Friday, August 26, 2016

'The State Will Decide Where Capital Goes'
The World Is Heading Toward More State Control Of Everything
"There is no productivity on a global basis. Secular stagnation, technological shifts, monetary policy, all are suppressing productivity growth rates .. When the economists say we can continue to leverage, as we have done in the last three decades, it lacks understanding of the balance sheet. Even at zero interest rates, at a certain level of debt, you go bankrupt because the private sector loses confidence in the system .. You could eliminate the impact of the overcapacity through deflation. Nobody is prepared to accept that we might have to wipe out decades of growth just to eliminate leverage. Banks go, there are defaults, bankruptcies, layoffs .. Debt is not spread evenly, we still live in a tribal world, and it’s easier to start a war than to forgive debt .. The entire idea of aggressive monetary policies: Stimulate investment and consumption. None of that works, there is no evidence. It can impact asset prices, but they don’t flow into the real economy .. You are essentially in the world where public sector signals dominate .. If the private sector refuses to multiply the money, then the state will do that
The pendulum is definitely swinging towards the state & the state will decide where capital goes ..
It’s impossible to see how you can unwind the economy’s debt load any other way .. China is a shiny city on a hill. There is a very close link between monetary policy, the state, fiscal policy, and investment. The rest of us will look much more like China, and we will follow the same path as China. China is trying to get away from that. They know the consequences, the rest of us don’t .."
- Viktor Shvets, Macquarie
LINK HERE to the article

1 comment:

Anonymous said...

The EpiPen Scandal Is Worse Than You Think: What You’re Not Being Told

In 2007, Mylan “purchased the generic drugs division of Germany’s Merck KGaA for $6.7 billion,” acquiring the EpiPen brand of autoinjectors. Under Merck, the devices cost $7 each, which resulted in just $200 million in gains each year, a mere 5 percent of Merck’s revenue at the time.

But Bresch saw potential in this simple plastic device and focused on how to make the newly purchased brand something that could be widely used. For her dream to come true, she needed the assistance of experts in the monopoly business. That’s when she turned to the U.S. government for help.
The FDA, Washington, and Crony Capitalism Are All to Blame

Though the EpiPen is not covered by patent protection, Bresch’s close relationship with Washington may have helped her company ensure competition wasn’t an issue.

In an article for the Mises Institute, Jonathan Newman writes that “Mylan has been repeatedly protected from competition, and it has repeatedly (and predictably) increased the price of EpiPens in response.”

According to Bloomberg, Mylan has been aggressive in its approach to regulators.

For the past seven years, Bresch has been “[turning] to Washington for help. Along with patient groups, Mylan pushed for federal legislation encouraging states to stock epinephrine devices in schools.”