I wonder if the US truly believes that implementing a national policy of uncontrollable spending in the name of social reform is going to help their plight.

With the US deficit skyrocketing and their investors, i.e. the rest of the world, balking at the level to which the US is spending their money, the arrogance they are displaying is unconscionable. With a last minute vote before the Christmas holiday, the ruling party in Washington, the Democratic Senate, passed a sweeping health care reform to fulfill President Obama’s vision of a health care entitlement for every citizen. The plan, expected to cost over one Trillion Dollars, is heavily flawed and will actually penalize Americans for not buying insurance. Now, I am not going to get into the finite details – outlined in the two thousand page document – but rather must focus on the cost.

In my quest to guide Forex traders towards responsible investments, I have spent the past year bringing the oxymoronic double-talk of many of the world’s leaders to the forefront. To me, the necessity of free and democratic governments to address their economic issues far outweighs the need they feel they have to make their citizens lives easier. The US economy was based on the John Locke brand of economics which states that every person has the right to “life, liberty and the pursuit of property.” It is the last one, property, that tells it all – it is the capitalistic creed – let the government protect its citizens, let the government manage international affairs of their nation, but let the citizens strive for economic excellence on their own.

Now, don’t mistake my fervent dialogue for lack of sympathy for those that cannot afford to see a doctor or buy medicine when they are ill, I have been there myself and I know it can be a struggle. I also know that the American system is designed to provide the best of care to those who can afford to pay for it, and I know that many of the uninsured are children as well as hard working middle class people who just simply cannot afford the high prices of insurance, again I have had to make that choice myself. But there are two points here that are essential to this argument.

The first is that as a result of the high costs, the US has become a global leader in health care innovation – enabling once painful procedures to be performed with minimal invasion, enabling once incurable diseases to be eradicated and enabling the most advanced medical technology to be developed. Take away the current system and you are left with nothing more than a typical socialized medical system that is there to serve the patients without the financial ability to innovate. Read about some of the horror stories of British and Canadian citizens and you will understand what I mean. With ten percent of the US population in need of coverage, there has to be a better way than increasing the national debt exponentially.

The second is that this is certainly not the time to champion such a project. With a twelve Trillion Dollar debt, many in Washington might think another Trillion is not that bad – but our creditors in China, Russia, India and Brazil have other opinions on the issue and have made no bones (no pun intended) about voicing it. This issue could have been resolved easily, at least on a temporary basis, by adding the 30 Million uninsured to the Medicare rosters until the economic woes the US is facing have subsided. Yes, this would have added to the debt, but far less than 1 Trillion – and it would have eliminated all of the additional spending that is included in the bill which is unrelated to health care reform.

What the Health Care Bill shows the world is that the US Congress runs like an Arabic Shuk (market) – in which if you want something from someone (in this case a vote of yes), you give something in return. Bartering with the US deficit and national debt is a dangerous thing; it is made worse when you do so at the expense of your great-great grandchildren. One needs to ask why 2,900 people in some small town in Montana are now eligible for extra services; or why the largest lobby representing the elderly, a group already covered health wise in the US scored a Billion Dollars; or why Doctors in five states will get a higher payout for providing care to government healthcare recipients than doctors in the rest of the country; or why tanning salons need to pay an extra 10% in tax; or why those making two hundred thousand Dollars or more need to pay an additional 5% tax – the answer is simple, this is the way the US Congress works. “If you vote for this bill, I will give you….” fill in the blank. This is the way it works – and the Pork as it is called is not going to hurt the citizens only, it will also hurt those that finance these projects – meaning, the rest of the world.

Something needs to be done, but unfortunately nothing can be at this time – Democracy at its best is what we see here. As Forex investors, we should all be weary of the value of the Dollar as I can assure you; it is not going up anytime soon. The “American Dream” in which anyone can reach the pinnacle of success is dying – replaced by something less inspiring, less motivating – mediocrity. “The king is dead! Lord help us all”