue that the world will have to recognise, and which Western capitalism has conveniently ignored, is that the goods and services which companies and economies seem to thrive on are based on under-pricing resources and externalising costs.
That game is over and we need a fundamental restructuring – essentially about how people will live, and we need to move beyond simple notions about growth to more sophisticated, nuanced discussions about human progress.
Yes, granted, the ‘lost externalities’ argument has been around a while. From some. Though its presence now looks more tied to financialization than at any time previously.
Which had been my own pov in making constructive commentary at hottopic.
That said, let us hope that pertinent related contribs become less puzzled, frowned upon, or frenetically panicked by. In a couple o’ words: you’ll get over it!
Have a good weekend.. in French or Blacks entertainment.. me, I’m into Concert on Saturday night and the big boy boomers along with a promised intro tomorrow morning..
September 20, 2011 § Leave a comment
On the pharmaceuticals, see..
POLLACK @ NYT has the new grit (adaptive Obama) as opposed traditional POTUS endorsement of bigpharma’s patent driven commercial exclusivity.
Important, I sense, that kiwi commentators be aware of their seeming position on chemical-derived pharmaceuticals like Prozac, Lipitor… and biological protein drugs, referred to as “biosimilars” and made in living cells, like Herceptin, Humira.
For approx 10 years biological drugs have enjoyed no generic competition, overly high-priced developed world free market plays and, since President Bush’s uncosted part D extravagance post-2004, very significant taxpayer allocations per Medicare.
Patent-extension as mentioned by Mr Rosenberg on RNZ’s news bulletin this week relates largely to the former.. viz chemically manufactured products. Whose exclusivity is already longer termed than newer biotech products.(qv links)
Perhaps Mr. Jacobi(?.. NZ/US relations or similar) was alluding to americans need of cheaper products – imported generics being one such possibility tho likely placed behind US chemical generics. Thusly, already existent.
Also possible, however, is a perceived ‘biotech continuum’ insofar as INDIA/CHINA collaborations would make for useful import competition for the otherwise expensive biologic drugs. If so, naughty boy, since nothing could be further from the Obama administration pro-Am truth.
One might even say that so strong is this determination that declared US support for TPP relies in part on belief a possible end-run around WTO might otherwise come into play. BTW such countries displaying independent competitiveness is just cause for celebration!
Mention on the radio of the sooner ‘originator’ drugs enter the market suggests manufacturers – PhRMA and/or its agencies – are in push mode for biotech products – seeking their exclusivity and rewards asap.
Be that as it may, important is that kiwis sort pharmaceuticals into appropriate classes, making clear distinction between chemically-derived and biologically-derived products, recognise existent exclusivities around the globe and pressures upon them, and rather than have drug industry lobby determine NZ’s needs – (high prices could be very distorting and unfair in overall terms) – moderate to a better health overall objective rather than best-for-some pharmaceutical agenda.
September 16, 2011 § Leave a comment
mule-BODIED has gottabe the new I didn’t..
In its way, the case of this 20-yrs old Irish male national, reflects the method seemingly used by another traveller to NZ, detection likely arising from her mortality..
Desperation at work, I’d have to guess for why any sentient homo sapien would go this animal.
September 16, 2011 § Leave a comment
Meaning courage of one’s convictions, adding:
Such efforts make many uncomfortable, but the Steyer brothers (Tom is a Democrat, Jim is an independent) say the new center will be “fiercely” nonpartisan and work only to get the public to think and talk more about major issues in California and the country at large.
Billi-boys with an answer to others of the same set, tho seperate values.. and basically asking all folks to fight their publicly-minded corner.