Oil and Election Year Politics

As oil continues to hit record levels, politicians are rushing to come up with gimmicky quick fixes in an effort to pander to voters. Today’s Wall Street Journal highlights proposals being considered by Congress.

Put OPEC in the Hot Seat: The Senate Judiciary Committee will hold a hearing on high gas prices later this month and have requested that OPEC’s secretary-general, Abdalla Salem El-Badri testify. This will be nothing more than a dog and pony show even without the OPEC minister. As I have previously written about oil supplies and Saudi oil production, it is not in OPEC’s best interest to have oil prices at these levels. If the cartel could increase production, they would. (The Journal reports that Senators are promoting legislation that would allow OPEC members to be sued under antitrust laws. Litigation to get oil – it’s the American way!)

Allow drilling in parts of the US currently off-limits: President Bush and several GOP Senators continue to support an idea that has passed its expiration date. We should have started drilling all over the US and off the coast years ago with the hope that just the thought of it alone would have created a groundswell of support for Americans to conserve energy and demand viable alternative sources. It’s the whole NIMBY argument; who cares about the environment of other countries – as long as we can’t see it.

“Guns for Oil”: That’s the name of today’s Wall Street Journal editorial pointing out the hypocrisy of Sens. Schumer, Dorgan, Sanders, and Casey’s participation in a letter to President Bush demanding the Administration tell OPEC nations to forget about getting more US weapons unless we get more oil. The Journal rightly points out that these are the same Senators who voted against US drilling and have made no effort to get people to conserve. I give the Senator from New York (Schumer) the hypocrisy bonus prize. Thousands of his constituents lost their lives and were injured in the 9/11 attacks by terrorists who were mostly from Saudi Arabia. To sell weaponry to dictatorships such as Saudi Arabia is pathetic enough, but resorting to bribery shows how out of control Washington has become.

Reinstate the Windfall Profits Tax on Oil Companies: Senator Clinton is the most vocal proponent of reinstating the tax initiated in the Carter Administration to pay for a Summer suspension of the gas tax. (The Windfall Profits Tax was repealed during the Reagan Administration.) A 2006 CBO analysis said the tax brought in $80 billion vs. a projected $393 billion, and concluded it “made the US more dependent on foreign oil.”

Halt Buildup of the Strategic Petroleum Reserve: According to the Journal, the Reserve currently has 701.3 million barrels, with a capacity for 727 million barrels. The White House would like to add 70,000 barrels a day to ultimately have a stockpile of 1.5 billion barrels. The EIA estimates the cost to stockpile works out to be about 4-5 cents a gallon; some members of Congress estimate it adds up to 24 cents a gallon to fuel prices. Senator McCain and at least a dozen other Senators are in favor of halting the buildup, but this warmonger Administration must believe a big supply disruption is likely to occur in the near future.

Raise Oil Trading Margin Requirements: Collateral requirements for oil trading are determined by the different exchanges (some require as little as 5% of a contract’s value). Senator Dorgan has proposed raising the margin requirement by at least 25% in an effort to lower some of the speculation priced into the cost of crude. Fine, but the Federal Reserve raising interest rates would have a greater impact on reducing speculation’s effect on crude prices.

As the Journal points out, “Making Americans consume less is an idea largely missing from the debate.” Politicians saw how far President Carter got with that one Saturn cycle ago and are afraid to speak the truth and make the difficult decisions. There is a good chance that the American people are more ready to conserve energy now than the politicians believe.

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The Fed Returns to Price Stability?

Today’s Wall Street Journal features an op-ed piece by Rep. Paul D. Ryan of Wisconsin (“Blame Congress for Inflation”). Ryan is referring to the Full Employment & Balanced Growth Act that Congress passed and President Carter signed on October 27, 1978. The Act, also known as Humphrey Hawkins, mandates the Federal Reserve take on the dual role of balancing price stability and maximum employment.

Rep. Ryan intends to introduce the Price Stability Act of 2008 that would rewrite the Act to return the Fed’s focus to its original purpose – price stability. I wrote about the horoscope of the Act in a post about the Fed last year, stating the only thing that would grow from the 1978 Act is consumer debt and benefits to the “ruling class.” Paul Volcker became Fed Chairman the following year, ignoring the dual mandate in order to tame inflation. Volcker was smart enough to realize you cannot have a sound economy (and therefore maximum employment), unless you have price stability. Unfortunately, Greenspan and Bernanke chose to ignore the price stability side in favor of building bubbles, concerned with deflation’s effect on growth. (There’s nothing in the Act that talks about deflation being a problem!)

The reasons Rep. Ryan cites in favor of rewriting the Act are ones very familiar to Wall Street Weather readers: stable prices to keep inflation in check, a real strong dollar policy, and encouraging people to save. Price stability prevents interest rates from being jerked all over the spectrum, and the ensuing anxiety it creates for households and Main Street businesses to make long-term plans.

As Rep. Ryan writes: “There is no sign that Congress will change its tune on fiscal affairs – but passing the Price Stability Act is a chance at a bipartisan commitment to sound money. By refocusing the Federal Reserve’s legal mandate, Congress can strengthen the economy and do so without incurring any cost to the budget or increasing the deficit.”

I have already written that the transit of Pluto in Capricorn will bring major transformation to the purpose of the Federal Reserve. The Full Employment & Balanced Growth Act will experience its first Saturn return on August 27, 2008. A Saturn return occurs about every 28.5 years of an individual or entity’s life. This can be a time of testing and learning lessons. Saturn in Virgo is conjoined with the Moon in the Act’s horoscope. It is time for government legislation (Saturn) to restructure the Act to benefit the American people (Moon).

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Democrats: Party On!

Today’s Financial Times has an interview with Democratic Party chairman Howard Dean who says “the party’s superdelegates have every right to overturn the popular vote and choose the candidate they believe would be best equipped to defeat John McCain in a general election.” Dean then backs off and says that would be “unlikely”, but goes on to say the Democratic nominee really needs to be decided by the end of June because it would take at least two months for the supporters of the losing candidate to get over their ‘grieving’ and unite behind the winner before the convention begins on August 25. In the interview, Dean says Speaker Pelosi and Senate Majority Leader Reid agreed with him on the end of June deadline.

I have never enjoyed political party politics. A registered Republican until 2003, I switched to Independent to accurately reflect my political views. But that wouldn’t give me a vote in the state’s primary election, so I switched to Democrat.

And it turns out (so far anyway), my primary vote didn’t count in the Democratic Party’s mind. This is the same party who wailed in 2000 that their votes didn’t count when Al Gore won the popular vote and the Supreme Court determined the election in favor of George Bush. Does the Democratic Party want to continue to show their hypocrisy by not allowing every primary voter to have their say? Or is the message the party stalwarts know what’s best for us?

Beyond the voters’ voice, what is wrong with the candidates continuing right up to the convention? The party couldn’t buy this much media publicity! (Speaking of the media, the cable news networks haven’t had this much fun since OJ.)

Spare me the party unity; it’s all about party politics. If the Democratic Party is truly committed to the belief that every vote counts, it will let the popular vote select the candidate. And that includes all those votes in Florida and Michigan. Why should the voters be silenced in these states just because their state leaders didn’t kowtow to the party Pooh-Bahs?

As far as Dean’s “time of mourning”, he is so entrenched in party politics that he has lost track of how politically far apart Senators Clinton and Obama are from Senator McCain. Whether the loser is Clinton or Obama, their supporters will not need to think for one second about whether to vote for the Democratic nominee or Senator McCain on November 4.

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The Energies of Earth Day

While much has changed since Earth Day was founded, unfortunately much has remained the same. The US is once again engaged in war, people still drive gas guzzling vehicles, and waste far too much of the Earth’s resources.

Earth Day was born out of the 1960s planetary alignment of Uranus (awakening/revolutionary change) and Pluto (toxic conditions/transformation) in Virgo, an earth sign that relates to health and daily living. Unless a major effort was begun quickly to begin to clean up the planet, it would eventually become impossible for humans and most species to survive.

Before there was Al Gore, there was Senator Gaylord Nelson, who had the idea to bring groups of people together to form a nationwide “environmental teach-in” to raise awareness and take action to clean up environmental pollution. Senator Nelson was born with his Sun (self-identity) and Mercury (communication) conjoined in Gemini, the sign of learning. Gemini and its planetary ruler Mercury, represent the local environment. With most of his birth planets in the air and water elements, Senator Nelson was concerned about pollution affecting the air we breathe (Gemini rules the lungs), and the water we drink. With his Mars in Virgo – the only earth element in his chart – Senator Nelson activated a movement that by cleaning up the Earth we improve the quality of our lives.

The first “teach-in” that became Earth Day was established on April 22, 1970. Many localities were celebrating Arbor Day on April 22 which is the birthday of its founder, Julius Sterling Morton. On April 22 each year the Sun (our energy and life force), has just entered Taurus, the first earth sign. Ruled by Venus, Taurus represents the beauty of the Earth in its full-flowered glory of Spring.

During the first Earth Day in 1970, Saturn conjoined the Sun in Taurus. This reflected the serious need for government intervention (Saturn) to protect the environment. Industries were freely polluting the ground, the air and dumping large amounts of toxic waste (Jupiter in Scorpio) into the water. By mid 1969, the Cuyahoga River in Ohio was so toxic from various pollutants that it caught fire. The EPA was established later that year, and over the years other Acts were passed by Congress to clean up and protect various facets of the environment.

In 1990, Earth Day became an international environmental event. Despite this, the years from then to now reflect a retreat backwards. Ask a person if they care about conservation and protecting the environment, and they’ll say “yes”. Ask them to outline what sacrifices they’re willing to make and they’ll begin to stammer and depart in their SUV back to their McMansion. Successive administrations and Congress have lost their enthusiasm as well. For many politicians, Earth Day has become a photo op. You know there’s a problem when my seven year old midsize car gets better gas mileage than an equal sized 2008 model. It’s okay if China and other “emerging markets” pollute so long as we get cheap goods. (Think of the toxic toys and medications as a form of karmic payback.) The wealthy can continue to indulge and use carbon offsets to alleviate their guilt.

Denis Hayes, the Harvard graduate student Senator Nelson asked to organize the first Earth Day, said in a recent interview: “We need to mobilize people to view environmental issues as being in their best interests. But with the economy and the war, it’s hard to get people’s attention.” The planetary energies now and into the future show that it is those very issues that will force people back into conservation and caring for our planet.

Earth Day 2008 features a grand earth trine that looks just like the peace symbol of the Sun in Taurus to Saturn in Virgo and Pluto in Capricorn. This reflects a “back to basics” approach to the environment born out of economic necessity. The public can no longer afford to waste energy and resources as they’ve become too expensive. Venus in Aries shows that change must start with each individual in their personal life. An alignment between Venus in Aries to Mars in Cancer and Jupiter in Capricorn looks like a T (for tension) in the chart. With these planets in action-oriented (cardinal) signs, it shows that initiatives must begin in the home. By consuming less processed food and drink, we cleanse our bodies and the planet of harmful toxins. Positive changes will have a bigger impact than people realize, and corporations and government will have to adapt. The federal deficit has exploded through waging war to acquire more fossil fuel, when the money could have been spent on new and cleaner sources of energy and infrastructures that support more efficient energy usage.

The space program of the 1960s served as a catalyst to protect the planet when the world saw the first pictures of Earth from space. We all share one home, and if it is destroyed it cannot be rebuilt.

Sen. Gaylord Nelson: June 4, 1916 in Clear Lake, Wisconsin. Died July 3, 2005.
Julius Sterling Morton: April 22, 1832 Adams, New York. Died April 27, 1902 in Lake Forest, Illinois. (NOTE: In 1970, President Nixon declared Arbor Day the last Friday in April.)

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Are Home Builders Extorting Congress?

Senate leaders agreed on a $15 billion bipartisan plan yesterday that does more to aid home builders than home owners.

The most expensive housing provision is a tax relief measure that would cost $6.1 billion over 10 years. Under current tax rules the “carry back” provision allows builders and other companies to apply current losses to taxes paid two years ago. Yesterday’s bill would extend the carry back provision to four years, allowing companies to offset the taxes they paid during their most profitable years.

After this provision was dropped from February’s economic stimulus package, the political action committee of the National Association of Home Builders stopped donating to Congressional candidates. (According to The Wall Street Journal, the Association denies its decision to drop donations is related to specific legislation.)

Builders claim that without the provision extension, they will have to continue selling land at a deep discount, which will further erode overall housing values and create more foreclosures. But builders and banks don’t like to talk about all the money they made during the boom years. These companies should have saved the profits they made during the good times instead of engaging in continuous stock buybacks along with big bonuses that continue to enrich their top executives to this day. The American people, already overburdened from high taxes and the ravages of inflation, should not be forced to provide financial aid to some of the very companies that enabled this crisis to occur in the first place.

The home builder stocks continue to rise on the basis that Congress and the Federal Reserve will take proactive steps to keep housing values propped up. I will begin looking for cheap out of the money long term Puts to purchase, a strategy that was successful the first time the builders stocks fell.

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Eliot Spitzer resigns as New York Governor

BREAKING NEWS! At 11:43 AM EDT this morning, New York Governor Eliot Spitzer announced his resignation as the Governor of New York, effective March 17, 2008. In a post analyzing Spitzer written on March 10, I wrote that “Mars in Cancer will exactly oppose Spitzer’s Saturn on March 17, indicating that his actions are not outside the boundaries of Law and Order.”

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Eliot Spitzer’s Shocking Secret Exposed

The New York Times reported today that Eliot Spitzer, the Governor of New York, was “Client-9” of an upscale prostitution ring, busted on March 6 by the Federal District Court in Manhattan. The Governor, accompanied by his wife Silda, issued a statement “to briefly address a private matter.” Various media outlets are reporting that he is expected to resign.

The March 7 Pisces New Moon conjoining Uranus (shocks/surprises), challenged Spitzer’s natal Sun in Gemini (self-identity/career). Spitzer was born with the planets of love (Venus) and sexual desire (Mars) conjoined in attention seeking Leo. Spitzer probably enjoys trysting in lavish surroundings, such as the alleged rendezvous with the prostitute at the Mayflower Hotel in D.C. on February 13. Love doesn’t come cheap with this planetary alignment. According to the affidavit, Client- 9 paid $4,300 for an appointment that ended at 12:02 AM on Valentine’s Day. With Venus and Mars challenging Spitzer’s Neptune in Scorpio, no sexual drama could be complete without engaging in something that is considered taboo, such as prostitution. People with Venus/Mars squaring Neptune can have a tendency to engage in clandestine affairs. The February 20 Lunar Eclipse exactly conjoined Spitzer’s Pluto, representing secret sexual activities. With his progressed* Sun in Leo is conjoining his Mars, his ego likely became more driven in engaging in these type of liaisons.

Mercury, the ruler of Spitzer’s Gemini Sun, is also in Gemini. It opposes his Saturn in Capricorn. Before he became governor last year, Spitzer was the New York Attorney General, getting lots of press for attacking the highest analysts and executives on Wall Street. During those years, CNBC would show footage of Spitzer walking down the street with the theme to the TV show “Law and Order” playing in the background. The morning after the tryst, Spitzer told the House Financial Services Committee that a “financial tsunami” would ensue throughout the economy if something wasn’t done to fix the problems of the bond insurers to save their triple-A credit ratings.

The First Quarter Moon on March 14 will highlight Spitzer’s Mercury, likely revealing more details. Mars in Cancer will exactly oppose Spitzer’s Saturn on March 17, indicating that his actions are not outside the boundaries of Law and Order. Transiting Saturn in Virgo will conjoin his natal Pluto on April 19, exposing more secrets and possible criminal charges. The New York Times is reporting that although clients of prostitutes are usually not charged, the 1910 Mann Act prohibits transporting a person across state lines for the purpose of prostitution. (“Kristen” was alleged to have traveled from New York to D.C. for the tryst.)

Eliot Spitzer is yet another example of a leader engaging in hypocritical behavior. Several people on Wall Street are likely celebrating tonight.

*A mathematical method of prediction that calculates the birth planets forward in time.

Eliot Spitzer: June 10, 1959 time unknown Bronx, New York

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The I.R.S. vs. Politics from the Pulpit

Today’s Wall Street Journal features a front page story reporting that “Obama Pastors’ Sermons May Violate Tax Laws.” According to IRS rules, “churches are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.”

The Journal reports that “Since Congress amended the tax law in 1954 to restrict campaign activity by nonprofits, only two churches have had their tax-exemptions revoked, according to the IRS.” Why such a low amount in the face of blatant politicking by both political parties? Because Jupiter, the planetary energy that rules political propaganda rules religion as well.

With Sagittarius rising,* the USA is a Jupiter-ruled nation. This is why religion plays a greater role in American life and politics than it does for its European allies. Further reinforcing the prominence of religion in America is the fact that the Sun, the nation’s self-identity, rules the ninth of house of religion in the USA horoscope. The USA’s Sun in Cancer conjoins with Jupiter and Venus. Americans get very emotionally charged about politics and religion, to the point of a fevered frenzy. Venus, the planet of financial and ethical values, shows houses of worship to be valuable sources of money and influence for politicians and political parties. Mercury, the planet of communication, co-rules the ninth house, and Neptune in Virgo is the only planet occupying this house. Neptune rules beliefs, hope and idealism, and dreams. This is why all politicians use the phrase, “the American dream” to stir the public. The phrase is most used in reference to home ownership, as Cancer rules real estate. With Neptune challenging the USA Mars, beliefs have become a battle cry to rally the faithful. Cancer rules the Moon, and the USA’s Moon is in independent, free to believe what you want, Aquarius, found in the third house of communications.

Taxes and the IRS are ruled by Pluto. The transit of Pluto in the religious sign of Sagittarius (1995-2008), saw the rise of political issues interjected into worship services, along with the rise of the IRS reviewing violation complaints. This period saw the rise of the mega churches with their for profit offshoots that have occasionally been found to be entwined with the congregation’s religious activities.

*The rising sign is the sign on the first house cusp (ascendant) of the horoscope. In a nation’s chart, the first house represents the people of a nation, the nation’s physical appearance, and the initial impression the nation presents to the world.

USA: July 4, 1776 5:10 PM LMT Philadelphia, Pennsylvania

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President Bush: Iraq war boosts U.S. economy

Yesterday President Bush chalked up another reason to justify the war in Iraq: it helps the U.S. economy. In fact, the President believes fighting in Iraq has “cushioned the blow of the subprime mortgage crisis”, according to an article in today’s Financial Times. The President said the Iraq war helps “because we’re buying equipment and people are working.”

In essence, America must wage war and go shopping in order to keep the economy going. For all the money wasted on war and a stimulus package that won’t solve anything, America could have:

• Universal healthcare coverage for every American through the same plan covering Congress and the President.
• Repair and expand the nation’s bridges and roads.
• Increase the capacity and reliability of the nation’s electrical grid.
• Repair and replace the nation’s aging water, sewer, and flood control systems.

These economic programs would improve America’s competitiveness and build long lasting assets. President Bush’s “war economics” not only cause our citizens to lose their lives, but have no lasting benefit.

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Surprise! Your Brain Needs Cholesterol

“This drug makes women stupid.” – Dr. Orli Etingin, vice chairman of medicine at New York Presbyterian Hospital, commenting on Lipitor at a recent luncheon discussion on women and the brain.

Remember the government’s commercials showing a fried egg with the voice over stating, “This is your brain on drugs”? The ad was referring to illegal drugs, but apparently your brain can achieve the same effect if you take any of the legally prescribed drugs the FDA has approved to lower cholesterol. According to an article in today’s Wall Street Journal, your brain needs cholesterol to fully function: “The brain is largely cholesterol, much of it in the myelin sheaths that insulate nerve cells and in the synapses that transmit nerve impulses. Some doctors theorize that lowering cholesterol could slow the connections that facilitate thought and memory. Statins may also lead to the formation of abnormal proteins seen in the brains of Alzheimer’s patients.”

The Journal article also cites that “cognitive effects (fuzzy thinking and memory loss) are the second most common problem, after muscle aches, reported by patients to the Statin Effect Study at the University of California, San Diego.”

How come Lipitor’spitchman Dr. Robert Jarvik doesn’t tell you that? Could it be that most senior citizens are not suffering from Alzheimer’s – that their statin is causing their memory loss? As big pharma keeps pushing for ever lower cholesterol numbers, younger people on the drugs will fear they’re losing their mind.

How do patients and medical professionals know statins are causing “cognitive effects”? The Journal quotes Gayatri Devi, an associate professor of neurology and psychiatry at New York University School of Medicine. Dr. Devi says “the changes started to occur within six weeks of starting the statin, and the cognitive abilities returned very quickly when they went off” (the statin). Other studies and patients quoted in the article cite the same results.

Of course big pharma and many cardiologists will give the usual “the benefits outweigh the risks” argument for taking statins. Consumers shoud consider that:

• Most of the staunchest advocates for statins have ties to the pharmaceutical industry in some form or another. For example, the Journal article quotes the past president of the American Heart Association, and states that “Dr. Gotto has consulted for most of the statin makers and has been involved in many of the trials.”
• A study of the drug Vytorin found that plaque actually grew faster in patients taking Vytorin (a combination of Zetia and Zocor) than Zocor alone!
• There is a growing debate among some doctors and scientists that lower cholesterol does not decrease the risk of heart disease or heart attack, particularly in people who have no other risk factors beyond high cholesterol.
• Several members of Congress are investigating the effectiveness of the drugs and with big pharma’s marketing of them.

Consumers need to keep these things in mind (no pun intended) when stacking up the growing list of risk factors to their personal situation.

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John McCain’s Never Ending Battle

Last night’s Super Tuesday primaries have elevated John McCain to front runner status for the Republican Party’s presidential nomination. Despite an ever growing number of Americans wanting to end the war in Iraq, McCain openly advocates keeping U.S. troops there for at least the next one hundred years.

So why has McCain soared to the top of the Republican race? The answers may be found in looking at his chart and how it aligns with the USA.*

John McCain was born on August 29, 1936 in CocoSolo Panama at 9:00 AM, according to Mama McCain. McCain’s Sun is in Virgo and harmonizes with Uranus in Taurus. Virgo relates to service, such as serving in the armed forces. McCain has the Sun in the eleventh house of his horoscope. McCain peppers his speeches with “my friends”, which is one of the areas of life the eleventh house rules. As the natural planetary ruler of the eleventh house, Uranus represents acting independently. Supporters admire McCain for crossing party lines on many issues over the years. The eleventh house represents legislative bodies. Aside from his military service, McCain has spent his entire career in Congress.

McCain’s Mars (military/war) is in Leo, the sign of leadership. Leo rules the Sun, and this ties back to the heart of who John McCain is and his life’s work. McCain’s Mars harmonizes with Jupiter in Sagittarius. Not only does McCain want to win the war in Iraq, but he would probably favor expanding the U.S. military’s presence abroad. Mars energy can become angry and irritable. McCain’s Mars is in conflict with his independent and unpredictable Uranus, resulting in him losing his temper – mostly at fellow Republicans. Supporters are willing to overlook that, admiring his “straight talk” of Mercury in Libra, a sign ruled by Venus.

As the ruler of his horoscope, Venus helps McCain keep his temper under the surface. In debates, McCain will sort of smirk/smile when he disagrees with the views of the other candidates. His skin will turn to a reddish hue and his facial muscles will slightly twitch with annoyance, as he uses all his willpower to keep his temper in check.

Venus is the planet of attraction, and it is McCain’s Venus that exactly aligns with the USA’s Neptune in Virgo. Neptune rules dreams and idealism; it squares the USA’s Mars in Gemini. McCain is idolized by many for his heroism during the Vietnam War.

Venus rules financial matters – clearly not McCain’s strong suit. McCain has admitted in debate after debate that other people would have to do the economic math for him if he is wins the White House. When asked during a CNBC debate last October if he thought the Federal Reserve did the right thing by lowering interest rates, McCain said: “I don’t have that kind of expertise to know whether he (Bernanke) has or not. I wish interest rates were 0.”

McCain’s Moon in Capricorn conjoins the USA Pluto (in the second house of the economy), and his Pluto in Cancer opposes it. This further reinforces his core focus on diverting as much as possible of the nation’s budget for national security issues. He would probably have more “black box budgets” than any other President in history, and he would probably make every attempt to further erode civil liberties for the sake of security.

John McCain has said time and time again that “The issue of the twenty-first century is radical Islamic extremists.” That is the politics of yesterday. The planetary trends of the next several years call for peace and rebuilding the world from within our own borders.

*USA: July 4, 1776 5:10 PM Philadelphia, Pennsylvania

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The Treasury Secretary’s Real Message

“The U.S. economy is experiencing a significant housing correction. This correction was inevitable after years of unsustainable home price appreciation, and it is exacting a penalty to our economic growth.” – Treasury Secretary Hank Paulson on Short-Term Growth Package

During the Treasury Secretary’s news conference Q&A, he added: “This market needs to correct. We’ve had unsustainable growth for quite some time.”

Journalists were so focused trying to get specific stimulus details that they completely ignored Paulson’s underlying message: the housing market will not pick up until prices drop to the level the majority can afford with conventional mortgages. No type of economic stimulus would be able to sustain current bubble-level housing prices.

In this important election year politicians have the urge “to do something”. Even if a bipartisan package is agreed upon and Americans received checks before November 4, inflation has washed away their purchasing power that they may not make it to the mall.

Treasury Secretary Paulson Statement at News Conference

President Bush Discusses Economy, Growth Package

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Healthy Stimulus

There’s one kind of economic stimulus that would be far more beneficial to Americans than a small check in the mail – universal health insurance.

According to a recent Washington Post/ABC News poll, health care costs are the number one economic issue facing American families. Universal healthcare as a fiscal stimulus would provide the following benefits:

• A healthier population saves money. Many people want to purchase insurance but cannot obtain it at any price. Others cannot afford the premiums. Many people with health insurance today are on high deductible plans. In all three scenarios, people tend to wait until their medical condition becomes intolerable before seeking treatment. If every American had guaranteed issue health insurance where the entire population came under community rating, affordable coverage and medical care costs would allow people to obtain care before a problem became catastrophically expensive.
• The power of numbers. Requiring every American to have health insurance brings costs down through volume. Insurance companies have often said they do not object to universal coverage that includes everyone because it spreads the risk over a large enough population.
• If it’s good enough for Congress… Universal coverage does not have to mean a single payer system. The Federal Employees Health Benefits Program or Medicare could be opened to all Americans. Americans would select an insurance provider. Any American not satisfied with the universal plan would still be able to purchase supplemental coverage (just as Medicare beneficiaries do).

Still not convinced? Consider:

• Peace of mind= greater productivity. When people don’t have to worry about how they’ll meet their medical needs, they can free their minds to be more productive, thus strengthening the economy. Many people stay in jobs they despise solely for health insurance.
• Less bankruptcies = greater prosperity. Nearly half of personal bankruptcies in the U.S. are due to medical costs.
• U.S. companies will become more competitive. Since all the industrialized nations provide universal healthcare, U.S. companies are at a cost disadvantage in the global marketplace.

Most forecasters have estimated that Hillary Clinton’s healthcare plan would cost around $110 billion. The various “stimulus” packages currently circulating would cost between $100-150 billion. The American people deserve government spending that is truly meaningful. Opening up the government’s healthcare program to all Americans now would do just that.

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Cholesterol Combo Con Job

“Millions of patients may be taking a drug that has no benefits for them, raising their risk of heart attacks and exposing them to potential side effects. Physicians should now stop using Zetia or Vytorin as a primary therapy for patients with high cholesterol.” – Dr. Steven E. Nissen, chairman of cardiovascular medicine at the Cleveland Clinic.

Yesterday Merck (MRK) and Schering-Plough (SGP) announced that their jointly marketed drug, Vytorin, a one pill statin combining SGP’s Zetia with MRK’s Zocor (now available as a generic), failed to show any medical benefits. In fact, plaque actually grew faster in Vytorin patients than those taking Zocor alone! These are the findings from the Enhance study trial that MRK and SGP completed in April 2006, but withheld despite numerous requests from the House Committee of Energy & Commerce.

When Dr. Nissen talks, the Street better pay attention. Despite Dr. Nissen being the big kahuna of all things cardiovascular, Wall Street is standing by their statin. Yesterday analysts at Bank of America (BAC) and Morgan Stanley (MS) reaffirmed their ratings on Schering Plough (SGP). Goldman’s James Kelly reaffirmed his Buy rating, calling the Enhance study results a “nonevent”.

One wonders how much analysis is actually behind the ratings. A consumer would have to be living in a cave not to have heard the news. Even with enticements from MRK and SGP, will doctors still prescribe Zetia and Vytorin? Will patients still be willing to pay up to swallow a pill they know will harm them, AND pay more for the “privilege”? At this point, why would insurance companies keep Zetia and Vytorin on their formularies? The drugs will probably be dropped from the British government’s formulary since their policy is to only pay for performance.

The biggest factor against Vytorin and Zetia’s $5 billion a year (and comprising about 70% of SGP earnings) gravy train is the FDA. Wall Street knows the FDA tends to favor big pharma; otherwise it would have forced MRK and SGP to immediately withdraw the drugs from the market. Congress is continuing to investigate, raising the possibility that Dr. Nissen might be called to testify. At that point, Wall Street may need to readjust their ratings.

RELATED POST: “Lipitor’s Limits”

New York Times: “Study Reveals Doubt on Drug for Cholesterol”

Yahoo! Finance: “Schering Shares Fall on Vytorin Study”

Wall Street Journal: “Study Deals Setback to Cholesterol Drug”

USA Today: “Cholesterol-lowering drug Vytorin comes up short vs. statin in study”

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Change We Should Understand Before Believing In

In the television series The X-Files, FBI agent Fox Mulder (David Duchovny) had a poster hanging in his office of a UFO with the caption “I Want to Believe” above it. It’s apparent that many people want to believe in Senator Barack Obama for President of the United States.

I’m not in any way implying that Obama believes or has a position on unidentified flying objects, but the question arises that as a presidential candidate espousing “change we can believe in”, I would like the Senator to elaborate on exactly what kind of change he wants and more importantly, what his timeframe for delivering that change would be. Without this information, the only way I can gain insight into Obama is astrologically. Barack Obama was born August 4, 1961 in Honolulu, Hawaii. Until a definitive birth time is obtained, I can only look at his planetary aspects which do show his popularity at this time.

One of the first things I like to look at is the planetary connections a presidential candidate has to the USA horoscope. Immediately you see why Obama’s campaign theme is about change, belief, and hope. Obama’s Mars (where he puts his energy and efforts) is in Virgo, exactly aligned with the USA Neptune. Neptune rules beliefs, hope, and idealism. In Virgo, it relates to the hopes and aspirations of the “workers”. Obama’s Uranus in Leo opposes the USA Moon in Aquarius (the signed ruled by Uranus). Uranus is the planet of change and revolution. The Moon represents the nation’s people in a country’s chart. The American people have an independent spirit, so Obama’s call for change resonates. The final strong connection Obama has to the USA chart hasn’t really surfaced, aside from Warren Buffett’s support. Obama’s Saturn conjoins the USA Pluto in Capricorn. Pluto in the financial second house of the USA horoscope represents the small number of wealthy Americans who exert their influence over the nation’s economy (plutocracy). If elected, Obama may express his Saturn by limiting the plutocracy’s influence through imposing higher taxes and governmental restrictions on them. Or he could express this energy through limited restrictions that do little to change the status quo of business as usual in Washington. An example of this occurred at Saturday’s debate in New Hampshire. Obama said he pushed through legislation restricting lobbyists from buying meals for members of Congress. Moderator Charles Gibson reminded him that lobbyists can still buy meals providing everyone eats and drinks standing up.

Obama was born with the Sun in Leo. The Sun is in its “home” sign here. Just as the Earth revolves around the Sun, people with the Sun in Leo enjoy being the center of attention and taking a leadership role. Ironically, Bill Clinton was the last president with the Sun in Leo. He portrayed himself as the candidate of change as his Uranus conjoined the USA Mars (action). Leo is the proud lion, and physically Obama expresses this with his chin held high. Obama would attract even more support if he expressed the wit and charisma Leos are most loved for. Many times his body language and tone comes across as arrogant. Obama’s theme of believing in hope is expressed in his birth pattern through his Sun challenging Neptune in Scorpio. Neptune energy is hard to define in concrete terms as it is more visionary.

Supporters have compared Obama to JFK. The candidate himself has compared his idealism to Kennedy’s. Obama was born when JFK was President, so people born at that time contain the spirit of that time within them. In an interview yesterday with Diane Sawyer, Obama referenced JFK’s goal to put a man on the Moon within 10 years. His point was that JFK’s vision seemed highly unrealistic at the time, yet it happened.

I would like Obama to be like John F. Kennedy and tell America specifically what change he believes in and when he would accomplish it. I shouldn’t have to do what Michael at Click Broker did. On his blog he describes how he had to register at Obama’s website in order to learn Obama’s positions. Obama courts the youth vote, but if he wants to win, he’s going to have to expand his base and gain the vote of older Americans. As incredible as it may seem to young people, many older Americans are not on the internet.

USA: July 4, 1776 5:10 PM Philadelphia, Pennsylvania
Bill Clinton: August 19, 1946 8:51 AM Hope, Arkansas

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Wall Street’s White Knight

Sam Stovall, chief investment strategist for Standard & Poors, was just on CNBC giving his 2008 projections. Stovall sees a slim chance the U.S. will be in a recession as he believes that the Federal Reserve will continue to come to the rescue by lowering interest rates, which he sees at 3.5% by summer.

Statistics show that while the Fed has been Wall Street’s white knight in keeping the stockmarket propped up, its actions have not benefitted any other segment of America. Last week the Mortgage Bankers Association reported that the average 30 year fixed mortgage rate was 6.17% - exactly where it was on April 4, 2007. A 1 year ARM is 5.53%, slightly higher than the April 4 rate of 5.44% - despite the Fed’s three rate cuts since September!

Another year ends and Wall Street passes out bonuses. The rest of us subsidize the Street with higher interest rates, lower savings rates, and inflation. It’s easy for the Street people to say there’s no inflation when you’re compensated so well and the Fed acts as your enabler by “core-ing” out everything. It’s not just higher food prices that will adversely impact the cost of celebrating New Year’s Eve tonight. ABC’s World News Tonight did a segment a couple days ago about higher helium prices raising the cost of balloons.

I have previously stated that the Fed’s low interest rates with easy Al at the helm, and the government choosing to look the other way, as the drivers of the real estate/mortgage meltdown. Today’s Wall Street Journal
has an excellent article about how Ameriquest, Citigroup, Countrywide, Wells Fargo, and the Mortgage Bankers Association successfully lobbied state politicians every time their legislatures were about to enact laws reigning in subprime loans.

Yes, it’s government by the Street and for the Street.

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Huckabee and Romney: How deep are their convictions?

I had not intended to write about the presidential candidates at this juncture, but today’s Wall Street Journal article about the stylistic differences between GOP candidates Mike Huckabee and Mitt Romney was just too astrologically juicy to pass up!

The differences between the two candidates start with who they are (Sun) and how they communicate (Mercury). Huckabee has these two planets in Virgo, the sign of work and service. Second to his constant use of religion, Huckabee likes to remind people of his humble background and that “I represent a lot of folks like you who understand that the American dream is about knowing that you can start at the bottom but you don’t have to stay there.” Virgo also rules health and dietary matters. As the Journal points out, physically Huckabee is most known for losing 110 pounds.

By contrast, the Journal’s physical description of Gemini ascendant* Mitt Romney reads like an astrological textbook: “The candidate wears some shade of navy blue every day, a complement to his tanned skin. He is tall and thin, his salt-and-pepper hair gelled perfectly into place.” Romney’s Sun, Mercury, and Mars (energy) are in Pisces, Virgo’s opposite sign. Pisces is ruled by Neptune, the planet of illusion . Last Sunday the Concord Monitor referred to Romney as “a phony.”

Looking at his horoscope, businessman and Governor Romney is an accurate reflection of the real Romney – a fiscal conservative social moderate. Republican candidate Romney is a reflection of overworking his Gemini ascendant. Gemini is a dualistic mutable sign. This means exactly what it says: Romney has twin personalities that can mutate into what he thinks people want to see. As Gemini rising, Mercury is his chart ruler. Romney was born with Mercury retrograde** in Pisces. He is really a deep thinker, but with Mercury aligned with Mars he probably feels he must take action many times before he is ready. Neptune rules his Pisces planets. With Neptune in Libra, he desires to “people please”- depending on too many people for advice instead of allowing his strong intuitive faculties to express themselves.

What I find so ironic about the two candidates is that on faith and family values, Romney walks the walk while Huckabee preaches. Romney’s Sun (self–identity) harmonizes with his Moon (family) and Jupiter (religion) in Scorpio. He really believes that religion is lived by the family. Romney’s Moon and Jupiter are in his sixth house which rules health matters. Besides personally enjoying good health, it reflects how he used his strong business skills to enact healthcare in Massachusetts. Disavowing his healthcare plan to please the party base has been a major mistake. Another mistake he’s making is not having his wife more prominent in the campaign. His chart shows Ann is a big part of who he is and a testament to his success.

The rapid rise of Mike Huckabee in the polls is attributed to the alignment of Jupiter (luck and expansion) and Pluto (power), harmonizing Huckabee’s lineup of Pluto, Mars, and Venus in Leo. Jupiter/Pluto in Sagittarius rules religion. When Jupiter entered Capricorn last week, it harmonized with his Sun. (I do not have Huckabee’s birth time, so I can only comment on planetary relationships.) Huckabee appears to be drawn to religion as a form of entertainment and career path to politics rather than living deeply held beliefs. His Leo lineup conjunct his Sun shows he probably really wanted to be a rock ‘n roll star. (He plays bass guitar in a Christian rock band called Capital Offense.) His Jupiter in Leo lets the world know how religious he is and that he likes the ceremonial and social aspects of religion best. Jupiter in Leo challenges his Saturn in Scorpio, reflecting questionable ethical practices in business, politics and religion that he would rather keep secret. (Examples: Attempting to take $70,000 in furnishings donated to the Arkansas governor’s mansion; accepting and not disclosing gifts.)

Huckabee will probably emerge as the GOP winner of the Iowa caucus next week providing that he keeps his mouth shut the day before and the day of the caucus. Romney will probably do better than the pundits think.

* The ascendant (also called the rising sign) is the zodiac sign rising on the eastern horizon at birth. (This is the sign on the first house of the horoscope, a 360 degree wheel mathematically divided into twelve house representing different areas of life.) The ascendant represents the outer appearance one projects to the world, which may or may not reflect the real you. The ascendant usually describes a person’s physical appearance and body type.

** Planets do not really move backward but appear to from Earth’s vantage point.

Wall Street Journal: “Same Party, Different Style”

Concord Monitor: “Romney should not be the next president”

The Guardian: “The Arkansas businessman who bought Governor Huckabee flowers and suits”

Mike Huckabee: August 24, 1955 time unknown Hope, AR
Mitt Romney: March 12, 1947 9:51 AM Detroit, MI

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Jupiter/Pluto People: Buffett & Gates

Today Jupiter, the planet of growth and expansion exactly aligns with Pluto, planet of massive power and transformation, in Sagittarius. These two planets conjoin about every thirteen years. (The last time was December 2, 1994 in Pluto’s home sign Scorpio.)

Financially, Jupiter aligned with Pluto represents large sums of wealth held by a small group of powerful and influential individuals – the plutocracy. When a major planetary alignment such as this occurs, there will be people prominent in the news that possess these planetary energies in their birth charts. Warren Buffett was born with Jupiter conjunct Pluto (in Cancer). The second wealthiest man in the world was interviewed by CNBC’s Becky Quick today.

With his Sun in number-crunching practical Virgo, Buffett’s mantra is “You should only buy what you understand.” As the world’s most famous value investor, he told Becky the Federal Reserve’s actions don’t really matter to the long-term investor; “what’s most important is to look at how much you’re getting for your money.” Buffett said that the best investment buys were in 1974 and that companies “are not within a mile as cheap now”.

Buffett was in San Francisco today to fund raise for Hillary Clinton. (He also fund raises for Barak Obama.) The Jupiter/Pluto alignment in the sign Sagittarius represents the desire for massive political change.

Since Jupiter rules politics and Pluto rules death and taxes, there’s been a lot of argument about the estate tax. Last month Buffett appeared before the Senate Banking Committee expressing his long-held opposition to repealing the estate tax. “A progressive and meaningful estate tax is needed to curb the movement of a democracy toward plutocracy”, he said. The richest man in the world and his good friend Bill Gates, was also born with Jupiter conjunct Pluto (in Leo). They were also both born with their Sun (self-identity) conjunct Neptune, the planet ruling charities. Both men are concerned that permanent repeal of the estate tax would greatly diminish charitable giving. Buffett announced last year that the bulk of his estate would go to the world’s largest charity, the Bill & Melinda Gates Foundation.

Related Posts: See Cycles under DIRECTORY.
Warren Buffett: August 30, 1930 time unknown Omaha, NE
Bill Gates: October 28, 1955 10:00 PM Seattle, WA
CNBC Buffett interview videos/transcript:
http://www.cnbc.com/id/22199866

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Resetting the “American Dream”

President Bush on Thursday kicked off the Administration’s anticipated plan to meddle in the mortgage mess by speaking almost twenty minutes before he was scheduled to. This fits with the Moon in secretive Scorpio, especially when the technical presentation that followed Treasury Secretary Paulson’s statement was not made public.

Looking at the horoscope for the time the President began speaking, it’s fitting that Mars (action) rules the chart and is located in the house of the horoscope representing real estate. More profound is that Mars is in Cancer (real estate; ruled by the Moon). Mars went retrograde* on November 15, right on the USA’s Sun (nation’s identity). When a planet is retrograde, the world deals with the re prefix connected to what energies that planet represents. So it’s no surprise that during Mars retrograde in Cancer, America’s leadership is focused on the economic implications of mortgages that will be re-setting.

“No silver bullet”. This is the line Treasury Secretary Paulson kept repeating in speeches and media interviews. Silver is ruled by the Moon and Cancer, bullets go in weapons which are ruled by Mars. Mercury challenging Saturn Thursday aptly reflected the lack of concrete details of the plan, but also the reality that few people will actually qualify under the “Hope Now” plan.

Here’s what we do know:

• The borrower must occupy the home. (As the front page headline of yesterday’s Sun-Sentinel declared, “Mortgage plan has little help for S. Florida”, since most distressed borrowers in the state are speculators or seasonal residents. Similar situations exist in California and Nevada.)
• The borrower’s mortgage must have been taken out between January 1, 2005 and July 31, 2007, with the borrower facing their first reset of more than 10% between January 1, 2008 and July 31, 2010.
• The borrower must have a mortgage that was packaged into securities and not a mortgage held by a bank. (Borrowers will have to contact their loan servicer to determine this.)
• The borrower must have a credit score of 660 or lower that cannot have improved by more than 10% since the origination of the mortgage.
• The borrower must have little or no equity in the home. (This is confusing. I’ve read reports that say no more than 3% equity, other reports state a maximum 3% equity.)
• The borrower cannot be more than 60 days late more than once in the past 12 months.
• The borrower must ask for help by calling 1-800-995-HOPE. If you call the number, a recorded message gives you the option of visiting http://www.995hope.org/, which was not mentioned in the Administration’s news conference. Both the telephone number and the website ask borrowers to leave all their personal information. The so-called nonprofit credit counseling agencies participating in the “Hope Now Alliance” are funded by banks such as Citigroup (C), Countrywide (CFC), J.P. Morgan (JPM), and Washington Mutual (WM).

The Administration’s emphasis that their solutions do not involve government spending is totally false. Already the Administration has offered FHA refinancing to homeowners who have good credit histories but cannot afford their current payments. If Congress passes the President’s FHA modernization bill, the FHA could lower down payment requirements as well as take on larger amounts for the mortgages they insure. If these mortgages default, taxpayers will obviously foot the bill.

President Bush wants Congress to tinker with the tax code by allowing cities and states to issue tax-exempt mortgage bonds to help refinance existing loans. The White House is asking state and local governments to increase the risks they already have through investing in asset-backed commercial paper by sponsoring risky mortgages directly. (See my previous posts on Orange County and the Florida Fund under Economy in the DIRECTORY.) If local governments truly want to help homeowners, they should lower property taxes!

How is requesting Congress fund $120M for NeighborWorks and another $50M for HUD’s mortgage counseling programs not government spending? And why shouldn’t borrowers in trouble contact their loan servicer rather than these so-called counseling services?

President Bush concluded his speech by saying: “I call on Congress to move forward quickly, and join me in delivering relief to homeowners in need – so we can keep our economy healthy and the American Dream alive.” With the chart’s ruler retrograde (Mars in Cancer), and the final aspect the Moon made before leaving Scorpio was a challenge to Neptune, this plan gives the illusion of helping homeowners. The real hope is that the plan will help keep real estate values inflated so investors of these securities can still make a profit.

And the much-touted “American Dream”? That’s Neptune, planet of dreams, elevated in the USA’s birth chart. There is no country that prizes real estate more than the USA, with four (Sun, Mercury, Venus, Jupiter) planets in Cancer.

* Planets do not move backwards but appear to from Earth’s vantage point. See the Cycles section under DIRECTORY and scroll down for my posts about Mars retrograde and Mars in Cancer.

LINKS:
“President Bush Discusses Housing”: December 6, 2007 1:23 PM EST Washington, DC
http://www.whitehouse.gov/news/releases/2007/12/print/20071206-9.html

Statement by Treasury Secretary Paulson that followed the President’s remarks:
http://www.treas.gov/press/releases/hp716.htm

Sun-Sentinel: “Bush mortgage plan won’t help S. Fla. Housing market”
http://www.sun-sentinel.com/services/newspaper/printedition/friday/nationworld/sfl-flzmortgagefolo1207sbdec07,0,5088994,print.story

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It’s the Economy and Guaranteed Access Affordable Healthcare, Stupid!

To expand on Democratic strategist’s James Carville’s infamous 1992 Clinton campaign slogan, “It’s the economy, stupid” pretty much sums up the two key issues of the 2008 election.

According to the latest WSJ/NBC News poll, 52% of Americans say the economy and health care are the most important criteria in selecting a president. Today’s Wall Street Journal states: “The poll also shows that voters see health care eclipsing the Iraq war for the first time as the issue most urgently requiring a new approach.” (Italics emphasis mine; I love it when the media use astrological terminology!)

In a 7/31/07 post (“GM: Healthcare & 2008 Election” – see Politics under DIRECTORY), I wrote that healthcare would become the most important election issue. Reports continue to escalate about people who have medical treatment or claims denied who have health insurance through their employer. The public is beginning to understand the frightening reality that only Congress and the wealthiest Americans can be assured of getting the treatment they need without filing for bankruptcy in the process.

If the Republicans even comprehend that it’s virtually impossible for an individual to obtain a health insurance policy at any price, they’re pretending otherwise. They think the entire problem revolves around affordability which is only part of the problem. In disavowing the plan he approved for Massachusetts, former Gov. Romney comes off as a total hypocrite. You would think that after suffering from prostate cancer, Mayor Giuliani would use his personal experience to ensure that all Americans are guaranteed health insurance so they have access to the same level of care. Instead, Giuliani campaigns to maintain the status quo of the “free market” health care system even though no insurance company would issue him an individual policy due to his medical history.

Of the primary Democratic challengers, Sen. Obama wants guaranteed coverage for children, but not adults. How can a parent who cannot get health insurance and is sick properly care for their child? I guess Sen. Obama never paid attention to the safety announcement on commercial flights instructing the adult in an emergency to put their oxygen mask on first before their child’s. Edwards wants a government run-system leaving no role for the insurance companies.

The only presidential candidate that has the chance of guaranteeing all Americans health insurance is Sen. Clinton. While I personally would prefer a single payer system, Sen. Clinton is pragmatic in seeking guaranteed coverage for all under an insurance run, Federal government/Medicare-style model.

When a presidential candidate and their supporters try to convince you that giving every American equal access to healthcare is too expensive, ask them if they would qualify for a medically underwritten individual policy.

Wall Street Journal: “Economy Moves To Fore as Issue For 2008 Voters”
http://online.wsj.com/public/article_print/SB119673283200712636.html

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