Saturday, July 18, 2020

Thật sự coronavirus 2019 có tồn tại không?

 Image result for coronavirus picturesOriginally published on www.theinfectiousmyth.com

Kỹ sư phân tích những cuộc xét nghiệm coronavirus qua PCR test và đưa ra câu hỏi về việc coronavirus 2019 có tồn tại không?

by David Crowe

Introduction

The Coronavirus scare that emanated from Wuhan, China in December of 2019 is an epidemic of testing. There is no proof that a virus is being detected by the test and there is absolutely no concern about whether there are a significant number of false positives on the test. What is being published in medical journals is not science, every paper has the goal of enhancing the panic by interpreting the data only in ways that benefit the viral theory, even when the data is confusing or contradictory. In other words, the medical papers are propaganda.

It is also an epidemic by definition. The definition, which assumes perfection from the test, does not have the safety valve that the definition of SARS did, thus the scare can go on until public health officials change the definition or realize that the test is not reliable.
What I learned from studying SARS, the previous big coronavirus scare, after the 2003 epidemic, was that nobody had proved a coronavirus existed, let alone was pathogenic. There was evidence against transmission, and afterwards, negative assessments of the extreme treatments that patients were subjected to, the nucleoside analog antiviral drug Ribavirin, high dose corticosteroids, invasive respiratory assistance, and sometimes oseltamivir (Tamiflu). This is documented in my draft book chapter (mostly complete) that you can find here: https://theinfectiousmyth.com/book/SARS.pdf

The Infectious Myth – David tackles the Coronavirus Panic

 

Executive Summary
The world is suffering from a massive delusion based on the belief that a test for RNA is a test for a deadly new virus, a virus that has emerged from wild bats in China, supported by the western assumption that Chinese people will eat anything that moves.
If the virus exists, then it should be possible to purify viral particles. From these particles RNA can be extracted and should match the RNA used in this test. Until this is done it is possible that the RNA comes from another source, which could be the cells of the patient, bacteria, fungi etc. There might be an association with elevated levels of RNA and illness, but that is not proof that the RNA is from a virus. Without purification and characterization of virus particles, it cannot be accepted that an RNA test is proof that a virus is present.

Officially the virus is called SARS-CoV-2 and the disease it is believed to caused, COVID-19. We will just refer to coronavirus for the current virus panic, and SARS for the 2003 panic.
Definitions of important diseases are surprisingly loose, perhaps embarrassingly so. A couple of symptoms, maybe contact with a previous patient, and a test of unknown accuracy, is all you often need. While the definition of SARS, an earlier coronavirus panic, was self-limiting, the definition of the new coronavirus disease is open-ended, allowing the imaginary epidemic to grow. Putting aside the existence of the virus, if the coronavirus test has a problem with false positives (as all biological tests do) then testing an uninfected population will produce positive tests, and the definition of the disease will allow the epidemic to go on forever.
This strange new disease, officially named COVID-19, has none of its own symptoms. Fever and cough, previously blamed on uncountable viruses and bacteria, as well as environmental contaminants, are most common, as well as abnormal lung images, despite those being found in healthy people. Yet, despite the fact that only a minority of people tested will test positive (often less than 5%), it is assumed that this disease is easily recognized. If that was the truly the case, the majority of people routed for testing by doctors should be positive.
The coronavirus test is based on PCR, a manufacturing technique. When used as a test it does not produce a positive/negative result, but simply the number of cycles required to detect genetic material. The division between positive and negative is an arbitrary number of cycles chosen by the testers. If positive means infected and negative means uninfected, then there are cases of people going from infected to uninfected and back to infected again in a couple of days.

A lot of people say it is better to be safe than sorry. Better that some people are quarantined who are actually uninfected than risk a pandemic. But once people test positive, they are likely to be treated, with treatments similar to SARS. Doctors faced with what they believe is a deadly virus treat for the future, for anticipated symptoms, not for what they see today. This leads to the use of invasive oxygenation, high dose corticosteroids and antiviral drugs. In this case, some populations of those diagnosed (e.g. in China) are older and sicker than the general population and much less able to withstand aggressive treatment. After the SARS panic had subsided doctors reviewed the evidence, and it showed that these treatments were often ineffective, and all had serious side effects, such as persistent neurologic deficit, joint replacements, scarring, pain and liver disease.

Virus Existence

Scientists are detecting novel RNA in multiple patients with influenza or pneumonia -like conditions, and are assuming that the detection of RNA (which is believed to be wrapped in proteins to form an RNA virus, as coronaviruses are believed to be) is equivalent to isolation of the virus. It is not, and one of the groups of scientists was honest enough to admit this:
“we did not perform tests for detecting infectious virus in blood” [2]
But, despite this admission, earlier in the paper they repeatedly referred to the 41 cases (out of 59 similar cases) that tested positive for this RNA as, “41 patients… confirmed to be infected with 2019-nCoV.”

Another paper quietly admitted that:
“our study does not fulfill Koch’s postulates” [1]
Koch’s postulates, first stated by the great German bacteriologist Robert Koch in the late 1800s, can simply be stated as:
  • Purify the pathogen (e.g. virus) from many cases with a particular illness.
  • Expose susceptible animals (obviously not humans) to the pathogen.
  • Verify that the same illness is produced.
  • Some add that you should also re-purify the pathogen, just to be sure that it really is creating the illness.
Famous virologist Thomas Rivers stated in a 1936 speech, “It is obvious that Koch’s postulates have not been satisfied in viral diseases”. That was a long time ago, but the same problem still continues. None of the papers referenced in this article have even attempted to purify the virus. And the word ‘isolation’ has been so debased by virologists it means nothing (e.g. adding impure materials to a cell culture and seeing cell death is ‘isolation’).
Reference [1] did publish electron micrographs, but it can clearly be seen in the lesser magnified photo, that the particles believed to be coronavirus are not purified as the quantity of material that is cellular is much greater. The paper notes that the photos are from “human airway epithelial cells”. Also consider that the photo included in the article will certainly be the “best” photo, i.e. the one with the greatest number of particles. Lab technicians may be encouraged to spend hours to look around to find the most photogenic image, the one that most looks like pure virus. There is no way to tell that the RNA being used in the new coronavirus PCR test is found in those particles seen in the electron micrograph. There is no connection between the test, and the particles, and no proof that the particles are viral.

A similar situation was revealed in March 1997 concerning HIV, when two papers published in the same issue of the journal “Virology” revealed that the vast majority of what had previously been called “pure HIV” was impurities that were clearly not HIV, and the mixture also included microvesicles that look very similar to HIV under an electron microscope, but are of cellular origin.[5][6]

Disease Definition

Infectious diseases always have a definition, but they are usually not publicized too widely because then they would be open to ridicule. They usually have a “suspect case” category based on symptoms and exposure, and a “confirmed” category that adds some kind of testing.
Reference [13] describes a suspect case definition, based on WHO definitions for SARS and MERS (Middle East Respiratory Syndrome) that was in effect until January 18, 2020, and required all four of the following criteria:
  • “fever, with or without recorded temperature”. Note that there is no universal definition of fever, so this may just be the opinion of a physician or nurse. With SARS a fever was defined as 38C even though normal body temperature is considered to be 37C (98.6F).
  • “radiographic evidence of pneumonia”. This can occur without illness, as was seen in [3] – a 10 year old boy with no clinical symptoms. He was diagnosed with pneumonia in the absence of symptoms.
  • “low or normal white-cell count or low lymphocyte count”. This is not really a criterion as every healthy person is included. This is also strange because people suffering from an infection normally have elevated white blood cell counts (although they may drop in people dying from an infection).
    One of the following three:
    – “no reduction in symptoms after antimicrobial treatment for 3 days”. This is a standard indication of a ‘viral’ pneumonia, i.e. one that does not resolve with antibiotics.
    – “epidemiologic link to the Huanan Seafood Wholesale Market”. This, and the next criterion, create the illusion of an infectious disease, as it prefers the diagnosis of connected cases.
    – “contact with other patients with similar symptoms”. 

On January 18th the last, three-part category was changed to:
  • One of the following:
    – “travel history to Wuhan”
    – “direct contact with patients from Wuhan who had fever or respiratory symptoms, within 14 days before illness onset”
The big problem is that, in contrast to the definition for SARS, a “confirmed case” did not originally require the criteria for a suspect case to be met. A “confirmed case” simply required a positive RNA test, without any symptoms or possibility of contact with previous cases, illustrating total faith in the PCR technology used in the test. The World Health Organization definition [15] has the same flaw.
It was the fact that the SARS definition required both a reasonable possibility of contact with a previous case, and symptoms, that allowed the epidemic to burn out. Once everyone was quarantined, new cases were highly unlikely, testing stopped, and doctors could declare victory.
The Chinese eventually woke up and, around February 16th required confirmed cases to meet the requirements for a suspected case, as well as a positive test. They may have put this new definition into practice earlier because after a massive addition of almost 16,000 confirmed cases on February 12th , the number fell dramatically each day and, by February 18th was under 500 cases, and continued to stay low.
But other countries did not learn. Korea, Japan and Italy (and perhaps other countries) have started doing tests on people with no epidemiological link, encouraging people with the vague symptoms that are part of the definition to come to hospital to get checked, and obviously following up with asymptomatic people with a connection to anybody who tests positive. Consequently, in mid to late February, cases in those countries started to skyrocket.

A New Disease?

COVID-19, to use its formal name, is described as a distinct new disease. But it clearly is not. There are no distinctive symptoms, for a start. Reference [2] showed that, among 41 early cases, the only symptoms found in more than half, were fever (98%) and cough (76%). 98% had CT Scan imaging showing problems in both lungs (although it is possible to have shadowing on a CT scan without symptoms). The high percentage of cases with fever and shadowing in both lungs is an artefact of the disease definition, fever and “radiographic evidence of pneumonia” are two of the diagnostic criteria for a probable case.
The low rate of people testing positive on the coronavirus testing is further evidence that there are no obvious symptoms. If there were recognizable symptoms, doctors should have a better than 4% chance of guessing who has the virus. While some of the people may have been tested, without symptoms, because they were on a flight or cruise, countries outside China are encouraging people with the vague symptoms that exist to check in to a hospital, so increasingly people have symptoms of the flu or pneumonia, and are still testing negative in high numbers.
For example, as of March 9th , Korea had found 7,382 positive cases out of 179,160 people tested (4.1%) [20]. In Washington State, where they appear to be reluctant to test anyone, only 1 out of 27 tested by February 24th had tested positive (3.7%)
Perhaps if they had tested all 438 who were then under quarantine, the epidemic would have exploded from 1 to about 16 cases (3.7% of 438). By March 9th, 1,246 tests had been performed with 136 found positive (11%). Obviously, in neither location can doctors recognize cases clinically.

Testing
Assuming, for a moment, the existence of a new coronavirus, what would a coronavirus test tell us, at this stage? Or rather, what does it not tell us?
  • Without purification and exposing animals to viral particles we do not know if the virus is pathogenic (disease causing). It could be an opportunistic infection (invades unhealthy people with weakened immune systems) or a passenger virus (that is carried along by risky behavior, such as eating an animal carrier of a virus).
  • We don’t know the false positive rate of the test without widespread testing of healthy people far from places where people are being diagnosed with this possible new disease. If the test is 99% accurate, in a city of over 10 million, like Wuhan, there would be about 100,000 false positives (1%). It is easy to generate a false epidemic if you just keep testing like this. And it’s worse if you restrict the test to people with symptoms, because then the flaws in the test will not be revealed for much longer.
  • If someone is sick there is no proof that any or all of their symptoms are due to the virus, even if it is present. Some people may be immune, some may have some symptoms caused by the virus, but others caused by the drugs they are given, by pre-existing health conditions, and so on.
  • We don’t know if the people who test negative are infected or not, especially when they show up with similar symptoms. For example, in [2], out of 59 patients, only 41 tested positive, but the researchers were clearly not sure whether the remaining 18 were uninfected or not. If they truly are not infected, they lend weight to the coronavirus not being the cause of their illness, as they had symptoms indistinguishable from the 41 positives.

Testing at such an early stage of knowledge is incredibly dangerous. It spreads panic, it can put people on dangerous medications, other circumstances of their treatment can be physically and psychologically damaging (such as intubation and isolation, and even seeing all the doctors and nurses in special suits emphasizing how deathly sick you are).
False Negatives – Big Problem
According to an article in the South China Morning Post [23], Li Yan, head of the diagnostic center at the People’s Hospital of Wuhan University, noted on Chinese state TV that because of the multi-step process, an error at any stage could result in an incorrect outcome, and Wang Chen, president of the Chinese Academy of Medical Sciences, also on CCTV, said the accuracy is only 30 to 50 percent.
Wang Chen really means, however, that the test is only ever falsely negative, and never falsely positive. In a paper documenting a cluster of illness and positives tests in a family [3], this bias is clear, as most patients had more negative tests than positive tests, but were considered positive anyway. Patient 1 had 3/11 positive (27%), patient 2 had 5/11 (45%), patient 3 had all 18 negative, patient 4 had 4/14 (29%), patient 5 had 4/17 (24%) and patient 7 was the only with a majority positive (64%).
The only way to decide logically and scientifically is to have a gold standard for presence of the virus, which can only be purification and characterization. Since this has never been accomplished, doctors get to make decisions on the fly, always leaning towards treating patients as infected.

False Positives – Best Evidence
The major attempt to define the false positive rate was in a paper describing a new test methodology, but it has a built-in conflict of interest [19]. Clearly, if the false positive rate was high, the authors’ aim to “develop and deploy robust diagnostic methodology for use in public health laboratory settings”, would have failed. They did, however, do more than most. They took 297 samples of nasal and throat secretions from biobanks and tested them, only finding “weak initial reactivity” in four samples which, upon retesting, disappeared. The problem with this kind of analysis is that biobank samples may not have been obtained in the same way as samples from live people in an epidemic panic. The sampling was also not blinded, something that is necessary to eliminate the possibility of unconscious bias (a real problem in medicine). Furthermore, many samples in people believed to be infected are negative, and multiple samples are tested, as described for the family cluster paper.
In sum, testing 297 samples could, at best, show that the false positive rate was 1/300, but because multiple samples are often taken, with any one positive sample over-ruling all the negatives the false positive rate could be considerably less, as the biobank samples were only tested once.
And, even if this test did have a false positive rate that was very low, it is not clear that this particular test is in use, and the false positive rate cannot be extrapolated to any other test design.
Even a small false positive rate is critically important. A 99% accurate test would produce 100,000 false positives in a city of 10 million, like Wuhan. And if the number of positives in sampling is around 4% (which it appears to be from early statistics), then 1 out of 4 positives would be false.

Positive, Negative, Positive Again – Confusion
Some people have fully recovered from illness blamed on coronavirus, started to test negative, and then tested positive again. According to a news report [22] patients are not considered cured in China until they no longer have symptoms, have clear lungs, and have two negative coronavirus tests. Despite this, 14% of discharged patients later tested positive, but with no relapse of symptoms. This is very difficult to explain if the test is for a virus, much easier to explain if the RNA that the test is looking for is not viral in origin.
Other reports2:
  • (Jan 31) A women returning to Canada from China tested negative while “mildly ill” after arriving in Canada, but later tested positive.
  • (Feb 11) A sick woman in Wuhan tested negative on her first test, after days of illness, but positive on the second.
  • (Feb 16) An 83-year old American woman was screened as disease free after leaving a cruise ship but tested positive twice after arrival in Malaysia. Ironically, her husband had pneumonia, but tested negative. Nobody on the ship was sick, nor had travelled to mainland China recently.
  • (Mar 1) Newsweek reported an American man tested negative upon return from Wuhan, China, without any symptoms. But later he was “weakly positive” and was returned to quarantine.
References are available upon request. Dates are of the report.

Negative, Negative, Negative

A group of doctors in Marseille, France, working in a very experienced lab, that regularly does testing for respiratory viruses, reported testing 4,084 samples for the novel coronavirus, using several systems approved for use in Europe, without a single positive [25]. This included 337 people returning from China who were tested twice, and 32 people referred because of suspected coronavirus infection.
It is statistically improbable that this lab was just lucky to not get any coronavirus cases, it is more likely that they used more stringent criteria, illustrating that the performance of not just test kits, but labs, with this new test, is completely unknown. Yet, a positive test remains unquestioned in every case.
Test Experience
A paper from Singapore by doctors and public health officials provides a revealing look at the inner guts of coronavirus testing. Hidden away in the supplementary material of reference [24], where few people will see it, it exposes some important issues with tests:
  • The test is not binary (negative/positive) and has an arbitrary cutoff.
  • The quantity of RNA does not correlate with illness.
  • If negative means uninfected and positive means infected, then people went from infected to uninfected and back again, sometimes several times.
  • Results below the cutoff are not shown, are treated as negative, but if PCR continued past the cutoff and was eventually positive, would indicate presence of small quantities of the RNA which is supposedly unique to the coronavirus.
 Before you read beyond the following figure, ask yourself why the first 6 graphs, shown deliberately out of numerical order, are separated. What are the visual differences between those 6 and the remainder? Do this right away so my interpretation does not bias your opinion.
 


The Test is Not Binary

Tests for infections are usually reported as positive or negative (sometimes ‘reactive’ and ‘unreactive’. One of the reasons for this is that, in many cases, multiple tests are required, and it is common to conclude that someone is infected with some negative tests and that someone is uninfected with some positive tests. The results of a complex multi-test algorithm are also usually reported as positive or negative, but interpreted by doctors and patients as infected or uninfected. The former could mean isolation, special medications, special precautions for health care workers and more.
But, in reality even individual tests are not binary, not positive or negative, but a range of numbers that are arbitrarily divided into positive on one side and negative on the other. Possibly there is a grey area that allows other factors, including the bias of the doctor or laboratory, to enter into the interpretation, or that will require further testing.

Understanding RT-PCR

Before we continue it is important to understand what RT-PCR, the PCR test technology is. It is based on PCR (Polymerase Chain Reaction) technology. This is a DNA manufacturing technique invented by the iconoclastic Kary Mullis, who received a Chemistry Nobel for it in 1993. It may be the most important technology in the biotech industry. Starting with one DNA strand, the strand is cleaved (split in two) and then complementary strands are allowed to grow, the same process that occurs in a cell during mitosis (cell division).
So far, not so impressive, but through the magic of doubling, if this process is repeated only 32 times you will end up with about 4 billion identical strands of DNA. Each round of doubling is referred to as a cycle.
One important issue is that we are talking about a testing technique, and using a manufacturing technique. PCR for manufacturing DNA normally starts with one or more strands (i) and ideally ends up with i•2n strands after n cycles. For example, if you started with one DNA strand, after 32 cycles you would have 4 billion.
To use PCR as a test, you assume that you are starting with an unknown number of strands and end up with an exponential multiple after n cycles. From the quantity of materials at termination the starting quantity can be estimated. A major problem with this is that because PCR is an exponential (doubling) process, errors also grow exponentially.
The second problem is that the Coronavirus is believed to be composed of RNA, but this can be solved by converting all RNA into DNA with the Reverse Transcriptase enzyme at the start of the process.

The technology, after these two adaptations, is known as RT-PCR (Reverse Transcriptase PCR).
Now you have the information necessary to understand the numbers from 20-40 on the vertical axis of the graphs above. These are the number of cycles. It implies that it always took at least 20 PCR cycles before any RNA could be detected, and they stopped after a maximum of 37 cycles. The blue line is at cycle 38, and the black dots do not mean RNA was detected after 38 cycles (as clarified in the paper), but that it wasn’t detected by 37 cycles, and so the process terminated. This “Serial Cycle Threshold (Ct)” was the arbitrary definition of a negative result by the authors of reference [24].
We can see that it was arbitrary, because in another paper, reference [13], the authors had two end points: 37 and 40. Anything less than 37 was considered positive and anything 40 or greater was defined as negative. The in-between values were re-tested and re-interpreted. Note that this paper would treat 37 as indeterminate but the Singapore paper would treat it as positive.

RNA Quantity does not Correlate with Illness

Theoretically the PCR cycle number at which DNA is detectable tells us the relative quantity of RNA. Whatever initial amount was necessary to be detectable on the 20th cycle, 21 cycles would be doubly sensitive, and could detect about half as much, and 30 cycles about 1000th as much as 21. One could therefore expect sicker people to have more virus, and thus to have a lower cycle number on testing.
This is the reason the authors separated out the first six graphs from the remaining twelve. The first six were the people who were sick enough to require oxygen. But one can clearly see from the graph that the six sicker people did not have distinctly higher quantities of RNA.

Positive to Negative and Back Again

The majority of the 18 patients had a positive test, followed by a negative test, followed by a positive test. Some had this several times.
If a negative test means uninfected, then this is impossible. You cannot rid yourself of the virus, and then be reinfected the next day, and then infected the day after and uninfected again.
The simplest answer to this conundrum is that negative tests do not mean uninfected. But the corollary is that positive tests do not mean infected. Which would make the test worthless.

Results Below the Cutoff

The authors of reference [24] apparently programmed the PCR machine to stop after 37 cycles if no DNA had been detected. This means that we don’t have information on when or if the process would have terminated by the detection of if it had been allowed to continue. More importantly, what would it mean if DNA was detected on cycle 38 or 40 or 80? If the DNA is unique to the virus there is no other possible interpretation than that the person is infected. But it is possible that everyone would eventually detect enough DNA detected, which could only be interpreted as the corresponding RNA being endogenous (i.e. formed within the cells of the human body).
Given that several people bounced back from negative to positive again, one could argue that the cutoff should be lower than 37. But likely if this was done many more people might test positive, and even with a cutoff of, say, 40, going to negative and back again might still occur.


Transmission
There is lots of evidence that the virus is not as transmissible as is being implied.
  • (January 2) “27 (66%) [of 41 early] patients had direct exposure to Huanan seafood market [i.e. about 1/3 did not]”. [2].
  • (January 1-20) “Of the 99 patients with 2019-nCoV pneumonia, 49 (49%) had a history of exposure to the Huanan seafood market.” [10] [i.e. 51% did not]
  • (January 1-January 22) A larger survey, including all the first 425 cases, showed that of those diagnosed January 1st or later, 72% had “No exposure to either market or person with respiratory symptoms”. [13]
  • “The symptom onset date of the first patient identified was Dec 1, 2019. None of his family members developed fever or any respiratory symptoms. No epidemiological link was found between the first patient and later cases.” [2] (of the family cluster) “None of the family members had contacts with Wuhan markets or animals…They had no history of contact with animals, visits to markets including the Huanan seafood wholesale market in Wuhan, or eating game meat in restaurants.” [3]
Transmission 1 – The Shenzhen Family Cluster
Reference [3] attempts to show the ease with which the virus could be transmitted in a family that travelled from Shenzhen, near Hong Kong, to Wuhan in December, and then back again about a week later.

Two grandparents (patients 1 and 2), the daughter and son-in-law (patients 3 and 4), a 10-year old grandson and a 7-year old granddaughter (patients 5 and 6) flew to Wuhan on December 29th. On the first day, the grandmother (1) and her daughter visited a baby boy with pneumonia, known as Relative 1, in a hospital in Wuhan (the hospital is not named, but the implication is that this child had this new disease). Outside of this they mingled with four other local relatives, of which two had also spent extensive time in the hospital. Notably the infant’s symptoms resolved one or two days after the visit, and he returned home.
On day four of the visit (January 1st), the son-in-law, who had not gone to the hospital got sick. On this basis, they declared that the coronavirus had a very short incubation time, and that people were almost immediately infectious. There’s no evidence for this, except nothing else can support their hypothesis that the hospitalized baby had this new coronavirus, infected Patients 1 (grandmother) and 3 (daughter), one of which then infected the son-in-law (Patient 4). All in four days. Then, like dominoes, the other visitors got sick, the daughter one day after her husband (Jan 2), the grandmother the next day (Jan 3), and then the grandfather and Relatives 2, 3, 4 and 5 (Jan 4). The family appeared to have a history of being frequently ill. In this case symptoms were mostly fever, cough and weakness.
On January 4th the whole family returned to Shenzhen. Note that the grandchildren, patients 5 and 6, had no symptoms during their time in Wuhan, or after returning home.
On January 9th, the grandparents and their daughter attended a clinic in Shenzhen, and the next day the grandparents visited the big hospital (University of Hong Kong-Shenzhen Hospital) for tests. The daughter followed one day later (January 10th ). The grandparents had significant pre-existing health conditions, such as having been treated for brain cancer (grandmother) and hypertension (both). In Wuhan they both suffered from fever, dry cough, weakness, and later were found to have various lab abnormalities. They were genuinely sick.
Concern that they were infected with the new coronavirus is probably the reason why the rest of the family were brought in over the next few days for testing. The daughter and son-in-law were still sick (diarrhea, congestion, sore throat, chest pain) but by then had a normal body temperature (even lower than). They did have some lung opacities on a CT scan so were diagnosed with pneumonia despite the normal temperature.
The grandson had been a bad boy (patient 5) and had refused to wear a mask in Wuhan, so the parents insisted he get a CT scan. Despite the complete lack of symptoms, he also had lung opacities, and so was also diagnosed with pneumonia, albeit completely asymptomatic.
The granddaughter was a good girl (patient 6), and had worn a mask, and so nobody was surprised that she was not only asymptomatic, but also did not have lung abnormalities.
All six patients (apparently including patient 6 who was healthy in all ways) were tested using the new RNA test. Not surprisingly, the grandparents tested positive on nose swabs and serum samples. The son-in-law tested positive on nose and throat samples. But the daughter, Patient 3, despite doing 18 tests, more than anyone else, stubbornly tested negative on each one. But, showing shocking bias, the authors concluded, “she was still regarded as an infected case because she was strongly epidemiologically linked to the Wuhan hospital exposure and radiologically showing multifocal ground-glass lung opacities.” Another indication of bias was the omission of test results for Patient 6, who also tested similarly tested negative every time (but based on only four samples, according to personal correspondence from the authors). In this case the bias was clearly to classify her as uninfected.
The bad grandson (patient 5) also tested positive on nose, throat and sputum samples, despite having no symptoms of illness.
Additionally, there was a relative who did not travel to Wuhan (Patient 7), who got sick with back pain and weakness four days after everyone returned to Shenzhen and, when she was tested, she also tested positive for RNA (nose, throat and sputum).
Several of the relatives who lived in Wuhan also got sick afterwards, but no coronavirus test information was provided in this paper.
No consideration was given to other causes for illness, such as exposure to food contaminated by chemicals, food that was prepared in anticipation of their visit, that was left out too long, or in unsanitary conditions. The purpose of reference [3] appears to have been to prove that the putative coronavirus is infectious, not to try to disprove it (which is what good scientists should do). Note that the relatives visited each other a lot over a few days, that was indeed the purpose of the trip, and one can guess that they ate more than usual, ate richer and more exotic foods (but not exotic animals) and perhaps drank more than usual. But none of this was investigated.

Transmission 2 – The German Connection

Reference [9] attempts to connect the illness of some Germans, one of whom met with a Chinese woman, who afterwards was diagnosed positive on the RNA test. The sequence of events started between January 20th and 22nd when a woman from Shanghai and a local German were in meetings together. Both were healthy at the time. The woman flew back to China on January 22nd and started to feel sick on the flight home. The German also got sick (sore throat, chills, muscle pain, fever, cough), late on the 24th, and did not return to work until the 27th. By coincidence, this was the same day that the Shanghai woman informed the German company that she had been sick and had tested positive for coronavirus RNA. By this time the German man had recovered without any special medicines or interventions, but he tested positive, and so did three other colleagues who had contact with him, or the Shanghai woman, or both. It is logical that everyone who had any contact with them was tested, and likely no employees who did not have contact were tested. The paper does not say how many tested negative, and whether any of those testing negative had similar symptoms.
The article claims that all four Germans had symptoms starting on the 24th, 26th , or 27th , but what those symptoms were is not detailed for three not in the meeting with the Chinese woman. The article does note that, “so far, none of the four confirmed patients show signs of severe clinical illness”.
If the purpose of the paper was to support the idea that this illness is transmissible, it is important to accept the four positive tests on Germans as true positives, despite the fact that none of them had “severe clinical illness”. This, however, calls into question the severity of the illness, and why heroic and dangerous medical measures are needed. Because the Germans did not find out about their positive RNA test until after their period of symptoms, they probably only had to suffer quarantine, and not antiviral drugs, steroids or invasive respiratory assistance, which might have happened if they had shown up at an emergency department with symptoms and had been diagnosed with the 2019 coronavirus at the same time.
An alternative explanation is that the coronavirus is deadly, but that these four Germans represent four false positive tests. If this is the case, the usefulness of the test must be questioned.
Note that the fact that all the people with positive tests and symptoms had contact is not surprising if testing was limited to people who had contact.

Transmission 3 – Magical

Numerous newspaper articles have noted cases outside China (where individual cases were still newsworthy) that had no known contact with another case, or travel to an endemic region (notably Wuhan)3:
  • (Feb 2) An 80 year old Hong Kong man tested positive after hospital admission due to a fever, but his only recent trip to mainland China was a brief visit to Shenzhen, just outside Hong Kong (over 1000km from Wuhan by car). He had no contact with other cases, markets with live animals or wild animals.
  • (Feb 13) A Japanese woman in her 80s tested positive after death. Her son-in-law, a taxi driver, also tested positive. He had not travelled to the affected parts of China and denied having carried any foreign customers in the two weeks before testing positive.
  • (Feb 16) An 82-year old man in Seoul, Korea, had no record of overseas travel or contact with other positive testing people.
  • (Feb 17) Three men in Aichi, Chiba and Hokkaido prefectures in Japan have no infection routes identified.
  • (Feb 18) A 61-year-old woman described as a “superspreader” was the first person diagnosed in her highly populated region of South Korea, with no known contacts or travel to explain her case. She was blamed for spreading the infection to 37 other people, but this may just be an artefact of the size of the church. She had 1,160 “contacts” (presumably mainly members of her congregation), and so the fraction of cases among her contacts is 3.3%, lower than the rate of positive tests seen overall in South Korea.
  • (Feb 22) Two cases in Chiba prefecture, Japan, had no relationship with each other, or any contact with other cases or a relevant travel history.
  • (Feb 22) Director-General of WHO says that “cases with no clear epidemiological link, such as travel history to China or contact with a confirmed case” are a concern.
  • (Feb 24) In Lombardy, Italy, none of the early patients had been to China or had contact with another case.
  • (Feb 27) After a hospital in Vienna, Austria, decided to test everyone with compatible symptoms, a 72-year old man tested positive. He had no known route of infection, had already been in the hospital 10 days, and none of his contacts were ill or infected.
  • (Feb 27) An 88-year old man in San Marino (Duchy within Italy) tested positive, but an investigation showed he had not travelled abroad, nor to the ‘red’ areas of Italy where other cases have been found.
  • (Feb 28) An Oregon resident became the first positive case with no known history of travel to affected countries or contact with infected individuals.
  • (Mar 2) El Pais reported that at least five positive cases in Torrejón de Ardoz, near Madrid, had not travelled to any country considered a risk, not had contact with any other patient.
  • (Mar 6) British Columbia, Canada reports a positive case with no recent travel history and no known contact with another patient.
Proving Transmission

It is impossible, in most cases, to prove that someone did have contact with another coronavirus case, even if they did travel to Wuhan and visit the Huanan market. In the best case it will be possible that someone was in the vicinity of someone who tested positive earlier, but that does not constitute proof that they were exposed to the virus, let alone that it was that person who infected them. In most cases, even if someone was in Wuhan, there will be no evidence that a person was in contact with another victim.
Fundamentally, this belief that it is contact that causes positive tests is necessary to preserve the infectious paradigm. Therefore, the slightest evidence of an association between an old case and a new case (such as having been in the same city at the same time) is taken as proof of transmission, when it is obviously not.
Preserve the test
Overall, it seems that test results must be interpreted to preserve the coronavirus theory. No alternative interpretation is allowed. And when there is an inconsistency, it must be ignored or explained away, often invoking imaginary data:
  • As mentioned above, in Reference [3] the daughter, important in the chain of transmission of a family, was interpreted as a false negative. Alternatively it could have been concluded that this woman did not have the coronavirus, but that would have badly damaged the family transmission story, and left open other reasons for the cluster of illnesses (and CT scan abnormalities).
  • Also in Reference [3] the grandson tested positive without any symptoms at all, except lung abnormalities on a CT scan. This allowed them to declare him as ill (asymptomatic pneumonia). But he could have been an asymptomatic case or a false positive.
  • A woman who returned from China to her Canadian university with illness, first tested negative, and then positive. This was interpreted as indicating that she had very little virus in her body at the time of the first test, and that the test was not sensitive enough. However, PCR testing is extraordinarily sensitive, and if she had so little virus, how was it that she had symptoms? An alternative explanation is that she became positive on the test in Canada, perhaps because this virus is actually quite common, or because the test is not for a virus, but is just measuring RNA created by the human body in response to disease conditions.[8]
  • The four Germans [9] could be seen as showing that the RNA test produces false positives or that the illness produced by the virus is often not severe. But it will be interpreted as neither by dogmatic promoters of the coronavirus theory, it simply will not be mentioned now that the main message, that the virus is infectious, is bolstered by the evidence.
  • Out of 206 Japanese evacuated from Wuhan, only three tested positive, and two were found to have “no symptoms”. Instead of considering them false positives, they are considered infected and possibly infectious.[12]
  • Of 6 positive cases in Singapore reported in [14], the first had a sore throat and cough, but no pneumonia, the second and third had undescribed symptoms, and the last three had no symptoms.
Treatment

There is a strong correlation between the amount of panic (and there is certainly a lot of that in this case) and the potency of drugs being used. And this can be very dangerous. As a report commissioned by WHO after SARS was over said,
“Despite an extensive literature reporting on SARS treatments, it was not possible to determine whether treatments benefited patients during the SARS outbreak. Some may have been harmful …Of patients treated with ribavirin, 49/138 to 67/110 (36%-61%) developed haemolytic anaemia, a recognised complication with this drug, although it is not possible to rule out the possibility that SARS-CoV infection caused the haemolytic anaemia, as there is no control group. One study noted that over 29% of SARS patients had some degree of liver dysfunction indicated by ALT levels higher than normal, and the number of patients with this complication increased to over 75% after ribavirin treatment…In the Chinese literature, we found 14 reports in which steroids were used. Twelve studies were inconclusive and two showed possible harm. One study reported diabetes onset associated with methylprednisolone treatment. Another study (an uncontrolled, retrospective study of 40 SARS patients) reported avascular necrosis and osteoporosis among corticosteroid-treated SARS patients [which resulted in many joint replacements, particularly in Hong Kong]”[7]
The treatment of what is seen as a new disease is aggressive but does not appear to be as aggressive as SARS, perhaps due to the greater size of the epidemic putting pressure on drug supplies. Ribavirin is not being used, and doctors are more cautious with steroids (only 22% of the patients in [2] and 19% in [10] received them, although dosages are similar to those given to SARS patients). A paper documenting 99 “confirmed” coronavirus patients [10], reported that 76% were receiving antivirals, already including AIDS drugs lopinavir and ritonavir, along with oseltamivir and ganciclovir, but does not indicate how many were getting each antiviral, let alone how much and for how long.
At the beginning of February 2020, the Chinese government announced a trial of a new Gilead antiviral drug, originally planned for Ebola, remdesivir, which, previously, “may have helped alleviate the symptoms of a 35-year-old male” diagnosed with a coronavirus infection in the US [15]. The drug was going to be trialed on 270 people, although it is not clear whether there will be a placebo or comparison group. A Chinese chemistry professor, Jiang Xuefeng, warned “No random, controlled, or blank samples were used in [its previous use in an American man]…The effectiveness of remdesivir cannot be determined by this single case…It can take years to fully understand the pharmacological and toxicological side effects of new drugs.”
A Japanese hospital is testing the anti-influenza medication Avigan (Favipiravir) on one patient.
Reference [10] did indicate greater caution with respiratory assistance, only 13% were given a face mask for extra oxygen, and only 4% were subjected to invasive ventilation.
Apart from having pneumonia, and often being subject to potent drugs, many of the patients have other health problems, and are therefore much weaker than average.
For example, “50 (51%) patients had chronic diseases, including cardiovascular and cerebrovascular diseases, endocrine system disease, digestive system disease, respiratory system disease, malignant tumour, and nervous system disease”[10]. They are also older than average, “The average age of the patients was 55.5 years, including 67 men and 32 women”[10]. Only about 12% of the Chinese population are 55 or over [11]. In a later study [13], the median age was 59, and only about 10% of Chinese are this age or older. In the last of three time periods of this study, January 12th through 22 nd, the median age had crept up to 61.
Combine old age, pre-existing health conditions, pneumonia and powerful drugs, and you have a recipe for another iatrogenic disaster.
These drugs are sometimes described as “experimental”, but that is a misnomer, and disguises the fact that they are not used in the context of science. It is clearly not science when there is no placebo, no blinding, and no randomization. It is likely that sicker patients will be prescribed untested drugs, if they have a health decline it will be blamed on the virus, and nobody could know what would have happened if they had received standard medical treatment for their symptoms. If the patient survives it will likely be considered a success, and is worth millions, or more, in public relations to an antiviral drug that has not yet found a market.

Treatment Experience

It is not surprising that summaries of experience with treatment tend to come out after an epidemic is over, when doctors have time to go through the copious records that will be taken, and see if they can determine whether the treatments had any impact on the markers of the disease or on the health of the patient. Since it is almost certain that there was no control, it will be impossible to distinguish between a patient who recovered on their own despite the treatment, and one who was saved by the treatment. However, useful information on adverse events and disease markers can be obtained.
The first such report that I am aware of came from Singapore [24]. They reported on 18 patients, of which only five received antiviral medications, chosen from six who required supplemental oxygen. This is a sign of some restraint.
The doctors used the AIDS drugs Lopinavir and Ritonavir, often marketed as the combination pill Kaletra. For two of the patients they reported a reduction of oxygen requirements within 3 days, and for two they started to get negative coronavirus tests (not the same two). So far, so good, although it is impossible to claim this is due to the drugs, and it was only a minority of the patients.
The bad news is that two patients, “deteriorated and experienced progressive respiratory failure while receiving lopinavir/ritonavir, with 1 requiring invasive mechanical ventilation”. And these two patients continued to produce positive coronavirus tests. Furthermore 3 out of 5 patients “developed abnormal liver function test results” and 4 out of 5, “developed nausea, vomiting, and/or diarrhea”. In total, only one of the five was able to complete the planned 14-day course of antiviral drugs.
It is of course not possible to prove that the drugs produced these side effects, as there was no control. However, liver problems, nausea, vomiting and diarrhea are common with AIDS drugs.

Conclusions

The coronavirus panic is just that, an irrational panic, based on an unproven RNA test, that has never been connected to a virus. And which won’t be connected to a virus unless the virus is purified. Furthermore, even if the test can detect a novel virus the presence of a virus is not proof that it is the cause of the severe symptoms that some people who test positive experience (but not all who test positive). Finally, even if the test can detect a virus, and it is dangerous, we do not know what the rate of false positives is. And even a 1% false positive rate could produce 100,000 false positive results just in a city the size of Wuhan and could mean that a significant fraction of the positive test results being found are false positives.
The use of powerful drugs because doctors are convinced that they have a particularly potent virus on their hands, especially in older people, with pre-existing health conditions, is likely to lead to many deaths. As with SARS.
There is very little science happening. There is a rush to explain everything that is happening in a way that does not question the viral paradigm, does not question the meaningfulness of test results, and that promotes the use of untested antiviral drugs. And, given enough time there will be a vaccine developed and, for some of the traumatized countries, it may become mandatory, even if developed after the epidemic has disappeared, so that proving that it reduces the risk of developing a positive test will be impossible.

Footnotes:

1. 
Officially the virus is called SARS-CoV-2 and the disease it is believed to caused, COVID-19. We will just refer to coronavirus for the current virus panic, and SARS for the 2003 panic.
2. References are available upon request. Dates are of the report
3. I am not including references for this section due to the sheer number, but I’m happy to provide them to anyone who is interested. Dates are of the news reports, the cases were probably identified earlier.

References
1. Zhu N et al. A Novel Coronavirus from Patients with Pneumonia in China, 2019. N Engl J Med. 2020 Jan 14. https://www.nejm.org/doi/full/10.1056/NEJMoa2001017
2. Huang C et al. Clinical features of patients infected with 2019 novel coronavirus in Wuhan, China. Lancet. 2020 Jan 24. https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(20)30183-5/fulltext
3. Chan J F-W et al. A familial cluster of pneumonia associated with the 2019 novel coronavirus indicating person-to-person transmission: a study of a family cluster. Lancet. 2020 Jan 24. https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(20)30154-9/fulltext
4. Rivers TM. Viruses and Koch’s Postulates. J Bacteriol. 1937 Jan; 33(1): 1-12. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC545348/
5. Gluschankof P et al. Cell membrane vesicles are a major contaminant of gradient-enriched human immunodeficiency virus type-1 preparations. Virology. 1997 Mar 31; 230(1): 125-133. https://davidcrowe.ca/SciHealthEnv/papers/277-Microvesicles-Gluschankof.pdf
6. Bess JW et al. Microvesicles Are a Source of Contaminating Cellular Proteins Found in Purified HIV-1 Preparations. Virology. 1997 Mar 31; 230(1): 134-44. https://davidcrowe.ca/SciHealthEnv/papers/278-Microvesicles-Bess.pdf
7. Stockman LJ et al. SARS: Systematic Review of Treatment Effects. PLoS Med. 2006 Sep 12; 3(9). https://davidcrowe.ca/SciHealthEnv/papers/5253-SARS-Treatment-Effects.pdf
8. Fourth case of novel coronavirus confirmed in Canada. Globe & Mail. 2020 Jan 31. https://www.theglobeandmail.com/canada/article-fourth-case-of-novel-coronavirus-confirmed-in-canada/
9. Rothe C et al. Transmission of 2019-nCoV Infection from an Asymptomatic Contact in Germany. N Engl J Med. 2020 Jan 30. https://www.nejm.org/doi/full/10.1056/NEJMc2001468
10. Chen N et al. Epidemiological and clinical characteristics of 99 cases of 2019 novel coronavirus pneumonia in Wuhan, China: a descriptive study. Lancet. 2020 Jan 30. https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(20)30211-7/fulltext
11. Population pyramid for China. https://www.populationpyramid.net/china/
12. Kim C-R. Three Japanese evacuees from Wuhan test positive for virus, two had no symptoms. Reuters. 2020 Jan 29. https://www.reuters.com/article/uk-china-health-japan/three-japanese-returnees-from-wuhan-test-positive-for-coronavirus-nhk-idUKKBN1ZT02K
13. Li Q. Early Transmission Dynamics in Wuhan, China, of Novel Coronavirus-Infected Pneumonia. N Engl J Med. 2020 Jan 29. https://www.nejm.org/doi/full/10.1056/NEJMoa2001316
14. Singapore confirms first cases of local coronavirus transmission: What we know about the 6 new cases, Health News & Top Stories. The Straits Times. 2020 Feb 4. https://www.straitstimes.com/singapore/health/singapore-confirms-first-cases-of-local-coronavirus-transmission-what-we-know-about
15. Haiyun W. China To Begin Testing Ebola Drug on Coronavirus Patients. Sixth Tone. 2020 Feb 3. https://www.sixthtone.com/news/1005155/china-to-begin-testing-ebola-drug-on-coronavirus-patients
16. Global Surveillance for human infection with novel coronavirus (2019-nCoV): Interim guidance. WHO. 2020 Jan 31. https://www.who.int/publications-detail/global-surveillance-for-human-infection-with-novel-coronavirus-(2019-ncov)
17. Diagnosis and treatment: COVID-19 prevention and control. China CDC. 2020 Feb 16. https://www.chinacdc.cn/en/COVID19/202002/P020200217499154038416.pdf
18. Countries/areas with reported cases of Coronavirus Disease-2019 (COVID-19). CHP. 2020 Feb 22, 27. [This is a regularly updated page, and the PDF file will change] https://www.chp.gov.hk/files/pdf/statistics_of_the_cases_novel_coronavirus_infection_en.pdf
19. Corman VM et al. Detection of 2019 novel coronavirus (2019-nCoV) by real-time RT-PCR. Euro Surveill. 2020 Jan; 25(3). https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6988269/
20. Korea Coronavirus Cases. KCDC. 2020 Feb 25-27 [accessed]. https://www.cdc.go.kr/board/board.es?mid=a30402000000&bid=0030
21. Novel Coronavirus Outbreak 2020. Washington State Department of Health. 2020 Feb 24 [accessed]. https://www.doh.wa.gov/Emergencies/Coronavirus
22. Koop F. A startling number of coronavirus patients get reinfected. ZME Science. 2020 Feb 26. https://www.zmescience.com/science/a-startling-number-of-coronavirus-patients-get-reinfected/
23. Feng C et al. Race to diagnose coronavirus patients constrained by shortage of reliable detection kits. South China Morning Post. 2020 Feb 11. https://www.scmp.com/tech/science-research/article/3049858/race-diagnose-treat-coronavirus-patients-constrained-shortage
24. Young BE et al. Epidemiologic Features and Clinical Course of Patients Infected With SARS-CoV-2 in Singapore. JAMA. 2020 Mar 3. https://jamanetwork.com/journals/jama/fullarticle/2762688
25. Letter to the editor: Plenty of coronaviruses but no SARS-CoV-2. Eurosurveillance. 2020 Feb 27. https://www.eurosurveillance.org/content/10.2807/1560-7917.ES.2020.25.8.2000171?fbclid=IwAR1yaTgICfc15rO6mkI90pBb45j1EnT87KA5p9gcfnixqS ciJWsFeQb4j5I
Additional reference (added by GMI Editors) 

[Potential False-Positive Rate Among the ‘Asymptomatic Infected Individuals’ in Close Contacts of COVID-19 Patients]

[Article in Chinese]
G H Zhuang 1, M W Shen, L X Zeng, B B Mi, F Y Chen, W J Liu, L L Pei, X Qi, C Li

Abstract 

in English , Chinese

Objective: As the prevention and control of COVID-19continues to advance, the active nucleic acid test screening in the close contacts of the patients has been carrying out in many parts of China. However, the false-positive rate of positive results in the screening has not been reported up to now. But to clearify the false-positive rate during screening is important in COVID-19 control and prevention.

Methods: Point values and reasonable ranges of the indicators which impact the false-positive rate of positive results were estimated based on the information available to us at present. The false-positive rate of positive results in the active screening was deduced, and univariate and multivariate-probabilistic sensitivity analyses were performed to understand the robustness of the findings.

Results: When the infection rate of the close contacts and the sensitivity and specificity of reported results were taken as the point estimates, the positive predictive value of the active screening was only 19.67%, in contrast, the false-positive rate of positive results was 80.33%. The multivariate-probabilistic sensitivity analysis results supported the base-case findings, with a 75% probability for the false-positive rate of positive results over 47%. Conclusions: In the close contacts of COVID-19 patients, nearly half or even more of the ‘asymptomatic infected individuals’ reported in the active nucleic acid test screening might be false positives.

Keywords: COVID-19; Close contacts; False-positive; Nucleic acid test; Screening.






davidcrowe
David Crowe has published peer-reviewed articles in the fields of numerical taxonomy, computer performance, and the Ebola vaccine, along with letters to medical journals related to AIDS. David is currently the President of Rethinking AIDS and host of “The Infectious Myth” on Gary Null’s PRN.FM. Learn more about his work on his website.

Sunday, July 12, 2020

John McAfee: Tản quyền là hy vọng duy nhất của chúng ta


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Thursday, July 9, 2020

Chế độ KAKISTOCRACY ([kækɪ'stɑkrəsi]) là một hệ thống chính phủ được điều hành bởi những công dân tồi tệ nhất, kém chất lượng nhất và vô đạo đức nhất.


Have You “HEARD” and “SEEN” KAKISTOCRACY in ACTION?

 

PQC: The word KAKISTOCRACY exists for an unfortunate reality. And unfortunately or I must say terrifyingly, people around the world, in the whole world, just keep believing these shit-psychopaths. Not surprisingly, the Jew-Ish-A is the worst. They love the Jewish criminal clown in tweets, the dumbest of the dumbs, and give this stupid shit all the power, authority over themselves! So who is the problem now?
As far as I am concerned, this minority group of psychopaths in every country is NOT THE PROBLEM, it’s the system authority that the people believe in is the problem.
Without the current system of authority called government, the state, these psychopaths will have no power at all, they will be reduced back to be just two-bits thugs who can be easily dealt with by anyone.
The fact is this dangerous and destructive system of authority exists because people believe that they need this system of government regardless of whatever the system has been doing to them for thousands of years…And right now, this “authority” is lying, enslaving, and murdering people all over the world with this Covidshit!.
As a matter of fact, without the people, without the order-followers, and without so-called law-abiding citizens, the “proud tax-payers doing the dirty works for them, they are nothing, they have no power. They are just some liars, petty thieves, or some community organizer, some playboy real estate agent at best! It’s people’s stupid belief that gives them such destructive power. Guess what? Not only Joes and Janes, but all the so called “intellectuals” bow to them. obey them, and do harm to people for them!

But dare you to point the finger and accuse the people “beloved governments!” You are tin-foil-head- conspiracy theorists shit!!! Bla bla bla!!! And you would be bombarded with mantras such as “people are bad by nature who cannot be trusted and be left with their own devices! Yeah right.. and they trust these worst of the worst people on this entire planet! It’s mind boggling!
The late George Carlin was right:


“When you’re born into this world, you’re given a ticket to the freak show. If you’re born in America you get a front row seat.”― George Carlin..

George, can you hear me? PhiQuyenChinh here, mate! You forgot to tell people that, it’s them, the people themselves that help to create the freak show, pay their lives for it and keep it perpetuates on and on and on!

As always, the last word is yours, folks!


Plug your ears if you don’t like to hear your politicians using bad language…or any time they open their mouths, really.

Documentation

Ted Kennedy – The “Breast” and the Brightest
Time Reference:00:00
Bush senior had sex.. so did fellow americans
Time Reference:00:04
Minister Anthony Albanese borrows from Hollywood
Time Reference:00:18
Out Of Control Congress Deems Pizza A Vegetable!
Time Reference:00:28
Stupid Bush
Time Reference:00:34
Sen. Lindsey Graham on the NDAA, Indefinite Detention of American Citizens
Time Reference:00:42
Vic Toews vs. Vic Toews
Time Reference:00:52
Obama swears! (NSFW)
Time Reference:01:20
Joe Lieberman U..S. needs Internet kill switch like China
Time Reference:01:26
Donald Rumsfeld Caught Lying
Time Reference:01:31
Obama even needs teleprompter to address sixth grade class
Time Reference:01:49
Recognizing the 8 Signs of Terrorism
Time Reference:02:14
7 Signs of Terrorism
Time Reference:02:17
Seven Signs of Terrorism
Time Reference:02:19
Rand Paul – What is a Terrorist!
Time Reference:02:29
3 Signs You Might be a Terrorist
Time Reference:02:36
Homeland Security Says You Need a Credit Card or YOU Will Be Branded A Terrorist
Time Reference:02:47
Walmart Public Service Announcement
Time Reference:02:56
Obama Claims He’s Visited 57 States
Time Reference:03:24
Christie Whitman says air is safe days after 911
Time Reference:03:37
Madeleine Albright Defends Mass-Murder of iraqi Children (500,000 Children dead)
Time Reference:03:53
Jay Rockefeller: Internet should have never existed
Time Reference:04:16
        Rudy Giuliani in Drag Smooching Donald Trump
Time Reference:04:23

MICHAEL HUDSON( kinh tế gia) GIẢI THÍCH: Trò gian manh trong sự kiện COVID19 của nhà Nước Mỹ LÀ BAN PHÁT $6 ỨC (trillion) CHO BỌN THỊ TRƯỜNG CHỨNG KHOÁN MỸ.


TRANSCRIPT: US CORONAVIRUS ‘BAILOUT’ SCAM IS $6 TRILLION GIVEAWAY TO WALL ST – ECONOMIST MICHAEL HUDSON EXPLAINS

21 APRIL 2020

BY MODERATE REBELS

Facing the Covid-19 pandemic, the US Congress rammed through the CARES Act — which economist Michael Hudson explains is not a “bailout” but a massive, $6 trillion giveaway to Wall Street, banks, large corporations, and stockholders.
Max Blumenthal and Ben Norton discuss the enormous financial scam with Hudson, who reveals how the economy actually works, with the Federal Reserve printing money so rich elites don’t lose their investments.
Michael Hudson, “A debt jubilee is the only way to avoid a depression,” The Washington Post, March 21, 2020
Transcript
MICHAEL HUDSON: Just think of when, in the debates with Bernie Sanders during the spring, Biden and Klobuchar kept saying, ‘What we’re paying for Medicare-for-All will be $1 trillion over 10 years.’ Well, here the Fed can create $1.5 trillion in one week just to buy stocks.
Why is it okay for the Fed to create $1.5 trillion to buy stocks to prevent rich people from losing on their stocks, when it’s not okay to print only $1 trillion to pay for free Medicare for the entire population? This is crazy!
The idea is that only the rich should be allowed to print money for themselves, but the government should not be allowed to print money for any public purpose, any social purpose — not for medicine, not for schools, not for personal budgets, not for full employment — but only to give to the 1 percent.
People hesitate to think that. They think, ‘It can’t possibly be this bad.’ But for those of us who have worked on Wall Street, for 60 years in my case, that’s what the numbers show.
But you don’t have the media talking about actual numbers. They talk about just words, and they use euphemisms. It’s a kind of Orwellian vocabulary, describing an inside-out world.
BEN NORTON: The world is suffering right now from one of the worst economic crises in modern history. Definitely the worst crisis since the 2008 financial crash. And many economics experts are saying that we’re living through the worst recession actually since the Great Depression of 1929.
Well joining us to discuss this today, we have one of the best contemporary economists, who is really well prepared to explain what has been going on in this global recession during the coronavirus pandemic. And specifically today we’re gonna talk about the $6 trillion bailout package that the US Congress has passed.
The Trump administration is basically taking Obama’s corporate bailout on steroids, and injecting trillions of dollars into the corporate sector. And today to discuss what exactly the coronavirus bailout means, we are joined by the economist Michael Hudson.
He is the author of many books. And in the second part of this episode we’re gonna talk about his book Super Imperialism: The Economic Strategy of American Empire. So that’ll be much more in the vein of kind of traditional Moderate Rebels episodes, where we talk about imperialism, US foreign policy, and all of that.
Michael Hudson is also a former Wall Street financial analyst, so he’s very well prepared to talk about the financial thievery that goes on on Wall Street. And he is a distinguished research professor of economics at the University of Missouri, Kansas City.
So Michael, let’s just get started here. Can you respond to this global depression that we’re living through right now amid the Covid-19 pandemic? And what do you think about this new bailout that was passed?
MICHAEL HUDSON: Well the word bailout, as you just pointed out, really was used by Obama and only applies to the banks. The word coronavirus is just put in as an advertising slogan.
Banks and corporations, airlines, have a whole wish list that they had their lawyers and lobbyists prepare for just such an opportunity. And when the opportunity comes up — whether it’s 9/11 with the Patriot Act, or whether it’s today’s coronavirus — they just pasted the word coronavirus onto an act, which should be called a giveaway to the big banking sector.
Let’s talk about who’s not bailed out. Who’s not bailed out are the small business owners, the restaurants, the companies that you walk down the street in New York or other cities, and they’re all shuttered with closed signs. Their rent is accumulating, month after month.
Restaurants, gyms and stores are small-markup businesses, small-margin businesses, where, once you have no sales for maybe three months and rent accruing for three months, they’re not going to have enough money to earn the profits to pay the rents that have mounted up for the last three months.
The other people that are not being bailed out are the workers — especially the people they call the prime necessary workers, which is their euphemism for minimum-wage workers without any job security. There have been huge layoffs of minimum-wage labor, manual labor, all sorts of labor.
They’re not getting income, but their rents are accruing. And their utility bills are accruing. Their student loans are accruing. And their credit card debts are mounting up at interest and penalty rates, which are even larger than the interest rates. So all of these debts are accruing.
The real explosion is going to come in three months, when all of a sudden, this money falls due. The governor of New York has said, “Well we have a moratorium on actually evicting people for three months.” So there are restaurants and other people, individuals, wage-earners, who are going to be able to live in their apartments and not be evicted. But at the end of three months, that’s when the eviction notices are going to come. And people are going to decide, is it worth it?
Well, especially restaurants are going to decide. And they’re going to say, “There is no way that we can make the money to pay, because we haven’t had the income to pay.” They’re going to go out of business. They’re not going to be helped.
The similar type of giveaway occurred after 9/11. I had a house for 20 years in Tribeca, one block from the World Trade Center. The money was given by the government to the landlords but not to the small businesses that rented there — the Xerox shops and the other things. The landlords took all of the ostensible rent loss for themselves, and still tried to charge rent to the xerox shops, the food shops, and ended up collecting twice, and driving them out.
So you’re having the pretense of a bailout, but the bailout really is an Obama-style bailout. It goes to the banks; it goes to those companies that have drawn up wish lists by their lobbyists, such as the airlines, Boeing and the large banks.
The banks and the real estate interests are going to be the biggest gainers. They have changed the real estate law so that the real estate owners, for a generation, will be income tax free. They are allowed to charge depreciation, and have other fast write-offs to pretend that their real estate is losing value, regardless of whether it’s going up and up in value.
Donald Trump says that he loves depreciation, because he can claim that he’s losing money, and gets a tax write-off, even while his property prices go up.
So there’s a lot of small print. The devil is in the small print of the giveaway. And then President Trump has his own half-a-trillion-dollar slush fund that he says he doesn’t have to inform a Congress or be subject to any Freedom of Information law. He gets to give to his backers in the Republican States.
And states and municipalities are left broke. Imagine New York City and other states. Most states and cities, have balanced budget constitutional restrictions. That means they’re not allowed to run a deficit.
Now if these states and cities have to pay unemployment insurance, and have to pay carrying charges on the schools and public services, but are not getting the sales taxes, not getting the income taxes, from the restaurants and all the businesses that are closed, or from the workers that are laid off, they’re going to be left with a huge deficit.
Nothing is done about that. There has been no attempt to save them. So three months from now, you’re going to have broke states, broke municipalities, labor that cannot, whose savings was wiped out.
As I’m sure you’ve reported on your show, the Federal Reserve says that half of Americans do not have $400 for emergency saving. Well now they’re going to be running up thousands of dollars of rent and monthly bills.
So the disaster is about to hit. They will not be bailed out. But no major investor, really will lose. You’ve seen last week, the stock market made the largest jump since the depression — the largest jump in in 90 years. And that’s because Trump says, “The economy is the stock market, and the stock market is the One Percent.”
So from the very beginning, his point of reference for the market and for the economy is the One Percent. The 99 Percent are simply overhead. Industry is an overhead. Agriculture is an overhead. And labor is an overhead, to what really is a financialized economy that is writing the whole bailout.
It’s not a bailout — it’s a huge giveaway that makes them richer than they ever were before.
BEN NORTON: Yeah and Michael, related to that — you mentioned that fine print is important. But I also have a kind of bigger question. And I don’t really know where exactly these numbers come from.
Officially the bailout is $2 trillion. Many media outlets reported it as effectively $4 trillion. But actually, according to Larry Kudlow — who is the director of the US National Economic Council, he’s the Trump administration’s kind of chief economist — Larry Kudlow is now saying that it’s actually $6 trillion in total, which is a quarter of all of US GDP.
And that includes $4 trillion in lending power for the Federal Reserve, as well as $2 trillion in the aid package.
So there is discussion of this aid package, but actually the aid package of $2 trillion is actually half the size of the $4 trillion that is given to the Federal Reserve.
What exactly is that $4 trillion that the Federal Reserve has? Is this some kind of slush fund, or how does it work?
MICHAEL HUDSON: No, the Federal Reserve was given special powers to create 10 times as many loans or swaps as others. The Federal Reserve represents the commercial banks and commercial investors.
Now here’s the problem: a lot of companies were issuing junk bonds. They were going way down in price, especially junk bonds for the fracking industry. The Federal Reserve says, “We’re going to be backed up by the Treasury. We can just create — as you know, Modern Monetary Theory — we can just create money on a computer, and swap. So we will, say, ‘Give us your poor.’ It’s like the Statue of Liberty: ‘Give us your poor, your oppressed,’ or Aladdin’s old lamps for new: Give us your junk bonds, and we will give you a bona fide Federal Reserve deposit.”
So the Federal Reserve has been pumping trillions and trillions of dollars into the stock market. That’s what’s been pushing up the stock market, the Federal Reserve. The bailout has gone to the stock market. As if the stock market got coronavirus! Stocks don’t get coronavirus! They don’t get sick on the virus! And yet it’s the stock market that’s going up through the Federal Reserve.
There’s also another $2 trillion dollars, $2 to $4 trillion that the US government has, over and above the $2 trillion that’s going to the people. So most of the calculations that have been published cite it as a $10 trillion bailout. Of which the newspapers, to avoid embarrassing Mr. Trump, only refer to the money given to the the wage earners. And they’re sort of embarrassed that the vast majority are given to the financial sector that doesn’t need a bailout, but that doesn’t want to lose a single penny from the virus.
So when you see the stock market recovered almost to what it was before the virus, while the economy is going down, you realize, wait a minute they’re saving the 1 percent, or the 10 percent of the population that own 85 percent of the stocks and bonds. They’re saving the banks. They’re not saving the people, and they’re not saving the economy; they’re not saving industry; and they’re not saving small businesses.
So it’s an amazing hypocrisy that the mainstream press is not discussing, which is why your show is so important.
MAX BLUMENTHAL: Yeah and here in Washington, DC, we got I think $500 million from the, I guess what you accurately describe as the stock market bailout. And that’s a lot less than a number of red states that are less populous than Washington, DC got. So there’s a massive shafting here.
And then the city has only been able to provide for certain parts of the economy. Undocumented immigrants, who do a lot of work here, got nothing from the city. Vendors, which are a big part of the informal economy in DC, even though they have to be regulated, got nothing.
And then you mention all of these sectors of the economy — young people, college-educated young people who are deep in debt, and therefore less inclined to spend — are getting shafted here.
So you have called for a solution — well I guess, knowing so many of those people, they contribute so little to the economy because they can’t; they’re just putting all their money into debt. So you have called for a debt jubilee.
You say that debts that can’t be paid won’t be, and this is the best way out.
Maybe you can explain to our viewers and listeners what that is and why it would be the best remedy?
MICHAEL HUDSON: Well here’s what happens if you don’t write down the debts that are just going to accrue in the next three months: If you don’t say, “The rents will not have to be paid, and workers will not have to pay the debts that mount up,” if you leave those debts on the books, and you make the workers liable to keep paying the student debts, and the other debts, and the mortgage debts, and the rents, then they’re not going to have any money left to buy goods and services.
When it’s all over, they’re going to get their paychecks, and off the top is going to be the wage withholding, and the tax withholding, and the Medicare, and if they don’t want to get kicked out of their houses, they’re going to have to pay all of this money that’s accrued while they’re not making an income.
So you’re going to have a shrinkage of the economy, a vast shrinkage. How can they afford to buy anything but the most basic necessities, the cheapest food, the necessary transport? Obviously they’re not going to buy the kinds of goods and services that are supposed to be part of the circular flow.
Economics textbooks say employers pay the workers so the workers can have enough money to buy what they produce. But the workers don’t spend their income only on what they produce. They spend most of their income on rent, on debt service, on taxes, on finance, insurance, and real estate. And this is the only part of the economy that is being enabled to survive.
So how can you have the superstructure of rents and debts, of insurance charges, on an economy that doesn’t have the income to buy goods and services? And if they can’t buy goods and services, you’re going to have the stores closing down, because people can’t afford to buy what the stores are selling.
You’re going to have a whole wave of closures. And you’re going to go down the streets, and certainly in cities like New York, or where I live in Queens, just outside of Manhattan, where block after block, they’re going to be “For rent” signs. It’s going to be empty.
And the only way to avoid that is for a debt write-down.
Now you’ve had this occurring for 5,000 years. I’ll give you an example that may be easy to understand.
In Babylonia, we have the Laws of Hammurabi, in 1800 BC. One of the laws says that when you would buy beer or other things, they would write it on a tab in the bar, in the ale house, and all the debts were owed when the harvest was in. You’d pay the debt seasonally.
Well Hammurabi said, if there’s a drought, or if there’s a flood, then you don’t have to pay the debts. Most debts were owed to the palace, and others.
The implied policy is that, “The reason we’re doing this is, if we don’t do that, then you’re going to have these debtors become debt servants, bond servants to the creditors; they’re going to owe their labor to the creditors; they’re going to lose their land to the creditors; and they won’t be able to work on public infrastructure projects; they won’t work for Babylonia; they won’t serve in the army, and we can be invaded; and they won’t be able to use their crops as taxes, because they’ll owe the crops as debts. So we’re going to write it down.”
So the whole idea for thousands of years, of every Near Eastern ruler starting his reign by writing down the debts, was to begin everything in balance.
Because they realized, just mathematically, debts grow at compound interest. You’ve seen the coronavirus increase at an exponential rate. That’s how debts accumulate interest, at an exponential rate.
But the economy grows in an S-curve, and then it tapers off. The American economy, the GDP since the Obama bailouts of 2008, the entire growth of the GDP has only accrued to 5 percent of the population. 95 percent of the GDP. But the population for 95 percent, the industry and agriculture, that’s actually gone down.
So we’re already in a 12-year depression, the Obama depression, that they like to call a recession, because most of the media are Democratic Party people.
But you’re going to have this recession turn into a genuine depression, and it will continue until the public debt, that is state and local debts, are written down; the mortgage debts written down; and the personal debts written down, starting with the student loans, the most obviously unpayable debt.
And the choice is, do you want to depression, or do you want the banks to be able to collect all the economic surplus for themselves? Well Donald Trump, supported unanimously by the Democratic Congress, says, “We want to protect the banks, not the population, not the economy. Let the economy shrink, as long as our constituents, the donor class, are able to avoid making a loss. Let’s make the loss borne by the 99 percent, not our donor class.”
BEN NORTON: Yeah, and Michael, you mentioned something, getting back to the Federal Reserve and understanding how this whole system works. I mean frankly it seems to me to kind of be a house of cards.
But you mentioned this idea of Modern Monetary Theory and just kind of creating money out of nothing. Can you talk more about that? You know this is a term that’s become more prominent, especially on the left: MMT, modern monetary theory.
There are socialists who argue in support of MMT and then there are others who are kind of skeptical of the whole notion that you can just print all this money to fund these social programs that you want to create, and that it won’t create inflation.
But at the same time, you and other people point out that that’s exactly how the economy already works. Where for instance, you want to fund a war, there’s never — you know frequently when someone on the left asks for universal health care or free public education, members not only of the Republican Party but many neoliberal Democrats often say, “Well yeah, where are you gonna get the money from?” And the response of some of the MMT supporters is, “Well we just fund the program, and we just create the money because we control the creation of the dollar.”
And we see that same attitude used actually by the Federal Reserve right now, but to bail out Wall Street. “Yeah we’re just gonna print” — they printed $1.5 trillion, and then just gave it, they just injected it right into Wall Street.
So does that not create inflation, or what exactly is happening economically there? I mean to me, it seems like a scam; it seems like totally a scam.
MICHAEL HUDSON: Since 2008, you have had the greatest inflation of money in history. And you have also had the greatest inflation in history, but it’s entirely asset price inflation.
You’re absolutely right: the money has gone into the stock market and the bond market, to support bond prices, meaning you’ve had the biggest bond boom in history. You’ve had a huge stock market boom. But consumer prices have gone down. So here you have an enormous amount of money creation, and consumer prices and real wages have been drifting down.
So they are really two economies. The question is, are you going to create money for public purposes by spending it into the economy, on industry, agriculture, and the goods and service production and consumption economy Or, are you going to put it into the financial economy?
Well the whole way of our banking system is that banks create credit. If you go into a bank and you take out a loan, you say, I’m gonna borrow $5,000 for something. The banker doesn’t go and say, let me see if we have any money to loan you; he says, okay I will write a loan on my computer. I will credit your deposit with $5,000, and you will sign this IOU, and we have an asset. And the asset is $5000, on which we’re going to charge interest on what we pay you.
So it’s just done by computer, on a balance sheet. And as long as money is created on a computer, the only cost is the electricity used to make that debt record.
Now the banks, when they make loans, 80 percent are against real estate. So they say, in case you can’t pay, you’re pledging your real estate – the home you’re buying, or the commercial building you’re buying, as collateral. So we’ll lend you up to 80 percent, maybe 100 percent, of the value of what you’re buying, and that’s the collateral we have.
So they lend against collateral. Well, if you lend the money against collateral to buy a building, or to buy stocks and bonds, which are the other collateral, then obviously this money you’re creating to buy houses, or commercial real estate, or stocks and bonds are going to bid the price up.
Banks don’t give loans for people who say, I want to go shopping and buy more goods because I need the money. That may be a little bit, that’s what credit cards are for, but that’s a small portion of the overall money supply. So banks don’t make loans to buy goods and services; they make loans to buy assets that obviously inflate the price of assets.
And the more money that you pay for houses that are rising in price, or medical insurance, or stocks and bonds, to make a retirement income for your pension fund; the more money you pay for houses that are inflating in price because of bank credit, the less money you have to buy goods and services.
So actually, the more money they create, the more consumer prices for goods and services fall. It’s the exact opposite of the usual theory.
On my website I have many articles about that, and I have something today in Counterpunch on that. It’s on how the economy works the opposite of the way the textbook says.
Now unfortunately the left-wing doesn’t really study finance and money much. The discussion of finance and money has been monopolized by the right-wing, so left-wingers think, they don’t realize that they’re picking up a kind of junk theory of monetary relations and debt relations that’s all picked up from the right-wing of the political spectrum.
It’s a kind of parallel universe. That’s not how the economy really works, but in a way that sort of is easy to understand. And it’s very easy to make an erroneous, oversimplified view of the world easy to understand.
And when it’s repeated again and again and again, in the media, the New York Times and MSNBC, people really think that, well, maybe that’s how the world works — more money is going to push up prices, so we better not push for it, we better go along with trickle-down theory.
And most of the left believes in trickle-down theory. The Democratic Party leadership is absolutely convinced, if you just give enough money to the top 1 percent, or 5 percent, or Wall Street, it’ll all trickle down.
BEN NORTON: Well of course the Democratic Party is not the left.
MICHAEL HUDSON: That’s right, but it pretends to be. And it has crowded out the left. You can see in the recent election primaries that its job is to protect the Republican Party from any critique by the left, interjecting itself in between the Republican Party and any possible reform movement.
BEN NORTON: Exactly.
MAX BLUMENTHAL: Well they stood up really strongly against the bailout — I mean what was it, 96 to nothing? And in the voice vote, I was listening to the voice vote last night in the House; I didn’t hear AOC’s voice against it.
MICHAEL HUDSON: They did a voice so that everybody could say, “Oh it wasn’t me!”
MAX BLUMENTHAL: No, no! So you mentioned that foreclosure king Steve Mnnuchin gets like a $500 billion slush fund. I haven’t heard much discussion about that. What will he do with this sort of opaque slush fund, and how will this — I mean it’s a leading question, but how will this kind of reinforce or consolidate inequality for the next generation?
MICHAEL HUDSON: Well gee, I hope he gives some of it to Kamala Harris, who was the attorney general who let him do all of this, and who thoroughly backed him and led the foreclosure, was the iron fist behind his foreclosure program. So I’m sure he’ll press for Kamala to be the vice president on the ticket.
The Democrats have a problem. How can they guarantee that they have their candidate win? Their candidate is Donald Trump. How can they make sure that they have such a weak candidate that he’s sure to lose to Donald Trump? And the choice is, we’ll get a vice president that’s so unpopular that they’re sure to lose.
Now it’s a race between Kamala Harris and the Minnesota lady.
MAX BLUMENTHAL: Klobuchar? The one who throws staplers at her staff. She seems very charming.
MICHAEL HUDSON: Uh, I don’t know about that. But my wife can’t even look at her on television. But I think that the pretense is that she’ll help get Minnesota, as if Minnesotans, where I’m from, are so dumb just to vote for somebody from there. But by getting Minnesota, they’ll lose the whole rest of the country.
So I think she’ll be the vice president, because that guarantees a Trump victory. And that will enable the Democrats to say, here — they’ll have the president they want, that is for their donor class, but they can say, “That’s not us; that’s the Republicans.” So that’s the Democratic strategy.
MAX BLUMENTHAL: Right, then they can raise loads of money for the “Resistance,” and all of the outside think tanks. And that was the old Republican, William F. Buckley strategy, is we’re better throwing rocks outside the building and raising a ton of money for the National Review than actually having to govern. And that seems like the Democratic strategy.
But I guess I was asking about how you see the economy transforming, because the Obama bailout sort of transformed it or consolidated the gig economy, where everyone has to work three to five jobs, and what was supposed to be a highly educated middle class is deeply in debt.
Where do you see it after this next tranche of stock market bailouts?
MICHAEL HUDSON: Ok, let’s look at three months from now. Smaller companies are going to be squeezed, because all of their expenses are going to go up. Small companies have had to run up debts, and they have all sorts of other problems, and their earnings, their prospective profits, are not going to look that good. Because there’s not going to be a market for the things that they sell, because of the debt deflation that I talked about.
So what’s going to happen? You’re going to have a bonanza for private equity capital. The liquid, the 1 percent that have access to bank credit and have their own equity capital are going to come in and pick up a lot of real estate that’s going to be defaulted on — just like they did after Obama evicted his constituency, the mob with pitchforks, and evicted them.
Blackstone will pick up more real estate. Big companies are going to pick up small companies. You’re going to emerge with a highly monopolized economy, much more centralized.
The important thing to realize about free-market economics and libertarianism, is libertarians advocate central planning, The Chicago School of monetarists advocate central planning; the free marketers want central planning. But the banks are to be the planners, not the government. They want to exclude the government from planning, except to the extent that they can take over the government, as Trump has done, and plan all of the income to be transferred to themselves from the rest of the economy.
So we’re going to have a much more centrally planned by a coalition of monopolies and the government. In the 1930s, that was called fascism.
MAX BLUMENTHAL: It’s what we call a “public-private partnership” or something.
MICHAEL HUDSON: Right.
MAX BLUMENTHAL: Just really quickly, and maybe we can kind of transition after this, but you mentioned Blackstone. I think this is one of the key components of the bailout. They own so much stake in so many of the companies getting bailed out. Can you just describe their role and what they are?
MICHAEL HUDSON: It’s appropriate that they were put in charge of bailout. So if they’re the largest company buying up defaulted real estate and buying, picking up the weak — it’s called moving assets from the weak hands to the strong — then they might as well be put in charge, because they’re going to be the company doing all the grabbing. So of course they’re in charge of it.
It’s called grabitization. That was the Russian word for privatization in the 1990s. So grabitization is I think a better word than public-private partnership. It’s not really a partner; it’s sort of a one-way partnership; there’s one subsidiary partner. It’s really financialization and grabitization.
MAX BLUMENTHAL: Right, just the looting of state assets.
BEN NORTON: Going back one step here, Michael, you were talking about the way that people should think about how the economy actually works. And I mentioned MMT. Can you kind of just walk through that again? Because you were talking about how actually, when the Fed creates — I mean really to me, as someone, I’m definitely not an economics expert, I just don’t understand really how this whole process works, because to me it just seems simply like, they’re literally just creating money and just giving it to banks, and corporate elites, and rich people.
I mean maybe that’s what it is. But I don’t understand, this is like the biggest scheme I can imagine, where the Federal Reserve is creating all of this money, printing — they’re physically printing money is my understanding. And then they’re just giving it to these banks, to bondholders. And then, but you said that what does is, instead of actually creating inflation, all that does is, if I understood correctly, it boosts the value of assets like real estate, while at the same time deflating wages and commodity prices.
So if that’s the case, then how should people who are advocating for socialized programs like Medicare for All, free public education, and maternity leave, and childcare, and all of these programs that the Bernie Sanders campaign and movement have been advocating for, how should we talk about the way to pay for all of those programs, if the reality of the economy is that the Fed is printing trillions of dollars, and then just giving that cash to banks?
MICHAEL HUDSON: Well I think the reason you’re having trouble understanding MMT is because what you described is what’s happening, but you think, “But that’s unfair!” And there’s a tendency to think, if it’s unfair —
MAX BLUMENTHAL: It’s not just unfair. It’s the biggest scheme I can imagine. There’s no other word other than just a con scheme.
MICHAEL HUDSON: Yes, and the brain recoils from thinking, “Can the government really be doing that to us?” Well, yes it can.
And just think of when, in the debates with Bernie Sanders during the spring, Biden, and Klobuchar keep saying, ‘What we’re paying for Medicare-for-All will be $1 trillion over 10 years.’ Well here the Fed can create $1.5 trillion in one week just to buy stocks.
Why is it okay for the Fed to create $1.5 trillion to buy stocks to prevent rich people from losing on their stocks, when it’s not okay to print only $1 trillion to pay for free Medicare for the entire population? This is crazy!
The idea that only the rich should be allowed to print money for themselves, but the government should not be allowed to print money for any public purpose, any social purpose — not for medicine, not for schools, not for personal budgets, not for full employment — but only to give to the 1 percent.
People hesitate to think that. They think, ‘It can’t possibly be this bad.’ But for those of us who have worked on Wall Street, for 60 years in my case, that’s what the numbers show.
But you don’t have the media talking about actual numbers. They talk about just words, and they use euphemisms. It’s a kind of Orwellian vocabulary, describing an inside-out world that they’re talking about.
They will buy stock; they’ll say we’re going to buy a million shares of Boeing; they’ll just write a check, and the check will be from the Federal Reserve, and Boeing will get the money. The Federal Reserve can create a deposit, just like a banker will write you a loan when you go in and borrow. It’s done on a computer – without levying taxes. The Fed can do the same thing.
Stephanie Kelton, my department chairman for many years at the University of Missouri at Kansas City, describes this. The University of Missouri’s website, New Economic Perspectives has a description of it. So if people want to google either her, UMKC, or what I’ve written, or Randall Wray at the Levy Institute, you’ll get walked through.
If you’re not already thinking in terms of balance sheets, which most people don’t, you have to sort of just read it again and again, and then all of a sudden, “Ah, now I get. It’s a ripoff! It’s created out of nothing. Now I get it.”
BEN NORTON: It’s just a house of cards. To me it proves the kind — there used to be this kind of very blunt orthodox Marxist view that the economy strictly follows politics, and it seems to me this is a case where the economy is just created by politics.
MICHAEL HUDSON: That’s true, and that’s not an un-Marxist position. Marx did distinguish between oligarchies and democracies, and finance capitalist economies and industrial capitalist economies.
MAX BLUMENTHAL: Right. And the $17 billion for “urgent national security measures” was straight into the pockets of Boeing, which had its 737 maxes falling out of the sky, and had been clamoring for this bailout for a long time.
I mean you saw 3M, the maker of these masks which are suddenly unavailable, gained a total exemption from lawsuits, if the masks that it mass-produced now somehow failed.
So all of these things stuffed into the bailout were what industry and finance had been clamoring for for years. And they finally had the opportunity to do it.
BEN NORTON: All right, we’re gonna take a pause there. That was the end of part one of our interview here with the economist Michael Hudson. He is a Wall Street financial analyst, a distinguished research professor of economics at the University of Missouri Kansas City, and of course the author of many books on economics.
You can find some of his work at michael-hudson.com. We will link to that in the show notes. He has interviews with transcripts and articles.
You can also find some of his economics work and the work of some of his like-minded colleagues at the economics department at the University of Missouri Kansas City website. I will link to that as well in the show notes. You can find the show notes at moderaterebels.com.
In part two of this episode, we’re going to continue our discussion of the house of cards that is the international financial system, the economic system. And in the second part we’re going to talk about his book “Super Imperialism: The Economic Strategy of American Empire.”
This is an incredible book. You know here at Moderate Rebels, Max and I frequently talk about the political and military side of imperialism.
Michael Hudson just spells out, in easy-to-understand terms, how imperialism works at an economic level, how the US government and the Treasury, through the backing of military force, force countries around the world to buy US bonds, Treasury bonds, and how there’s basically just a con scheme where countries pay for their own US military occupation through buying US Treasury bonds.
Michael Hudson explains that all in really simple terms. And we also talk about the rise of China, and how China does pose a so-called threat, in scare quotes, to not the American people but rather to the hegemony of the US financial system — and the main financial instruments, the weapons that the US uses to maintain that hegemony, the International Monetary Fund, the IMF, and the World Bank.
And Hudson describes how, in his terms, the IMF, and the World Bank, specifically, are some of the most evil institutions that are really maintaining the American dictatorial, authoritarian chokehold on the global financial system.
If you want to support this program, Moderate Rebels, and the kind of independent interviews we do like this, giving a platform to some of these voices who you’re never going to hear in mainstream corporate media, you can go to Patreon.com/ModerateRebels. Please consider supporting us. And definitely join us in part 2. See you soon.

Wednesday, July 1, 2020

Earth to Trump: America Is ALREADY A Socialist Country


by James Corbett
corbettreport.com
February 09, 2019

So it seems that something in Trump’s State of the Union speech has gotten the MAGA crowd all excited.
Was it this?
“My administration has acted decisively to confront the world’s leading state sponsor of terror: the radical regime in Iran. It is a radical regime. They do bad, bad things.”
Or this?
“Two weeks ago, the United States officially recognized the legitimate government of Venezuela — (applause) — and its new President, Juan Guaidó. (Applause.)”
Well, yes, probably. But the money quote that government cheerleaders will be shoving down your throat for years to come is no doubt this:
“Tonight, we renew our resolve that America will never be a socialist country.”
Ahhh, music to the ears of any freedom-loving, libertarian-minded opponent of technocratic government control, right? Right. At the very least it was enough to inspire some congratulatory articles from Trump’s base and launch a funny meme or two.
But hey, wait a minute. I’ve seen politicians lie about things before. Could it be possible—and bear with me, I’m just spitballing here—that this statement might be inaccurate? Why yes. Yes, it could. So let’s examine a few pesky little details that contain some harsh truths that the red cap crowd don’t want to hear.
Now before the socialists in the crowd chime in with the “No True Socialism” fallacy, let’s define our terms. Or better yet, let’s let the Dissembler-in-Chief define them:
“Here in the United States, we are alarmed by the new calls to adopt socialism in our country. America was founded on liberty and independence and not government coercion, domination and control. We are born free and we will stay free. Tonight, we renew our resolve that America will never be a socialist country.”
Yes, “socialism” is one of those slippery terms that can (and has) been defined a million different ways, but it’s pretty clear what way Trump is using it here. Socialism is government coercion, domination and control. Opposed to that is freedom from that control, i.e., political liberty and independence.
Alright, let’s take that definition as our starting point and see where it leads us.
If socialism is defined by government coercion, domination and control (in the name of “the people,” of course, i.e., “democratic socialism,”), then what do we call it when there are:
  • Government agents dedicated to stopping farmers from selling raw milk?
  • Enforcers of the state whose job it is to stop people feeding the homeless?
  • Government licensing requirements for driving, fishing, cutting hair, getting married, selling lemonade, blogging, or engaging in literally thousands of other everyday activities?
  • Government mandated geographical areas in which one can (or cannot) exercise one’s right to free speech?
  • Entire sections of the Code of Federal Regulations devoted to policing the size, style, color and order of the words “Turkey Ham” on every package of ham turkey (OOPS! I mean “Turkey Ham”), and any number of other products?
  • Tax laws in place that tell the average worker how much of their income they are allowed to keep?
Need I go on? Oh, OK. Americans also need:
  • Permission from the government to work.
  • Permission from the government to travel.
  • Permission from the government to play.
  • Permission from the government to study.
Oh, and who can forget that Americans have:
But, please, do tell me about how “America will never be a socialist country.” Let freedom ring!
Now you may think that this is all just an aberration. That the overarching, all-controlling, all-seeing nanny state is a perversion of the “constitutional republic” that once existed. That, with a little luck and with the right dictator in charge of the system, the country can be returned to the vision of the founding fathers. That America can be made great again, if you will.
Well, I have some bad news for you on that front, dear Trump supporter: This isn’t an aberration. This is what government is. It is its nature. There is no political process that makes it better. You cannot vote yourself to freedom any more than slaves could vote their way off the plantation.
This is the point made by H.L. Mencken the better part of a century ago:
“The state—or, to make the matter more concrete, the government—consists of a gang of men exactly like you and me. They have, taking one with another, no special talent for the business of government; they have only a talent for getting and holding office. Their principal device to that end is to search out groups who pant and pine for something they can’t get, and to promise to give it to them. Nine times out of ten that promise is worth nothing. The tenth time it is made good by looting A to satisfy B. In other words, government is a broker in pillage, and every election is a sort of advance auction sale of stolen goods.”
And this is the same point made by Lysander Spooner a century and a half ago:
“The principle that the majority have a right to rule the minority, practically resolves all government into a mere contest between two bodies of men, as to which of them shall be masters, and which of them slaves; a contest, that–however bloody–can, in the nature of things, never be finally closed, so long as man refuses to be a slave.”
Government, whatever form it may take, is by its nature a “socialist” system, at least in the sense intended by Trump in his speech. Its very existence depends on coercion, domination and control. Its raison d’être is to enforce a monopoly of power by the few over the many, and in its modern democratic socialist form it has even convinced those many that it “represents” them. That they are the government. And that the government will never be socialist.
Yes, I’m afraid I have to break it to those on the right side of the left/right delusion: Your “leader” is wrong. Not only will America become a socialist nation, but it already is one. The government itself is proof of that.
Here’s how Trump could impress me. If he delivered this speech (courtesy of Pierre-Joseph Proudhon), officially disbanded the government, dropped the mic, and left Washington forever:
“To be governed is to be watched over, inspected, spied on, directed, legislated at, regulated, docketed, indoctrinated, preached at, controlled, assessed, weighed, censored, ordered about, by men who have neither the right, nor the knowledge, nor the virtue. . . . To be governed is to be at every operation, at every transaction, noted, registered, enrolled, taxed, stamped, measured, numbered, assessed, licensed, authorized, admonished, forbidden, reformed, corrected, punished. It is, under the pretext of public utility, and in the name of the general interest, to be placed under contribution, trained, ransomed, exploited, monopolized, extorted, squeezed, mystified, robbed; then, at the slightest resistance, the first word of complaint, to be repressed, fined, despised, harassed, tracked, abused, clubbed, disarmed, choked, imprisoned, judged, condemned, shot, deported, sacrificed, sold, betrayed; and, to crown all, mocked, ridiculed, outraged, dishonoured. That is government; that is its justice; that is its morality.”
But until that happens, don’t bother me with nice-sounding, meaningless political blather, OK?