Healthcare executive: Michael Moore’s Sicko was accurate

Wendell Potter, a former healthcare executive told Bill Moyers that Michael Moore's "Sicko" was on target. Potter agrees with Moore that there is a significant role for government in healthcare and that government systems such as Canada and Great Britain are successful, contrary to the vicious and dishonest spin by the American healthcare industry. Note: For 20 years, Potter was head of corporate communications for one of the country's largest insurers, CIGNA.

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Ripped off? Go get an attorney! But wait . . . you won’t find one.

Think of all the times that merchants have ripped people off. Sometimes it’s a line-item that jacked up your bill. You called and complained, but you eventually gave up and ate the $3.50 after making four phone calls without satisfaction. Sometimes, you bought an appliance and after getting home discovered that it wasn’t as it was promised, but the merchant refused to take it back. Or it might be a $1,000 piece of electronics. Only after the warranty expired, it became clear that it didn’t function as promised. Maybe it’s a used car that you bought for $2,500 and right after driving it off the lot you discovered that it literally wouldn’t go, certainly not at highway speeds, and that the dealer knew of the problem but refused to refund your money. Consider the many complicated financial transactions you’ve signed, credit cards, car loans, or payday loans. What do you do if you notice you’ve been ripped off, but the amount of damages you’ve suffered is relatively small, less than $3,000? You go get an attorney, right? Wrong. You won’t find an attorney to handle cases in this range unless an attorney decides to help you as a favor or “pro bono.” Why not? Because it is a time-consuming task to open a case, file it, prepare for trial and represent a consumer in a trial. It can take dozens of hours to get a decision in the trial court, and then the defendant, who is often represented by a high-priced attorney, can appeal the case, delaying the result for another year. The net result is that consumers who have been ripped off for less than $3,000 (and, actually, much greater amounts too) will have only one real option to litigate their claim: at the small claims court where they will represent themselves.

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FDA: Cheerios is claiming to be a drug

This news is astounding: The FDA, which for many years has worked hard to serve as a lapdog for its industry masters (not the taxpayers), has recently woken up and taken a real stand. The FDA has charged that Cheerios is "misbranded" as a drug that prevents and treats high cholesterol and heart disease. Caveat: The FDA warning letter doesn't cover all of the health claims on boxes of Cheerios. Here's an excerpt from the FDA warning letter to General Mills:

Based on claims made on your product's label, we have determined that your Cheerios® Toasted Whole Grain Oat Cereal is promoted for conditions that cause it to be a drug because the product is intended for use in the prevention, mitigation, and treatment of disease. Specifically, your Cheerios® product bears the following claims on its label:

• "you can Lower Your Cholesterol 4% in 6 weeks" " • "Did you know that in just 6 weeks Cheerios can reduce bad cholesterol by an average of 4 percent? Cheerios is ... clinically proven to lower cholesterol. A clinical study showed that eating two 1 1/2 cup servings daily of Cheerios cereal reduced bad cholesterol when eaten as part of a diet low in saturated fat and cholesterol."

These claims indicate that Cheerios® is intended for use in lowering cholesterol, and therefore in preventing, mitigating, and treating the disease hypercholesterolemia. Additionally, the claims indicate that Cheerios® is intended for use in the treatment, mitigation, and prevention of coronary heart disease through, lowering total and "bad" (LDL) cholesterol. Elevated levels of total and LDL cholesterol are a risk factor for coronary heart disease and can be a sign of coronary heart disease. Because of these intended uses, the product is a drug within the meaning of section 201(g)(1)(B) of the Act [21 U.S.C. § 321 (g)P)(B)].

I applaud the FDA's actions. Many food products are covered with comparable health claims, yet (until now) the claims have not been scrutinized by anyone other than the manufacturers. I suspect that a huge percentage of these claims would not hold up to an independent scientific review. I also suspect that many consumers make their food purchase choices based on these sorts of claims, many of them unsubstantiated. To the extent that a manufacturer gets a competitive leg up by making an unsubstantiated claim, this is an unfair practice that hurts manufacturers who are not stretching the truth. Now, the FDA will take a look at these claims of General Mills, and hopefully thousands of other food manufacturers, and we'll then see how many of those now-ubiquitous health claims start disappearing from products on the shelves. Too bad there's not an organized produce and grain industries that spends big money plastering signs all over produce departments (and billboards) telling people how good it is to eat fruits, vegetables and whole grains, and also telling consumers that there is no need to buy expensive processed food in wasteful packaging to be healthy. There's so many health claims stamped onto food products that walking down the grocery aisle makes me think I'm at a NASCAR event. I'm not trying to blast the makers of Cheerios here. My kids eat it--sometimes I do too. Perhaps these claims on the Cheerios boxes are justified. But let us investigate. Let us really find out before we allow the grocery aisle health claim wars to continue.

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Matt Taibbi goes to war against Goldman Sachs

Rolling Stone's Matt Taibbi is one of my heroes. I've often recommended his investigative pieces at DI. Taibbi's latest Rolling Stone article is an all-out attack on Goldman Sachs as the culprit behind the bubbles and busts. No, they don't "just happen." [Note: the full article is here]. No, Goldman Sachs isn't the only culpable entity, but Goldman serves well as a deserving target for the kinds of criminal abuses that have destabilized the U.S. economy and crushed the savings of so many people. Here's one example of many by Taibbi, this one explaining how it was that so many shitty mortgages were approved by lenders across the United States. Step One for this problem (as it is for so many other problems with the economy) is to eliminate sane standards for evaluating the economic worth of commodities, individuals and entities. The first step has the intentional function of destroying the possibility of honest valuation, thereby setting the stage for confusing and misleading investors:

Goldman's role in the sweeping global disaster that was the housing bubble is not hard to trace. Here again, the basic trick was a decline in underwriting standards, although in this case the standards weren't in IPOs but in mortgages. By now almost everyone knows that for decades mortgage dealers insisted that home buyers be able to produce a down payment of 10 percent or more, show a steady income and good credit rating, and possess a real first and last name. Then, at the dawn of the new millennium, they suddenly threw all that shit out the window and started writing mortgages on the backs of napkins to cocktail waitresses and ex-cons carrying five bucks and a Snickers bar.

Beware, that if you watch the videos of Taibbi explaining this blatant robbery of investors and taxpayer, as well as the Democrat complicity with this mess, you will seethe. You will feel betrayed.

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Scientology 101

I attended an Anonymous rally last Saturday. You know, Anonymous—the international internet-linked underground that protests Scientology. Anonymous sprang up on imageboards—notably Futaba and the infamous 4chan—in 2006. Project Chanology, the organized, ongoing protest against the Church of Scientology, began in 2008 with a press release and a famous YouTube video, and has since taken on a life of its own. Scientology, as DI readers probably already know, is a scam masquerading as a sort of religion/self-actualization movement hybrid. The Church of Scientology (CoS) was dreamed up by a guy named L. Ron Hubbard, who used to write a lot of pulp fiction. In 1950, Hubbard published a book called Dianetics, in which he claimed that neuroses and other problems are caused by engrams. Engrams are like little negative scripts that get encoded into the unconscious mind (Hubbard called it the “reactive mind”). These engrams take root, supposedly, because when we’re unconscious, the reactive mind hears whatever’s being said around us, and takes it literally. Even fetuses get engrams--from the moment of conception, they can hear everything that's being said in their mother's vicinity, and their little reactive minds are busy recording engrams which, without Dianetic treatment, will cause all manner of psychological trouble throughout their lives. I’m not making this up. L. Ron Hubbard made this up. And, sadly, he got some people to believe it. Enough people, in fact, that he was able to morph Dianetics from a mere self-help fad into a new "religion"--the Church of Scientology.

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