The Ten Most Terrifying Words in the English Language…
Valeant
had the highest average drug price increase in the industry last year, at a
rate of 65 percent across 50 drugs….
By J.M. Hamilton (2-5-2016)
The Reagan Revolution is some thirty-six
years old, and it finally appears to be losing steam. That Mr. Reagan's ideas, to this day, carry so
much weight with so many Americans shows there power, particularly when we
consider that the former president’s actions were often contrary to his
rhetoric. Which explains a great deal
about the power of ideas, and why our corporate run news media does everything
in its power to control and contain the narrative at all times. Ideas, indeed, can be dangerous things,
especially for the plutocracy and fans of the established order.
For those of us there at the very
beginning of the political revolution, Reagan’s key ideas of tax cuts for the
wealthy would help the economy (aka Trickle Down Economics), free trade, and a Pax Americana foreign policy, often
belied Reagan’s far more nuanced approach to real world problems. For example, contrary to Mr. Reagan’s
conservative beliefs, the former president signed into law eleven tax increases
to contain the growing Federal debt; fighting high unemployment, President
Reagan was perhaps the greatest protectionist president in the 20th Century (per the ultra-conservative CATO Institute, founded by Mr. Charles
Koch); and Mr. Reagan deserves a great deal of credit for taking down the
Soviet Union w/out firing a shot in anger (perhaps the president’s biggest
military adventure was the invasion of Grenada, under Operation Urgent Fury).
Sounds like President Reagan was
politically to the left of President Obama - the faux liberal, bomb throwing
community activist, and social organizer.
As many have noted, President Reagan wouldn’t make the cut in today’s GOP primaries. All of which goes to show
just how far right the country, and particularly the ruling plutocracy have
swung, based upon a foundation of Mr. Reagan’s rhetoric alone - certainly not
based upon his actions. During the
eighties, it was Reagan’s actions – not his words – that made him such an
enduring and popular leader, and his actions won him a second term.
One of the more famous phrases Mr. Reagan quoted, and he used it more than once, was: "The nine most
terrifying words in the English language are: “I’m from the government, and I’m
here to help.”"
In 1980, the Federal debt to GDP ratio
was under 40%, and today, thirty-five years into the revolution, the same ratio
is in excess of 100%. This from the St.
Louis Federal Reserve web site. The top
tax bracket under the socialist Mr. Reagan was 50% for much of his two terms in
office (which applied to a considerably lower income threshold), versus
arch-conservative Mr. Obama’s highest income tax rate of 35% for much of his
two terms (which applies to a considerably higher income threshold). And yet, the 80s recovery was so much
stronger than our present recovery, completely contrary to what GOP mandarins,
and academics at the Chicago School of Economics, would indicate should happen. Under Reagan, with the higher tax rate, GDP
gains per annum were between 7 and 9%; under Obama, with the lower tax rates,
the GDP growth range has been an anemic 3 to 4%, per annum. So much for the theory that tax cuts for the
rich stimulate the economy; and yet, the GOP still clings to this failed fantasy.
Admittedly, and to some small degree
perhaps it’s an over-simplification, but when we wonder why Federal debt has
skyrocketed over the last thirty-five years, during the heart of the Reagan
revolution, it can be said much of that deficit spending went to finance tax
cuts for the wealthy --- that and two failed GOP led nation building exercises
(within in the Middle East). Remember
when Mr. Bush (W) entered the White House in 2000, the annual Federal deficit
had all been but wiped out. Bush, and a
GOP led Congress, piled on the tax cuts for the wealthy, started two
bankrupting wars – essentially fulfilling
OBL’s darkest fantasy – and proceeded to send the debt to GDP ratio
skyrocketing, again.
More recently, a great deal of
the Federal debt, as well as, tax cuts for the wealthy, have been financed by
the Federal Reserve’s printing presses (aka debt monetization) and balance
sheet expansion. Like Chancellor Cheney
said, “Reagan proved deficits don’t matter.”
Remarkably, deficit spending to finance tax cuts for the wealthy has
also coincided with exceptional growth in wage and wealth inequality, and a
ruling oligarchy’s formation. Reduced
tax rates over a period of time has the same impact as compounded interest over
the same time span. Great wealth tends
to take off exponentially from there, in both a high interest rate environment,
or a low tax rate regime (and it really soars if tax rates are low and the
stock market is juiced by the Federal Reserve).
And some wonder how our present
Neo-gilded Age came to be, look no further than the Reagan revolution (aka tax
cuts for the wealthy).
Let’s push on. As the real central point of today’s piece is
our Federal government, who owns and operates it, and what exactly to make of Mr.
Reagan’s quip, about "the nine most
terrifying words," some
thirty-five years later.
It’s no secret… President Obama, and the
leading presidential contenders, have all spoken of it. Our democracy it owned and operated by a
ruling elite of billionaires, multinational corporations, monopolies and
cartels, and even some foreign governments hold unaccountable sway over our
democracy. Left out and underrepresented,
if they are represented at all, is America’s poor, and middle & working class
families. In short, arguably, our democracy is a façade for the ruling elite’s hegemonic control. Messrs. Sanders and Trump, and even Mrs.
Clinton, deserve a great deal of credit for banging - the campaign finance
reform - gong repeatedly over the last several months. The candidates who conveniently, do not
discuss this issue are almost everybody else in the GOP field, Senators Cruz
and Rubio, and notably former Florida Governor Jeb Bush. I wouldn’t call this latter crew the
“damned,” but I would certainly call them, “the owned.” With the exceptions of Messrs. Sanders and
Trump, all candidates are beholding to moneyed interests: Super Pacs,
billionaires, and the Wall Street banking cartel, etc., etc.
So who are these predators,
who buy our nation’s politicians like they would a discounted throw rug at a
local bargain store? As important – because our government is for
sale - could it be argued that these powerful forces are a State within a State, or what is said to have existed, and exists, in Turkey to this very day, a Deep State or Shadow State? That is to
say, since the ruling plutocracy I’m about to name, collectively, owns the
majority of politicians, controls the financing of same, and the political
parties themselves… have the billionaires, the multinationals, the monopolies
and cartels become the government, itself?
After all, they own it.
So w/out further ado, Dear Readers,
here’s a few members of your shadow government, or the puppeteers who tell our U.S. Congress and State legislative bodies – particularly in Red States – what to do:
The Military Industrial Complex:
Ever wonder how an aircraft, the F-35, can have billions in cost
overruns, not function, an infinite number of production delays, and Congress doesn’t say,
“boo?” Look no further than Lockheed Martin. Lockheed, like the rest of the
MIC that President Eisenhower warned us against, defines a corporation that
loves Big Government. Government contracts
always at the ready, never held accountable, profits are privatized… and
losses, cost overruns, and failure are picked by the King Daddy of all Sugar
Daddies, Uncle Sam himself. Failure is rewarded. Politicians
don’t say a critical word, because it’s unpatriotic to criticize the MIC. And some wonder why after more than a decade of
failed nation building exercises, the DOD just recommended launching yet another war to defeat IS in Syria.
It’s because war is the greatest fraud ever created by man, and
generates profits on a scale that only billionaires can dream of. Here, only Senator Rand Paul has the cojones to state the obvious: The U.S. is bankrupt and really can’t afford the
MIC on this scale, or another war – let alone play the world’s beat cop; and
yet, we have 800 military bases around the world. As voters, we let the brave men and women who
serve down, daily, when we allow MIC contractors and the War lobby to lure the
U.S. into another war. The MIC is the
pinnacle of fiscal irresponsibility.
The Koch Brothers and Koch Industries… most of the
enterprises and billionaires I’m mentioning in this piece, believe in an Ayn
Rand style rugged individualism and a libertarian ideology that says: I made it
to the top – exclusively on my own drive and ability, and therefore, I deserve
the spoils. The reality however, is most
of these individuals, and multinationals, got to where they are by doing crony deals with government(s). You know: tax loopholes, government subsidies,
government contracts, privatization, regulatory capture, and even gambling and speculation
in exotic financial products (like the swaps & derivatives that took down
the economy), back stopped by the American taxpayer. Koch Industries got their start, when daddy
got friendly with Hitler and Stalin. Yup, you read that correctly… Mr. Fred Koch
was in bed with two of the twentieth century’s biggest mass murders, not to
mention a socialist and a communist, respectively. Please don’t look for that information within the bio page of the Koch Industries web site.
It’s not there, nor will you find that Mr. Fred Koch was a founding
member of the anti-Semitic and racist John Birch society. Not content to own the State of Kansas, and
enjoy outsized influence within the U.S. Congress, the brothers have promised
to spend nearly a billion dollars to buy the White House this election
season. Fortunately, it looks like the
American public has caught onto their efforts to subvert democracy and own the
executive branch. Remember, life isn't always better with Koch.
The Wall Street banking cartel:
I’ve spilled so much ink on this cancerous malignancy on the body
politic (read here, here, and here again), that words nearly fail me, except to add there isn’t an establishment
presidential candidate that hasn’t accepted money from the big banks. That’s exactly why Mr. Trump and Mr. Sanders scares the hell out of the Street.
There’s a reason why there’s now 60 members within Congress’ House
Financial Services committee, it’s because they’re all on the take. Just remember this: Wall Street after destroying the global economy in 2008 is more concentrated, more powerful, and a bigger threat to the nation, and national security, than it ever was, and we
have our crony government to thank for that.
When Candidate Sanders talks about growing wage & wealth inequality
in this country, there is no greater contributor to that divide than the Wall St. cartel, which pushes, markets, underwrites, and sells M&A activity. M&A and industry consolidation
(i.e. cartels & monopolies) are known job and opportunity killers. It’s often the primary reason businesses
merge, to cut expense and eliminate jobs (and boost EPS, ROE, and C-Suite pay). Even if one is of an age, or in a business or
company that one feels is immune from M&A, where you feel wage & wealth
inequality does not impact you… it certainly impacts many Americans of all ages,
particularly younger Americans and their future. Younger Americans, many with college degrees
and exorbitant debt, have suffered the brunt of the Wall Street crisis and the
M&A consolidation boom, which helps explain why they are turning out for
Senator Sanders in droves.
Sheldon Adelson dreams of a better world, one where the United
States answers to Israel. Now, I’ve
gotten nothing against Israel. I’m a
fan. Like the U.S., however, this Middle
East superpower has gone over the top in reaching for the military for every
foreign policy problem that comes along.
Israel has a valid excuse, however, they’re surrounded by enemies, and
their citizens - many of the Jewish faith - were nearly extinguished by the
Koch family business partner, Herr Hitler.
The U.S., on the other hand, has no excuse. Nor should the U.S. subcontract out its
foreign policy in the Middle East to Israel, or any other government – say the
highly corrupt Saudis or Oil Monarchies (nor do their bidding or fighting for
them). Yes, Mr. Adelson, casino magnate
and billionaire, has a dream, and nearly the entire GOP establishment has lined
up to fulfill it for him. The U.S.
spends more on defense than the G-20 combined.
If the DOD and MIC can’t protect the continental U.S. on that budget,
than the DOD/MIC – to utilize Mr. Trump’s phrase - should be fired. Getting involved in foreign conflicts at the
behest of foreign governments, or billionaires, is not something our elected officials
should be entertaining; but Congress tacitly allows President Obama to do it
daily, and w/out holding a vote.
Exxon Mobil: Once the most
powerful company on the planet, it’s now be taken to task by the AG of NY, and
if the New York Times has it correct, possibly the AG of California. Seems that the planet is dying, and like Big
Tobacco before them, Exxon knew and allegedly, sought to cover it up. Exxon is alleged to have paid off politicians,
hired lobbying firms, and bought off academics to provide a thick coat of white
wash to cover up all the black - planet killing - goo they pull out of the
ground. It doesn’t stop there however,
Big Oil is in bed with some of the nastiest and most repugnant regimes and
governments on the planet --- anything to make a buck. It’s no accident that the U.S. government,
and the State Department, often finds itself backing some of these very same
dictatorships Big Oil does business with - often with diplomatic, foreign, and
military aid. Exxon, Big Oil, and OPEC
have all fallen under hard times with the collapse of world energy markets, but
let’s not cry too hard…. For every U.S. recession from the 1970s forward, was proceeded by or accompanied by an oil price shock/increase. Oil shocks that made Exxon, et al.,
unprecedented billions.
There’s many more entities and
individuals that play a huge role in our shadow government (Cable and internet service providers; the five major corporations that control 90% of our news
content; the Airlines; Berkshire Hathaway; Big Ag.; Shadow banking & Private Equity
chop shops, etc., etc.), but the roll Big Pharma plays deserves special
mention.
Valeant Pharmaceutical:
The U.S. is the only Western democracy still being taken for a ride by
these creeps. Every other country (i.e.
The West) knows better than to give a pharmaceutical company a patent, in
essence a monopoly on medicine, w/out a price cap and/or price controls. Otherwise, a country is just begging to be ripped off, particularly when the Federal government in the largest U.S.
medical insurer. For years Big Pharma
had told us they need price hikes to cover R&D and expand the pipe line of
costly and lifesaving medications. But
they don’t even play that game anymore. Now,
very much like the private equity model, Valeant and other pharma companies, merely buyout competitors, cut labor to the bone, gut R&D, jack up the price of medicine several thousand multiplies over, and extend patents by
tweaking the formula of said medication.
Make no mistake about it, Valeant Pharmaceutical, Pfizer, Turing, et al., are killing people with these price hikes (or forcing them to make
unconscionable choices between eating and taking medicine) and contrived drug shortages, and their income
statements are written in the blood of U.S. citizens. If that doesn’t freak you out, this next part
hopefully will get your attention. It’s not bad enough that Big Pharma, and Valeant Pharmaceutical, screw over a bankrupt United States for billions and billions of dollars, but in the ultimate
act of disloyalty, many pharmaceutical companies have moved their operations
offshore to dodge paying U.S. taxes.
(This is a classic example of how the plutocracy runs over the 99%
daily. Not only do we get the shaft with
monopolistic pricing, and layoffs due to M&A, but the little that remains
of the middle class must pay a higher tax bill to subsidize the Robber Barons,
who flee offshore with their billions.)
What’s to investigate? How about doing your job, Dear Congress, and
regulate and cap Big Pharma’s prices? There’s
nothing Ayn Randian about this guy or this guy.
They never invented a lifesaving medication or saved a human life. They're just vampires sucking on the carcass of
a bankrupt and dying nation, called the United States.
Seemingly, our bought and paid for
Congress is powerless to act. If that’s
the case, why not dispense with the Congress altogether, or at least downsize
the institution and go unicameral?
Some of my conservative
friends don’t quite understand one of the key issues of our times: wage and
wealth inequality. That is, once
economic and political power begins to concentrate and becomes absolute, the
plutocracy – the Shadow State - tends stomp out opportunity, growth, and free
enterprise itself, in a quest for hegemonic control and monopolistic profits. (It’s no accident
that the number of business starts ups is declining at a more rapid pace,
versus the number of businesses closures… so that the growth of new business is less than the number of business failures.) That is to say, any threat to the ruling
oligarchy's profits must be eliminated. Mussolini
didn’t call it “fascism,” he called it “corporatism,” or government rule by
corporations, banks, and industrial interests.
Under corporatism, the government, and its apparatchik, has no vision
for the future of the nation or its people - there’s only profits uber alles. Remember Orwell’s warning in his book
1984: “If you want a vision of the
future, imagine a boot stomping on a human face – forever.”
Has that day finally arrived? Many fear it has.
The youth get it. They recognize that the Deep State,
the Oligarchy, has failed them. That’s
why by an eighty-four percent margin, Iowa’s Democratic voters, under the age of 30, support Senator Sanders over the establishment candidate, Hillary
Clinton. Our nation’s youth, and their
future, have been robbed to pay for an Ayn Rand fantasy world for the economic
and financial elite…. Many of whom,
ironically, are highly addicted to Big Government and absolute control.
Maybe President Reagan had a point….
Government is the problem, particularly when it is owned and operated by the
one percent and for the one percent.
Pretty scary isn’t it? The ten most terrifying words in the English language are: "I’m from Valeant Pharmaceutical, and I’m here to help myself."
The Reagan revolution is dead. Nobody –
not even die hard Republicans – believes in trickle-down economics (and demographics
and time are not on the GOP’s side).
Unfortunately, as the Congress is dominated by a gerrymandered and purchased GOP, this fiscally irrational ideology just might be with us for a while yet. Sadly, in addition to bankrupting the United
States, Mr. Reagan’s revolution also had the consequence of concentrating
wealth to unaccountable extremes, creating a ruling oligarchy, and the greatest
tragedy of all, smeared the economic model of capitalism with a third string
substitute, job killing monopolies and cartels.
Let’s call it what it is: Guilt by
association.
Copyright JM Hamilton Publishing 2016
