The US Government Is No Longer Legitimate
The Market Ticker - Commentary on The Capital Markets
2017-02-07 11:43 by Karl Denninger
in Editorial , 2187 references Ignore this thread
The US Government Is No Longer Legitimate
[Comments enabled]  

Senator Rand Paul previously announced intent to file a bill that, among other things, would make legal price-fixing and collusion in the medical industry.

The text of that bill is now available:

(a) Application of the Federal Antitrust Laws to Health Care
Professionals Negotiating With Health Plans.--
(1) In general.--Any health care professionals who are
engaged in negotiations with a health plan regarding the terms
of any contract under which the professionals provide health
care items or services for which benefits are provided under
such plan shall, in connection with such negotiations, be
exempt from the Federal antitrust laws.

Let me point out, once again, why Rand included this in his bill.

15 United States Code Chapter 1 makes explicitly illegal any sort of price-fixing or collusion where market power exists.  It provides both heavy civil ($10 to $100 million per instance) fines for persons and corporations, respectively, and in addition provides for felony criminal penalties of up to 10 years imprisonment for all persons involved.

The insurance industry tried to argue in the 1970s that Mccarran-Ferguson, a law which provides limited exemptions to 15 USC for insurance firms, shielded them -- and pharmacies -- from prosecution under these laws.

The case went to the Supreme Court and the insurance and pharamacy firms lost.

Normally, when such a thing happens the industry involved immediately changes how it operates because it has to.  The law exists, the case was brought, it went as far as it can go in the court system and the highest court in the land said stop that crap right now.

But that didn't happen in this instance.

Instead the health-related industries put up their middle finger toward both the people of this nation and the United States Supreme Court, instead deciding to bribe Congress through their lobbying.  They not only didn't change their behavior they accelerated it.  Thus we have abuses of alleged "patents" (where no real change in formulation has occurred yet a "new drug patent" is issued for what amounts to a non-innovation), they pay off one company not to compete .vs. another (a black-letter violation of the law) they got Congress to make illegal the importation of drugs made by the same companies that happened to pass through other nations, and they "convinced" (through God knows what method) both federal and state attorneys general in both political parties equally to ignore not only the 100+ year old body of law in 15 Unites States Code but also all 50 state consumer protection laws and federal FTC regulations that bar deceptive practices such as refusing to quote a price before a service is performed or billing two different people wildly different prices, often by 10x or more, for the exact same thing.

Let me further point out that while "Drug Reimportation" was banned by Congressional Action (that is, a law) restraint of trade intended to increase the price in the United States remains illegal.

Every combination, conspiracy, trust, agreement, or contract is declared to be contrary to public policy, illegal, and void when the same is made by or between two or more persons or corporations, either of whom, as agent or principal, is engaged in importing any article from any foreign country into the United States, and when such combination, conspiracy, trust, agreement, or contract is intended to operate in restraint of lawful trade, or free competition in lawful trade or commerce, or to increase the market price in any part of the United States of any article or articles imported or intended to be imported into the United States, or of any manufacture into which such imported article enters or is intended to enter.

Yes, it may be illegal (because Congress made it so) for you to buy pills made here and then exported in some other nation and re-import them for resale but the act of restraining trade so as to price something at 2, 5, 10 or 100x what it sells for somewhere else was not made lawful.  Such an act remains illegal (if you claim otherwise then find the law that explicitly exempts same from this section of US Code and cite it) -- so where are the charges against every single US pharmaceutical company that has done exactly this?

The governments of this nation exist only with the consent of the governed.  A government may declare itself illegitimate by failing to uphold the law, becoming nothing more than a racketeering mob carrying firearms to dispense violence upon anyone who disagrees with its schemes.

The people of this nation have twice over the last ten years recognized that this theft is destroying them wholesale.

Obama was elected twice, in no small part, on his "promise" to reform health care.  He instead advanced the scam through Obamacare -- a bill written by the medical industry after he told the people that it would be written to benefit them.  Trump was elected, in no small part, because of the failures of Obamacare.  But as soon as he won the (thin) premise in his campaign website of medical reform disappeared and now we have two bills filed by Republicans, one of which not only recognizes the illegality of what has been going on since 1979 but promises to make it legal as Trump's and the Republican Party's "answer" to Obamacare's screwing of the public.  In short the Republican response to you getting screwed is that they expect you to take it longer and harder!

Rand Paul as a Senator has simply underlined what every Senator, member of the House and last several Presidents, including Donald Trump, have done and are doing today and have every single day since 1979:

These men and women, through their collective action and intentional inaction, along with the attorneys general of the 50 states and the law enforcement apparatus attached to them, have declared both State and Federal governments to be illegitimate as they have through their own action and intentional inaction reduced the government to nothing more than a heavily-armed mob tasked with stealing one dollar in five that is spent in this economy.

Let me remind you of the magnitude of this theft -- over $2 trillion a year and easily the largest act of theft ever against a people anywhere in the history of humankind.

Three Presidential elections ago, in 2007/2008, I began writing on these issues in The Market Ticker.  I had been following this issue closely since the 1990s when I ran MCSNet "in the time of Clinton" because this problem posed an existential threat to not only myself personally but also to every one of my employees and the company.  I spoke out about it at the time and was ignored.  I have raised hell since 2007 about it here in this column and have been ignored.  The people of this nation have decided that when their political party wins they will fawn over him or her and ignore the willful and intentional refusal to enforce the law at both the State and Federal level that has led to this situation and will inevitably result in the destruction of the countrywhile if their candidate loses they will whine, complain or wear vaginas on their heads while marching in protest and, occasionally, riot -- because they lost.

In short the people of this nation have proved that they will spend their political capital on abortion, gay marriage, whether a man who dresses as woman because he wishes he was one can******in the woman's room, whether said person as a teen can shower in the girl's locker room in a public High School, whether a baker can be put out of business for refusing to make a gay wedding cake and dozens of other "issues" that, while certainly a matter of political difference have exactly zero relevance compared to a segment of our economy that takes one dollar in five from every person in this nation with over $2 trillion a year being stolen (that's over $6,000 taken from every person in this country every yearand literally threatens every man, woman and child in the nation with bankruptcy, death or both in order to continue to do so on a daily basis.

May I inconveniently remind you that for those that earn a minimum wage income were this scam to be stopped that person's $15,000 pretax annual income (50 weeks of 40 hours @ $7.50/hr) would in fact have the same purchasing power as $21,000 because the other $6,000 that is currently being stolen, directly and indirectly, would be theirs!  For someone in that income bracket this would be a 40% increase in their income!  Can you name any change you could make in our economy other than this that would bring anywhere near that benefit to those in the economic middle class and below?

What could you do with an additional $6,000 a year for every person in your household -- every year?  For a couple that's $12,000 per year to spend on a mortgage, sending your kid(s) to college (if you have two kids it's not $12k/year, it's $24,000!), building your retirement fund or whatever else you may choose!

This crap has been going on for 37 years beyond the point it was declared unlawful by the United States Supreme Court under a set of laws that have existed for more than 100 years and, I remind you, were put in place because exactly the same sort of acts were being practiced by a group of "businesspeople" that were known, historically in the time, as "Robber Barons"!

I keep running into people who think I should "not give up" and "not stop writing and doing what I've been doing."

My reply is that I am not Don Quixote and I will not tilt at windmills.

Since the people of this nation, including those who keep imploring me to spend the last few years of "relative normal" conditions in this country writing and advocating, not only have failed to stand and demand that this crap stop at all levels of government, backed by all lawful recourse that is available up to and including a general strike over the last decade while I have been doing so they have instead chosen to parade around with vaginas on their heads, riot or wear red "MAGA" hats, I now choose to enjoy what time remains in peace and quiet while turning my back on those who have turned theirs not only on this issue but on their children and the future of this nation.

Go to responses (registration required to post)
 
Main Navigation
MUST-READ Selection:
2016: What Was And a Preview of 2017

Full-Text Search & Archives
Archive Access

Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.

The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

 
Comments.......
User: Not logged on
Login Register Top Blog Top Blog Topics FAQ
Showing Page 1 of 3  First123Last
User Info The US Government Is No Longer Legitimate in forum [Market-Ticker]
Kingsalmon101
Posts: 1
Incept: 2016-10-07

Seattle, WA
Report This As A Bad Post Add To Your Ignored User List
Excellent Ticker. I suggest everyone forward this Ticker to the State Attorney General of the state you live in. I live in WA state and my Attorney General just confirmed he is willing to sue the Federal Government.
Maynard
Posts: 245
Incept: 2007-11-27

The Lowcountry
Report This As A Bad Post Add To Your Ignored User List
I don't know why some young lawyer doesn't take something like this issue to court. Or better yet a state AG. It doesn't make sense. Both Pauls are criminals.
Well pretty much everyone in elected office is so...thats not saying much.
Maynard
Posts: 245
Incept: 2007-11-27

The Lowcountry
Report This As A Bad Post Add To Your Ignored User List
Bob Ferguson is a piece of ****. Banned 1.2.3
Oldno7
Posts: 2534
Incept: 2008-11-14

RECALL STATE USA
Report This As A Bad Post Add To Your Ignored User List
Looks like the Rule of Law is dead or if the current law doesn't allow TPTB to do what they want to change the law! Just listened to Kyle Bass and in his eyes the only way this ends is with a major war and he did not say who but he believes it will happen. Looks like I will take my final trip to Maui and hole up for the final show down. Karl, thanks for all you tried to do and enjoy the rest of normal times and God help us all.

----------
IT'S THE SPENDING STUPID The US must become less a government of men, and more a government of LAW.When people lose everything and have nothing left to lose they lose it -Gerald Celente
Geckogm
Posts: 4229
Incept: 2007-06-26

Canyon Lake
Report This As A Bad Post Add To Your Ignored User List
Karl tells them where the dead bodies are and those ****ers write a law so no one can look.
Flyanddive
Posts: 1998
Incept: 2008-10-10

Detroit
Report This As A Bad Post Add To Your Ignored User List
Fitting that Rand, the Tea Party golden boy, would be the betrayer; Poetic almost.

----------
"I've seen people go into real poverty trying to pretend to be rich."
Imustbenutz
Posts: 323
Incept: 2010-11-04

Absurdistan, USSA
Report This As A Bad Post Add To Your Ignored User List
My reccollection is that Art. I Sect. 9 clause 6 addresses such an act, right?
Aquapura
Posts: 598
Incept: 2012-04-19

South of Canada
Report This As A Bad Post Add To Your Ignored User List
I surely don't expect the min wage crowd to get it even if you dangle the rising income carrot. They are brainwashed into thinking healthcare is a right and shouldn't have to pay anything for it. Never mind that means someone else pays for it. Even educated colleagues of mine think a single payer European system is our only salvation. Nope. We're ****ed. Let's get on with the collapse.
Tarmoney
Posts: 448
Incept: 2008-01-23
A True American Patriot!
LI, NY
Report This As A Bad Post Add To Your Ignored User List
I sent the following message to the law firm that has filed the Insulin Class Suit. I figure there is an interested party here. Fuel for the fire!
They acknowledged receipt!

Dear Sirs,

I came across this article in the New York Times Jan 30th:
https://myaccount.nytimes.com/auth/login....
which linked to the suit you filed the same day:
https://static01.nyt.com/science/01-30-1....

I see many counts against state consumer protection laws and listed patterns of Racketeering activity.
I'm not a lawyer (or claim to have an particular expertise here), but I'm left wondering why you have not made any claims on the grounds that these collusive, monopolistic practices violate the Sherman and Clayton Acts:
https://en.wikipedia.org/wiki/Sherman_An....
https://en.wikipedia.org/wiki/Clayton_An....


https://www.law.cornell.edu/uscode/text/....
https://www.law.cornell.edu/uscode/text/....

The insurance industry tried to argue in the 1970s that Mccarran-Ferguson, a law which provides limited exemptions to 15 USC for insurance firms, shielded them -- and pharmacies -- from prosecution under these laws.

The case went to the Supreme Court and the insurance and pharamacy firms lost.
https://supreme.justia.com/cases/federal....


Generally speaking, the entire medical/ health insurance industry can be considered in violation when you consider the runaway pricing that has occurred across all of the medical industry. Compare the cost of care in the US to other first world countries and it's obvious there is something terribly wrong here.

Well, congress intends to 'fix' this little issue with the Obamcare replacement act:
https://www.congress.gov/bill/115th-cong....

Do a word search on 'antitrust' and see what you find:
SEC. 601. QUALITY HEALTH CARE COALITION.

(a) Application of the Federal Antitrust Laws to Health Care
Professionals Negotiating With Health Plans.--
(1) In general.--Any health care professionals who are
engaged in negotiations with a health plan regarding the terms
of any contract under which the professionals provide health
care items or services for which benefits are provided under
such plan shall, in connection with such negotiations, be
exempt from the Federal antitrust laws.



I think you have an opportunity to expose all of this for what it is.
Please, please consider doing so, before it's too late?


I wish you all the best of luck!


Credit to a source for much of this information:
https://market-ticker.org/cgi-ticker/akc....


Kind Regards

----------
"Then have a recession. It's a financial enema for a sick animal." - Rick Santelli
I really can't wait to see all these guys twist on the rope... -me
smiley
smiley
Themortgagedude
Posts: 10193
Incept: 2007-12-17

saint louis
Report This As A Bad Post Add To Your Ignored User List
Time for you to grab a good bottle of scotch and watch a few sunsets. It was a helluva effort you made to educate people. Absent a million peeps storming the Capital (and that won't happen) nothing is going to change. I've got just a few days left until I will officially give up hope.

----------
I think its time we ask ourselves if we still know the freedoms that our founding fathers intended for us. Ronald Reagan 1964
Tarmoney
Posts: 448
Incept: 2008-01-23
A True American Patriot!
LI, NY
Report This As A Bad Post Add To Your Ignored User List
And, I received this from the law firm:
Please also note that our updated complaint contains a count for anti-trust violation. Please use this link to see the most recent version of our complaint:

https://www.hbsslaw.com/uploads/case_dow....

Thank you,

Hannah

----------
"Then have a recession. It's a financial enema for a sick animal." - Rick Santelli
I really can't wait to see all these guys twist on the rope... -me
smiley
smiley
Themortgagedude
Posts: 10193
Incept: 2007-12-17

saint louis
Report This As A Bad Post Add To Your Ignored User List
Just a note. I'm scheduled for a colonoscopy. When I asked what the charges would be they had no clue. Depended upon my health insurance. I know for me it's $40. I have no clue what the insurance company will pay. And at this point I don't care I guess. But I did ask and got the answer that I knew I would. They negotiate rates with everyone. Interestingly she couldn't even tell me what the cash price was.

----------
I think its time we ask ourselves if we still know the freedoms that our founding fathers intended for us. Ronald Reagan 1964
Goforbroke
Posts: 6895
Incept: 2007-11-30
A True American Patriot!
Drain the Swamp!
Report This As A Bad Post Add To Your Ignored User List
Quote:
Or better yet a state AG.
Fat chance. I tried. I was told that "Some AG years ago decided that medical providers were not to be pursued under the 'deceptive practices' statute. We respond to complaints by the consumer as a matter of courtesy."

So ... there's no formal exemption in Ohio Administrative or Revised Code ... they just decided.

We're wasting our time.

----------
Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our Light, and not our Darkness, that most frightens us. -- Marianne Williamson
Tickerguy
Posts: 147938
Incept: 2007-06-26
A True American Patriot!
Report This As A Bad Post Add To Your Ignored User List
Quote:
Fat chance. I tried. I was told that "Some AG years ago decided that medical providers were not to be pursued under the 'deceptive practices' statute. We respond to complaints by the consumer as a matter of courtesy."

So ... there's no formal exemption in Ohio Administrative or Revised Code ... they just decided.

We're wasting our time.

Exactly.

They just decided that DESPITE THE FACT THAT THE LAW SAYS WHAT THEY ARE DOING IS EXPLICITLY CRIMINAL they will NOT go after them.

You call this "law" eh?

I call it the ****ing mob with a ****load of guns who are more than willing to use them.

----------
Winding it down.
Burke13
Posts: 70
Incept: 2010-02-22

Report This As A Bad Post Add To Your Ignored User List
When it all blows up, the last thing I want to hear from our pols is that nobody could have seen it coming and we were not warned.

P.S. For those who didn't bookmark it 12 days ago, url below. And yes, it's still at only "1" signature.

https://petitions.whitehouse.gov/petitio....
Comrader
Posts: 230
Incept: 2010-06-10

pa
Report This As A Bad Post Add To Your Ignored User List
just signed in and its still at one
Analog
Posts: 1378
Incept: 2010-12-29

arkansas ozarks
Report This As A Bad Post Add To Your Ignored User List

How they spin it

http://thehill.com/blogs/pundits-blog/fi....

Quote:
Antitrust laws make all sorts of pricing behavior illegal, usually based on arbitrary criteria. Sen. Rand Paul (R-Ky.) thinks this is silly, and has introduced legislation that would essentially roll back more than a century of antitrust laws. His point is that voluntary economic transactions, where free people get together and choose to cooperate, shouldn't be prohibited by the U.S. government.


My greater half is on this stuff

Quote:
https://www.wsj.com/articles/the-art-of-....

How Pfizer Set the Cost of Its New Drug at $9,850 a Month
Process of setting the price for breast-cancer treatment shows arcane art behind rising U.S. drug prices
By Jonathan D. Rockoff
Updated Dec. 9, 2015 12:01 a.m. ET

Days before Pfizer Inc. was to set the price for a new breast-cancer drug called Ibrance, it got a surprise: A competitor raised the monthly cost of a rival treatment by nearly a thousand dollars.


yep, it's 11,000 now.
Think i'm kidding about that guillotine ?



----------
Never trust a computer with anything important.
Tsherry
Posts: 770
Incept: 2008-12-09

Spokane WA
Report This As A Bad Post Add To Your Ignored User List
>>When it all blows up, the last thing I want to hear from our pols is that nobody could have seen it coming and we were not warned. >>

Those are the first ones you hang, and not the last.
Captainkidd
Posts: 1128
Incept: 2010-05-25

Houston, Texas
Report This As A Bad Post Add To Your Ignored User List
Signed it the day it was posted.

----------
A lawyer with a briefcase can steal more than a thousand men with guns. --Mario Puzo

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. -- Henry Ford
James56287
Posts: 686
Incept: 2008-07-28
A True American Patriot!
Report This As A Bad Post Add To Your Ignored User List
Copy, paste, find and replace these drugs with whatever is in your medicine cabinet, and then go talk to a lawyer.

Quote:
COUNT FOUR
VIOLATION OF 1 AND 3 OF THE SHERMAN ACT, 15 U.S.C. 1, 3, ET SEQ.
293. Plaintiffs hereby incorporate by reference the allegations contained in the
preceding paragraphs of this complaint.
294. During the class period, defendants engaged in a continuing combination or
conspiracy to unreasonably restrain trade and commerce in violation of 1 and 3 of the
Sherman Act, 15 U.S.C. 1 and 3, by engaging in a conspiracy to artificially raise list prices
while maintaining and/or stabilizing the net prices for Levemir, Lantus, Novolog, and Humalog
in the United States.
295. In particular, defendants have agreed, combined and conspired to raise and/or fix,
the benchmark prices of Levemir, Lantus, Levemir, and Humalog in the United States.
296. In formulating and effectuating their contract, combination or conspiracy,
defendants and their co-conspirators engaged in anticompetitive activities, the purpose and effect
of which was to artificially fix and/or raise the benchmark prices of Levemir, Lantus, Levemir,
and Humalog in the United States.
297. Defendants combination or conspiracy consisted of a continuing agreement,
understanding and concerted action among defendants.
298. Defendants conspiracy had the effect of artificially inflating the benchmark
prices Levemir, Lantus, Levemir, and Humalog in the United States.
299. As a direct and proximate result of defendants unlawful conduct, plaintiffs and
the other members of the Nationwide Class paid more for Levemir, Lantus, Levemir, and
Humalog than they otherwise would have paid in the absence of defendants unlawful conduct.
300. By reason of defendants unlawful conduct, plaintiffs and members of the
Nationwide Class have been deprived of free and open competition on the real prices of Levemir,
Lantus, Levemir, and Humalog in the United States.
301. As a direct and proximate result of defendants conduct, plaintiffs and members
of the Nationwide Class have been injured and damaged in their property in an amount to be
determined.
302. These agreements constitute trade restraints made between direct competitors that
are unlawful under all three applicable standards of review: (1) the per se standard, which
governs bid-rigging and the allocation of markets by horizontal agreement; (2) the quick-look
standard, which governs apparently anticompetitive schemes with which the courts lack
familiarity; and (3) the rule-of-reason standard (the Rule of Reason), which governs all other
challenged restraints of trade. Plaintiff respectfully submits that the Court should apply well-
recognized per se rules in order to condemn the challenged trade restraints, but in an abundance
of caution pleads this claim in the alternative so that it is raised not only under the per se rules,
but also under the quick-look standard and the Rule of Reason.
303. Plaintiffs and members of the Nationwide Class are entitled to an injunction
against defendants, preventing and restraining the violations alleged herein.
Themortgagedude
Posts: 10193
Incept: 2007-12-17

saint louis
Report This As A Bad Post Add To Your Ignored User List
We need to check how many signatures. They have updated the pageto show new petitions. It's still not showing up. Ive had 5 family members sign.

----------
I think its time we ask ourselves if we still know the freedoms that our founding fathers intended for us. Ronald Reagan 1964
Erbo
Posts: 301
Incept: 2010-06-10

Denver, CO
Report This As A Bad Post Add To Your Ignored User List
Burke13: Signed the petition and passed the link on.

----------
"There is a ready solution for anyone on the public payroll who feels that he is not paid enough: He can resign and work for a living. This applies with equal force to Congressmen, Welfare 'clients,' school teachers, generals, garbage collectors, and judges." - Ira Johnson
Quik49
Posts: 3845
Incept: 2007-12-11

ut
Report This As A Bad Post Add To Your Ignored User List
Nobody gets it....Too busy with vagina masks.... I've shared...Posted written reps and got but a few "likes"....
Feel like I'm in a one man circle jerk....Were ****ed

----------
Long Vaseline....

Supertruckertom
Posts: 1184
Incept: 2010-11-07

USA
Report This As A Bad Post Add To Your Ignored User List
Analog, that is a lot of work.
There are other ways to remove heads, or render them inoperable.

My head is spinning.

Communists or Robber Barons?
Either group enslaves the common citizens.

I refuse to serve either group.
Freedom through anarchy and withdrawal through independence seems to be the only choice I can morally support.

Looking like the Epicurean way might be another choice.

I always thought I was a Stoic.





----------
Preparing to go Hunting.
Login Register Top Blog Top Blog Topics FAQ
Showing Page 1 of 3  First123Last