Observations

I have seen this “movie” before in Europe and in particular in Italy where I lived for a long time. Washington is in turmoil as Congress sets the agenda. Checks and balances have disappeared. People are talking about socialism and fascism. The country is confused on what has to be done. Fascinating times for anyone trying to understand.

Example. The story is from Fox News. “The state is trying to shut down a New York City doctor's ambitious plan to treat uninsured patients for around $1,000 a year. Dr. John Muney offers his patients everything from mammograms to mole removal at his AMG Medical Group clinics, which operate in all five boroughs. His patients agree to pay $79 a month for a year in return for unlimited office visits with a $10 co-pay.”

In the land of free enterprise, it sounds like a good idea, especially if it helps the very people who need medical assistance. Next page.

“But his plan landed him in the crosshairs of the state Insurance Department, which ordered him to drop his fixed-rate plan - which it claims is equivalent to an insurance policy. The low-cost health care plan angered state officials and Dr. Muney has agreed to increase his fees. A department spokesman says Muney was violating state law by basically operating as an insurance operator without a license. Muney will charge $33 per visit for all but preventive care, which brings him in compliance. Muney's spokesman says he'll challenge the restrictions through legislation.”

In Italy, you cannot sell a newspaper or become a pharmacist unless you are licensed to sell newspapers or operate a pharmacy. These licenses are almost impossible to win. This is not socialism or fascism. Power groups influence government to protect their markets. It is not the government.

It is us, all of us, attempting to make our ideas accepted to achieve power and wealth. This is what makes the wheel turn. Marxism, socialism, fascism, and democracy are not ideologies. They are formulas to control power.

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I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.

George Dagnino, PhD
Editor, since 1977