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Who Spends The Most Dollars Lobbying Washington, DC?
Oil? Financials? Aerospace? When someone asks who the biggest sources of lobby dollars for DC's politicians-for-purchase are, these are the three usual suspects that come to mind. Some may, therefore, be surprised to learn according to the database kept by OpenSecrets between Pharmaceutical and health product industry, hospital and nursing homes, health professionals and health services, HMOs, or more broadly Pharma/Healthcare/HMO, the total lobby dollars spent between 1998 and 2012 was a staggering $5.3 billion, or nearly three times greater than the second most generous industry: insurance, and well above Oil and Gas at $1.4 billion, and Securities and Investment at $1.0 billion. Is it becoming clearer why the US government has few qualms about unsustainable taxpayer funded healthcare spending, especially when there are so many current benefits accruing to the politicians who see so many billions in benefits from passing lobby-friendly laws now (by which we mean generous taxpayer funding, the bulk of which benefits the healthcare industry's bottom line)?
As for the costs: who cares - just dump them on future generations. It's not like anyone expects the $16.7 trillion in US debt to be ever repaid.
Why is this important? Because as we showed nearly a year ago, the IRR on lobbying is by and far the highest of any investment return under the sun.
From: Presenting The Greatest ROI Opportunity Ever
The dream of virtually anyone who has ever traded even one share of stock has always been to generate above market returns, also known as alpha, preferably in a long-term horizon. Why? Because those who manage to return 30%, 20% even 10% above the S&P over the long run, become, all else equal (expert networks and collocated flow-frontrunning HFT boxes aside), legendary investors in the eyes of the general public, which brings the ancillary benefits of fame and fortune (usually in the form of 2 and 20). This is the ultimate goal of everyone who works on Wall Street. Yet, ironically, what most don't realize, is that these returns, or Returns On Investment (ROI), are absolutely meaningless when put side by side next to something few think about when considering investment returns.
Namely lobbying.
Because it is the ROIs for various forms of lobbying the put the compounded long-term returns of the market to absolute shame. As the following infographic demonstrates, ROIs on various lobbying efforts range from a whopping 5,900% (oil subsidies) to a gargantuan 77,500% (pharmaceuticals).
How are these mingboggling returns possible? Simple - because they appeal to the weakest link: the most corrupt, bribable, and infinitely greedy unit of modern society known as 'the politician'.
Yet who benefits from these tremendous arbitrage opportunities? Not you and I, that is for certain.
No - it is the faceless corporations - the IBM Stellar Sphere, the Microsoft Galaxy, Planet Starbucks - which are truly in the control nexus of modern society, and which, precisely courtesy of these lobbying "efforts", in which modest investments generate fantastic returns allowing the status quo to further entrench itself, take advantage of this biggest weakness of modern "developed" society to make the rich much richer (a/k/a that increasingly thinner sliver of society known as investors), who are the sole beneficiaries of this "Amazing ROI" - the stock market is merely one grand (and lately broken, and very much manipulated) distraction, to give everyone the impression the playing field is level.
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Big Pharmafia 101:
Problem: not enough sick people, many hospital beds empty, drug sales sagging. not enough people dying.
Reaction: invent toxic vaccines to create disease states that otherwise dont exist. Get FDA [fatal drugs allowed] to demonize foods that prevent disease, promote foods and chemicals that debilitate and create disease states. Demonize naturopathic remedies and mineral supplements. Manufacture "flu" viruses from dug-up samples of 1918 spanish flu.
Solution: beds full, diseases spreading, drugs flying off shelves, patent monopolies established. Naturopaths outlawed. Population reduction in progress.
Have a nice day.
Here is a question for the group of fine thinkers. Who has the most money off shore?
http://www.ibtimes.com/ge-pfizer-microsoft-apple-other-major-us-corporat...
GREAT ARTICLE ZERO HEDGE. YET LOBBYING IS CONSIDERED BUSINESS AS USUAL... WHAT IT REALLY IS : HOW A FEW CAN PROFIT FROM THE MANY USING POLITICIANS FRIENDS...
Remember, Pharma also lobbies doctors, by organizing nice junkets to golf resorts, putting them up in the best hotels, bankrolling dinners and free bars. Any other conference events company would blush with envy.
Pharma gets them young in med school, it starts with the odd free drinks reception and guest talk, then proceeds to slap up meals in fancy restaurants; before you know it it's a weekend away in a golf resort, and this is before they qualify from med school. Pretty soon they're hooked. When's the next 'conference', is it Stockholm, or maybe Prague. I'll take over the Friday. "Fuck, Pfizer are tight fuckers, the hotel room was tiny!" (read two double beds with massive balcony).
Doctors can actually spend years never having to pay for a drink, a meal, a hotel room, a holiday, a flight, and free golf balls all around.
The catch? The catch is..., "Hey, just a courtesy call, I see you haven't been prescribing our new product, just wondering if everything is ok?. Hey, there's a long weekend conference in Morocco in April, great speakers, o, you've never been to Morocco before? Awesome golf! And next September we're thinking about organizing a conference in Dubai..."
And so it goes on, the doctors needing their Fix too...
If it looks like treason and smells like treason, it's treason.