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Paul Merrell

The Dark Side of Development: Displacement, Eviction in World Bank Projects and Ethiopi... - 0 views

  • With the help of international aid, foreign land grabs in the Gambella region of Ethiopia have resulted in environmental degradation, more severe economic and social inequality, and human rights abuses, according to a new study by the Oakland Institute. We Say The Land Is Not Yours collects testimony from victims of “villagization,” a policy of forced displacement started under the military Derg dictatorship and, according to many, continued to this day under the guise of land investment. The ultimate aim, according to the report, is to resettle up to 1.5 million people. Land cultivated for generations is being degraded by industrialized agriculture in hopes that foreign currency entering the economy will improve infrastructure, create jobs, and “have beneficial trickle-down effects,” the authors say. Communication between the government and locals has been limited to false promises of employment and compensation, according to the report, and victims are silenced out of fear of torture, imprisonment, or death. The Ethiopian government responded to the report, saying the accusations don’t provide sufficient detail to be verified and the “vast majority of Ethiopians have benefitted from the growth and sustainable development program.”
  • A new project from the International Consortium of Investigative Journalists (ICIJ) critically analyzes the World Bank’s safeguards to protect marginalized populations from the negative impacts of its own projects. The result of a year’s worth of research by 50 journalists from 21 countries, the collection of stories claims World Bank-funded projects have displaced an estimated 3.4 million people over the last decade and “financed governments and companies accused of human rights violations such as rape, murder, and torture.” In Ethiopia, ICIJ claims officials siphoned millions of dollars from the bank’s investments in health and education to fund mass eviction campaigns. Citing current and former Bank employees, ICIJ says a new safeguard policy released in 2014 would actually “give governments more room to sidestep the Bank’s standards and make decisions about whether local populations need protecting.” Oxfam’s Land Rights Policy Lead Kate Geary said in a response that these findings are supported by the Bank’s internal audits which reveal they “simply lost track of people who had to be ‘resettled.’” She called for the Bank to provide grant funding to those who have been displaced and negatively impacted, and implement fundamental reforms to live up to its own commitments to protect people.
Paul Merrell

Americans enter 2014 with plunging faith in government - CBS News - 0 views

  • Two months after a Congress mired in partisan congestion gave way to the first government shutdown in 17 years, a mere one in 20 Americans believe the U.S. system of democracy works well and needs no changes, according to an AP-NORC Center for Public Affairs Research poll out Thursday. Heading into the new year with a grotesquely pessimistic outlook on their country’s government, half of Americans said it needs either “a lot of changes” or a complete overhaul. And 70 percent said they’re not confident lawmakers will manage to “make progress on the important problems and issues facing the country in 2014.” Those problems, respondents suggested, are topped by health care reform, jobs and the economy and the country’s debt, respectively. Eighty percent of Americans said they hope the government focuses substantial energy on those issues in the coming year, but only 76 percent said they expect to see real progress.
  • When it comes to the economy in particular, the last best hope, respondents suggested, is Americans themselves. Though a majority said they’re not optimistic about their chances of grasping the American Dream, most qualified that they have at least some faith in their abilities to handle their own problems in 2014. Still, more than half of those polled said they want a strong government hand helping them sort out “today’s complex economic problems.” In general, the population remains split on how active the government should be in the lives of citizens: half said “the less government the better,” and 48 percent said “there are more things that government should be doing.” Sloping faith in government is an aging trend: the percentage of Americans who think the United States governing system is heading in the right direction hasn’t topped 50 in almost 10 years. What’s more, few express hope that it can improve, with half saying they’re pessimistic about the United States’ ability to produce strong leaders, and 61 percent doubting the effectiveness of the way leaders are chosen.
Paul Merrell

Tomgram: Engelhardt, A Record of Unparalleled Failure | TomDispatch - 0 views

  • Given the historical record, those conclusions should be staring us in the face.  They are, however, the words that can’t be said in a country committed to a military-first approach to the world, a continual build-up of its forces, an emphasis on pioneering work in the development and deployment of the latest destructive technology, and a repetitious cycling through styles of war from full-scale invasions and occupations to counterinsurgency, proxy wars, and back again. So here are five straightforward lessons -- none acceptable in what passes for discussion and debate in this country -- that could be drawn from that last half century of every kind of American warfare: 1. No matter how you define American-style war or its goals, it doesn’t work. Ever. 2. No matter how you pose the problems of our world, it doesn’t solve them. Never. 3. No matter how often you cite the use of military force to “stabilize” or “protect” or “liberate” countries or regions, it is a destabilizing force. 4. No matter how regularly you praise the American way of war and its “warriors,” the U.S. military is incapable of winning its wars. 5. No matter how often American presidents claim that the U.S. military is “the finest fighting force in history,” the evidence is in: it isn’t.
  • And here’s a bonus lesson: if as a polity we were to take these five no-brainers to heart and stop fighting endless wars, which drain us of national treasure, we would also have a long-term solution to the Veterans Administration health-care crisis.  It’s not the sort of thing said in our world, but the VA is in a crisis of financing and caregiving that, in the present context, cannot be solved, no matter whom you hire or fire.  The only long-term solution would be to stop fighting losing wars that the American people will pay for decades into the future, as the cost in broken bodies and broken lives is translated into medical care and dumped on the VA.
Paul Merrell

New Trade Data Come at the Worst Possible Time for Obama | The Nation - 0 views

  • President Obama’s push for a massive new trade deal with Asia is predicated on the idea it will help everyday Americans: that it will “level the playing field for the middle class,” in Obama’s words. But as the debate over the Trans-Pacific Partnership enters its endgame, newly released government data about the US trade deficit shows recent trade deals have done the opposite of what was promised—and have inflicted added damage on American jobs. The Census Bureau’s annual trade data for 2014, released Thursday morning, shows the US trade deficit in 2014 jumped 6 percent to $505 billion in 2013. This increase received a late boost from the December 2014 numbers, which showed at 17.1 percent increase in the trade deficit—resulting in the biggest trade imbalance since December 2012. A country’s trade balance is a crucial economic indicator; a nation that is exporting far more goods than it is importing is generally in good economic health. Conversely, a country that is increasingly importing more than it exports—as is the case with the United States—is watching valuable dollars and jobs flow overseas.
  • The data shows a small, 1 percent growth in US exports for 2014, though the domestic oil and gas boom accounts for much of that. US manufacturing exports fell by more than $5 billion in 2014, and the US goods trade deficit rose to $736.8 billion. (More on that number in a minute; it doesn’t tell the full story.) There’s a simple explanation for the widening trade deficit: the US dollar is strong, and there’s weak growth overseas, which would naturally depress exports. But congressional critics of the TPP seized on a broader point on Thursday morning—robust promises about the benefits of past trade deals have turned out to be empty. “We signed those trade deals, and the result has been the opposite,” said Representative Rosa DeLauro on a Thursday morning conference call with reporters. “The administration continues to pursue the same failed policies of the past several years.”
  • Of particular note is the increasing trade deficit with Korea, which increased a whopping 20 percent in 2014, to $25.1 billion. Obama signed a free-trade agreement with Korea during his first term, calling the deal “a major win for American workers and businesses,” and it took effect in early 2012. But the US goods trade deficit with Korea was 81 percent higher in 2014 than in 2011. That translates to a loss of 74,000 jobs, by the administration’s own metrics for measuring job gains from trade. “[The new information] basically confirms a lot of our suspicions, and our positions and votes over the years about how these trade agreements have really been a bad deal for the American worker,” said Representative Tim Ryan.
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  • DeLauro also offered some broadsides about how the administration was spinning the Census report.
Paul Merrell

Director Of National Intelligence Confirms Smart Devices May Be Used To Spy On Americans - 0 views

  • Director of National Intelligence James Clapper stated to the Senate Armed Services Committee that the Internet of Things (IoT) — so-called “smart” devices, vehicles, and appliances which employ various computer technologies — may be used to spy and keep tabs on people in the future. “In the future, intelligence services might use the IoT for identification, surveillance, monitoring, location tracking, and targeting for recruitment, or to gain access to networks or user credentials,” Clapper’s prepared testimony claimed. Though his remarks were ostensibly, and not surprisingly, directed toward the fight against ‘terrorism,’ the potential implications for all civilians cannot be ignored — particularly considering the IoT comprises everything from smart cars and fitness tracking devices to televisions and Barbie dolls. Clapper warns the threat from Russia, China, Iran, North Korea, and such non-state actors as ISIL and al-Qaeda. can be expected in the form of cyber attacks, gathering information about individuals, and even psy-ops, which make the IoT vulnerable to malicious intent — and ideal for U.S. intelligence-gathering purposes. “Future cyber operations will almost certainly include an increased emphasis on changing or manipulating data to compromise its integrity (i.e., accuracy and reliability) … Broader adoption of IoT devices and AI [artificial intelligence] — in settings such as public utilities and health care — will only exacerbate these potential effects,” said Clapper.
  • No matter the possible veracity in concerns of National Intelligence, the agency’s desire to thwart terrorism with an exponential increase in surveillance should be disquieting to all civilians wishing to maintain a modicum of privacy. As researchers with the Berkman Center for Internet & Society at Harvard warned in their recent report, Don’t Panic: “The Internet of Things promises a new frontier for networking objects, machines, and environments in ways that we [are] just beginning to understand. When, say, a television has a microphone and a network connection, and is reprogrammable by its vendor, it could be used to listen in to one side of a telephone conversation taking place in its room — no matter how encrypted the telephone service itself might be. These forces are on a trajectory towards a future with more opportunities for surveillance.” In fact, the Nest is a home automation producer of programmable, self-learning, sensor-driven, Wi-Fi-enabled thermostats, smoke detectors, and other security systems. It’s also one of the devices can be used to spy on people in their homes. Clapper’s testimony carefully constructs a potential legal justification for expanding surveillance via, say, your dishwasher, in his assertion that homegrown violent extremists — who have now earned an acronym, HVEs — present the greatest looming threat inside the United States. According to his remarks:
Paul Merrell

Martin Shkreli Arrested on Securities Fraud Charges - 0 views

  • Martin Shkreli, a boastful pharmaceutical executive who came under withering criticism for price gouging vital drugs, denied securities fraud charges on Thursday following an early morning arrest, and was freed on a $5 million bond. While the 32-year-old has earned a rare level of infamy for his brazenness in business and his personal life, what he was charged with had nothing to do with skyrocketing drug prices. He is accused of repeatedly losing money for investors and lying to them about it, illegally taking assets from one of his companies to pay off debtors in another. “Shkreli essentially ran his company like a Ponzi scheme where he used each subsequent company to pay off defrauded investors from the prior company,” Brooklyn U.S. Attorney Robert Capers said at a press conference.
  • Evan Greebel, a New York lawyer, who is alleged in the federal indictment to have helped Shkreli in his schemes, was also arrested and charged. Like Shkreli, he pleaded not guilty, and he was freed on a $1 million bond. Both men and their lawyers declined to comment after their court appearance.
  • Read the full text of the indictment here In the federal indictment and a complaint by the Securities and Exchange Commission, authorities say Shkreli began losing money and lying to investors from the time he began managing money. In his mid-20s, he got nine investors to place $3 million with him and at one point he had only $331. Securities fraud is hardly unheard of on Wall Streeet and the amounts involved here are nowhere near on the scale of Bernie Madoff. But Shkreli’s case has drawn such attention because of his defiant price-gouging and his own up-by-the-bootstraps history. The son of immigrants from Albania and Croatia who did janitorial work and raised him and his brothers in working-class Brooklyn, Shkreli seemed at first to embody the American dream and then to mock it. After dropping out of an elite Manhattan high school, he worked as an intern for Jim Cramer’s hedge fund as a 17-year-old and quickly impressed with his ability to call stocks. He created hedge funds, taught himself biology and, after earning a BA at Baruch College in New York City, began hedge funds investing in biotech.
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  • He became famous within a certain world but entered public consciousness after he raised the price more than 55-fold for Daraprim in September from $13.50 per pill to $750. It is the preferred treatment for a parasitic condition known as toxoplasmosis, which can be deadly for unborn babies and patients with compromised immune systems including those with HIV or cancer. His company, Turing Pharmaceuticals AG, bought the drug, moved it to a closed distribution system and instantly drove the price into the stratosphere. He drew shocked rebukes from Congress, doctors and presidential candidates, and brought public attention to the rising prices of older drugs. Donald Trump called Shkreli a “spoiled brat,” and the BBC dubbed him the “most hated man in America.” Bernie Sanders, the Democratic presidential candidate, rejected a $2,700 campaign donation from him, directing it to an HIV clinic. A spokesman said the campaign would not keep money “from this poster boy for drug company greed.” All the criticism seemed at first to have some impact and Shkreli said he would lower the price. Then he reneged. When Hillary Clinton tried one more time last month to get him to cut the cost, he dismissed her with the tweet “lol.” At a Forbes summit in New York this month, wearing a hooded sweatshirt, he said if he could have done it over, “I probably would have raised the price higher,” adding, “My investors expect me to maximize profits.”
  • Shkreli did further damage to his public image with other acts and boasts. He spent millions on the only copy of a Wu-Tang Clan album that music fans are desperate to hear and then told Bloomberg Businessweek that he had no immediate plans to listen to it. He takes often to Twitter and message boards, bragging about his business strategies, musical tastes and politics; he live-streams from his office for long stretches. The SEC complaint and federal indictment lay out a series of schemes and cover-ups carried out by Shkreli. Capers said authorities began investigating him as early as 2014.
  • Barely 23, he was managing hedge fund Elea Capital in New York and lost it all in 2007. Around then, a trade with Lehman Brothers ended with a $2.3 million judgment against him, prosecutors said. In 2010, he lost his clients’ $3 million investment in his new fund, MSMB Capital. In 2011, he bet that shares of Orexigen Therapeutics Inc. would fall and wound up owing $7 million to his broker, Merrill Lynch, authorities said. He couldn’t pay, and he, an unnamed accomplice and MSMB Capital eventually extinguished the debt with a $1.35 million settlement, they said. Part of that money came from his next firm, authorities said. After the collapse of MSMB Capital, Shkreli launched MSMB Healthcare with about $5 million from 13 investors. He paid himself “far in excess” of the agreed-upon 1 percent management fee and 20 percent profit incentive, according to the SEC.
  • Shkreli then used cash from MSMB Healthcare to invest in Retrophin, the pharmaceutical company he founded in 2011, even though it “had no products or assets,” prosecutors said. Later, he used the assets of Retrophin to repay angry investors in his hedge funds, prosecutors said. Shkreli is confident that he will be cleared of the charges, according to a statement on his behalf. Shkreli is particularly disappointed that his litigation with Retrophin has become a government enforcement matter, according to the statement. He also denied the charges regarding the MSMB entities, which he said involve complex accounting matters that prosecutors and the SEC fail to understand, according to the statement. “It is no coincidence that these charges, the result of investigations which have been languishing for considerable time, have been filed at the same time of Shkreli’s high-profile, controversial and yet unrelated activities,” according to the statement. “The government suggested that Mr. Shkreli was involved in a Ponzi scheme. Ponzi victims do not make money, yet Mr. Shkreli’s investors enjoyed strong results.”
  • As Shkreli’s losses mounted, so did his lies. He fabricated portfolio statements and, with his lawyer’s help, deceived the SEC and outside accountants. He backdated records, manufactured a phony loan agreement between Retrophin and a hedge fund, and created sham consulting agreements with Retrophin as a way to route the company’s cash to his earlier investors. Greebel, the arrested lawyer, made sure Retrophin’s outside accountants were unaware of Shkreli’s financial maneuvers and helped him concoct the consulting agreements used to repay the hedge fund investors, the U.S. said. The cases mirror a lawsuit brought by Retrophin. Shkreli blithely dismissed his old company’s claims, saying, “The $65 million Retrophin wants from me would not dent me. I feel great. I’m licking my chops over the suits I’m going to file against them.” Earlier, he had denied wrongdoing in a post on InvestorsHub after Retrophin disclosed it had received a subpoena from federal prosecutors and the preliminary findings from its own investigation of Shkreli. He called the company’s allegations “completely false, untrue at best and defamatory at worst.”
  • “Every transaction I’ve ever made at Retrophin was done with outside counsel’s blessing,” he said on the investment blog in February, without identifying the lawyers. When Shkreli was working for Cramer’s firm, he was still a teenager. After recommending successful trades, Shkreli eventually set up his own hedge fund, quickly developing a reputation for trashing biotechnology stocks in online chatrooms and shorting them, to enormous profit. Widely admired for his intellect and sharp eye, he set up Retrophin to develop drugs and acquire older pharmaceuticals that could be sold for higher profits. Turing, which is less than a year old and has raised $90 million in financing, has followed a similar strategy with the purchase of drugs, including Daraprim. Shkreli recently bought a majority stake in KaloBios Pharmaceuticals Inc. after Turing received a warning from the New York attorney general that the distribution network for Daraprim may violate antitrust laws. State officials made their concerns known to Turing and Shkreli in an Oct. 12 letter obtained by Bloomberg.
  • KaloBios recently acquired the license for benznidazole, a standard treatment for Chagas, a deadly parasitic infection most common in South and Central America. The firm announced plans to increase the cost from a couple hundred dollars for two months to a pricing structure like that for hepatitis-C drugs, which can run to nearly $100,000 for 12 weeks.
  • With the federal charges and regulatory actions, Shkreli could be banned from running a public company, which could put the future of KaloBios into question. Trading in KaloBios shares was halted after the stock fell 53 percent. It’s less clear what the impact could be on Turing, which is closely held.
  • Federal authorities will have to ask a judge to impose an asset freeze if they want to guarantee Shkreli doesn’t dispose of ill-gotten gains. The charges suggest that a small group of health-care firms—ones that acquire the rights to drugs and significantly increase their prices—is drawing the scrutiny of regulators and prosecutors, with a possible chilling effect on aggressive drug-pricing strategies. Legislators are already paying attention. A hearing of the Senate Special Committee on Aging on Dec. 9 scrutinized such tactics. Before Shkreli started Turing, Retrophin raised the price of Thiola, used to treat a rare condition causing debilitating recurrences of kidney stones, from $1.50 a pill to $30. “Some of these companies seem to act more like hedge funds than traditional pharmaceutical companies,” said Senator Susan Collins, a Maine Republican who ran the recent hearing. George Scangos, CEO of biotechnology giant Biogen Inc., went further, saying in an interview, “Turing is to a research-based company like a loan shark is to a legitimate bank.”
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    Couldn't happen to a nicer guy.
Paul Merrell

How America's Wars Fund Inequality at Home - LobeLog - 0 views

  • In the name of the fight against terrorism, the United States is currently waging “credit-card wars” in Afghanistan, Iraq, Syria, and elsewhere. Never before has this country relied so heavily on deficit spending to pay for its conflicts. The consequences are expected to be ruinous for the long-term fiscal health of the U.S., but they go far beyond the economic. Massive levels of war-related debt will have lasting repercussions of all sorts. One potentially devastating effect, a new study finds, will be more societal inequality. In other words, the staggering costs of the longest war in American history — almost 17 years running, since the invasion of Afghanistan in October 2001 — are being deferred to the future. In the process, the government is contributing to this country’s skyrocketing income inequality. Since 9/11, the U.S. has spent $5.6 trillion on its war on terror, according to the Costs of War Project, which I co-direct, at Brown University’s Watson Institute for International and Public Affairs. This is a far higher number than the Pentagon’s $1.5 trillion estimate, which only counts expenses for what are known as “overseas contingency operations,” or OCO — that is, a pot of supplemental money, outside the regular annual budget, dedicated to funding wartime operations. The $5.6 trillion figure, on the other hand, includes not just what the U.S. has spent on overseas military operations in Iraq, Afghanistan, Pakistan, and Syria, but also portions of Homeland Security spending related to counterterrorism on American soil, and future obligations to care for wounded or traumatized post-9/11 military veterans. The financial burden of the post-9/11 wars across the Greater Middle East — and still spreading, through Africa and other regions — is far larger than most Americans recognize.
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