The myth that the consumer is in any way protected by the Fooled and Drugged Administration is blowing up once again.
Can’t say we’re surprised, since in the past we had helped expose how the FDA helped corporate greedsters to hoax millions out of people who depended on the extract of the autumn crocus (Colchicine) which costs about 20-cents a pill in Mexico. But here in the US,, for a while, the cost of the pill was north of $8 dollars a pill.
In the FDA’s defense, the drug greedsters had suggested that there would be “more research” if they just had the money to fund it. Obligingly, the FDA – notorious for playing the “captive regulator” game, let them have it despite there being more than 1,700 studies – not to mention almost 2,000 years of human use trials to pick through – already done and on file.
All they needed to do was look and think. Fat chance, boyz…
Not familiar with the “captive regulator” game?
Well, here’s how it works.
Say you get out of college and want to “do some good” in the world. Your degree in a health sciences field in hand, you land a low to mid-level job with the FDA.
You work there long enough to get partially vested in the FedGov separate – and way better than Social Security – system.
Then you land a job in Big Pharma doing something quasi-related to your expertise, but really the reason you get hired is to lobby and since you knew everyone from the FDA you worked with, you make big bucks.
After a while, having made a small fortune, not to mention a pile of stock options, you go back to work for the FDA or closely allied agency.
Rinse and repeat a couple of times and you’re gdolden – for Life!
This is not to say everyone in the FDA has their hands in the cookie jar.
But now let’s fast forward to the next well-studied drug that is being used to screw consumers: EpiPens.
This is a device, formerly sold for much, much cheaper, that here is the US is selling for upwards of $500.
My daughter Denise – a consumer crusader who lands in the hospital if you so much as SAY the word “peanut” loudly – and who publishes a fine blog on peanut allergies over here – has been interviewed a number of times because although it is illegal, she occasionally will go to Canada to buy an EpiPen for $100 (or less). Pays for the trip and a lot more.
Consumer outrage is a pretty violent thing, or so it appears if you follow the price of Mylan stock – since they are the people making and selling the EpiPens.
There’s a pretty good piece on U.S. Uncut that explains the background of this as the brainchild of CEO Heather Bresch…
“Bresch, who is the daughter of U.S. Senator Joe Manchin (D-W.Va), eventually became Mylan’s CEO, and subsequently raised her own salary by 671 percent. And in 2014, Bresch reincorporated Mylan in the Netherlands, utilizing a controversial accounting tactic known as “inversion,” lowering the company’s effective tax rate while still maintaining its headquarters and manufacturing base in the US.”
Meantime, the Senate Judiciary Committee is likely to hold hearings into the Mylan business practices and more than 147,229 people (*including me) have signed the petition over here demanding a Mylan rollback.
Why isn’t CONgrease already asking how many Mylan’ers went into gov’t and visa versa?
The REAL Long-term Fix
As good students of longwave economics – and having just explained again the other day how the global financial system almost blew up in 1974 due to the failure of derivative settlements involving Herstatt Bank, we have a modest idea to save the world from global revolution.
You see: Derivatives are continuously settled and this prevents systemic imbalances from taking down the whole world.
What I would propose is that the current election process be speeded up.
It is absurd that we have Hillary launching a KKK “racism attack” on Trump while at the same time, we see the NY Times has launched a new “Race” newsletter. (Hey: Let’s make a business model out of race shall we?) Yes, we live in absurd times, do we not?
What I propose is that elections get up on the Internet and settle continuously.
In this way, crooks like Pay2SeeHer and this Mylan price-jacking adventure wouldn’t be issues for long. We need more forensic economists.
One “outrage cycle” in instant online elections (and continuous settlement of politics) would fix everything. The crooks would be out on their ears.
Too simple? Oh hell yeah.
Look, I can pay my electric bill online right now…I can move money from my TreasuryDirect account into checking, or into one of my trading accounts.
But for some reason, the same computer technology isn’t gpod enough to get the crafty weasel-dicks out of office except once every four years…(2-years for Congreasoids) and then only after 6-months of brainwashing of the most stupid, TV-addicted simpletons in the world…lord ‘o Goshen……
GMAFB…where did the America I grew up in go? Yeah…that’s what I’m talkin’ – the Can Do and Kick-Ass and Take-Names place?
Not the land of the absurdly correct, bow down to wimps, pay-off terrorists, respect the whiners, and kissers of the corporate butts… FMTT.
Mylan stock may go down further. Nothing would surprise me less.
The American Middle class is sick and tired of the same-old shit and when lobbyists scam on med pricing at the same time Obamacare is heading down the flusher, the lynch mobs hit the web.
Mylan should have known better. And if they have a freaking clue, President Useless and his anointed successor and the Fools on the Hill better WTFU to what is going on out here in fly-over country.
Two R dangerous words are kicking around out: Rage and Revolution. (Resentment and repugnant are optional.)
Hillary better STFU on Trump and Klan, lest people with better memories than hers (damaged post-Benghazi it seems) will remind the frigging world that one of the key Klansmen was none other than a leading DEMOCRAT:
According to Byrd, a Klan official told him, “You have a talent for leadership, Bob …
So yeah, the Klan is a democratic group. Maybe a few have lost their way and will vote for Trump, but how long was the Klan Byrd in Washington was it? And how many Byrd brains are still there? The victimizing the poor and exporting American jobs hasn’t slowed now, has it?
Still, it seems to work – thanks to the gullible masses, the Clinton News Network and others. In the polls this morning she up on Trump from 3 to 10 points.
Hey…suddenly it’s clear: If people will buy Hillary, maybe they can buy Mylan stock, too!
(Gee, that was good for me…how about you?)
Now the Boring Economics Stuff
And then we have detail level on corporate profits going up while GDP is sliding:
Corporate Profits (table 12) Profits from current production (corporate profits with inventory valuation adjustment and capital consumption adjustment [CCAdj]) decreased $24.1 billion in the second quarter, in contrast to an increase of $66.0 billion in the first. Profits of domestic financial corporations increased $7.2 billion in the second quarter, compared with an increase of $8.1 billion in the first. Profits of domestic nonfinancial corporations decreased $58.2 billion, in contrast to an increase of $84.8 billion. The rest-of-the-world component of profits increased $26.9 billion, in contrast to a decrease of $26.9 billion. This measure is calculated as the difference between receipts from the rest of the world and payments to the rest of the world. In the second quarter, receipts increased $19.8 billion, and payments decreased $7.1 billion.
Ask yourself how many companies have done Mylan-like inversions in order to keep the US label and dodge the tax bullets and flip them to the shareholders?
Market futures are about dead flat as we publish…
I will stop writing about politics September 1 in order not to influence the election. People are stupid enough and my tutoring has either helped by now or not…