Tennessee Insurance Commissioner Warns Obamacare “Very Near Collapse”

Last week we highlighted how insurers participating in Obamacare exchanges around the country were set to lose $2BN in 2016 prompting many to impose substantial 2017 rate hikes and/or withdraw from the exchanges altogether.  In fact, we also noted the chart below, from independent analyst Charles Gaba, who analyzed the rate hikes proposed for each of the 50 states.  Per the chart, Tennessee was specifically highlighted as a state expecting 2017 rates to rise an astonishing 59% in just 1 year.  

 

Today we have new reports from the commissioner of the Tennessee Department of Commerce and Insurance, Julie Mix McPeak, who is saying that the Obamacare exchange in her state is "very near collapse" as she struggles provide at least 1 insurance option in each Tennessee county.  Per The Tennessean:

I would characterize the exchange market in Tennessee as very near collapse … and that all of our efforts are really focused on making sure we have as many writers in the areas as possible, knowing that might be one," McPeak told The Tennessean. "I’m doing everything I can to prevent a situation where that turns to zero.”

Blue Cross Blue Shield (BCBS) is the only insurer that has provided statewide coverage in Tennessee over the past 3 years with other insurers electing to only participate in select counties.  According to BCBS, the insurer has lost a total of nearly $500mm over that time period, in Tennessee alone, which prompted their request for a 62% premium increase in 2017.  The problem for the insurance commissioner is that BCBS hasn't yet committed to providing insurance statewide, a decision they don't have to formally make until mid-September.  Given that BCBS is the only statewide provider, any decision to pull back coverage could result in people in certain Tennessee counties losing access to health insurance all together. 

Chattanooga-based BCBST, the only insurer that's sold statewide in the first three years of the federal exchange, is estimating that, by the end of 2016, it will have lost close to $500 million in three years. Such losses are unsustainable, said Roy Vaughn, chief communications officer of BCBST.

 

The insurer, which has previously underscored its support for the individual market, is still weighing what its presence in 2017 will look like. At this point in the process, the insurer only has to notify the state if it decides to make changes to where it will sell plans, McPeak said. It’s too late for another insurer to come onto the 2017 market.

 

“We agree with the assessment of the ACA marketplace in Tennessee. We appreciate the support of our request to close the gap between our rates and medical expenses for ACA marketplace plans. Beyond rates as we’ve discussed with the (TDCI), we continue to have concerns about uncertainty with the ACA at the federal level," Vaughn said to The Tennessean. "Due to these concerns, we are keeping all of our options open at this point about participating in the 2017 marketplace. We anticipate making a final decision in mid-September.”

Governor Bill Haslam said that Tennessee had concerns about the Obamacare exchanges from the start noting that the federal government can't force insurers to cover people at a loss. 

“Ultimately, I think that’s where the federal government needs to come in and address the situation. They created the program and so they’re going to have to address that. They can’t make insurance companies cover people if it doesn’t pay off for insurance companies,” Haslam said. “Those of us who had some structural questions about the Affordable Care Act said OK, we’ve set this up, now you need to come up with an answer for this if we’re not going to have anybody that covers the exchange.”

When questioned about the seemingly failing exchanges in Tennessee, a representative from the Department of Health and Human Services noted that people receiving subsidies in Tennessee will only see their insurance premiums increase $2 in 2017 to $104 per month.  While that may be true, it says absolutely nothing about the overwhelming majority of people who don't receive subsidies and are facing a 59% increase in their costs YoY. 

“Consumers in Tennessee will continue to have affordable coverage options in 2017. Last year, the average monthly premium for people with Marketplace coverage getting tax credits increased just $2, from $102 to $104 per month, despite headlines suggesting double digit increases,” said Marjorie Connolly, HHS spokeswoman, in a statement.

We're unsure whether to take Connolly's comment as just another piece of propaganda intended to defend a failing piece of legislation or an intentional, blatant admission that the Department of Health and Human Services simply doesn't care about the majority of Americans, the so-called 1%'ers, who are facing debilitating increases in healthcare costs.  We'll let you decide on that one. 

Meanwhile, Kevin Walters of the Tennessee Department of Commerce and Insurance echoed our concerns:

"Our team has answered hundreds of phone calls and e-mails from concerned policyholders upset about premium increases and whether they can afford another jump," TDCI spokesman Kevin Walters said. "A 45-year old Nashville resident will face premiums ranging from $500 to over $600 a month, depending on the carrier.  To focus on the 'majority' receiving subsidies speaks nothing to those who receive no such assistance and, instead, face $500-plus premiums. While some consumers may switch plans, rising prices are faced by all."

In the end, the administration can only keep its head in the sand about Obamacare for so long.  The fact is that exchanges across the country are on the verge of collapse.  They're stuck in a negative feedback loop where healthy people are refusing to sign up, which leads to losses for insurers, which leads to higher rates, which, of course, leads to even fewer healthy people signing up.

As we've said before, "if Obamacare enrollments continue their current trend and insurers continue to hike premiums at alarming rates then Republicans may not have to worry about "repealing and replacing Obamacare" as it might just work itself out "naturally"."

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US Admits Syria Bombing “May Have” Killed Civilians

American jets targeting an ISIS ‘weapons facility’ in Raqqa, Syria “may have killed an unknown number of civilians” during an airstrike Tuesday according to statement from US Central Command.

As RT notes, Raqqa, under control of jihadist rebels since March 2013, was declared the capital of the self-proclaimed Caliphate in January 2014. In October that year, Washington launched a campaign against IS, eventually named “Inherent Resolve.” The US war effort is coordinated by CENTCOM, from its headquarters in Tampa, Florida.

US CENTCOM Statement on Possible Civilian Casualties near Ar Raqqah, Syria

August 24, 2016

 

A strike yesterday on an ISIL weapons facility near Ar Raqqah, Syria, may have resulted in civilian casualties, according to U.S. Central Command’s own post-strike assessment.

 

CENTCOM’s internal assessment of possible civilian casualties in this incident has been deemed credible. The incident will be reviewed, next, at the joint task force level at which point officials will decide whether an investigation is needed.

 

Reports indicate that what appeared to be a non-military vehicle drove into the target area after the weapon was released from the aircraft. The vehicle’s occupants may have perished as a result of the strike.

 

CENTCOM has extensive processes and techniques in place to avoid or minimize civilian casualties. Every report of civilian casualties, from either internal or external sources, is scrutinized regarding possible casualties and collateral damage. Assessments that are determined to be credible are reviewed as to whether the actions comply with the principles of the Law of Armed Conflict.

One wonders how many “possible civilian casualties” were collateralized during the US air support of Turkey’s invasion of Syria?

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The “Philippines’ Donald Trump” Surprises Critics By Unleashing “Long-Term Economic Boom”

With shocking statements like “I don’t give a shit about… the son of a bitch United Nations“, “why are you Americans killing the black people there, shooting them down when they are already on the ground?”, calling the US ambassador to his country an “Annoying, homosexual, son of a bitch” and even joking about gang rape, not to mention his radical policies including the “no questions asked” killing of hundreds of drug dealers, the Philippines new president Rodrigo Duterte quickly got the nickname of the “Philippines’ Donald Trump.” More importantly, he is also seen as unleashing an unexpected “economic boom” success story.

 

As Reuters reports, less than two months in office, Duterte is getting high marks from the business community for policies that could engineer an economic surge and companies say they are making new investments as a result.

Shockingly, while the Philippines “Donald Trump” may be getting – and has been getting – headlines for a bloody war against drug dealers and users, less attention has been paid to one of Asia’s few economic success stories. To be sure, some of the groundwork was laid by Duterte’s predecessor, President Benigno Aquino, who took growth above 6% over his six-year term , but executives are cheering the new administration’s focus on building new infrastructure and say it could spell the start of a long-term boom. Some even see Duterte’s violent and highly controversial anti-drugs campaign as potentially positive.

“We are in a very good spot,” said Antonio Moncupa Jr., president and CEO of East-West Banking Corp, one of the top 10 lenders in the country. “The pronouncement of government prioritising infrastructure spending, accelerating it and cutting red tape, solving peace and order, I think all point to very good prospects ahead.”

It’s not just hype: last week, the government announced that the Philippines’ economy grew at 7% in the second quarter from a year earlier, its highest level in three years. It makes the Philippines the fastest growing among all countries that have reported so far for the second quarter.

When Duterte won the May presidential election, there were questions marks over how he would handle the economy, very much as there are countless question marks how Trump would handle the US economy should he become president. 

 

Duterte, who is nicknamed “the Punisher”, has been unapologetic over unleashing the police on drug users and dealers.  Philippine National Police Chief Ronald Dela Rosa said on Monday that there have been 1,800 drug-related deaths since Duterte took over as president, with 712 of those at the hands of the police.

 

Amonther his controversial policies, the new president has launched a crackdown on online gambling, vowed to destroy oligarchs, warned that the country could live without a mining industry if environmental standards were not met and called the U.S. ambassador a “gay son of a whore”.

Controversial, but effective. 

Duterte has a 91% approval rating in the latest public survey and businesses are lining up to announce expansion plans. The mainstays of the economy – remittances and the outsourcing sector – are flourishing and boosting domestic consumption.

It is almost as if “strongman” administrations lead to an economic renaissance.

“Business will be good under this administration,” BDO Unibank executive vice-president Luis Reyes said of Duterte. “Concerns centre more on the extra-judicial killings.” Supporters of Duterte say even as the long-term mayor of the southern city of Davao, where he earned his reputation for busting crime, he created the conditions for business to flourish.

Reuters adds that Duterte’s reputation of carrying out his promises has given businesses plenty to look forward to – for instance his vow to make spending on infrastructure a priority. “I believe infrastructure is going to grow very fast and it will have a double or triple effect,” said Henry Schumacher of the European Chamber of Commerce in the Philippines. “Money will be available. An iron fist is going to be behind it.”

One example of how Duterte is supercharging the economy using “unconventional” means: in May, Duterte told the country’s main telecom providers to speed up the internet, or he would junk laws that prohibit foreign competition. It worked.

Duterte’s economic plan also includes lowering corporate and income taxes and a commitment to invest in education, to reap the demographic dividend of the country’s young population.

Before he was elected, few believed Duterte would succeed in turbocharging the economy. He is doing just that, despite being underestimated. More importantly he is doing that with absolute disregard for the “establishment”, for norms, and for conventions. Which begs the question: when norms, conventions and the establishment have failed again and again, perhaps openly flaunting them is the only approach that works (as much as this would lead to nervous breakdowns by the entire tenured economist establishment). In which case it is worth asking if the “US version” of Duterte would not lead to similar “greatly unexpected” results for the US economy?

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Student-Debt-Laden Millennials Who Overwhelmingly Supported Bernie Are Now Just Dazed And Confused

Anxious young Millennial college students overwhelmingly threw their support behind Bernie during the Democratic Primary.  As a student, why wouldn't you support a candidate offering to pay for your school and socialize your existing student loan debt?  Bernie seemed like the "logical" choice.  But, now that the "obvious" choice is no longer in the race, the folks at LendEDU conducted an online poll of 1,500 people, who currently have student loan debt, to figure out to whom the Bernie voters will be shifting their support.

Unsurprisingly, a lot of Bernie supporters with student loan debt are tossing their support behind Hillary.  And why not?  Hillary's "deal" for students, though not quite as good as Bernie's, is also very enticing.  Per Hillary's website:

  • Every student should have the option to graduate from a public college or university in their state without taking on any student debt
  • All community colleges will offer free tuition
  • A $25 billion fund will support historically black colleges and universities, Hispanic-serving institutions, and other minority-serving institutions
  • Borrowers will be able to refinance loans at current rates, providing debt relief to an estimated 25 million people. They’ll never have to pay back more than 10 percent of their income, and all remaining college debt will be forgiven after 20 years.
  • Delinquent borrowers and those in default will get help to protect their credit and get back on their feet
  • To reduce the burden for future borrowers, Hillary will significantly cut interest rates so the government never profits from college student loans.
  • Aspiring entrepreneurs will be able to defer their loans with no payments or interest for up to three years. Social entrepreneurs and those starting new enterprises in distressed communities will be eligible for up to $17,500 in loan forgiveness.
  • Hillary will take immediate executive action to offer a three-month moratorium on student loan payments to all federal loan borrowers.

Quick question before we move on…isn't every unemployed Millennial living at home with mom an "aspiring entrepreneur?"  Well, congrats "entrepreneur", now you're getting free rent and a 3-year moratorium on your student loan bills.  And why should students have to pay for public universities?  Those schools don't really cost anything…professors donate their time for the common good, right?

But, what we found more interesting is that a lot of students, in the absence of Bernie, just don't know what to do.  LendEDU's August poll found that 34% of respondents were still undecided with the election only a few months away.  In fact, since LendEDU's last poll in Feburary, 39% of Bernie supporters shifted into the "undecided" column vs. only 37% who say they will now support Clinton and 25% shifted their support to Trump. 

Student Loan Voters

Chart per Bloomberg.

 

The poll also echoes every other national poll which have all indicated that Trump has a "female" problem.  Female respondents were found to be over 3x more likely to vote for Clinton whereas male support for Clinton was much more muted.  

Student Loan Voters

Chart per Bloomberg.

 

One might hope that at some point a logical candidate will emerge to talk about the government's role in massively inflating college tuition by offering completely open access to cheap debt serving to enslave a generation of naive students.  Actually, on second thought, that wouldn't win many votes so never mind. 

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Four Iran Ships “Harassed” US Destroyer, Carried Out “High Speed Intercept” In Strait Of Hormuz

Following the recent revelation that the Obama administration paid Iran $400 million in ransom money to release 4 US hostages, perhaps Tehran was looking for a tip, because moments ago a US defense official said that four Iranian ships carried out a “high speed intercept” of a US destroyer in the strait of hormuz, an incident that the official dubbed “unsafe and unprofessional”, cited by Reuters.

  • FOUR IRANIAN MILITARY VESSELS CARRIED OUT “HIGH SPEED INTERCEPT” OF U.S. DESTROYER IN VICINITY OF STRAIT OF HORMUZ ON AUG 23 – U.S DEFENSE
  • U.S. DEFENSE OFFICIAL SAYS TWO OF IRANIAN VESSELS CAME WITHIN 300 YARDS OF THE U.S. DESTROYER AND INCIDENT WAS “UNSAFE & UNPROFESSIONAL”

As Reuters adds, the four vessels belonging to the Islamic Revolutionary Guard Corps “harassed” a U.S. destroyer on Tuesday by carrying out a “high speed intercept” in the vicinity of the Strait of Hormuz, a U.S. Defense official said on Wednesday.

The Defense official, speaking on the condition of anonymity, said two of the Iranian vessels came within 300 yards of the USS Nitze in an action that was “unsafe and unprofessional.”

As a reminder, on January 12, the Iran navy seized 2 US navy boats and their crewmen, for “illegally entering Iranian waters.” It released the captives one day later after a thorough questioning, and receipt of an apology. Less than a week later, on January 17, Iran would receive $400 million in non-USD denominated bills to release 4 US hostages.

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Energy Analysts at the Big Banks are Not Very Good These Days (Video)

By EconMatters


We look at A Bloomberg Go piece regarding the Oil Market, and illustrate just how poor critical reasoning abilities are in this role for the Big Banks. Analysts at Investment Banks are pretty bad in general, but the energy analysts require skillsets that fetch much higher pay in other roles in the Finance World.

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Barack Obama May Have Finally Destroyed America’s #1 Advantage

Submitted by Simon Black via SovereignMan.com,

In July 1944, just weeks after the successful Allied invasion of Normandy, hundreds of delegates from around the world gathered in Bretton Woods, New Hampshire to determine the future of the global financial system.

The vision was simple: America would be the center of the universe, and every other nation would revolve around the US.

This arrangement ultimately led to the US dollar being the world’s dominant reserve currency which still remains today.

Whenever a Brazilian merchant pays a Korean supplier, that deal is negotiated and settled in US dollars.

Oil. Coffee. Steel. Aircraft. Countless commodities and products across the planet change hands in US dollars, so nearly every major commercial bank, central bank, multi-national corporation, and sovereign government must hold and be able to transact in US dollars.

This system provides a huge incentive for the rest of the world to hold trillions of dollars worth of US assets– typically deposits in the US banking system, or US government bonds.

It’s what makes US government debt the most popular “investment” in the world, why US government bonds are considered extremely liquid “cash equivalents”.

As long as this system continues, the US government can continue to go deeper into debt without suffering serious consequences.

Just imagine being totally broke… yet every time you want to borrow money there’s a crowd of delighted lenders eager to replenish your wallet with fresh funds.

This may be the US government’s #1 advantage right now.

You’d think that they would be eternally grateful and take care to never abuse this incredible privilege.

But no… not these guys.

In fact, they’ve done the exact opposite. Over the last eight years the US government has gone out of its way to eliminate as much of this benefit and alienate as many allies as possible.

They’ve abused the trust and confidence that the rest of the world placed in them by racking up record amounts of debt, waging indiscriminate wars in foreign lands, and dropping bombs on children’s hospitals by remote control.

They’ve created absurd amounts of regulations and had the audacity to expect foreign banks to comply.

Plus they’ve levied billions of dollars worth of fines against foreign banks who haven’t complied with their ridiculous regulations.

(Last week, for example, New York state financial regulators fined a Taiwanese bank $180 million for not complying with NY state law.)

And they’ve threatened to banish any foreign banks from the US financial system who don’t pay their steep fines.

Abuse. Deceit. Extortion. Not exactly great ways to win friends and influence people.

It’s as if Barack Obama pulled together the smartest guys he could find to make a list of all the ways the US government would have to screw up in order to lose its enormous financial privilege… and then he went out and did ALL of them.

The US government is practically begging the rest of the world to find an alternative to the US dollar and US banking system.

Even the government of France, a key US ally, called into question continued US dominance of the global financial system after the US government slammed French bank BNP Paribas with a $9 billion fine.

There have already been some attempts to displace the United States in the financial system.

China has been aggressively setting up its own competing financial infrastructure, something called the China International Payment System.

It’s been a slow start for the Chinese, but they’re building momentum. Though I’m not sure China is the answer in the long run.

While banks around the world may not care for the long and strong arm of the US government, the Chinese government doesn’t exactly inspire trust either.

But now there really is an alternative. Technology.

Ripple, a blockchain-style protocol that’s funded by Google Ventures (among others), is now being utilized by international banks to send and receive transactions directly.

The way international bank transfers work now relies exclusively on the US financial system.

Large foreign banks have what’s called a “correspondent account”, typically at a major US bank like JP Morgan, Citibank, etc.

A correspondent account is essentially a bank account for other banks. Our company holds funds at a bank in Singapore, for example, whose US dollar correspondent account is at Bank of New York Mellon.

Foreign banks’ US dollar correspondent accounts are typically at major Wall Street banks because that’s the epicenter of US dollar transactions.

So when a bank in Australia sends US dollars to a bank in South Africa, that payment actually flows from the Australian bank’s correspondent account in the US to the South African bank’s correspondent account in the US.

The entire transaction effectively takes place using the US banking system.

Again, this gives the US government enormous power over foreign banks. Any foreign bank that doesn’t do what Uncle Sam commands can be excommunicated from the US banking system.

And without access to the US banking system, a foreign bank will be unable to transact in US dollars, and hence unable to conduct any global business.

This is a death sentence for a bank. The US government knows this and has been blackmailing global banks for years.

But now technology is providing another option.

Banks don’t have to use the US banking system anymore; they can send real-time payments internationally using the Ripple protocol.

Two months ago a Canadian financial services company sent the first-ever institutional cross-border payment to a German bank.

This isn’t some wild theory or conjecture. It’s actually happening.

Just this morning a group of 15 banks in Japan signed up to start using Ripple, and dozens of banks plan to use the protocol within the next six months.

The technology is cheaper. Faster. Superior. And it doesn’t come with any US government strings attached.

So it seems Uncle Sam may have finally shot himself in the foot for the last time.

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VIX Spikes Most Since Brexit After Crude Carnage, Biotech Bust, Asian Angst

Overheard at The NYFed this afternoon…

It's probably nothing but Chinese money-market rates are spiking again…

 

Turmoil? VIX spikes over 10% (yes we know percentages on VIX), but still, this is the biggest surge since Brexit…

 

As a reminder, from earlier, VIX term stucture is its steepest since 2012…

 

And bad stuff happened…

 

A look at futures provides more details on the price action as OIl weakness and some turmoil in China money markets start to ripple through US equities… VIX hit 14 into the close which sparked instant vol-selling and spiked stocks in the last minute..

 

Small Caps and Nasdaq were the worst performers on the day (with Nasdaq almost the worst day since Brexit)…Trannies panic bid was unable to get them green on the day

 

Pushing all the major indices red on the week…but the panic bid into the close lifted Small Caps green

 

Leaving the S&P back in the twilight zone…

 

Biotechs were punished thanks to populist tweets and comments from the government over Mylan's EpiPen… (owrts day since Brexit)

 

The USD Index rose on the day amid Swissy/Euro weakness offsetting Cable strength…

 

Despite the turmoil in stocks, credit, and commodities, and vol, Treasuries went nowhere…

 

As stocks caught down to bond's reality…

 

USD strength appeared to weigh on Commodities across the board but crude was worst hit…

 

WTI tumbled back below $47…

 

Gold and Silver were slammed early on…

 

Charts: Bloomberg

Bonus Chart: NewEdge's Brad Wishak notes an unusual 6-month cycle top pattern in S&P 500 since the end of QE3…

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Germany Debates Putting “Troops On Streets” To Protect Against Terrorism

The quiet German militarization continues to escalate.

One day after Germany’s DPA broke the news that the Merkel government is considering “bringing back nationwide conscription in times of crisis”, such as situations in which the country needs to “defend NATO’s external borders”, strongly hinting at the possibility of a future war, which in turn followed this weekend’s shocking announcement that Germans should prepare to stockpile several days of food and water “in case of an attack of catastrophe” as part of the country’s revised “Civil Defense Concept, today NBC reports that “Germany Debates Putting Troops on Streets to Protect Against ISIS.

To be sure, plans to involve soldiers in counterterrorism operations. and the suggestion troops could also be used to beef up security in public places, have proved controversial in a country only seven decades “removed from totalitarian rule that’s still grappling with guilt from the Nazi era.” However, Wolfgang Bosbach, a lawmaker from Merkel’s CDU party, dismissed an such concerns.

“During the recent terror threat in Munich the German armed forces, and also the military police, were put on alert,” he told NBC News. “They have been deployed in other crises, so why should the military not help with domestic security as well?”


German soldiers after taking part in a drill on June 29

A court decision in 2012 allowed Germany’s armed forces to be deployed at home for peacetime missions under an “extraordinary emergency situation of catastrophic dimension.”

While “Bundeswehr” solders have since helped during flooding as well as providing logistical support during the migrant crisis, deploying troops in peacetime among the broader population is sure to lead to far broader populist concerns.

While some politicians suggested the influx of migrants and refugees had created security risks and called for tighter border controls, others warned against overreacting. Boris Pistorius, the justice minister in the state of Lower Saxony, told Die Welt newspaper that the three incidents in a week span “should clearly be distinguished” and that he would refrain from describing “the series of very different attacks as a wave of violence.”

He added: “We are not there yet.”

But Interior Minister Thomas de Maiziere stated that Germans are “living in difficult times” and that police forces are already “overstretched.”

Defense Minister Ursula von der Leyen recently announced that the German military would conduct counterterrorism training with police later this year. “There are scenarios we couldn’t imagine before the attacks of Paris or Brussels but that we must address openly and for which we must prepare,” she said.


German Defense Minister Ursula von der Leyen

A full blown military deployment may face logistical difficulties: with an overall contingent of under 200,000 personnel, the country’s armed forces are spread thin while fulfilling peacekeeping missions in Afghanistan, Kosovo, Mali and in the the Mediterranean Sea. According to the German Armed Forces Association, many servicemen don’t want to be used as “stopgaps at home.”

“We favor the planned training under the leadership of police forces in order to assess a potential role of the armed forces in a large-scale terror scenario,” said Lt. Col. André Wuestner, the group’s head. “But it should not be our goal to protect train stations.”

Wuestner said his counterparts in France and Belgium have warned that their domestic security duties — such as patrolling city centers — have kept them from training for their main responsibilities, such as missions abroad.

Some tried to push their own agenda: the head of Germany’s police union suggested that better equipment and weapons offered a better answer than troops on the streets of Berlin, Frankfurt and Hamburg.

“What we don’t need is for that the armed forces to fill a personnel gap, which would lead to a militarization of inner security,” Rainer Wendt said.

Yet despite the seeming acceleration by Germany to militarize at any cost, some more sover voices did emerge, such as that of Christian Moelling, a security expert at the German Marshall Fund of the United States, told NBC News that conservative politicians appeared to be trying to capitalize on recent events as they sought to achieve their longstanding goal of allowing the military to deploy within the country’s borders.

He noted that since the end of World War II, high hurdles had been established governing how the armed forces can be used and was skeptical that any push to change that would be successful.

“To use Germany’s military for interior security, including the use of force, would necessitate a large majority for a constitutional change, and this majority doesn’t exist,” Moelling said, adding that at least two-thirds of parliamentarians would have to approve such a measure.

It can, however, quickly be achieved should there be a few more terrorist attacks on German soil, which will promptly provide the needed cover if not to change the constitution, than to implement an indefinite state of emergency, bypassing such pesky things as laws. As a reminder, France has had once since last November.

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Increasing Number Of Americans Are “Microdosing” On Psychedelics To Enhance Mental Performance

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

Whenever an irrational and inhumane law remains on the books far longer than any thinking person would consider appropriate, there’s usually one reason behind it: money.

 

Unsurprisingly, the continued federal prohibition on marijuana and its absurd classification as a Schedule 1 drug is no exception. Thankfully, a recent study published in the journal Health Affairs shows us exactly why pharmaceutical companies are one of the leading voices against medical marijuana. It has nothing to do with healthcare and everything to do with corporate greed.

 

– From last month’s article: The Real Reason Pharma Companies Hate Medical Marijuana (It Works)

This isn’t my typical kind of article. Normally, I’d include something like this in my links post, but as I continued reading this piece it became apparent this is one of the most fascinating things I’ve read all year.

What follows are excepts from the Wired article, Would You Take LSD to Give You a Boost at Work? WIRED Takes a Trip Inside the World of Microdosing. I strongly suggest reading the entire thing.

It’s 7am on a sunny Friday in a shared house in the sleepy San Francisco neighbourhood of Richmond. Flatmates buzz in and out of the kitchen as Lily (not her real name), a publicist for several startups, sits down with cup of tea and a credit-card-sized bag of dried magic mushrooms.

 

The 28-year-old breaks up the caps and stems and places them into a herb grinder. She then scoops the pulverised mixture into empty gel pill capsules, weighing each one on a tiny scale. Once finished, she pops one of the capsules into her mouth and washes its down with PG Tips. She’s now ready to start her working day.

 

“It helps me think more creatively and stay focused,” she says. “I manage my stress with ease and am able to keep my perspective healthy in a way that I was unable to before.”

 

Lily is one of many young professionals in San Francisco and beyond experimenting with “microdosing”: taking small quantities of psychedelic drugs – typically LSD or psilocybin mushrooms – every few days in the hope of improving their performance at work. In small amounts, say, a tenth of a full dose, users don’t experience a consciousness-altering “trip”, but instead report improvements in concentration and problem solving, as well as a reduction in anxiety.

 

Proponents WIRED has spoken to – including software engineers, biologists and mathematicians – say that it induces a “flow state”, aids lateral thinking and encourages more empathetic interpersonal relations.

 

Albert Hoffman, who synthesised lysergic acid diethylamide (LSD’s full title) in 1938, and who took what is considered the first intentional LSD trip in 1943, microdosed throughout the last couple of his decades of his life (he died in 2008). The father of psychedelics, who lived to be 102, found consuming LSD in small amounts clarified his thinking, according to Dr James Fadiman, a long-time friend.

 

A Reddit forum dedicated to the practice has grown its subscriber base from 1,600 at the start of 2015 to almost 7,500 in mid-June 2016. Google search volumes for the term “microdosing” have grown at a similar rate. Although WIRED found no completed clinical studies looking specifically at microdoses, Fadiman has been carrying out his own research by collecting anecdotal reports from volunteers who self-administer the drugs.

 

Fadiman offers guidance to participants on how often to dose and, in return, asks them to keep a journal of observations. He started collecting these reports in 2010, following the advice of friend Albert Hoffman, who described microdosing as the most under-researched area of psychedelics.

 

The high-pressure startup culture of the Bay Area leads many participants to view their bodies and brains as machines to be optimised using all of the tools available – meditation, yoga, Soylent, intermittent fasting, so-called “smart drugs” (including off-label ADHD and narcolepsy meds), microdosed psychedelics and legal nootropics.

 

The trend for using “smart drugs” can be traced back to schools, where Ritalin and Adderall prescriptions are rife, explains Anjan Chatterjee, a professor of neurology at the University of Pennsylvania. Children even at preschool age find themselves in competitive environments with dense schedules of study, tutoring, music lessons and sport.

 

Those who aren’t already prescribed ADHD medication can buy it with ease; a series of surveys suggest that around 20 per cent of US college students have abused prescription stimulants. It’s something Lily, who has been prescribed ADHD medication since she was six, can relate to. At university she would share her prescription with friends seeking help focusing on assignments – something that she continued when she entered the working world. “It’s what fuels not just the tech community but any millennial trying to work really hard and make it,” she says.

 

At the start of her career working in a tech startup, she found Adderall useful. “It helped me launch a company. We went from three cities to over 30 in six months. I felt like a rockstar but I was being an asshole,” she says. Lily started to research microdosing psychedelics after experiencing unpleasant side effects from the amphetamine-based drug. “My heart would be racing when I took it, and when I didn’t I’d experience withdrawal and feel really dumb – like my brain was slowing down.”

 

Even though magic mushrooms and LSD are illegal in many countries, Lily views them as safer than her legal meds. Not only are the doses small and infrequent, she has found no evidence that psychedelics are physically addictive. “I don’t think we’re going to find out that microdosing fucks up your liver,” she says.

 

Lily still takes her ADHD medication, but microdosing magic mushrooms has allowed her to substantially reduce her dose. “In a perfect world I don’t want to take Adderall at all,” she says. Lily’s case highlights how inconsistent policymaking around drugs can be. It’s fine for six-year-olds to be prescribed amphetamines, but it’s illegal for adults to turn on, tune in and drop out.

Well yeah, one of them makes drug companies a lot of money, and the other doesn’t.

As a society, we’re medieval in how we classify substances,” says Woo. “Some compounds are prescription-only, some are readily available, and some are illegal. And the classification is pretty arbitrary if we really dig into their potency, addictive potential and harm risks to self and society.”

As a society, we are medieval in all sorts of ways. The global financial system also comes to mind.

In London, 34-year-old Blake (not his real name) works at a mobile startup as a software developer. He has been microdosing on and off since October 2015. He takes tabs of LSD, also bought on the Dark Net, from an online dispensary known as Nucleus Market for around £5 per tab. He divides each tab into ten, taking one dose in the morning, once or twice a week.

 

“It makes me work in such a focused way,” he says. “It gets your brain out of its regular grooves and helps you snap out of unproductive trains of thought.” It’s part of a range of techniques he uses to optimise his mental prowess, including playing instruments, exercising and brain games. “I try to get as good as I can at everything I do. It’s a natural attribute of many software engineers, especially when it comes to optimising mental activities,” he says.

 

When he was preparing a proposal for his masters thesis he set aside time to take the larger dose and try and visualise ideas. “My mind became a supercomputer. It allowed me to visualise ideas, shuffle them, put them into multiple combinations,” he explains. Alex says that he’s noticed a marked improvement in the feedback from his supervisor, who is none the wiser. “Maybe I could have got to the same result on my own, but it comes faster with the drug.” The benefits aren’t restricted to work, but spill out into the rest of his life. “It makes me more happy and social,” he says.

 

Blake agrees: “I listen to people more, I have an appreciation for simple things, and an inability to eat unhealthy food. Looking at fried stuff can be repulsive.”

Of course, like with everything else in life, moderation is probably an intelligent strategy.

Fadiman’s research revealed other side effects: “Several people reported uncomfortable sweating on dose day, but they continued dosing. And two subjects reported increased anxiety. One person reported more migraines.”

 

Furthermore, we don’t really understand the long-term impact of taking these drugs every few days. David Nichols carried out an experiment in 2011 in which he gave rats doses of 0.08 to 0.16mg/kg of LSD every other day for three months. Over time the animals became aggressive and hyperactive, showing behaviours that resemble psychosis in humans, brought about by changes in the circuitry to the brain.

 

“Using these drugs once a month is one thing. Using them every day, I’m not sure they are innocuous,” Nichols says. “They may bring about subtle behavioural and hormonal changes that we don’t yet fully understand.”

 

Fadiman dismisses this study, arguing that no-one ever takes psychedelics daily for three months and that if individuals don’t feel as though their microdose is beneficial, they should stop. However, drug charities are more cautious. Although there’s currently no evidence that LSD and magic mushrooms do any long-term damage to the body or directly cause long-term psychological damage, in large doses they can lead to unpleasant hallucinations, flashbacks and exacerbate pre-existing mental health problems.

Now here’s where things get really interesting…

The study that has captured the attention of today’s microdosers is one that took place in the summer of 1966, at a research facility in Menlo Park, led by a then 27-year-old Jim Fadiman.

 

The question he set out to answer was whether psychedelic drugs could help solve hard science problems. Volunteers for the study had to be dealing with a problem – something that could be measured, built, proven or manufactured – that they’d been stuck on for at least three months. Twenty-seven men, including engineers, architects, mathematicians, a psychologist and a furniture designer, signed up.

 

Each participant was given 200 milligrams of mescaline – the equivalent of 100 micrograms of LSD – and left to listen to classical music with their eyes closed for a couple of hours while the drug kicked in. Then, they were let loose on their problems.

 

The results were startling. There were breakthroughs or partial solutions to 40 out of the 44 problems the volunteers were collectively grappling with.

 

“It’s hard to estimate how long this problem might have taken without the psychedelic agent,” reported one scientist who took part in the trial. “But it was the type of problem that might have never been solved. It would have taken a great deal of effort and racking of brains to arrive at what seemed to come more easily during the session.”

 

Tangible innovations to emerge shortly after the psychedelic experience include a mathematical theorem for NOR gate circuits; a new design for a vibratory microtome; a space probe experiment to measure solar properties; a technical improvement to the magnetic recorder; a new conceptual model of a photon; and a linear electron accelerator beam-steering device.

 

Research came to a standstill as the US government classified psychedelic drugs as Schedule 1 substances, the most tightly controlled. Nixon’s subsequent war on drugs whipped up moral outrage among the socially conservative. This stigmatised psychedelics, causing funding for research to dry up, leading to a 40-year interruption to scientific advancement in the field.

 

“This is the worst censorship of science in the history of the world… since the dark ages. It’s worse than the Catholic Church banning the telescope in 1616,” says David Nutt, who is widely known in the UK for being sacked from his role as the government’s chief drug advisor in 2009, after claiming ecstasy was safer than horse riding.

The U.S. government. Protecting the American people from creativity and scientific progress. Why am I not surprised.

The article ends by getting to the crux of the issue.

The logistics of researching microdoses are more challenging. With full-dose experiments, human participants are kept in a controlled environment with access to medical professionals and a sitter who stays with them at all times. A study on microdosing would involve, in theory, administering a Schedule 1 drug to volunteers before sending them home – a tough challenge for risk-averse institutional review boards.

 

Compounding the issue is the fact that LSD was discovered so long ago that it’s off-patent. If it were to be commercialised today, it would be a less profitable, generic drug.

 

“A pharma company needs to figure out how to make an obscene profit – that’s what gets their attention. The problem is that these drugs are not addicting and you don’t need to take them very often,” Fadiman says.

If this article isn’t enough to convince you of the monumental stupidity of the failed “war on drugs,” I suggest you read the following:

Federal Judge of 17 Years Repents – Compares Damage Done by “War on Drugs” to Destruction of World War II

The Real Reason Pharma Companies Hate Medical Marijuana (It Works)

How NSA Surveillance Was Birthed from the Drug War – The DEA Tracked Billions of Phone Calls Pre 9/11

Meanwhile, over at the FDA…

NYU Professor Uncovers How the FDA Systematically Covers Up Fraud and Misconduct in Drug Trials

Fraud Alert: FDA Allowed Drugs with Fraudulent Testing to Remain on the Market

The FDA is Caught Spying on its Employees and Creating an “Enemies List”

And you wonder why society is so completely messed up.

via http://ift.tt/2bh7c4T Tyler Durden