Prelude to Disaster: The Coming Instantaneous Collapse of Obamacare ServicesMac Slavo But how feasible is it really? We know its essentially a wealth redistribution scheme that takes money from one group of people in the form of forced tax payments, only to shift that money into the pockets of those who didnt earn it in the form of government subsidies to their health care premiums. But like all universal programs, the promise of free anything only works so long as you dont run out of other peoples money. That being said, a basic analysis of how Obamacare premiums work across the spectrum of Americas wide ranging socio-economic population suggests that its dead on arrival. Once the forced mandates take hold one of two outcomes become inevitable, as noted by The Market Ticker, whose Karl Denninger took a detailed look at the governments county-by-county premium data. The consequences of implementation will be disastrous. Either the Obamacare system itself collapses under its own weight, or the U.S. economy falls apart because of the extreme burden being hoisted on those who are responsible for paying the bill. Either way, were looking at an almost instantaneous collapse of one or the other. There are several very interesting statistical facts that come from this. First, if youre 27, the average premium is $266.20/month or $3,194.40 per year. How many 27 year olds have an extra $3,200 to spend on this? Remember, this is the price that virtually every uninsured 27 year old must be willing and able to cough up in order to prevent the model this system is predicated on from collapsing. If those 27 year olds dont show up, and they wont, then the system collapses instantly. If they do show up because the government threatens them with fines the economy collapses as $3,200 a year exceeds the average 27 year olds disposable personal income after mandatory expenses (e.g. food, shelter, etc.) Remember, there are always exceptions but these premiums are averages and over large pools of people the statistical averages are what matters not the ends of the barbell. It gets better. The average 50 year old premium, again, for single coverage, is $452.87, or $5,434.44/year. How many 50 year olds will find that attractive compared against what theyre paying now? Probably more of them, especially if theyre already sick. But how about the healthy ones? Note two things as well on this account these premiums are for non-smokers (smoker premiums are grossly surcharged with reports being 2x the above) and they do not account for anyone other than one person. If you are a single parent with kids (rather common) the premium on average is $610.23/month or about $7,300, and if youre a couple its $647.86 (again, $7,774 annually.) Now lets look at the governments own claims. First, the CPI index claims that health insurance is 0.656% of the family budget. What percentage of couples make $1.185 million a year? Why do I ask? Because thats the alleged median income for a couple if you believe the governments CPI numbers. Yeah, right. Next, while some people will get tax credits to offset these costs all that does is lard it up on the federal budget, because someone else has to pay that bill. In other words this is the true cost that will come out of your hide one way or another either directly by paying, indirectly by taxation, or indirectly by destruction of your purchasing power. Next, note that this is the 50 year old premium but you have to be 65 to qualify for Medicare. The price will rise each year after 50 that you happen to be and there are already reports that if youre 59 these premiums are understated by half. How many couples who are 59 and cannot qualify for Medicare yet have not $7,700 a year of extra money laying around but north of $15,000? Thats what I thought. Full Analysis at Market Ticker The whole idea is predicated on the notion that you can indefinitely take from Peter to pay Paul. But eventually Peter is going to run out of money and not be able to foot the bill, or hell simply refuse to buy into the scheme altogether. Like everything else government, the new health care initiative will be a complete and utter failure. The basic principles of mathematics will prove this to be true in coming months and years. As Denninger notes, America will be strangled and expire economically as a direct consequence of the marriage of the State and Health Care industry. The die has been cast. You can read more from Mac Slavo at his site SHTFplan.com, where this first appeared. 