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February 9, 2015

Banking Industry: British HSBC ‘helped clients dodge millions in tax’

The Swiss arm of British banking giant HSBC helped wealthy clients dodge taxes and hide millions of dollars from authorities, according to a report by a network of investigative journalists released Sunday based on a cache of leaked bank files.

The allegations prompted the bank to release a statement admitting it was “accountable for past compliance and control failures” at its Swiss subsidiary HSBC Private Bank.

The files, analysed by reporters in the International Consortium of Investigative Journalists (ICIJ) in collaboration with more than 140 journalists from 45 countries, showed that British banking giant HSBC provided accounts to international criminals, corrupt businessmen, politicians and celebrities.

"HSBC profited from doing business with arms dealers who channeled mortar bombs to child soldiers in Africa, bag men for Third World dictators, traffickers in blood diamonds and other international outlaws," ICIJ reported.

The leaked files were first obtained by French daily Le Monde, which then distributed them through the ICIJ to news outlets around the world, including The Guardian in the UK, Germany’s Süddeutsche Zeitung and 60 Minutes in the USA, who published their reports simultaneously on Sunday.

The Guardian alleged in its report that the files showed HSBC’s Swiss bank routinely allowed clients to withdraw “bricks” of cash, often in foreign currencies which were of little use in Switzerland, marketed schemes which were likely to enable wealthy clients to avoid European taxes and colluded to conceal undeclared accounts from domestic tax authorities.

Read more: Business - HSBC ‘helped clients dodge millions in tax’ - France 24

USA: What happened to the Hippocratic Oath? Can Pharmaceutical And Medical Industry Still Be Trusted ?

Hippocratic Oath has been shoved under the mat?
I-Lawsuit noted recently “Medical professionals like doctors and pharmacists prescribe to the Hippocratic Oath before starting their practice.

The oath is believed to have been written by ancient Greek Philsopher Hippocrates and dates back to 5th Century BC.  When translated notable parts include to, “keep patients from harm and injustice”, and to practice medicine in both “purity and holiness”.

But are they keeping that Oath?

Undoubtedly there are more doctors who care about the quality of patient care over personal profit, but what about the professionals who are willing to take bribes to endorse a product?

In-between doctors and pharmaceutical companies are the little-known championers of the pharmaceutical industry- the drug reps.

According to Glassdoor the average Pharma sales rep made more than $80,000 last year while the average biotech rep pulled in $152,000 dollars a year- 6 times more than the average American citizen.

Pharma representatives rarely have any formal education in science with the majority holding a BA in the liberal arts or business.

A former rep for Eli Lily revealed that he was the only member of his team with a background in science, and that the majority of his coworkers were “former cheerleaders and ex-models”.

Base salaries begin at $60,000 for new reps and $150,000 for a seasoned biotech representative- but perks don’t stop there. Johnson & Johnson’s reps celebrated on internet forumswhen they were given a chance to partake in a new fleet of Audi A3’s, with a MSRP of over $27,000.

With commission ranging from 10-15%, a company car, free gas and bank account the job is undeniably sexy,  but pharma reps aren’t the only ones who are benefitting from Big Pharma’s generosity.

Doctors who endorse their products routinely receive gifts as well. Medical giant Medtronic shocked the media when it was discovered they had bribed a team of 13 doctors  $210 million over the course of 15 years to post favorable studies of the off-label use of their INFUSE bone graft.

Many patients who received the bone grafts became paralyzed or died from complications stemming from the uncontrollable bone growth.

Consequently large drug companies have grown "wealthy beyond imagination" through blockbuster drugs that depended on government-funded research—and by committing fraud.

Elisabeth Warren, a Democratic Senator recently noted that over the past 10 years, some of the US's wealthiest drug companies—those that capitalize on government research to generate billions of dollars in revenues through the sale of blockbuster drugs—have found another way to boost profits".

Warren said, in a prepared text of her speech at an event sponsored by the health care advocacy group Families USA. "They've been caught defrauding Medicare and Medicaid, withholding critical safety information about their drugs, marketing their drugs for uses that aren't approved, and giving doctors kickbacks for writing prescriptions for their drugs."

Democrats have largely laid off the pharmaceutical industry since the legislative debate over the Affordable Care Act, when drugmakers agreed to support the bill as long as it didn't include certain policies. And Warren—whose home state is home to several large drug companies—praised the industry's scientific advances.

But, said Warren, drug companies paid roughly $13 billion in settlements with the federal government
between 2007 and 2012. "That doesn't happen without serious wrongdoing."

After 1978 Bayer (a German Company) and other pharmaceutical companies produced Factor VIII and IX.
The product was designed for hemophiliacs, people who suffer from a genetic disorder whose blood can not clot to stave bleeding. As a result, even a minor cut could cause them to bleed out and lose dangerous levels of blood. Factor VII is harvested from the blood plasma of non-hemophiliacs, but to purportedly to cut costs Bayer harvested blood from pools of “high risk” individuals.

This included:  prison populations, intravenous drug users and blood from clinics with a large amount of homosexual donors. Federal law also forbids the use of blood from an individual with a history  of viral hepatitis- but Bayer and other companies failed to enact strict prerequisites for blood farming. As a result, thousands of hemophiliacs died from the HIV- tainted blood plasma.

Senator Warren said, "it seems that the biggest drug companies are increasingly playing by a different set of rules than everyone else," Warren said. "The government has kicked thousands of small and medium-sized physician practices out of the Medicare program for fraud, but not one of these major drug companies has ever been kicked out. The government convicts hundreds of people of health care fraud every year, but not one of these major drug company cases has even gone to trial."

Warren in a bill proposed to the Senate wants pharmaceutical companies to fund more of the basic research conducted by the National Institutes of Health. Many blockbuster drugs do stem, at least in part, from NIH research.

Under Warren's proposal, "the biggest and most successful drug companies" would have to contribute to the NIH's budget whenever they settle criminal accusations with the federal government. In addition to the fines that companies already pay, they would have to contribute 1 percent of their annual profits to the NIH for five years.

"It's like a swear jar: Whenever a huge drug company that is generating enormous profits as a result of federal research investments gets caught breaking the law—and wants off the hook—it has to put some money in the jar to help fund the next generation of medical research," Warren said.

If such a policy had been in place over the past five years, NIH would have seen a budget bump of about $6 billion—or 20 percent—per year, she said.

In the meantime, however, in the US, the boundaries between the drug companies, FDA, and doctors have became increasingly blurred. FDA officials sometimes move to jobs in the pharmaceutical industry, which means they may not want to burn their bridges with industry.

The same FDA officials who approve the drugs are responsible for monitoring them after they are on the market, which gives them an obvious disincentive to say that the drugs they earlier certified as safe were now unsafe.

Finally, the FDA gets input from outside advisory panels made up of doctors who are experts in their fields. Most of these doctors receive payments as consultants, research grants and support for travel to conferences from drug companies.

In some cases, the doctors are working as paid consultants to the same companies whose drugs are coming up for approval by their advisory committees.

The US is the only country in the world where you can turn on the TV and have an announcer tell you to go ‘ask your doctor’ for a drug.

Doctors often will give medications to patients even if they don’t think they need it. For example, one study showed that 54% of the time doctors will prescribe a specific brand and type of medication if patients ask for it.

Drugs on the average cost twice as much in the US than in Canada or Europe . US  Dr's also prescribe more drugs to their "patients" than any other nation in the world

The argument drug manufacturers make for the high cost of their products is that the money supports research and development of new life-saving medicine. And they also say that expensive advertising is needed not to sell drugs, but to educate doctors and patients. Indeed, a whopping 80% of their budgets is used for marketing and advertising, certainly not education.

 Some things definitely are broken and need fixing in the US Pharmaceutical and Medical Industry.

A Special EU-Digest Report





Greece: Defiant Greece sets itself on collision course with European partners - by Deepa Babington and Renee Maltezou

Leftist Prime Minister Alexis Tsipras laid out plans on Sunday to dismantle Greece’s “cruel” austerity programme, ruling out any extension of its international bailout and setting himself on a collision course with his European partners.

In his first major speech to parliament since storming to power last month, Tsipras rattled off a list of moves to reverse reforms imposed by European and International Monetary Fund lenders: from reinstating pension bonuses and cancelling a property tax to ending mass layoffs and raising the mininum wage back to pre-crisis levels.

Showing little intent to heed warnings from EU partners to stick to commitments in the 240 billion euro bailout, Tsipras said he intended to fully respect campaign pledges to heal the “wounds” of the austerity.

Greece would achieve balanced budgets but would no longer produce unrealistic primary budget surpluses, he said, a reference to requirements to be in the black excluding debt repayments.

“The bailout failed,” the 40-year-old leader told parliament to applause. “We want to make clear in every direction what we are not negotiating. We are not negotiating our national sovereignty.”

In a symbolic move that appeared to take direct aim at Greece’s biggest creditor, Tsipras finished off his speech with a pledge to seek World War II reparations from Germany.

Tsipras ruled out an extending the bailout beyond Feb. 28 when it is due to end, but said he believed a deal with European partners could be struck on a so-called “bridge” agreement within the next 15 days to keep Greece afloat.

Read more: Defiant Greece sets itself on collision course with European partners - The Globe and Mail

February 5, 2015

ECB ups the pressure on Greece and its promises to renegotiate its debt

Pressure is growing on Greece and it finance minister to toe the line and stick to its financial commitments.

The European Central Bank on Wednesday brought forward a ban on the debt-stricken country using its bonds as collateral for cash.

It means that a waiver that allowed Greece to swap its junk-related debt for money will now expire on February 11, weeks earlier that the previous deadline of February 28.

Greek banks will still have access to funds through the ECB’s emergency lending programme but even here there are moves to tighten up conditions for access to that financial mechanism.

Read more: ECB ups the pressure on Greece and its promises to renegotiate its debt | euronews, world news

EU: Hollande and Merkel head to Kiev, Moscow with peace plan

French President François Hollande and German Chancellor Angela Merkel are due in Kiev Thursday for talks on ending the country’s ongoing crisis before heading to Russia to present a draft peace plan on Friday.

“Together with Angela Merkel we have decided to take a new initiative,” Hollande told a news conference. “We will make a new proposal to solve the conflict which will be based on Ukraine’s territorial integrity.”

He said that he and Merkel had worked together over the last several days to draft a text they hoped would be acceptable to both sides of the conflict. He added that France was not in favour of Ukraine joining NATO.

“It will not be said that France and Germany together have not tried everything, undertaken everything to preserve the peace,” the French president said.

Read more: Europe - Hollande and Merkel head to Kiev, Moscow with peace plan - France 24

Ukraine: Poland cool on Ukraine military aid - "US military aid to Ukraine not a good idea"

The EU should hold back from sending military lethal aid to Ukraine, Polish Europe Minister Rafal Trzaskowski told euronews on Wednesday, amid calls in the US to send defensive weapons to Kyiv.

“We are not we taking any military solution into account because military solutions are completely off the table because we do not want to destabilize the situation any further,” Trzaskowski said in an interview.
“We have to use of the tools that are at our disposal,” he said.

“We do not want to destabilise the situation but every state has to analyse the situation and obviously will no-one say that none of the options are possible.”

When asked by euronews why he thought the EU’s current policy of restrictive measures would change Moscow’s behaviour, Trzaskowski said: “Sanctions are just a tool for showing our determination. Obviously no one says they are going to be a wonderful solution for everything. We know it is very difficult to influence Russia’s policy.”

Poland has played a leading role in the diplomatic charge to broker an end to the Russia-Ukraine crisis, with the country’s former foreign minister Radek Sikorski crafting a deal with two EU counterparts to see ex-president Viktor Yanukoyvch step down.

Read more: Poland cool on Ukraine military aid | euronews, Europe

Global Arms IIndustry

The sales of arms and military services by the SIPRI Top 100—the world’s 100 largest arms-producing and military services companies (excluding China, ranked by their arms sales—totalled $402 billion in 2013.

This is a decrease of 2.0 per cent in real terms compared to Top 100 revenues in 2012, continuing the decline that started in 2011, but at a slower rate. Despite three consecutive years of decreasing sales for the Top 100, total revenues remain 45.5 per cent higher in real terms than for the Top 100 in 200.

North America and Western Europe continue to dominate the global arms industry and comprised 69 of the Top 100 companies for 2013. They accounted for 84.2 per cent of the total arms sales of the Top 100.

Fact Sheet Top100 2013.pdf