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Speaker 1: In the summer of nineteen ninety seven, a rare moment

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of bipartisanship between Democratic President Bill Clinton and Republican Speaker

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of the House of Representatives Nut Gingrich became the foundation

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of suspicion that would span for decades. Follow Me down

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the rabbit Hole about the Balanced Budget Act. Hello, friends,

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and welcome back to the rabbit Hole. I'm your host Stanny,

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and today we are talking about the Balance Budget Act

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of nineteen ninety seven. Thank you Kelly for requesting this episode.

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If you, guys, would like to request an episode, or

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you want a shout out for requesting an episode, go

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to Stay Skeptical dot com. You can also go to

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my Instagram and submit your requests through the link in

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the bio. And of course, before we get started, I

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right now. The Balance Budget Act of nineteen ninety seven

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was an omnibus legislative package designed to balance the federal

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budget by two thousand and two. It was to result

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in one hundred and sixty billion dollars in spending reductions

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between nineteen ninety eight and two thousand and two. After

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taking into account an increase in spending on welfare and

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children's healthcare, the savings totaled one hundred and twenty seven billion.

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Medicare taking the blunt of the cuts at one hundred

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and twelve billion dollars. They reduced the Medicare spending by

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reducing payments to health service providers. The Balance Budget Act

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of nineteen ninety seven represented not just a legislative victory,

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but an unusual convergence, Clinton's third way centrism meeting Gingrich's

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revolutionary conservatism on common ground. While market it as a

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triumph of physical responsibility, the BBA acted as the economic

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dial that per eminently set the American safety net on

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a path toward privatization. Beneath the facade of saving Medicare,

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the Act implemented complex formulas and structural handovers that signaled

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the end of representative democracy in fiscal matters in the

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beginning of a technocratic uniparty era by moving the levers

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of economic power out of the reach of the ballot

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box and into the hands of algorithmic automatic stabilizers. The

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BBA ensured that the fundamental direction of the American economy

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would remain untouched by future elections. The big question is

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what made Clinton and gingrich political enemies suddenly align so

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perfectly on such drastic changes on Medicare, Medicaid, and welfare.

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Many skeptics started questioning whether it was really a compromise

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or just a consensus around a shared agenda that neither

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party wanted to openly acknowledge. Did the Balanced Budget mask

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a deliberate plan to dismantle the social safety net piece

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by peace, using fiscal responsibility as political cover. The suspicions

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on this act were fair. The BBA of ninety seven

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cut nearly four hundred billion dollars from projected federal spending

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over five years, with the bulk coming from healthcare programs

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serving the elderly, disabled, and poor. Hospitals and healthcare advocates

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warned it would cripple the system by imposing unprecedented restrictions

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on state Medicaid programs, all this while simultaneously delivering ninety

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five billion dollars in tax cuts, a detail that seemed

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to contradict the justification of social spending reductions serving the

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public health infrastructure while feeding capital markets is the hallmark

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of managed competition. The uncharacteristic bipartisan harmony that made BBA

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possible became evidence of an elite agreement on policies that

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would harm ordinary Americans while benefiting the wealthy. The Balanced

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Budget Act achieved its stated goal with astounding efficiency. By

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nineteen ninety eight, Just one year after it was passed,

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the federal government recorded its first budget surplus in nearly

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three decades. The national debt began to decline so much

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that by the year two thousand, the Congressional Budget Office

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projected a surplus stretching into the foreseeable future. But this

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success came at a price many Americans didn't fully understand

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until years later. The BBA fundamentally restructured how the federal

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government paid for health care for seniors and people with

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low incomes. It created the Medicare Plus Choice program, encouraging

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beneficiaries to leave traditional Medicare for private insurance plans. It

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cut payments to hospitals, nursing homes, and home health agencies.

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It also gave states unprecedented power to restrict Medicaid eligibility

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and benefits through waivers that would have been unthinkable in

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the past. The BBA embedded into federal health care programs

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and a series of automatic payment reductions were essentially mechanisms

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designed to cut spending regardless of actual health care costs,

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patient needs, or demographic changes. The sustainable growth rate or

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SGR formula for physician payments, for instance, created a scenario

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where doctors would face annual payment cuts unless Congress intervened.

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Many observers who followed the Act believed this design wasn't accidental,

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but actually intentional. The theory of a planned collapse was

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the most common topic, suggesting that the bba's architects knew

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these payment formulas were completely unsustainable. The SGR formula was

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a mathematical trap that tied physician reimbursement to the growth

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of the GDP if healthcare spending grew faster than the economy,

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and inevitability given the aging baby boomer demographic. The law

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legally mandated automatic, drastic cuts to doctor pay. Section four

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zero zero one of the Act was the legal gateway

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to adverse selection. Proponents claimed it offered choice, but the

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economic reality was the creation of an adverse selection loop

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by design. Medicare Plus Choice incentivized private plans to use

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sophisticated data to cherry pick healthy, aging senior citizens. This

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left the chronically ill and expensive patients in traditional medicare,

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which lacked the marketing budget to compete. By siphoning off

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the healthiest beneficiaries, the BBA ensured that the government's risk

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pool would become increasingly expensive. This created a statistical mirage.

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Traditional Medicare appeared bloated and insufficient compared to private plans,

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providing the political ammunition needed to argue for further cuts

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or total privatization years later. It was definitely a self

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fulfilling prophecy of government failure. The evidence suggested that the

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bba's spending cuts were front loaded and aggressive, while the

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revenue projections relied on optimistic economic assumptions. The BBA was

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architected so that over sixty percent of the healthcare cuts

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would take effect in the first two years. This wasn't

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a transition, It was a shock and all campaign against

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the public health infrastructure. Between two thousand and two and

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twenty fifteen, the SGR created a permanent state of crisis

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because the cuts were so severe they threatened to shut

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down the medical system. This forced a ritualized congressional doc fix,

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a patch that had to be passed seventeen times over

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thirteen years. This was the uniparty in its purest form.

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By requiring repeated congressional patches, the healthcare payment mechanisms were

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designed to fail. What is even more suspicious is that

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the same politicians who championed the BBA later pointed to

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the unsustainable costs of Medicare and Medicaid as reasons to

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fundamentally restructure or eliminate the program's problems they helped to create.

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In reality, this created a lucrative lobbying industrial complex. Every year,

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medical association and insurance giants had to descend on DC

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to beg for a fix, ensuring that the uniparty leadership

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maintained a constant flow of campaign contributions and hidden influence.

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The BBA shifted the fundamental mindset of federal health care.

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It shifted the government away from a defined benefit model

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in which the government guarantees specific care, to a defined

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contribution mindset in which the government provides a fixed payment

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to a private entity. This shifted the financial risk from

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the federal treasury onto individual seniors and public infrastructure. The

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famous harmony we talked about before between the parties over

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the Balance Budget Act didn't actually start that way. It

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began as a confrontation, so apparently. In the fall of

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nineteen ninety four, New Gingrich orchestrated one of the most

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dramatic political upheavals in modern American history. Ging Gridge and

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more than three hundred Publican candidates signed the Contract with America,

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a ten point legislative agenda that promised to revolution ustionized

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federal governance. This contract pledged term limits for legislators, a

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balanced budget amendment to the Constitution, welfare reform, tax cuts,

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and a fundamental re examination of federal power. The strategy worked,

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and in the November nineteen ninety four midterm elections, Republicans

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captured control of the House of Representatives for the first

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time in forty years, gaining fifty four seats in what

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political analysts call a Republican revolution. It is said to

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have been one of the most influential midterms in American history.

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They also seized the Senate, giving the GOP complete control

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of Congress. Gingrich became Speaker of the House and immediately

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positioned himself not as a legislative partner to President Clinton,

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but as the co equal power center, possibly even the

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dominant force in American politics. The Trojan Horse theory holds

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that before nineteen ninety seven, Medicare was a straightforward government program,

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but Medicare plus choice in the BBA wasn't about choice.

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It was a wealth transfer mechanism. The conspiracy suggests an

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elite agreement to funnel trillions of taxpayer dollars into the

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hands of private insurance CEOs. The structural hollowing out of

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the safety net went deeper than just Medicare, According to

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the CQ Almanac's records on the one hundred and fifth Congress,

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the BBA also targeted Medicaid by removing the federal government's

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role as a watchdog. For the first time, states were

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granted the power to force people experiencing poverty into private

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managed care programs without seeking a federal waiver, a move

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that fundamentally ended the government's direct responsibility for the quality

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of care. Before nineteen ninety seven, the Department of Health

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and Human Services the HHS acted as a shield for

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the vulnerable. The BBA stripped away that shield, turning millions

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of citizens into a captive market for private managed care

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organizations or MCOs. Simultaneously, the Acts slash funding for tavaching hospitals,

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the very institutions that served as the last line of

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defense for the indignant. By slashing graduate medical education and

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indirect medical education payments, the Act placed a financial stranglehold

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on institutions that trained future doctors and care for the indignant.

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At first, these cuts were massive, causing immediate financial distress

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for the very institutions that served as the last line

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of defense for the uninsured. By hitting the system with

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massive immediate cuts before hospitals could adjust, the BBA purposely

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triggered a wave of bankruptcies and fire sales. This allowed

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the private hospital conglomerates to buy up public assets at

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pennies on the dollar. This tactic forced independent and public

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hospitals to consolidate into massive corporate conglomerates like HCA and Kaiser,

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feeding the global corporate state. These weren't random fiscal trims.

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They were a coordinated effort to dismantle the public infant

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structure of health and replace it with a system of

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managed competition where the only winners were the corporate conglomerates

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and the technocratic elite. Who managed the transition. The BBA

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didn't just cut it created the State Children's Health Insurance Program,

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also known as CHIP. CHIP provided nearly twenty four billion

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dollars to states, but allowed them to use it for

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private insurance rather than expanding Medicaid. To sell the BBA

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to the public, the architects included the creation of CHIP

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in the Social dial. This was marketed as a humanitarian

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expansion for the safety net. However, in the Economic Dial,

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the CQ Almanac reveals that CHIP was designed to give

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states the flexibility to bypass traditional government programs, further entrenching

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the role of private insurance companies as the gatekeepers of

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care for people experiencing poverty. One of the most radical

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changes in the CQ source is the removal of the

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federal waiver requirement for Medicaid. Before nineteen ninety seven, states

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had to obtain federal permission from HHS to require Medicaid

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recipients to enroll in private managed care programs. The BBA

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removed this requirement. The core of the nineteen ninety seven

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handout was the deregulation of Medicaid. Before the BBA, the

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federal government acted as a shield, requiring states to prove

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that private managed care wouldn't harm beneficiaries, the BBA stripped

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US away, allowing states to mandate private enrollment without federal approval.

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This effectively ended the era of federal accountability and turned

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millions of the most vulnerable citizens into a captive market

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for private MCOs. In nineteen ninety seven, home health care

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was the fastest growing Medicare benefit, allowing seniors to age

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with dignity in their own homes, which most people prefer.

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The BBA implemented the Interim Payment Systems, or the IPS,

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which was so hard on the program that it caused

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nearly four thousand home health agencies to shut down almost overnight.

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This wasn't an accident. By destroying the home care option,

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the BBA four seniors into institutionalized, corporate run nursing homes,

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facilities that were coincidentally becoming major investment vehicles for the

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private equity firms emerging from the nineteen ninety six King

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City Third Way meetings. While the BBA was saving the

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budget by cutting home health visits for the elderly and

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simultaneously slashed the capital gains tax from twenty eight percent

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to twenty percent. This is the ultimate uniparty mic drop.

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The law effectively taxed the health of people with low

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incomes to subsidize the investment portfolios of the elite. This

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was the first time in American history that a major

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deficit reduction bill included a massive tax giveaway to the

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investor class, providing that the balanced budget was actually just

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rebranding of the massive wealth transfer upward, they wanted more money.

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Typical cuts to hospitals, specifically teaching hospitals that train the

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next generation of doctors were among the most aggressive, which

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literally makes no sense. That's how you keep making money

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is that you have more doctors. The BBA cut graduate

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medical education payments and indirect medical education adjustments. The bba's

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design included a strike at the very foundation of the

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medical system. By slashing GME payments, the act placed a

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financial stranglehold on the institutions that serve the uninsured and

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trained future physicians. Evidence from Congressional Budget Office Projections or

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CBO at the time indicates that the architects of the

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BBA knew these cuts would disproportionately bankrupt rural hospitals as well,

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since rural hospitals rely more heavily on Medicare and Medicaid

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than urban centers. The flat cuts were designed to fail

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in the heartland. This served the global corporate state's goal

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of urban consolidation, forcing populars out of independent rural settings

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and into managed urban environments where their service consumption could

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be more easily tracked and taxed by technocratic elite. And

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in fact, now approximately eighty percent of US counties, home

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to over one hundred and twenty million people, are considered

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healthcare deserts. These areas lack adequate access to or infrastructure

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for essential services like primary and care hospitals or pharmacies.

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Nearly sixty percent of the counties have more than one

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type of healthcare desert. The CBO's nineteen ninety seven projections

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00:16:36,559 --> 00:16:40,320
also contained a dark reality for Middle America. Because rural

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hospitals typically rely on Medicare and Medicaid for up to

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seventy percent of their total revenue, compared to like the

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00:16:46,759 --> 00:16:50,399
thirty or forty percent in urban private hospitals, the flat

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rate cuts in the BBA were mathematically guaranteed to hit

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rural areas two to three times harder. By March nineteen

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ninety nine, just two years into the act, Medicare spending

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00:17:00,240 --> 00:17:05,000
grew even slower than the CBO's original drastic projections, under

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shooting by another eighty four billion dollars. This accidental overperformance

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of the cuts accelerated the bankruptcy of rural health care,

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clearing the way for the urban consolidation required by the

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global corporate state. According to the CBO's August nineteen ninety

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seven analysis, the one hundred and twelve billion dollars in

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00:17:24,920 --> 00:17:29,079
medicare savings served as the primary engine for funding the

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ninety five billion dollars in net tax cuts. This wasn't

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00:17:33,119 --> 00:17:37,160
a balanced budget, it was a rebalanced society. The federal

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government acted as a wealth stripper, taking money that was

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00:17:40,759 --> 00:17:45,200
contractually promised to seniors for health care and transferring it

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to those who earn income through asset speculation rather than labor.

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The CQ Almanac notes these cuts weren't just about saving money.

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They were front loaded to create immediate financial distress, forcing

267
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public hospitals to consolidate or adapt corporate business models to survive,

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an essential step in the transition to the global corporate state.

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Now we've mentioned the global corporate state several times. Let's

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00:18:09,400 --> 00:18:12,559
get into what that actually means. The global corporate state

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involves multinational corporations that absorb public services such as healthcare

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and infrastructure for profit. It's always for something, right, profit, power, sex,

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you name it. That's what they're after. This one for

274
00:18:26,000 --> 00:18:29,680
profit and also probably for power. Central and global banks

275
00:18:29,960 --> 00:18:33,079
manage the flow of debt and set the fiscal rules

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00:18:33,119 --> 00:18:37,119
for nation states, typically in international forums such as the

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00:18:37,160 --> 00:18:40,519
World Economic Forum, the Council of Foreign Relations, and the

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00:18:40,519 --> 00:18:44,960
Builderberg Group. The uniparty are local managers who implement the

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global mandate while pretending to fight each other on television.

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It's literally all a show. In June nineteen ninety six,

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00:18:51,759 --> 00:18:54,519
the Builderberg Group met in King City, Ontario. While the

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00:18:54,519 --> 00:18:59,200
attendees lists are kept pretty tight, the nineteen ninety six

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00:18:59,279 --> 00:19:02,880
meeting is offen cited by researchers as the moment the

284
00:19:02,920 --> 00:19:07,000
Third Way was globalized. Researchers of the global corporate state

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00:19:07,240 --> 00:19:10,599
point to the meeting as the briefing for the managed

286
00:19:10,640 --> 00:19:14,839
transition of the Western economy. The goal was to pivot

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00:19:14,920 --> 00:19:19,240
the US from a manufacturing based social democracy to a

288
00:19:19,359 --> 00:19:24,240
debt servicing service economy. Newt Gingrich's presence in these globalist

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00:19:24,279 --> 00:19:27,839
circles because he's literally a member of the Council Foreign

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00:19:27,880 --> 00:19:32,799
Relations and has attended high level international forums. Is often

291
00:19:32,920 --> 00:19:37,400
used as evidence that his revolution was controlled opposition. The

292
00:19:37,400 --> 00:19:40,039
theory is that he was coached to create the conflict

293
00:19:40,079 --> 00:19:44,680
the nineteen ninety five government shutdown to make the eventual compromise,

294
00:19:44,720 --> 00:19:47,440
which was the BBA, look like a hard won victory

295
00:19:47,480 --> 00:19:50,240
for the people when it was actually planned all along.

296
00:19:50,960 --> 00:19:54,880
This managed compromise effectively erased the distinction between the two

297
00:19:54,920 --> 00:19:58,839
major parties, creating a uniparty technocracy that answered to King

298
00:19:58,960 --> 00:20:02,359
City and Davos rather than Main Street. The third Way

299
00:20:02,559 --> 00:20:05,359
wasn't a middle ground, it was a bypass by removing

300
00:20:05,480 --> 00:20:09,160
the public's ability to vote on the fundamental structure of

301
00:20:09,440 --> 00:20:13,400
the social safety net, locking it instead to automatic formula

302
00:20:13,599 --> 00:20:17,400
and secret contracts. The BBA signaled the end of the

303
00:20:17,440 --> 00:20:21,480
representative democracy in fiscal matters. The political theater of the

304
00:20:21,480 --> 00:20:25,640
Gingrich Clinton rivalry was merely the breadcrumb, trail and circus

305
00:20:25,680 --> 00:20:30,720
show designed to distract us from the quiet surrender of sovereignty.

306
00:20:31,440 --> 00:20:34,640
The prime example of this theater was the nineteen ninety

307
00:20:34,640 --> 00:20:38,799
seven campaign finance probe, which dominated headlines for allegations of

308
00:20:38,920 --> 00:20:42,720
illegal Chinese influence in the nineteen ninety six election, which

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00:20:42,720 --> 00:20:45,839
sounds a lot like the twenty sixteen election. By November

310
00:20:45,880 --> 00:20:49,240
of nineteen ninety six, the Republicans were convinced of the

311
00:20:49,359 --> 00:20:54,079
Chinese Communist government's influence on the US elections. Newt Gingrich

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00:20:54,119 --> 00:20:56,839
promised the probe into the democratic scandal with China would

313
00:20:56,839 --> 00:21:00,839
be bigger than Watergate. This political confrontation between Gingridge and

314
00:21:00,880 --> 00:21:04,359
Clinton led to the longest government shut down in history

315
00:21:04,440 --> 00:21:08,960
up to that point. Gingridg decided to compromise, though many

316
00:21:09,000 --> 00:21:12,640
House Republicans disagreed, but the compromise was all staged. The

317
00:21:12,799 --> 00:21:14,880
shutdown was all staged. It was all just a game.

318
00:21:15,599 --> 00:21:18,200
While it appeared to be a high stakes battle for accountability,

319
00:21:18,279 --> 00:21:22,759
the investigation ultimately fizzled without major consequences for either party.

320
00:21:22,799 --> 00:21:25,400
This lack of an outcome suggests that the probe was

321
00:21:25,519 --> 00:21:28,599
not a search for the truth, but a scripted performance

322
00:21:28,640 --> 00:21:32,400
intended to keep the public's focus on a partisan scandal.

323
00:21:32,880 --> 00:21:35,680
At the same time, the bba's economic dial was being

324
00:21:35,720 --> 00:21:39,960
permanently set behind the scenes. To understand the uniparty through

325
00:21:40,000 --> 00:21:42,319
the lens of the nineteen ninety seven BBA, we have

326
00:21:42,440 --> 00:21:45,759
to look past the televised arguments and into the structural

327
00:21:45,759 --> 00:21:49,400
reality of what was surrendered. Pretty much the clash of

328
00:21:49,440 --> 00:21:53,279
Titan's Theater put on by Clinton and gingridg was not

329
00:21:53,799 --> 00:21:57,119
ever real. It was just a coordinated handover of American

330
00:21:57,160 --> 00:22:02,440
democratic sovereignty to a technocratic elite. In a functioning democracy,

331
00:22:02,559 --> 00:22:07,519
voters expect that switching parties will change the direction of

332
00:22:07,599 --> 00:22:11,720
the country. However, the BBA turned the American political system

333
00:22:11,799 --> 00:22:14,880
into a two dial machine. So in the social dial,

334
00:22:14,960 --> 00:22:19,119
the left versus right politicians fight loudly over cultural issues,

335
00:22:19,240 --> 00:22:22,640
flags and rhetoric to keep the public divided and engaged.

336
00:22:23,240 --> 00:22:25,640
It's a great show, it's a great game. In the

337
00:22:25,720 --> 00:22:29,640
economic dial, the managed corps, the fundamental movement of money

338
00:22:29,799 --> 00:22:33,000
and the privatization of the commons, and the servicing of

339
00:22:33,039 --> 00:22:38,240
global debt remained on a fixed, irreversible track regardless of

340
00:22:38,279 --> 00:22:41,880
who wins the election. It doesn't matter who you vote for.

341
00:22:42,880 --> 00:22:45,599
What is really crazy about the bba's structural detail is

342
00:22:45,599 --> 00:22:49,720
that it used a legislative mechanism called contractual hard coding.

343
00:22:50,200 --> 00:22:54,359
By shifting beneficiaries into private Medicare plus choice plans. The

344
00:22:54,440 --> 00:22:59,440
government entered into multi year contracts with insurance giants. These

345
00:22:59,480 --> 00:23:03,839
contracts contained intringement clauses that made it legally and financially

346
00:23:04,039 --> 00:23:09,559
ruinous for future Congresses to return to public only models.

347
00:23:09,960 --> 00:23:13,000
The BBA didn't just change the law, it sold the

348
00:23:13,039 --> 00:23:17,079
deed to the safety net, making any future repeal a

349
00:23:17,240 --> 00:23:21,519
breach of contract against the global corporate state. The Third

350
00:23:21,559 --> 00:23:24,960
Way was marketed as a common sense centrism, but in

351
00:23:25,000 --> 00:23:29,559
reality it was the implementation of a globalized corporate mandate.

352
00:23:30,759 --> 00:23:34,160
Managed competition was the buzzword of the nineteen nineties. It

353
00:23:34,240 --> 00:23:37,279
meant the government would use its power to pick winners,

354
00:23:37,359 --> 00:23:41,359
mainly large insurance conglomerates and hospital systems, and force the

355
00:23:41,400 --> 00:23:45,759
public into their arms. Before nineteen ninety seven, there was

356
00:23:45,839 --> 00:23:48,720
still a lingering belief that the government had a direct

357
00:23:48,759 --> 00:23:52,200
responsibility to provide a safety net. After nineteen ninety seven,

358
00:23:52,480 --> 00:23:55,559
both parties agreed that the government's only rule was to

359
00:23:55,640 --> 00:23:59,000
be a customer for private corporations. And I actually read

360
00:23:59,039 --> 00:24:03,720
in a book recently that that's how fascism starts. The

361
00:24:03,839 --> 00:24:06,599
historic government shut down of nineteen ninety five nineteen ninety

362
00:24:06,640 --> 00:24:10,240
six serves as an origin story for the uniparty's Third

363
00:24:10,279 --> 00:24:13,880
Way takeover. Gingrich played a major role by pushing a

364
00:24:14,160 --> 00:24:17,880
radical divide between Democrats and Republicans. When Clinton fought back,

365
00:24:18,079 --> 00:24:20,759
it led to the shutdown that scared the public. Scared

366
00:24:20,799 --> 00:24:25,240
the public so bad that they agreed to this budget.

367
00:24:25,519 --> 00:24:28,279
By creating the government shutdown crisis, the two parties were

368
00:24:28,480 --> 00:24:32,400
forced on purpose, like they did this on purpose, into

369
00:24:32,519 --> 00:24:37,119
a compromise that the public would have otherwise rejected. This

370
00:24:37,240 --> 00:24:40,119
made the gutting of the social Safety Net appear to

371
00:24:40,240 --> 00:24:43,559
be an act of heroic bipartisanship rather than a calculated

372
00:24:43,599 --> 00:24:47,480
wealth transfer. They orchestrated the shutdown that way everyone would

373
00:24:47,480 --> 00:24:50,519
be so excited and championed them when they came to

374
00:24:50,559 --> 00:24:53,799
an agreement. In the uniparty model, conflict is a tool

375
00:24:53,839 --> 00:24:57,480
for consensus. You cannot move a population toward a global

376
00:24:57,559 --> 00:25:00,839
corporate state in a straight line. He must swing them

377
00:25:00,880 --> 00:25:03,599
back and forth between two extremes, the right and the left,

378
00:25:03,799 --> 00:25:06,559
until they are exhausted enough to accept the pre written

379
00:25:06,599 --> 00:25:12,240
middle ground, like what happened with the shutdown. Ultimately, the

380
00:25:12,319 --> 00:25:15,119
same year the American Safety Net was being hollowed out

381
00:25:15,119 --> 00:25:18,599
by the BBA, the legislative branch was occupied with a

382
00:25:18,599 --> 00:25:23,200
fizzling investigation that ultimately protected the political elite from the

383
00:25:23,279 --> 00:25:27,000
very sovereignty they were signing away. Among these elites were

384
00:25:27,039 --> 00:25:32,079
people like Democrat Robert Rubin, Clinton's Treasury secretary and a

385
00:25:32,119 --> 00:25:35,599
former Goldman Sachs co chair who was the bridge between

386
00:25:35,640 --> 00:25:39,359
Wall Street and the BBA. His philosophy of fiscal discipline

387
00:25:39,680 --> 00:25:43,440
was essentially a mandate to lower interest rates to fuel

388
00:25:43,839 --> 00:25:48,119
corporate growth at the expense of social spending. Ruben later

389
00:25:48,200 --> 00:25:51,400
moved to City Group, a global bank that benefited a

390
00:25:51,519 --> 00:25:55,079
ton from the financial deregulation that followed the bba's fiscal

391
00:25:55,119 --> 00:25:58,680
responsibility era. Ruben was paid over one hundred and twenty

392
00:25:58,799 --> 00:26:02,799
million dollars over the next decade. This Rubinomics era provided

393
00:26:02,839 --> 00:26:06,519
a fiscal cover for the eventual repeal of Glass Stiegel,

394
00:26:06,880 --> 00:26:10,279
further merging the interests of global banks with the federal

395
00:26:10,319 --> 00:26:14,680
government on the Republican side. Newt Gingrich didn't retire to

396
00:26:14,720 --> 00:26:18,319
a quiet life either. He became a high paid consultant

397
00:26:18,400 --> 00:26:23,559
and strategic advisor for major healthcare and tech interests. Well,

398
00:26:23,759 --> 00:26:26,880
isn't that interesting? He literally handed over the whole country.

399
00:26:28,119 --> 00:26:30,359
He is a long standing member of the Council of

400
00:26:30,400 --> 00:26:33,960
Foreign Relations, the globalist hub that many people point to

401
00:26:34,160 --> 00:26:38,680
as a true source of uniparty policy. To truly understand

402
00:26:38,759 --> 00:26:40,799
that this was not just a left versus right issue,

403
00:26:40,799 --> 00:26:44,480
but a globally managed transition, we can look at other

404
00:26:44,519 --> 00:26:47,839
places that implemented nearly identical third way scripts around that

405
00:26:47,880 --> 00:26:51,519
exact same time. Around May of nineteen ninety seven, just

406
00:26:51,680 --> 00:26:54,960
months before Clinton and Gingrich signed the BBA, Tony Blair

407
00:26:54,960 --> 00:26:58,480
became Prime Minister of the UK. He rebranded his party

408
00:26:58,519 --> 00:27:01,599
as New Labor, which was the Britain twin of Clinton's

409
00:27:01,599 --> 00:27:06,960
Third Way. Blair implemented the Private Finance Initiative PFI. Like

410
00:27:07,079 --> 00:27:12,200
Medicare plus Choice, PFI used private contracts to build public infrastructure.

411
00:27:12,519 --> 00:27:16,160
It moved debt off balance sheet to make the budget

412
00:27:16,279 --> 00:27:20,720
look balance while actually saddling the National Health Service NHS

413
00:27:21,079 --> 00:27:24,240
with high interest debt that costs ten times the actual

414
00:27:24,319 --> 00:27:28,079
construction price. It looked like the government was balancing the

415
00:27:28,079 --> 00:27:30,759
budget because it moved the debt onto the books of

416
00:27:30,759 --> 00:27:34,680
private corporations. In reality, it was a massive wealth transfer

417
00:27:34,880 --> 00:27:39,119
that piled on decades of high interest payments to private

418
00:27:39,160 --> 00:27:42,839
banks and developers. In the late nineties, Germany also followed

419
00:27:42,880 --> 00:27:47,160
this model. Under Chancellor Gerhard Schroeder, he introduced the new middle,

420
00:27:47,440 --> 00:27:51,799
Schroder introduced the Heart's for reforms. These were the German

421
00:27:51,880 --> 00:27:55,559
version of the bba's welfare and healthcare cuts. Just like

422
00:27:55,680 --> 00:27:59,039
in the US, these reforms were so conservative that the

423
00:27:59,079 --> 00:28:02,400
traditional right wing parties couldn't have passed them without causing

424
00:28:02,400 --> 00:28:05,720
a revolution. It took a left wing leader to betray

425
00:28:05,759 --> 00:28:09,319
his own labor base to satisfy the global economic mandate,

426
00:28:09,680 --> 00:28:12,680
proving that the social dial of party identity is irrelevant

427
00:28:12,880 --> 00:28:16,880
when the economic dial is being turned by global interests. So,

428
00:28:17,000 --> 00:28:21,400
of course all this is just speculation, just a conspiracy, obviously,

429
00:28:22,079 --> 00:28:27,000
but is it though? Let's talk about the congressional record.

430
00:28:27,559 --> 00:28:30,519
The nineteen ninety seven debate was split into two bills,

431
00:28:30,880 --> 00:28:33,519
HR two zero one five, the Balance Budget Act and

432
00:28:33,720 --> 00:28:37,599
HR two zero one four, the Taxpayer Relief Act. Because

433
00:28:37,640 --> 00:28:41,599
they were debated simultaneously, a few legislators caught the shell

434
00:28:41,599 --> 00:28:45,359
game in real time on the House floor. Then Representative

435
00:28:45,359 --> 00:28:48,440
Bernie Sanders, and independent from Vermont, was one of the

436
00:28:48,519 --> 00:28:52,599
loudest critics, famously calling the argument a quote Robin Hood

437
00:28:52,640 --> 00:28:56,359
in reverse. He said, quote at the time when we

438
00:28:56,440 --> 00:28:59,119
are told we must cut Medicare by one hundred and

439
00:28:59,200 --> 00:29:03,160
fifteen billion, dollars. It is an absolute outrage that we

440
00:29:03,319 --> 00:29:06,559
are at the same time giving ninety five billion dollars

441
00:29:06,599 --> 00:29:09,720
in tax breaks, the vast majority of which go to

442
00:29:09,759 --> 00:29:13,279
the wealthiest one percent end quote. Sanders confirms that the

443
00:29:13,319 --> 00:29:15,960
transfer wasn't a hidden side effect, it was the known

444
00:29:16,000 --> 00:29:20,119
intended goal. The savings from the health of the elderly

445
00:29:20,359 --> 00:29:23,599
were laundered through the Treasury and handed directly to the

446
00:29:23,599 --> 00:29:27,160
investor class as a capital gains bounty. Something we found

447
00:29:27,240 --> 00:29:30,680
super interesting is that in the Senate, Paul Wellstone, a

448
00:29:30,720 --> 00:29:34,240
Democrat from Minnesota, warned that the BBA was a quote

449
00:29:34,240 --> 00:29:37,240
betrayal of the social contract. He noted that the tax

450
00:29:37,279 --> 00:29:40,880
cuts were front loaded for the wealthy, while the Medicare

451
00:29:40,960 --> 00:29:47,039
protections were vague and unenforceable. Wellstone identified the economic dial perfectly,

452
00:29:47,480 --> 00:29:51,079
arguing the bill permanently weakened the government's ability to protect

453
00:29:51,079 --> 00:29:54,480
the poor while hardcoding the benefits for Wall Street. He

454
00:29:54,559 --> 00:29:57,519
also noted that the capital gains cut would bleed the

455
00:29:57,599 --> 00:30:02,200
Treasury of the very funds needed to sustain the baby

456
00:30:02,200 --> 00:30:07,359
boomer's future healthcare needs. If Paul Wellstone's name sounds familiar

457
00:30:07,359 --> 00:30:09,359
to you, it's probably because you heard it before in

458
00:30:09,400 --> 00:30:13,359
the Crisis Actors episode, So George Zen, a decoy guy

459
00:30:13,400 --> 00:30:16,680
from Charlie Kirk's assassination, was credited with the Republican win

460
00:30:16,759 --> 00:30:19,720
in Minnesota. Just five years later, when Paul Wellstone was

461
00:30:19,799 --> 00:30:23,160
running for office again. So Wellstone has obviously just shaken

462
00:30:23,240 --> 00:30:28,559
up the political sphere in Minnesota. He's not fully agreeing

463
00:30:28,599 --> 00:30:31,640
with what they're doing. Well, then he became a target.

464
00:30:32,119 --> 00:30:35,359
So Wellstone was targeted by the National Republican Party as

465
00:30:35,400 --> 00:30:38,279
the Keystone race in the GOP's quest to regain the

466
00:30:38,319 --> 00:30:42,200
Senate majority. It was this statement that motivated George Zen,

467
00:30:42,480 --> 00:30:45,640
who quote packed his bag and was off to Minnesota

468
00:30:45,720 --> 00:30:49,319
from Utah, volunteering to pound signs and lawns, hang up

469
00:30:49,319 --> 00:30:51,279
banners and stand on the corner with a vote for

470
00:30:51,400 --> 00:30:54,680
Norm sign while whistling Yankee Doodle end quote if they

471
00:30:54,680 --> 00:30:57,920
wanted him to. This was quoted from the Desert News.

472
00:30:58,279 --> 00:31:00,559
It goes on to say, quote, who'd have thought a

473
00:31:00,640 --> 00:31:03,680
month later that Wellstone would be killed in a tragic

474
00:31:03,720 --> 00:31:08,079
plane crash while campaigning, that former Vice President Walter Mondale

475
00:31:08,279 --> 00:31:10,480
would jump in to try to save the seat for

476
00:31:10,519 --> 00:31:14,160
the Democrats, that the Democrats would turn Wellstone's funeral service

477
00:31:14,400 --> 00:31:17,559
into a campaign rally, and that Norm Coleman, the guy

478
00:31:17,599 --> 00:31:23,400
George then campaign for, would win anyway. End quote coincidence. No,

479
00:31:23,559 --> 00:31:27,799
not around here, guys. Furthermore, the Congressional Budget Office's August

480
00:31:27,880 --> 00:31:31,839
nineteen ninety seven report provides the final smoking gun. Here.

481
00:31:32,240 --> 00:31:35,359
It projected one hundred and fifteen billion dollars in Medicare

482
00:31:35,400 --> 00:31:39,000
savings and seven billion dollars in Medicaid savings over five years.

483
00:31:39,640 --> 00:31:42,720
At the same time, the Taxpayer Relief Act was projected

484
00:31:42,759 --> 00:31:45,920
to cost the Treasury ninety five billion dollars in revenue,

485
00:31:46,400 --> 00:31:49,839
primarily through the capital gain slash and the creation of

486
00:31:49,880 --> 00:31:54,279
the back door roth IRA. The symmetry is undeniable. The

487
00:31:54,400 --> 00:31:58,480
Uniparty calculated that the amount they could politically strip from

488
00:31:58,480 --> 00:32:02,000
the safety net was, onmost exactly equal to the amount

489
00:32:02,440 --> 00:32:07,119
their donors demanded in tax relief. Isn't that interesting? To

490
00:32:07,240 --> 00:32:11,039
pass the BBA, the Uniparty used a trick called sunset clauses.

491
00:32:11,319 --> 00:32:14,359
They claimed the tax cuts would expire, but the Medicare

492
00:32:14,440 --> 00:32:18,240
structural changes such as Medicare plus Choice would remain permanent.

493
00:32:19,200 --> 00:32:22,720
This was the ultimate lock in. They knew that once

494
00:32:22,759 --> 00:32:26,920
the private insurance infrastructures was built, no future Congress would

495
00:32:26,960 --> 00:32:30,279
have the courage to dismantle it. The tax cuts were

496
00:32:30,359 --> 00:32:32,960
the bait in the trap. The permanent hollowing out of

497
00:32:33,000 --> 00:32:36,759
the safety net was the trap itself. This is why,

498
00:32:36,920 --> 00:32:40,519
decades later, we still have a private market medicare system,

499
00:32:40,759 --> 00:32:43,400
while the temporary tax cuts for the wealthy have been

500
00:32:43,440 --> 00:32:48,359
renewed and expanded every administration. Since. Nothing is ever what

501
00:32:48,480 --> 00:32:52,240
it seems. It's all a show. It's all just a game.

502
00:32:52,599 --> 00:32:58,559
Our health, our world doesn't matter to them. How can

503
00:32:58,599 --> 00:33:00,759
they manipulate it for themselves. I don't even have a

504
00:33:00,799 --> 00:33:04,440
question for you guys this week. I've been asking questions lately,

505
00:33:04,480 --> 00:33:08,319
and I don't have one. So until next week, my friends,

506
00:33:08,480 --> 00:33:11,799
stay skeptical and I'll see then. Hey friends. The rabbit

507
00:33:11,839 --> 00:33:14,680
Hole is an independent podcast written, hosted, and produced by

508
00:33:14,720 --> 00:33:17,759
me Danny Mercy. Special thanks to Lindsay for research and writing.

509
00:33:17,920 --> 00:33:19,799
If you love the podcast, please leave us a five

510
00:33:19,839 --> 00:33:22,400
star rating and review wherever you're listening. Follow us on

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00:33:22,440 --> 00:33:25,440
social media at rabbit dot Hole podcast, and visit our

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00:33:25,440 --> 00:33:28,400
website at stayskeptical dot com for everything else.

