Posts filed under “Inflation”
"While growth in health-care spending is slowing, it will still far outpace the economy’s growth over the next 10 years, according to new federal projections.
By 2015, health spending will account for 20% of gross domestic product, up from 16% today. By that year, federal and state governments will be picking up almost half of the health-care tab. Growth in spending over the coming decade is projected to average 7.2% a year.
Rising incomes as well as higher prices for services are driving the trend, according to actuaries and economists at the federal Centers for Medicare and Medicaid Services who compiled the projections. Aging baby boomers, they found, will have a relatively minor, though increasing, effect on health spending in the next decade."
I guess this means we need to move health care out of the core, in order to maintain that low core inflation data . . .
Health Spending Likely to Outpace Economy’s Growth
WSJ, February 22, 2006; Page A6
Health Spending Projections Through 2015: Changes On The Horizon
Christine Borger, Sheila Smith, Christopher Truffer, Sean Keehan, Andrea Sisko, John Poisal, M. Kent Clemens
Health Affairs, February 22, 2006
This is the article that the Greenspan quote came from that popped the market today; I don’t know how accurate it is (holographic image?) but
Gold price riding high on fear of terrorism, says Greenspan
Leo Lewis, Tokyo
February 09, 2006
"ALAN Greenspan, who stepped
down last week as chairman of the US Federal Reserve after 18 1/2 years, has
blamed the threat of terrorism for the high gold price, in his first private
sector speech since being let off the leash of officialdom.
members of his audience of international investors – watching a holographic
image in Tokyo as he spoke in New York – Greenspan said the high cost of gold
did not reflect inflation or the strength of commodities, but rather a fear
among investors of a major geopolitical conflict. There were people who believed
that a nuclear weapon could be detonated within five years, the former American
central bank supremo said.
The low probability of such an event occurring would not necessarily avert a
spike in the gold price, he added.
Greenspan went on to discuss a range of topics, including the problems
created by a lack of investment in refining capacity by the oil industry. He
said this failure by the oil majors meant that the era of cheap energy was
almost surely over.
The former Fed chairman is also said to have indulged in a moment of
self-criticism over the central bank’s failure to prevent the market bubble in
the late 1990s.
That may explain Gold’s $20 whackage yesterday, but what about all the rest of the metals and commodities?
Also, if you missed this, you MUST read it:
GREENSPAN SENDS MIXED SIGNALS IN FIRST DAY AT HOME
Former Fed Chief’s Inscrutable Statements Baffle Wife
Its a hoot!
and on the chance the article disappears, I’ll archive it after the jump . . .