S&P Warns of Cuts; Another US Downgrade Coming?

[Javaman]

http://finance.yahoo.com/news/p-warns-cuts-another-us-153221895.html;_ylt=Atm0DQYbr.FvSzn.ba7F9EqiuYdG;_ylu=X3oDMTQ0MDJ2cG9tBG1pdANGaW5hbmNlIEZQIFRvcCBTdG9yeSBSaWdodARwa2cDODczMDIxNTYtOWFkZS0zYzg2LTg1ZmYtNzQ4MGVhYjRlZjk3BHBvcwMyBHNlYwN0b3Bfc3RvcnkEdmVyAzA1ZWU0YTgwLTRjMjEtMTFlMS04N2NmLTYzZGFlMzJkNDc1MQ--;_ylg=X3oDMTFvdnRqYzJoBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3

Concerns over the size of United States debt reared their head once again as ratings agency Standard & Poor's warned that health care costs for a number of highly-rated Group of 20 countries, including the U.S., could hurt growth prospects and harm their sovereign creditworthiness from the middle of this decade.

S&P downgraded the United States credit rating for the first time ever in August of last year.

"Governments' fiscal burdens will increase significantly over the coming decade, with the highest deterioration in public finances likely to occur in Europe and other advanced G-20 economies, such as Japan and the U.S.," S&P said in a statement on Tuesday.

Health care costs for a typical advanced economy will stand at 11.1 percent of gross domestic product by 2050, up from 6.3 percent of GDP in 2010, S&P said.

more at link...

[geckosfeet]

1. US has highest health care costs - possibly due to population size and insurance industry robbery.

http://www.reuters.com/article/2009/06/01/us-healthcare-costs-sb-idUSTRE5504Z320090601

The United States spends more on healthcare than any other country in the world but has higher rates of infant mortality, diabetes and other ills than many other developed countries.

This is one good reason to eliminate the insurance company stranglehold on the health care industry. They are killing us economically.

[leveymg]

2. US has 2 health care systems: a high-cost/private and a high-cost/low-care system for the poor

Note that high-cost is common to both because a private system that rations the supply of doctors, lacks cost-control measures, and charges Medicare private sector rates for reimbursement of cost of treating the poor will never be cost-effective. It's the worst of both systems.