- Like so many of my working class peers, I’ve turned to the stock market in order to secure my financial well-being.
- With every democratic candidate taking direct aim at capital gains reform, Trump’s ire, like that of retail investors, is laser focused on hedge fund managers alone.
- It is Donald Trump’s brash honesty that will, by virtue of freedom and assignment of shame, compel to the bargaining table those who are tied to ideology or special interests.
- With a Trump presidency the corporate tax would be reduced ending tax inversions, creating jobs and propelling the stock market to oxygen challenged heights not seen before.
- The greatest beneficiary of this renaissance would be the biotechnology sector crawling out from underneath the specter of legislative control.
Where Donald Trump Is Concerned I’ll Be Laughing All The Way Through His Two Terms As President
Uncertainty surrounding the world economy is causing a contraction in the stock market that every investor is feeling intensely. In the biotechnology sector, specifically, there are many challenges that together are moving money out to safer locations including the advent of cannibalizing biosimilars, crowded marketplaces, and the appearance of fraudulent business practices. There is, however, one issue that trumps them all – the threat of legislative price control of pharmaceutical products. It was, after all, only a year ago that two U.S. senators questioned Gilead Sciences (GILD) CEO John Martin in an official letter regarding the high price of its Hepatitis C vaccine, Sovaldi. There have been other inquiries since then including one by democratic presidential aspirant and U.S. senator, Bernie Sanders. This situation is only going to become worse when an array of additive therapies hit the market in 2018 including Celldex’ (CLDX) glioblastoma vaccine, Rindopepimut. But this article isn’t specifically about the rising cost of healthcare. And one could easily argue that the cost of hospital stays and rising doctor fees are more to blame than the price of therapeutics for the crisis we now find ourselves in. But the inarguable truth is as follows.
You Cannot Socialize Access To Medicine Without Socializing The Costs Of Goods And Services
European governments with single payer systems are paying far, far less for effective drug treatments than Americans are. And this will continue to be the case because our system is predicated upon a broad and disjointed spectrum of insurance payers who can’t invoke the same kind of negotiating power. Since we’ve already socialized access to medicine by way of legislation in 2010 known as Obamacare, which was subsequently upheld by the Supreme Court in 2012, we now have to bring prices in alignment with that choice or bankrupt our treatment system by ignoring it.
If we choose by writ of law to institute price controls, you can forget about any of these new therapies coming to market once investors realize that the monetary incentive for funding development of said drugs no longer exists. But instead of confronting this problem head on, most people, Republicans and Democrats alike, choose the path of least resistance simply hoping it will go away. And this is why presidential hopeful, Donald Trump is becoming so popular. He’s not afraid to say, end Obamacare at any price, even if the price tag is in excess of $350B.
Donald Trump Is A Threat To Everyone
It is Donald Trump’s wealth that allows him to speak his truth so plainly, loudly and often in unrepentant error because he is threatened by no one. He is, however, a growing danger to the political establishment who keep profiting from obstruction and predicting that he is destined to become irrelevant. They need for him to become irrelevant because he won’t allow them to operate in the safety of their silence and under the cloak of their deceit.
He’s been passed over twice now by conservative party king makers Charles and David Koch (8.5x more wealthy than Donald Trump at $85B net worth) while rival GOP contenders pander at their feet for millions in super-pac campaign funds. Climbing to new heights in public opinion polls, while simultaneously distancing himself from candidates speaking from carefully crafted Koch scripts, Trump is now the obvious front runner and the one to beat as the GOP standard bearer. Despite this, entrenched political operatives of the Republican establishment refuse to acknowledge reality. Just listen to Charlie Black, former campaign adviser to Ronald Reagan, George H. W. Bush, John McCain and Mitt Romney on yesterday’s episode of Meet The Press.
Well, there’s a lot of frustration and anger in the country about the federal government and about politicians in both parties. And Donald has become a vehicle for that kind of frustration. So, I do, based on your theme, believe that he’s here to stay for awhile, maybe through a few primaries, but he is not going to be the nominee.
If he isn’t, then perhaps the Koch brothers should have run some negative television ads instead of giving Senator Ted Cruz $15M of campaign cash in late July. Just look at the most recent Real Clear Politics polling numbers showing Trump on top in blue and every other color of the establishment coalition struggling below.
What this clearly indicates is that barring some unforeseen event, Donald Trump will beat the socks off of every would-be contender to the throne. And instead of fearing that, Republican’s should embrace it. Because Donald Trump can do what no other candidate from the field can do – rally Americans from either side of the political fence.
The problems our country is facing aren’t going away. And to date, moderates haven’t been able to bring together politicians from the other side of the table with olive branches of peace or platitudes of patriotism. Trump will operate out of a method true to his nature and heretofore untried – coercion through insult and assignment of shame. And because our problems are so great, I’m willing to give that a try.
- Social Security will go bankrupt unless we reform it.Donald Trump advocates raising the qualifying retirement age gradually to 70 years old.
- Corporations will continue to seek tax asylum by moving operations off shore. Donald Trump will seek to end inversions by eliminating the corporate tax altogether thereby keeping jobs at home.
- Our status as a debtor nation will worsen making us more akin to Greece, and tied to China’s fortunes, than ever before. Donald Trump proposes tax reform with 4 tiers of graduation weighted toward middle class relief with less complexity and fewer deductions which will spur growth and, therefore, debt reduction.
- ISIL will continue fighting, and winning, a religious war without boundaries while America is fighting a war on terror. Donald Trump wants to use ground troops to cut them off from the oil that finances their activities. He’ll fund veteran’s services by keeping the profits.
You may disagree with these solutions characterizing them as foolhardy and unrealistic while others describe them as bold and daring. But they are solutions. And something must be done as ignoring these problems will only make them worse.
Why Do We Fear Change?
I can understand why Charlie Black fears change. The interests special to him would have a lot to lose in a Trump presidency. Jeb Bush would not be allowed to follow in his father’s footsteps as his brother once did – at least not right away. But people fear change because it allows them to continue to live in passivity even though change can bring us renewed perspective on our lives and resolutions to problems which heretofore seemed unsolvable. Ronald Reagan, for all his faults, saw clearly the destructive effect that dependency upon government could have not just upon the collective burden but upon the individual. It was because of his common heritage and upbringing in poverty that he was able to convey the tie between personal dignity and the fruits on one’s labor so well. This politically incorrect message was unique for its time and has not been articulated well since his passing.
The scales of justice are not always balanced by what is added to our condition but often by what is taken away. Our slavery to neutrality and unwillingness to make mistakes are causing our problems to worsen each and every day. We must forego the path of political correctness in favor of one that is, in fact, correct. The national debt, for instance, needs to be addressed. And it won’t be by pretending it’s not there.
Similarly, a cancer patient won’t get better by ignoring the fact that he or she has cancer in the first place. And today’s medicines, as powerful as they are, are no substitute for a positive attitude and the support of family, friends, and those similarly afflicted. I don’t know if Donald Trump is the answer to our problems, but he is something different that I’m willing to try. And because he comes from wealth, I believe he can speak to those of wealth effectively.
Some of Trump’s policies, including tough stances on international trade, could cause uncertainty in the world that would lead to market instability. But while Trump is a tough negotiator, he is not a fool. It should be remembered that Trump was against the Iraq war because he believed it would destabilize the Middle East. And it is, therefore, my belief that the market would respond positively to a Trump presidency, in part, because of his dauntless optimism and indomitable spirit.
If you happen to be a hedge fund manager, however, you might want to heed Trump’s warning on a recent edition of Face The Nation when he said this.
The hedge fund guys didn’t build this country. These are guys that shift paper around and they get lucky. They’re energetic. They’re very smart. But a lot of them are paper pushers. They make a fortune. They pay no tax. It’s ridiculous, ok?
And while that criticism may be a bit extreme and off the mark, there are very few retail shareholders in biotechnology that wouldn’t relish seeing a few hedge fund managers pay a little extra out of pocket for the wealth they’ve built at our expense.
To be concluded…
Donald Trump is a comedian’s dream come true with hair as reckless as his impromptu answers to questions often are. His grinding affectation evokes a certain discomfort within every audience member. His obsession with his own accomplishments and abilities mask an insecurity within. And though he isn’t the first presidential hopeful to suffer humorous barbs from media pundits he is the easiest target because the bar of expectation is one he himself has raised. Nonetheless, these lesser attributes are overshadowed by the simple fact that he is, perhaps, a man for our time.
If these last 2 days of market decline have taught us anything it is this: that America is faced with an economic future that is in turmoil. A candidate whose leading credential is his business aptitude is one that can best be trusted to provide calm within that storm. And make no mistake – there will be storms. They’ve been brewing offshore now for quite some time.
Always be well…