by Karl Denninger, Market Ticker:

The details are still a bit thin but…..

There is no reduction in the debt on the table.  That is, the government refuses to cut spending to less than what it can take in via taxes.

The growth in “mandatory” programs, specifically CMS, is where the problem is as I’ve pointed out for 30 years, all the way back to long before this column was originated and when I was running MCSNet.  Its a math problem when you get down to it, but that also means its a serious political problem because waving your arms around will do nothing.

What makes it worse is that all of it is illegal.  15 USC Chapter 1 makes what our medical and pharmaceutical firms do on a daily basis federal felonies carrying 10 year prison terms — for each person screwed, and each occurrence.  Two decisions, Royal Drug (440 U.S. 205 (1979)) and Maricopa County (457 U.S. 332 (1982)) both found that there is no immunity from anti-trust law for medical providers, medical “insurance” companies or drug companies.