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Constellation Energy - >>> Forget Nvidia: Jim Cramer Says This Company Could Be About to Cash In on Artificial Intelligence (AI) Data Centers
by Adam Spatacco
Motley Fool
May 20, 2024
https://finance.yahoo.com/news/forget-nvidia-jim-cramer-says-122100994.html
One of the biggest investment areas among artificial intelligence (AI) opportunities is data centers. Applications in generative AI are fueling a new wave of demand for cloud storage, server racks, network infrastructure, and more.
While Nvidia is a major provider of data center services, other players are emerging with formidable solutions. Moreover, even big tech giants, such as Amazon, are investing significant sums into building their own data centers. Savvy investors understand that there are a host of opportunities making inroads in the growing data center realm -- a market expected to reach nearly $440 billion by 2028, according to Statista.
Stock analyst and media personality Jim Cramer recently named Constellation Energy (NASDAQ: CEG) as a top pick for data center services. While this may seem a bit out of the ordinary, Constellation Energy is currently discussing some interesting partnerships and could very well emerge as a big winner of the AI data center boom.
Below is an exploration of how the company could play a major role in the data center arena and whether now is a good time to scoop up some shares.
Data centers use a lot of energy
Data centers act as storage units for IT architecture and network infrastructure. These buildings house larger server racks that are filled with hardware such as graphics processing units (GPUs), which are used for accelerated computing.
While data centers play an integral role in the AI ecosystem, there's one big drawback: Data centers use a lot of electricity.
According to the Department of Energy, data centers use anywhere between 10 to 50 times more energy than a standard commercial office. This translates into roughly 2% of the total electricity consumption in the U.S.
Research from Goldman Sachs suggests that data center power demand will increase at a 15% compound annual growth rate (CAGR) through 2030 -- at which point it would reach approximately 8% of total power demand in the U.S. by 2030.
Constellation Energy offers a unique solution
Considering that the secular tailwinds fueling AI are directly correlated to rising energy consumption -- electricity, in particular -- data centers are in need of an alternative solution sooner rather than later. Constellation Energy might just have the answer.
The company operates across many aspects of the energy industry including solar, wind, and natural gas. But another solution Constellation Energy brings to the table is nuclear power. And the best part? Big tech is interested.
During Constellation Energy's most recent earnings call, management alluded that the company is in discussions with "Magnificent Seven" members Microsoft and Alphabet about potentially partnering on nuclear-powered data centers.
Furthermore, Goldman affirmed rising interest in nuclear power, calling it "an attractive generation source for data centers given it is zero carbon and reliable."
Is Constellation Energy stock a buy right now?
As of the time of this writing, Constellation Energy was trading at a price-to-earnings (P/E) ratio of 28.4 -- well above the S&P 500's P/E of 24.8.
Furthermore, after benchmarking Constellation Energy against other regulated utilities, the company appears to be trading at a premium relative to some of its competitors.
While Constellation Energy might be pricey compared to other utilities, I see the company as an under-the-radar opportunity among AI investments. Although there will be obvious investment choices among big tech and peripheral competitors in IT infrastructure, energy stocks shouldn't be forgotten when it comes to AI.
For this reason, Constellation Energy might be seen as a better value compared to many technology stocks which have seen valuation multiples expand dramatically over the last year as AI tailwinds have fueled buying activity.
Considering nuclear power is garnering the interest of the biggest AI enterprises, I wouldn't overlook the energy sector, in general.
Given Constellation Energy's relationship with big tech and its capabilities at the intersection of data center services and nuclear power, I see the stock as an attractive buying opportunity for long-term investors.
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Constellation Energy - >>> Forget Nvidia: Jim Cramer Says This Company Could Be About to Cash In on Artificial Intelligence (AI) Data Centers
by Adam Spatacco
Motley Fool
May 20, 2024
https://finance.yahoo.com/news/forget-nvidia-jim-cramer-says-122100994.html
One of the biggest investment areas among artificial intelligence (AI) opportunities is data centers. Applications in generative AI are fueling a new wave of demand for cloud storage, server racks, network infrastructure, and more.
While Nvidia is a major provider of data center services, other players are emerging with formidable solutions. Moreover, even big tech giants, such as Amazon, are investing significant sums into building their own data centers. Savvy investors understand that there are a host of opportunities making inroads in the growing data center realm -- a market expected to reach nearly $440 billion by 2028, according to Statista.
Stock analyst and media personality Jim Cramer recently named Constellation Energy (NASDAQ: CEG) as a top pick for data center services. While this may seem a bit out of the ordinary, Constellation Energy is currently discussing some interesting partnerships and could very well emerge as a big winner of the AI data center boom.
Below is an exploration of how the company could play a major role in the data center arena and whether now is a good time to scoop up some shares.
Data centers use a lot of energy
Data centers act as storage units for IT architecture and network infrastructure. These buildings house larger server racks that are filled with hardware such as graphics processing units (GPUs), which are used for accelerated computing.
While data centers play an integral role in the AI ecosystem, there's one big drawback: Data centers use a lot of electricity.
According to the Department of Energy, data centers use anywhere between 10 to 50 times more energy than a standard commercial office. This translates into roughly 2% of the total electricity consumption in the U.S.
Research from Goldman Sachs suggests that data center power demand will increase at a 15% compound annual growth rate (CAGR) through 2030 -- at which point it would reach approximately 8% of total power demand in the U.S. by 2030.
Constellation Energy offers a unique solution
Considering that the secular tailwinds fueling AI are directly correlated to rising energy consumption -- electricity, in particular -- data centers are in need of an alternative solution sooner rather than later. Constellation Energy might just have the answer.
The company operates across many aspects of the energy industry including solar, wind, and natural gas. But another solution Constellation Energy brings to the table is nuclear power. And the best part? Big tech is interested.
During Constellation Energy's most recent earnings call, management alluded that the company is in discussions with "Magnificent Seven" members Microsoft and Alphabet about potentially partnering on nuclear-powered data centers.
Furthermore, Goldman affirmed rising interest in nuclear power, calling it "an attractive generation source for data centers given it is zero carbon and reliable."
Is Constellation Energy stock a buy right now?
As of the time of this writing, Constellation Energy was trading at a price-to-earnings (P/E) ratio of 28.4 -- well above the S&P 500's P/E of 24.8.
Furthermore, after benchmarking Constellation Energy against other regulated utilities, the company appears to be trading at a premium relative to some of its competitors.
While Constellation Energy might be pricey compared to other utilities, I see the company as an under-the-radar opportunity among AI investments. Although there will be obvious investment choices among big tech and peripheral competitors in IT infrastructure, energy stocks shouldn't be forgotten when it comes to AI.
For this reason, Constellation Energy might be seen as a better value compared to many technology stocks which have seen valuation multiples expand dramatically over the last year as AI tailwinds have fueled buying activity.
Considering nuclear power is garnering the interest of the biggest AI enterprises, I wouldn't overlook the energy sector, in general.
Given Constellation Energy's relationship with big tech and its capabilities at the intersection of data center services and nuclear power, I see the stock as an attractive buying opportunity for long-term investors.
<<<
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Constellation Energy - >>> Forget Nvidia: Jim Cramer Says This Company Could Be About to Cash In on Artificial Intelligence (AI) Data Centers
by Adam Spatacco
Motley Fool
May 20, 2024
https://finance.yahoo.com/news/forget-nvidia-jim-cramer-says-122100994.html
One of the biggest investment areas among artificial intelligence (AI) opportunities is data centers. Applications in generative AI are fueling a new wave of demand for cloud storage, server racks, network infrastructure, and more.
While Nvidia is a major provider of data center services, other players are emerging with formidable solutions. Moreover, even big tech giants, such as Amazon, are investing significant sums into building their own data centers. Savvy investors understand that there are a host of opportunities making inroads in the growing data center realm -- a market expected to reach nearly $440 billion by 2028, according to Statista.
Stock analyst and media personality Jim Cramer recently named Constellation Energy (NASDAQ: CEG) as a top pick for data center services. While this may seem a bit out of the ordinary, Constellation Energy is currently discussing some interesting partnerships and could very well emerge as a big winner of the AI data center boom.
Below is an exploration of how the company could play a major role in the data center arena and whether now is a good time to scoop up some shares.
Data centers use a lot of energy
Data centers act as storage units for IT architecture and network infrastructure. These buildings house larger server racks that are filled with hardware such as graphics processing units (GPUs), which are used for accelerated computing.
While data centers play an integral role in the AI ecosystem, there's one big drawback: Data centers use a lot of electricity.
According to the Department of Energy, data centers use anywhere between 10 to 50 times more energy than a standard commercial office. This translates into roughly 2% of the total electricity consumption in the U.S.
Research from Goldman Sachs suggests that data center power demand will increase at a 15% compound annual growth rate (CAGR) through 2030 -- at which point it would reach approximately 8% of total power demand in the U.S. by 2030.
Constellation Energy offers a unique solution
Considering that the secular tailwinds fueling AI are directly correlated to rising energy consumption -- electricity, in particular -- data centers are in need of an alternative solution sooner rather than later. Constellation Energy might just have the answer.
The company operates across many aspects of the energy industry including solar, wind, and natural gas. But another solution Constellation Energy brings to the table is nuclear power. And the best part? Big tech is interested.
During Constellation Energy's most recent earnings call, management alluded that the company is in discussions with "Magnificent Seven" members Microsoft and Alphabet about potentially partnering on nuclear-powered data centers.
Furthermore, Goldman affirmed rising interest in nuclear power, calling it "an attractive generation source for data centers given it is zero carbon and reliable."
Is Constellation Energy stock a buy right now?
As of the time of this writing, Constellation Energy was trading at a price-to-earnings (P/E) ratio of 28.4 -- well above the S&P 500's P/E of 24.8.
Furthermore, after benchmarking Constellation Energy against other regulated utilities, the company appears to be trading at a premium relative to some of its competitors.
While Constellation Energy might be pricey compared to other utilities, I see the company as an under-the-radar opportunity among AI investments. Although there will be obvious investment choices among big tech and peripheral competitors in IT infrastructure, energy stocks shouldn't be forgotten when it comes to AI.
For this reason, Constellation Energy might be seen as a better value compared to many technology stocks which have seen valuation multiples expand dramatically over the last year as AI tailwinds have fueled buying activity.
Considering nuclear power is garnering the interest of the biggest AI enterprises, I wouldn't overlook the energy sector, in general.
Given Constellation Energy's relationship with big tech and its capabilities at the intersection of data center services and nuclear power, I see the stock as an attractive buying opportunity for long-term investors.
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>>> De-Dollarization Is Happening at a ‘Stunning’ Pace, Jen Says
Bloomberg
by Matthew Burgess
April 18, 2023
https://finance.yahoo.com/news/dollarization-happening-stunning-pace-jen-082144378.html
(Bloomberg) -- The dollar is losing its reserve status at a faster pace than generally accepted as many analysts have failed to account for last year’s wild exchange rate moves, according to Stephen Jen.
The greenback’s share in global reserves slid last year at 10 times the average speed of the past two decades as a number of countries looked for alternatives after Russia’s invasion of Ukraine triggered sanctions, Jen and his Eurizon SLJ Capital Ltd. colleague Joana Freire wrote in a note. Adjusting for exchange rate movements, the dollar has lost about 11% of its market share since 2016 and double that amount since 2008, they said.
“The dollar suffered a stunning collapse in 2022 in its market share as a reserve currency, presumably due to its muscular use of sanctions,” Jen and Freire wrote. “Exceptional actions taken by the US and its allies against Russia have startled large reserve-holding countries,” most of which are emerging economies from the so-called Global South, they said.
Jen is the former Morgan Stanley currency guru who coined the dollar smile theory.
Last year, Bloomberg’s gauge of the greenback surged as much as 16% as the conflict helped fuel a rise in global inflation that triggered widespread interest rate hikes which sank bond and currency markets alike. It finished the year up 6%.
Biden’s Dollar Weaponization Supercharges Hunt for Alternatives
Smaller nations are experimenting with de-dollarization while China and India are pushing to internationalize their currencies for trade settlement after the US and Europe cut Russian banks from the global financial messaging system known as SWIFT. There’s also concern the dollar may become a permanent political tool, or be used as a form of economic statecraft to put extra pressure on countries to enforce sanctions that they may disagree with.
The US currency now represents about 58% of total global official reserves, down from 73% in 2001 when it was the “indisputable hegemonic reserve,” the Eurizon pair said.
That said, the dollar’s role as an international currency won’t be challenged anytime soon as developing countries don’t yet have the ability to divest from the greenback for transactions due to its large, liquid and well-functioning financial markets, Jen and Freire wrote.
Still, the persistence of those conditions “is not preordained” and there may come a time when the rest of the world actively avoids using the dollar, they wrote.
“The prevailing view of ‘nothing-to-see-here’ on the US dollar as a reserve currency seems too innocuous and complacent,” the two wrote. “What needs to be appreciated by investors is that, while the Global South is unable to totally avoid using the dollar, much of it has already become unwilling to do so.”
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Rickards - >>> Goodbye, King Dollar
BY JAMES RICKARDS
APRIL 10, 2023
https://dailyreckoning.com/goodbye-king-dollar/
Goodbye, King Dollar
I’ve written for years about different nations’ persistent efforts to dethrone the U.S. dollar as the leading global reserve currency and the main medium of exchange.
At the same time, I’ve said that such processes don’t happen overnight; instead, they happen slowly and incrementally over decades.
While that’s true, the process is accelerating in ways no one could have anticipated just over a year ago.
The extreme economic sanctions against Russia, including its ejection from the SWIFT global messaging system, have revealed to other nations that the U.S. can do something similar to them if the U.S. disapproves of their conduct.
None of the sanctions would be effective or even possible without the use of the dollar and the dollar payments system.
So, after 79 years under the Bretton Woods arrangements, 52 years since Nixon closed the gold window, and 49 years since the petrodollar agreement with Saudi Arabia, the reign of King Dollar as the world’s leading payment currency is rapidly coming to an end.
The building de-dollarization movement represents a global sea change, which will only accelerate in the coming years. This should come as no surprise since global monetary arrangements usually change every 40 years or so.
We’re long overdue.
The Trend Is Not the Dollar’s Friend
Announcements of bilateral and multilateral agreements among countries to trade for goods and services in currencies other than the U.S. dollar are coming thick and fast. One key arrangement has taken place, in which China and Brazil have agreed to accept each other’s currency for goods and services traded between them.
China is now Brazil’s largest trading partner. China buys enormous amounts of soybeans from Brazil along with aircraft, sugar, beef, and oil. Brazil buys manufactured goods from China as well as rare earths, semiconductors, and solar panels. Meanwhile, both countries offer extensive travel and leisure venues to citizens of the other.
This is one of many such bilateral trading arrangements springing up in which one party or the other will pay or accept currencies other than the U.S. dollar.
For example, Dubai has a deal with China whereby it accepts yuan for oil. Saudi Arabia is discussing a similar deal with China. The BRICS+ (Brazil, Russia, India, China, South Africa and about 20 other invited countries) are developing a new currency, possibly backed by a basket of commodities to be used on a multilateral basis for trade among participating members.
Russia and China are far down the road in terms of using their respective currencies for bilateral trade. Russia can buy Chinese manufactured goods and technology using rubles, and China can buy Russian oil and natural gas as well as wheat, weapons, and strategic metals using yuan.
Do you think this is all unrelated?
Even the Smaller Economies Want a Dollar Alternative
The desire to abandon U.S. dollars for use in many forms is not limited to those large trading relationships. Even relatively small economies such as Kenya have now joined the anti-dollar crusade.
In the past, Kenya valued the dollar as a means of payment for Kenyan exports such as coffee, and in its valuable tourism sector. As a result, many Kenyan individuals and enterprises have hoarded dollars, often in physical form as $100 bills, because of their perceived value and as a hedge against the devaluation of the local currency, the Kenyan shilling.
Now the government is declaring war on the hoarders and the dollar itself. The government has announced plans to allow oil importers to use shillings to pay for the oil. These new arrangements will eliminate the need for dollars in much of the economy, since the oil sector represents 30% of Kenyan imports.
At the same time, the government is trying to flush out hoarders. For the time being, this is being done on a voluntary basis. The government is saying since the economy will need fewer dollars as a result of the new shilling arrangements, there is less reason for the private sector to hoard dollars.
Beyond the invitation to the hoarders to cash in their dollars is an implied threat that the government will either seize the dollars or make them non-convertible in the near future.
The president of Kenya said, “I am giving you free advice that those of you who are hoarding dollars, you shortly might go into losses. You better do what you must do because this market is going to be different in a couple of weeks.”
The president did not define what he meant by “different”, but the threat of confiscation is a reasonable inference. The move away from dollars is visible everywhere, even in the backstreets of Nairobi.
Don’t Confuse a Payment Currency With a Reserve Currency
It’s important to note that these developments in the use of new payment currencies for trade are not the same as changes in the world of reserve currencies, which perform a different role. There’s a difference between a payment currency and a reserve currency.
A reserve currency refers to the unit of denomination of securities held in reserve by countries. It’s something like your savings account but it’s controlled by the treasury or finance ministry of each country.
These reserves are not actual currency deposits. They’re securities such as US Treasury notes or German government notes (bunds). They’re denominated in Dollars or Euros but they’re securities, not cash. That’s the key.
If you don’t have a large, liquid government securities market with a good rule of law then you can’t qualify as a reserve currency. The US Treasury market is the only market in the world large enough to absorb the savings of major trading powers such as China, Japan and Taiwan, so the dollar is the leading reserve currency.
That won’t change in the near future. When the dollar replaced Sterling, it took 30 years from 1914 to 1944 to complete the process.
A payment currency is different. It’s the unit of account for paying for imports and exports, but it’s really just a way of keeping score. Periodically the trading partners settle the score with a transfer of assets that can include commodities, dollars, euros or gold.
It’s much easier to launch a new payment currency than a new reserve currency because you don’t need a large securities market. You just need a reliable ledger system and willing partners.
I want to draw the distinction between a payment currency and a reserve currency because many people confuse them, while there are important differences.
Still, the world is saying to the U.S.: “Dollars? We don’t need no stinking dollars.” Indeed.
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>>> Global public debt hits record $92 trillion - UN report
by Jorgelina do Rosario
Reuters
July 12, 2023
https://www.msn.com/en-us/money/companies/global-public-debt-hits-record-92-trillion-un-report/ar-AA1dLyzw?OCID=ansmsnnews11
LONDON (Reuters) - Global public debt surged to a record $92 trillion in 2022 as governments borrowed to counter crises such as the COVID-19 pandemic, with the burden being felt acutely by developing countries, a United Nations report said.
Domestic and external debt worldwide has increased more than five times in the last two decades, outstripping the rate of economic growth, with gross domestic product only tripling since 2002, according to the Wednesday report, released in the run up to a G20 finance ministers and central bank governors' meeting July 14-18.
Developing countries owe almost 30% of the global public debt, of which 70% is represented by China, India and Brazil. Fifty-nine developing countries face a debt-to-GDP ratio above 60% - a threshold indicating high levels of debt. (US debt/GDP is 130%!!)
"Debt has been translating into a substantial burden for developing countries due to limited access to financing, rising borrowing costs, currency devaluations and sluggish growth," the UN report added.
Furthermore, the international financial architecture made access to financing for developing countries both inadequate and expensive, the UN said, pointing to net interest debt payments exceeding 10% of revenues for 50 emerging economies worldwide.
"In Africa, the amount spent on interest payments is higher than spending on either education or health," the report found with 3.3 billion people living in countries that spend more on debt interest payments than on health or education.
"Countries are facing the impossible choice of servicing their debt or serving their people."
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Rickards - >>> $27,000 Gold
BY JAMES RICKARDS
MAY 13, 2024
https://dailyreckoning.com/27000-gold/
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https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174446462
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>>> US federal budget crosses grim milestone as interest payments overtake defense spending
Yahoo Finance
by Rick Newman
May 22, 2024
https://finance.yahoo.com/news/us-federal-budget-crosses-grim-milestone-as-interest-payments-overtake-defense-spending-155521072.html
The United States has long had the world’s biggest defense budget, with spending this year set to approach $900 billion.
Yet this spending is rapidly being eclipsed by the fastest-growing portion of federal outflows: interest payments on the national debt.
For the first seven months of fiscal year 2024, which began last October, net interest payments totaled $514 billion, outpacing defense by $20 billion. Budget analysts think that trend will continue, making 2024 the first year ever that the United States will spend more on interest payments than on national defense.
Just two years ago, interest payments were the seventh-largest federal spending category, behind Social Security, health programs other than Medicare, income assistance, national defense, Medicare, and education.
Interest is now the third-biggest expenditure after Social Security and health. And not because any of the other programs are shrinking. While most government expenditures grow modestly from year to year, interest expenses in 2024 are running 41% higher than in 2023.
Interest payments are ballooning for two obvious reasons.
The first is that annual deficits have exploded, leaving the nation with a gargantuan $34.6 trillion in total federal debt, 156% higher than the national debt at the end of 2010.
In the 1990s, the average federal deficit was $138 billion per year. In the 2000s, it was $318 billion. In the 2010s, it was $829 billion. Since 2020, the annual deficit has swelled to $2.24 trillion, largely due to pandemic-related stimulus measures in 2020 and 2021. The projection for 2024 is a $1.5 trillion shortfall.
As a percentage of GDP, the annual deficit has nearly doubled in just 10 years, from 2.8% in 2014 to a projected 5.3% in 2024. So there's just a lot more borrowing to pay interest on.
The government is also paying more to borrow as interest rates have shot up over the last two years. Like consumers buying homes and cars, Uncle Sam benefits from cheap money when rates are low and bears a heavier burden when rates are high.
From 2010 through 2021, the average interest rate on all Treasury securities sold to the public was just 2.1%, which helped keep total interest payments manageable.
But in 2022, the Federal Reserve started jacking up rates to tame inflation, and the government now pays an average interest rate of 3.3%. So, the amount of borrowed money keeps going up, and the cost of borrowing that money is rising too.
More taxpayer money going to interest expenses will eventually leave less money for everything else, and at some point, the Treasury won’t be able to borrow its way out of the problem anymore.
It's an unsustainable situation, which could lead investors to lose faith in the government’s creditworthiness and demand even higher rates to buy Treasurys.
The urgency of the problem, however, is open to debate.
At the recent Milken Institute conference in Los Angeles, luminaries such as billionaire investor Ken Griffin and former House Speaker Paul Ryan warned of a looming debt crisis if the government’s interest costs continue to mushroom. But many prominent financiers also touted the United States as the best destination in the world for investment, despite all its problems.
And many predictions of a debt crisis when interest expenses were a lot lower have so far turned out to be wrong.
Two people who seem unperturbed by America’s debt burden are President Joe Biden and former President Donald Trump, the two leading candidates in this year’s race for the White House. Neither is making deficit reduction a focus of his presidential campaign.
Biden does have a plan of sorts. He’d raise taxes on businesses and the wealthy and use some of that revenue to trim annual deficits. But Biden also wants to spend more on social programs, which could offset any savings.
Trump says he’d encourage more oil and natural gas drilling, which would somehow produce a windfall of tax revenue that would pay down the debt. But there’s no obvious way that would happen, no matter how much drilling takes place.
Besides, both men have presided over a huge run-up in the national debt.
The national debt rose by $7.8 trillion during Trump’s four years as president and $6.8 trillion during Biden’s first three years and four months.
Earlier this year, the Committee for a Responsible Federal Budget helped Yahoo Finance analyze who’s responsible for the national debt, and the blame falls more or less equally on administrations of both parties borrowing to finance wars, tax cuts, spending programs, and stimulus measures during recessions.
When the time does arrive to fix the debt, the inevitable solution will be a mix of spending cuts and tax hikes that will make a lot of people unhappy.
Which reveals the real reason no politician wants to address the problem — everyone hopes it'll be the guy after them.
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>>> US federal budget crosses grim milestone as interest payments overtake defense spending
Yahoo Finance
by Rick Newman
May 22, 2024
https://finance.yahoo.com/news/us-federal-budget-crosses-grim-milestone-as-interest-payments-overtake-defense-spending-155521072.html
The United States has long had the world’s biggest defense budget, with spending this year set to approach $900 billion.
Yet this spending is rapidly being eclipsed by the fastest-growing portion of federal outflows: interest payments on the national debt.
For the first seven months of fiscal year 2024, which began last October, net interest payments totaled $514 billion, outpacing defense by $20 billion. Budget analysts think that trend will continue, making 2024 the first year ever that the United States will spend more on interest payments than on national defense.
Just two years ago, interest payments were the seventh-largest federal spending category, behind Social Security, health programs other than Medicare, income assistance, national defense, Medicare, and education.
Interest is now the third-biggest expenditure after Social Security and health. And not because any of the other programs are shrinking. While most government expenditures grow modestly from year to year, interest expenses in 2024 are running 41% higher than in 2023.
Interest payments are ballooning for two obvious reasons.
The first is that annual deficits have exploded, leaving the nation with a gargantuan $34.6 trillion in total federal debt, 156% higher than the national debt at the end of 2010.
In the 1990s, the average federal deficit was $138 billion per year. In the 2000s, it was $318 billion. In the 2010s, it was $829 billion. Since 2020, the annual deficit has swelled to $2.24 trillion, largely due to pandemic-related stimulus measures in 2020 and 2021. The projection for 2024 is a $1.5 trillion shortfall.
As a percentage of GDP, the annual deficit has nearly doubled in just 10 years, from 2.8% in 2014 to a projected 5.3% in 2024. So there's just a lot more borrowing to pay interest on.
The government is also paying more to borrow as interest rates have shot up over the last two years. Like consumers buying homes and cars, Uncle Sam benefits from cheap money when rates are low and bears a heavier burden when rates are high.
From 2010 through 2021, the average interest rate on all Treasury securities sold to the public was just 2.1%, which helped keep total interest payments manageable.
But in 2022, the Federal Reserve started jacking up rates to tame inflation, and the government now pays an average interest rate of 3.3%. So, the amount of borrowed money keeps going up, and the cost of borrowing that money is rising too.
More taxpayer money going to interest expenses will eventually leave less money for everything else, and at some point, the Treasury won’t be able to borrow its way out of the problem anymore.
It's an unsustainable situation, which could lead investors to lose faith in the government’s creditworthiness and demand even higher rates to buy Treasurys.
The urgency of the problem, however, is open to debate.
At the recent Milken Institute conference in Los Angeles, luminaries such as billionaire investor Ken Griffin and former House Speaker Paul Ryan warned of a looming debt crisis if the government’s interest costs continue to mushroom. But many prominent financiers also touted the United States as the best destination in the world for investment, despite all its problems.
And many predictions of a debt crisis when interest expenses were a lot lower have so far turned out to be wrong.
Two people who seem unperturbed by America’s debt burden are President Joe Biden and former President Donald Trump, the two leading candidates in this year’s race for the White House. Neither is making deficit reduction a focus of his presidential campaign.
Biden does have a plan of sorts. He’d raise taxes on businesses and the wealthy and use some of that revenue to trim annual deficits. But Biden also wants to spend more on social programs, which could offset any savings.
Trump says he’d encourage more oil and natural gas drilling, which would somehow produce a windfall of tax revenue that would pay down the debt. But there’s no obvious way that would happen, no matter how much drilling takes place.
Besides, both men have presided over a huge run-up in the national debt.
The national debt rose by $7.8 trillion during Trump’s four years as president and $6.8 trillion during Biden’s first three years and four months.
Earlier this year, the Committee for a Responsible Federal Budget helped Yahoo Finance analyze who’s responsible for the national debt, and the blame falls more or less equally on administrations of both parties borrowing to finance wars, tax cuts, spending programs, and stimulus measures during recessions.
When the time does arrive to fix the debt, the inevitable solution will be a mix of spending cuts and tax hikes that will make a lot of people unhappy.
Which reveals the real reason no politician wants to address the problem — everyone hopes it'll be the guy after them.
<<<
---
>>> Scientists create earthquake-proof resin that seals rocks, heals cracks
Interesting Engineering
by Aman Tripathi
4-22-24
https://www.msn.com/en-us/news/technology/scientists-create-earthquake-proof-resin-that-seals-rocks-heals-cracks/ar-BB1mQBSz?OCID=ansmsnnews11
Researchers from Nagoya University have developed a revolutionary resin-based material that has demonstrated unprecedented capabilities in sealing cracks in rocks, even in the face of seismic activity.
This groundbreaking innovation, inspired by the natural fossilization process, holds the potential to transform various industries, from nuclear waste management to infrastructure maintenance.
Their innovation, a “concretion-forming resin,” not only seals cracks and fractures in rock but also demonstrates an unprecedented ability to self-heal after seismic events.
Inspiration from nature’s fossilization process
The resin’s ability to self-heal is particularly noteworthy, as it can potentially extend the lifespan of sealed structures and reduce the need for costly maintenance and repairs.
“I realized that well-preserved fossils in concretions had withstood weathering and the like for tens to hundreds of thousands of years in the natural environment,” said Hidekazu Yoshida, the lead researcher.
“I became inspired by studying how fast concretions were formed and why the fossils inside were preserved so well.”
The resin’s remarkable properties stem from its emulation of the natural formation of calcite concretions around organic matter, a process that has preserved fossils for millennia.
By mixing two agents that trigger rapid calcite crystal formation upon contact with water, the resin effectively fills and seals voids in rock, creating an impenetrable barrier.
Rigorous earthquake strike testing
The resin’s efficacy was rigorously tested in an underground laboratory situated 350 meters beneath Hokkaido, Japan’s northernmost island, a region renowned for its seismic activity.
Interestingly, the area experienced six earthquakes over two days during testing.
Notably, the resin maintained its seal throughout these events and exhibited a self-healing capability, resealing any cracks that formed due to the tremors.
This unparalleled resilience sets the concretion-forming resin apart from conventional cement-based sealants, which often fail to withstand such geological stresses.
“Such a fast-acting and sustained sealing effect of rock fractures, including post-earthquake crack repair, has never been reported before. Conventional cement materials cannot achieve this result,” added Yoshida.
The future of resin sealing
The implications of this innovation are far-reaching, extending beyond the safe disposal of hazardous waste and carbon dioxide.
The researchers are exploring the possibility of using the resin to seal cracks in concrete structures, which could significantly improve the durability and longevity of buildings and other infrastructure. It could be used to reinforce and stabilize tunnels and shafts in mines.
The resin will also prove invaluable in sealing abandoned oil wells, managing groundwater, and repairing aging infrastructure such as roads and buildings.
Additionally, the self-healing properties of the resin can be utilized to repair and protect ancient structures and artifacts from weathering and erosion.
To bring the resin to market, the research team is now collaborating with the Japan Atomic Energy Agency, Sekisui Chemical Co., and Chubu Electric Power Co., Ltd.
Concretions are found worldwide
Globally, remarkable fossils are often discovered encased within solid, spherical rocks known as concretions.
They are formed by the precipitation of mineral cement within the spaces between sediment particles. They are commonly found in sedimentary rocks or soil.
Earlier, Nagoya University researchers had discovered that concretions form rapidly, within months to years. The fast formation of concretions helps to quickly protect fossils.
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Saturday Night's Alright -
>>> Scientists create earthquake-proof resin that seals rocks, heals cracks
Interesting Engineering
by Aman Tripathi
4-22-24
https://www.msn.com/en-us/news/technology/scientists-create-earthquake-proof-resin-that-seals-rocks-heals-cracks/ar-BB1mQBSz?OCID=ansmsnnews11
Researchers from Nagoya University have developed a revolutionary resin-based material that has demonstrated unprecedented capabilities in sealing cracks in rocks, even in the face of seismic activity.
This groundbreaking innovation, inspired by the natural fossilization process, holds the potential to transform various industries, from nuclear waste management to infrastructure maintenance.
Their innovation, a “concretion-forming resin,” not only seals cracks and fractures in rock but also demonstrates an unprecedented ability to self-heal after seismic events.
Inspiration from nature’s fossilization process
The resin’s ability to self-heal is particularly noteworthy, as it can potentially extend the lifespan of sealed structures and reduce the need for costly maintenance and repairs.
“I realized that well-preserved fossils in concretions had withstood weathering and the like for tens to hundreds of thousands of years in the natural environment,” said Hidekazu Yoshida, the lead researcher.
“I became inspired by studying how fast concretions were formed and why the fossils inside were preserved so well.”
The resin’s remarkable properties stem from its emulation of the natural formation of calcite concretions around organic matter, a process that has preserved fossils for millennia.
By mixing two agents that trigger rapid calcite crystal formation upon contact with water, the resin effectively fills and seals voids in rock, creating an impenetrable barrier.
Rigorous earthquake strike testing
The resin’s efficacy was rigorously tested in an underground laboratory situated 350 meters beneath Hokkaido, Japan’s northernmost island, a region renowned for its seismic activity.
Interestingly, the area experienced six earthquakes over two days during testing.
Notably, the resin maintained its seal throughout these events and exhibited a self-healing capability, resealing any cracks that formed due to the tremors.
This unparalleled resilience sets the concretion-forming resin apart from conventional cement-based sealants, which often fail to withstand such geological stresses.
“Such a fast-acting and sustained sealing effect of rock fractures, including post-earthquake crack repair, has never been reported before. Conventional cement materials cannot achieve this result,” added Yoshida.
The future of resin sealing
The implications of this innovation are far-reaching, extending beyond the safe disposal of hazardous waste and carbon dioxide.
The researchers are exploring the possibility of using the resin to seal cracks in concrete structures, which could significantly improve the durability and longevity of buildings and other infrastructure. It could be used to reinforce and stabilize tunnels and shafts in mines.
The resin will also prove invaluable in sealing abandoned oil wells, managing groundwater, and repairing aging infrastructure such as roads and buildings.
Additionally, the self-healing properties of the resin can be utilized to repair and protect ancient structures and artifacts from weathering and erosion.
To bring the resin to market, the research team is now collaborating with the Japan Atomic Energy Agency, Sekisui Chemical Co., and Chubu Electric Power Co., Ltd.
Concretions are found worldwide
Globally, remarkable fossils are often discovered encased within solid, spherical rocks known as concretions.
They are formed by the precipitation of mineral cement within the spaces between sediment particles. They are commonly found in sedimentary rocks or soil.
Earlier, Nagoya University researchers had discovered that concretions form rapidly, within months to years. The fast formation of concretions helps to quickly protect fossils.
<<<
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>>> Scientists create earthquake-proof resin that seals rocks, heals cracks
Interesting Engineering
by Aman Tripathi
4-22-24
https://www.msn.com/en-us/news/technology/scientists-create-earthquake-proof-resin-that-seals-rocks-heals-cracks/ar-BB1mQBSz?OCID=ansmsnnews11
Researchers from Nagoya University have developed a revolutionary resin-based material that has demonstrated unprecedented capabilities in sealing cracks in rocks, even in the face of seismic activity.
This groundbreaking innovation, inspired by the natural fossilization process, holds the potential to transform various industries, from nuclear waste management to infrastructure maintenance.
Their innovation, a “concretion-forming resin,” not only seals cracks and fractures in rock but also demonstrates an unprecedented ability to self-heal after seismic events.
Inspiration from nature’s fossilization process
The resin’s ability to self-heal is particularly noteworthy, as it can potentially extend the lifespan of sealed structures and reduce the need for costly maintenance and repairs.
“I realized that well-preserved fossils in concretions had withstood weathering and the like for tens to hundreds of thousands of years in the natural environment,” said Hidekazu Yoshida, the lead researcher.
“I became inspired by studying how fast concretions were formed and why the fossils inside were preserved so well.”
The resin’s remarkable properties stem from its emulation of the natural formation of calcite concretions around organic matter, a process that has preserved fossils for millennia.
By mixing two agents that trigger rapid calcite crystal formation upon contact with water, the resin effectively fills and seals voids in rock, creating an impenetrable barrier.
Rigorous earthquake strike testing
The resin’s efficacy was rigorously tested in an underground laboratory situated 350 meters beneath Hokkaido, Japan’s northernmost island, a region renowned for its seismic activity.
Interestingly, the area experienced six earthquakes over two days during testing.
Notably, the resin maintained its seal throughout these events and exhibited a self-healing capability, resealing any cracks that formed due to the tremors.
This unparalleled resilience sets the concretion-forming resin apart from conventional cement-based sealants, which often fail to withstand such geological stresses.
“Such a fast-acting and sustained sealing effect of rock fractures, including post-earthquake crack repair, has never been reported before. Conventional cement materials cannot achieve this result,” added Yoshida.
The future of resin sealing
The implications of this innovation are far-reaching, extending beyond the safe disposal of hazardous waste and carbon dioxide.
The researchers are exploring the possibility of using the resin to seal cracks in concrete structures, which could significantly improve the durability and longevity of buildings and other infrastructure. It could be used to reinforce and stabilize tunnels and shafts in mines.
The resin will also prove invaluable in sealing abandoned oil wells, managing groundwater, and repairing aging infrastructure such as roads and buildings.
Additionally, the self-healing properties of the resin can be utilized to repair and protect ancient structures and artifacts from weathering and erosion.
To bring the resin to market, the research team is now collaborating with the Japan Atomic Energy Agency, Sekisui Chemical Co., and Chubu Electric Power Co., Ltd.
Concretions are found worldwide
Globally, remarkable fossils are often discovered encased within solid, spherical rocks known as concretions.
They are formed by the precipitation of mineral cement within the spaces between sediment particles. They are commonly found in sedimentary rocks or soil.
Earlier, Nagoya University researchers had discovered that concretions form rapidly, within months to years. The fast formation of concretions helps to quickly protect fossils.
<<<
---
>>> A $10 Billion Real-Estate Fund Is Bleeding Cash and Running Out of Options
The Wall Street Journal
by Peter Grant
5-20-24
https://www.msn.com/en-us/money/realestate/a-10-billion-real-estate-fund-is-bleeding-cash-and-running-out-of-options/ar-BB1mHSJw?cvid=b2ff3c3a3bdd460de568db2dc9f0b0e8&ei=39
A giant commercial real-estate fund is scrambling to escape a looming cash crunch caused by the long line of investors who want their money back.
The $10 billion fund from Starwood Capital Group has been trying to preserve its available cash and credit by limiting investor redemptions. In the first quarter, the fund was hit with $1.3 billion in withdrawal requests but satisfied less than $500 million of them, according to regulatory filings.
Even with these limitations, the fund’s liquidity, consisting of cash, marketable securities and a bank line of credit, has been drying up. It totaled $752 million at the end of April, down from $1.1 billion at the end of last year. It was $2.2 billion at the end of 2022, according to filings.
“They don’t have a lot of liquidity left,” said Kevin Gannon, chief executive of Robert A. Stanger, an investment bank that specializes in real-estate funds.
These developments have left the Starwood Real Estate Income Trust, known as Sreit, with three options—none of them appealing. It could take on more debt. It could sell properties into a tough market. Or it could halt completely or limit further redemptions, a move that would greatly impair the fund’s ability to raise new money. Unless it takes one of these three steps, Sreit looks poised to run out of cash and credit before year-end if the current pace of redemptions continues.
Rates, Risk & Real Estate: Starwood REIT limits withdrawals
Other real-estate funds are handling the pressure from the long queue of redemptions in varying degrees. The largest of the funds, Blackstone Real Estate Income Trust, or Breit, has $7.5 billion in liquidity and earlier this year was able to fulfill all redemption requests. But withdrawals continue to exceed new fundraising.
Sreit was one of the most prominent real-estate funds launched between 2017 and 2022, second in size only to Breit. These funds, known as nontraded real-estate investment trusts, invest in commercial property similar to publicly traded REITs. In all, these vehicles raised about $95 billion, mostly from individual investors, according to Stanger.
The funds also were very popular when interest rates were low because they paid dividends in the 5% range. Sold through financial advisers, they also gave small investors the opportunity to participate in what was then a hot commercial-property market.
But investors started to bolt as interest rates jumped and commercial real-estate values fell. In late 2022, Sreit and others began limiting redemptions to as much as 2% of their net asset values a month and up to 5% a quarter.
New fundraising also has dropped sharply as some analysts have criticized the structure of the funds and financial advisers have raised warnings. Sreit’s new fundraising has dwindled to about $15 million a month, down from more than $600 million a month in the first half of 2022.
Sreit’s ability to make redemptions will help determine whether the funds will be a long-term feature of the real-estate market or fade away. Some analysts believe that the funds are proving themselves through a tough commercial-property market. Others say the funds are showing major problems.
Because it can’t raise enough new funds to make up for even its limited redemptions, Starwood has been considering a number of difficult options, say people familiar with the firm’s thinking.
The fund could borrow more, but that would be costly at today’s high interest rates. Sreit’s current debt is already equal to 57% of its assets, which is more than many comparable real-estate funds. Sreit’s target leverage is 50% to 65%.
The fund could sell assets. Sreit owns hundreds of properties throughout the country, mostly warehouses and rental apartment buildings in the Sunbelt. But the value of most commercial real estate has been hammered by high interest rates, which drive up costs in the high-leverage business. Rental apartments have also been hurt by overbuilding in many markets.
Most rental-apartment owners who bought in the years just before the interest-rate spike “would prefer not to sell in this market,” said Matthew Werner, managing director with asset manager Chilton Capital Management.
Finally, Sreit could halt or limit further investor redemptions. But analysts believe that would be a last resort because it would make it even harder to raise new money. One of the main selling points of Sreit has been that investors would be able to redeem their shares, subject to the 2% and 5% restrictions.
A redemption halt “would be fatal,” Stanger’s Gannon said. “You wouldn’t be able to raise another dime.”
Sreit was launched in 2018 by Starwood Capital, a private-equity firm headed by Barry Sternlicht, the storied real-estate investor and founder of the Starwood Hotels chain. Sreit raised more than $13.5 billion in equity, which it used to buy more than $25 billion in real-estate assets.
The fund attempted to sell properties last year as the redemption queues began to lengthen. Sreit sold a portfolio of single-family rental homes to Dallas-based Invitation Homes for $650 million, including debt.
But more recently, the fund has slowed sales because of depressed prices. Like other owners, Sreit is hoping prices will rebound later this year, especially if the Federal Reserve begins to cut interest rates.
Instead, Sreit has relied on its line of credit. But that won’t last much longer at the rate the fund is drawing it down. The line has $275 million of capacity, down from its original size of $1.55 billion.
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>>> A $10 Billion Real-Estate Fund Is Bleeding Cash and Running Out of Options
The Wall Street Journal
by Peter Grant
5-20-24
https://www.msn.com/en-us/money/realestate/a-10-billion-real-estate-fund-is-bleeding-cash-and-running-out-of-options/ar-BB1mHSJw?cvid=b2ff3c3a3bdd460de568db2dc9f0b0e8&ei=39
A giant commercial real-estate fund is scrambling to escape a looming cash crunch caused by the long line of investors who want their money back.
The $10 billion fund from Starwood Capital Group has been trying to preserve its available cash and credit by limiting investor redemptions. In the first quarter, the fund was hit with $1.3 billion in withdrawal requests but satisfied less than $500 million of them, according to regulatory filings.
Even with these limitations, the fund’s liquidity, consisting of cash, marketable securities and a bank line of credit, has been drying up. It totaled $752 million at the end of April, down from $1.1 billion at the end of last year. It was $2.2 billion at the end of 2022, according to filings.
“They don’t have a lot of liquidity left,” said Kevin Gannon, chief executive of Robert A. Stanger, an investment bank that specializes in real-estate funds.
These developments have left the Starwood Real Estate Income Trust, known as Sreit, with three options—none of them appealing. It could take on more debt. It could sell properties into a tough market. Or it could halt completely or limit further redemptions, a move that would greatly impair the fund’s ability to raise new money. Unless it takes one of these three steps, Sreit looks poised to run out of cash and credit before year-end if the current pace of redemptions continues.
Rates, Risk & Real Estate: Starwood REIT limits withdrawals
Other real-estate funds are handling the pressure from the long queue of redemptions in varying degrees. The largest of the funds, Blackstone Real Estate Income Trust, or Breit, has $7.5 billion in liquidity and earlier this year was able to fulfill all redemption requests. But withdrawals continue to exceed new fundraising.
Sreit was one of the most prominent real-estate funds launched between 2017 and 2022, second in size only to Breit. These funds, known as nontraded real-estate investment trusts, invest in commercial property similar to publicly traded REITs. In all, these vehicles raised about $95 billion, mostly from individual investors, according to Stanger.
The funds also were very popular when interest rates were low because they paid dividends in the 5% range. Sold through financial advisers, they also gave small investors the opportunity to participate in what was then a hot commercial-property market.
But investors started to bolt as interest rates jumped and commercial real-estate values fell. In late 2022, Sreit and others began limiting redemptions to as much as 2% of their net asset values a month and up to 5% a quarter.
New fundraising also has dropped sharply as some analysts have criticized the structure of the funds and financial advisers have raised warnings. Sreit’s new fundraising has dwindled to about $15 million a month, down from more than $600 million a month in the first half of 2022.
Sreit’s ability to make redemptions will help determine whether the funds will be a long-term feature of the real-estate market or fade away. Some analysts believe that the funds are proving themselves through a tough commercial-property market. Others say the funds are showing major problems.
Because it can’t raise enough new funds to make up for even its limited redemptions, Starwood has been considering a number of difficult options, say people familiar with the firm’s thinking.
The fund could borrow more, but that would be costly at today’s high interest rates. Sreit’s current debt is already equal to 57% of its assets, which is more than many comparable real-estate funds. Sreit’s target leverage is 50% to 65%.
The fund could sell assets. Sreit owns hundreds of properties throughout the country, mostly warehouses and rental apartment buildings in the Sunbelt. But the value of most commercial real estate has been hammered by high interest rates, which drive up costs in the high-leverage business. Rental apartments have also been hurt by overbuilding in many markets.
Most rental-apartment owners who bought in the years just before the interest-rate spike “would prefer not to sell in this market,” said Matthew Werner, managing director with asset manager Chilton Capital Management.
Finally, Sreit could halt or limit further investor redemptions. But analysts believe that would be a last resort because it would make it even harder to raise new money. One of the main selling points of Sreit has been that investors would be able to redeem their shares, subject to the 2% and 5% restrictions.
A redemption halt “would be fatal,” Stanger’s Gannon said. “You wouldn’t be able to raise another dime.”
Sreit was launched in 2018 by Starwood Capital, a private-equity firm headed by Barry Sternlicht, the storied real-estate investor and founder of the Starwood Hotels chain. Sreit raised more than $13.5 billion in equity, which it used to buy more than $25 billion in real-estate assets.
The fund attempted to sell properties last year as the redemption queues began to lengthen. Sreit sold a portfolio of single-family rental homes to Dallas-based Invitation Homes for $650 million, including debt.
But more recently, the fund has slowed sales because of depressed prices. Like other owners, Sreit is hoping prices will rebound later this year, especially if the Federal Reserve begins to cut interest rates.
Instead, Sreit has relied on its line of credit. But that won’t last much longer at the rate the fund is drawing it down. The line has $275 million of capacity, down from its original size of $1.55 billion.
<<<
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>>> Cannabis poisonings among older adults have tripled, study finds
By Kristen Rogers
CNN
May 20, 2024
https://www.cnn.com/2024/05/20/health/cannabis-edibles-poisoning-older-adults-wellness/index.html
Older adults who haven't smoked weed in decades may not realize that today's cannabis is much more potent, according to Dr. Nathan Stall, a clinician scientist at Sinai Health in Ontario.
One may think young people are the main group enjoying the freedom of legalized weed, but in Canada, the greatest increase in users after legalization was among older adults — and sometimes it’s sending them to the hospital, according to new research.
The rate of emergency department visits for cannabis poisoning in older adults during the period of legalization of dried cannabis flower and edibles — October 2018 through December 2022 — in Canada was significantly higher than that of the pre-legalization period, according to a research letter published Monday in the journal JAMA Internal Medicine.
Edibles, which include baked goods, candies and beverages, are increasingly popular, said lead research author Dr. Nathan Stall, a geriatrician and clinician scientist at Sinai Health in Ontario. But some older adults may be unaware of the strength of today’s weed, and little is known about the health effects of legalizing edible cannabis on older adults — the age group with the largest growth in overall cannabis use a year after dried cannabis flower was legalized in Canada, Stall said.
“There’s a bit of an age-related bias that many health care practitioners, and frankly society, hold that older adults are not using drugs. And that’s not true,” Stall said. “We found that the largest increases in emergency department visits for cannabis poisoning among seniors occurred after edible cannabis became legal for retail sale in January 2020.”
The authors used the Ontario Ministry of Health’s administrative data to examine the rates of emergency room visits for cannabis poisoning among older adults during the pre-legalization period — January 2015 to September 2018 — and the two legalization periods: October 2018 through December 2019, which permitted the sale of dried cannabis flower only, and January 2020 through December 2022, which marked the legalization of cannabis edibles.
When people have cannabis poisoning, according to Stall, they may experience confusion; psychosis, including hallucinations; anxiety or panic attacks; rapid heartbeat; chest pain; nausea; and vomiting.
During the eight-year study period, there were 2,322 emergency department visits for cannabis poisoning in older adults who were age 69 on average. Nearly 17% of those adults were simultaneously intoxicated with alcohol, about 38% had cancer and 6.5% had dementia. Compared with pre-legalization, legalization period No. 1 saw a twice higher rate of emergency department visits for cannabis poisoning. The rate during the second legalization period tripled that of pre-legalization.
“This study provides a cautionary tale of legalization of substances without adequate research, education, and counseling of users regarding adverse effects and safe usage, particularly in older adults,” said Dr. Lona Mody and Dr. Sharon K. Inouye, who weren’t involved in the research, in a commentary on the research.
Mody is the Amanda Sanford Hickey Professor of Internal Medicine at the University of Michigan in Ann Arbor. Inouye is director of the Aging Brain Center at the Hinda and Arthur Marcus Institute for Aging Research in Boston, and a professor of medicine at Harvard Medical School.
The sneaky effects of edibles
When it comes to explaining the higher rates, both unintentional and intentional use of edible cannabis are worth discussing, experts said.
“Edible cannabis products may be particularly dangerous because they are often indistinguishable from non-cannabis containing foods and may contain high amounts of THC (delta-9-tetrahydrocannabinol), the major active ingredient in both medical and recreational cannabis,” Mody and Inouye said.
In his own practice, Stall has seen a common scenario resulting from the lack of distinction, he said: An emergency department doctor is not able to figure out why an older adult patient is neurologically impaired via any typical tests — only for a toxicology screen to come back positive for cannabis, much to the patient’s surprise.
“The other thing is that cannabis today is very different than cannabis was as recently as the early ’90s and mid ’80s,” Stall explained. “Today’s cannabis extracts contain as much as 30 times more THC. … Older adults who may not have used cannabis in decades and are now trying again in this post-legalization era may not be aware.”
Additionally, age-related changes in organ function and how the drug is distributed throughout the body — as well as having health conditions or being on prescription drugs, especially psychoactive ones — can make it easier for an older adult to experience cannabis poisoning, Stall added.
Some people who intentionally consume cannabis edibles may not be aware that this form has a more delayed effect than an inhalant, which goes straight to the bloodstream, he said. Thinking the edible isn’t working, they take another one too soon and end up getting more than they bargained for.
There are also people whose prescription medications for pain management, insomnia or dementia symptoms aren’t effective, so they consume edibles for therapeutic purposes but without consulting a doctor first, Stall said.
Reducing harm from cannabis use
Abstaining from cannabis use may be “appropriate” for some individuals, but “I would be hesitant to give a blanket recommendation (that) no other adults should be using this because there are people who are going to use it even if that recommendation is given,” Stall said.
Therefore, preventing cannabis-related harms in older adults requires a multipronged approach, he added, including storing cannabis edibles in locked locations and in clearly identified packaging.
Products older adults intentionally use should have dosing information with specific guidance for older adults, “recognizing that the amount of drug they may need is a lot less than younger populations,” Stall said. “In geriatric medicine, we have a mantra: Start low and go slow. That same mantra applies here.”
The amount at which cannabis can become poisonous can depend on multiple personal factors, but some studies have indicated people should wait at least three hours before taking a second dose, Stall said.
Health care providers should also have open and judgment-free conversations with older adults about cannabis use and its benefits and risks, he added.
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Rickards - CBDC -
>>> The Last Hope Against Biden Bucks?
BY JAMES RICKARDS
MAY 21, 2024
https://dailyreckoning.com/the-last-hope-against-biden-bucks/
The Last Hope Against Biden Bucks?
For the past two years, I’ve been warning about the emergence of central bank digital currencies (CBDCs), or as I like to call the U.S. version, “Biden Bucks.”
Can good old-fashioned American federalism stop them? We’ll consider that possibility today.
If you’re a new reader who isn’t familiar with Biden Bucks, or an existing reader who could use a reminder, the Biden administration is planning to create a purely digital dollar.
These Biden Bucks would have the full backing of the U.S. Federal Reserve. They’d replace the cash (“fiat”) dollar we have now. And if Biden got his way, they’d be the sole, mandatory currency of the United States.
What does this mean for you? It would make your money less truly your own. It would be subject to government control.
We Just Want a More Efficient Payment System!
Biden Bucks are being peddled as a more efficient and convenient form of money. They say they’re just simplifying the payment system and making it more efficient. It’ll be much more convenient than the convoluted system we have today.
And they’re actually right about that. A digital dollar will be simpler, more efficient and more convenient to use.
Assume you buy gasoline at your local gas station. You pay with a credit card, which begins a payment process involving maybe five separate parties.
These include the merchant from whom you bought the gas, the credit card company, the bank and an intermediary called a merchant acquirer (no need to explain what a merchant acquirer does for today’s purposes, but just realize that it’s part of the payment system).
Ultimately the bank that issues your credit card sends you a bill, which you pay. You also pay a fee, maybe 3%, all to buy the gas.
But with a central bank digital currency, you could simply pay for the gas with an account you have at the Fed.
You would get rid of all the middlemen. You could bypass the merchant acquirer, the banks and the credit card company. A digital dollar would also eliminate many of the fees we currently face.
So yes, the payment system would be faster, cheaper, easier, more streamlined and more secure. What’s not to like as far as you’re concerned?
Well, if you’re concerned about your personal privacy, everything.
We Can’t Let You Destroy the Environment
Imagine this. To further advance his Green New Scam, what if Joe Biden and his cronies decided that gasoline needed to be rationed?
Your Biden Bucks could be rendered useless at the gas pump once you’ve purchased a certain amount of gasoline in a week! You want gas, but all you get is a one-word message: Declined.
How’s that for control?
Biden Bucks would create new ways for the government to control how much you could buy of an item, or even ban purchases altogether. It would keep score of every financial decision you make.
In a world of Biden Bucks, the government will even know your physical whereabouts at the point of purchase.
It’s a short step from there to putting you under FBI investigation if you vote for the wrong candidate or give donations to the wrong political party. If any of this sounds extreme, fantastical or otherwise far-fetched, it’s not.
Look at all the ways the government has abused its power to target its opposition in recent years.
Government Always Wants More Power
From unconstitutional “lawfare” against Trump, to the jailing of harmless J6 protesters who did nothing more than walk around the Capitol taking selfies (I’m not talking about those who committed violence that day, who should be punished to the full extent of the law), the federal government has overstepped its bounds.
Several months ago, the FBI and Financial Crimes Enforcement Network (FinCEN) sent letters to U.S. banks asking them to identify and provide a list to the government of customers using Zelle, Venmo and similar payment channels who mentioned “MAGA,” or “Trump” in their message traffic.
They also asked for details on bookstore purchases of religious articles including Bibles. Finally, they asked for details on those shopping at Cabela’s, Dick’s Sporting Goods or Bass Pro Shops, presumably on the view that those are places to buy guns and ammo.
This is a clear-cut violation of the First Amendment (free speech, freedom of religion), Second Amendment (right to bear arms) and Fourth Amendment (no unreasonable search and seizure).
It’s not a crime to write “MAGA,” etc. and therefore there’s no reasonable basis for suspecting a crime, and therefore no right to get the information without a warrant, which requires a judge. Any judge would likely reject the warrant request since there’s no probable cause.
This is an obvious case of profiling. If you shoot someone and you’re wearing a MAGA hat, you get arrested for the shooting, not the hat. In this case, the hat is enough to put you under surveillance because you have been profiled as “an enemy of the people” by the government’s definition.
I predicted this kind of surveillance would arise with the use of Biden Bucks since the government would have your financial records and would not have to go to the banks or get a warrant. I’d like to say I was wrong, but unfortunately I was right.
Why do you think it would stop there? Government always seeks to expand its power.
The Slippery Slope
In the latest example of federal overreach, the latest update of the IRS Internal Review Manual expands the scope of IRS investigation and audit activity to include anyone who impedes the government’s “ability to govern” or who poses a “threat to public safety or national security.”
Such phrases sound benign when applied to foreign terrorists or criminal masterminds. Then you realize they can just as easily be applied to political opponents, Trump supporters, podcasters, opinion writers, political organizers or everyday Americans who stand in the way of the administration’s ambitions.
The IRS can use threats of audits and investigations to intimidate social media platforms like Google, Facebook and Instagram into shutting down MAGA Republicans and others who oppose Biden policies.
The updated IRS manual also allows the IRS to leak taxpayer information to the Justice Department, the Department of Homeland Security or other agencies with enforcement power in order to sic those agencies on targeted victims.
This happens in a context where simple political opposition has been criminalized giving the IRS carte blanche to choose their victims. If you’re outspoken against the Biden administration, keep your tax records handy and get ready for a knock on the door.
So, again, why would you be surprised if the government used Biden Bucks to punish its political opponents? It’s just the natural progression.
Can it be stopped? There’s one possibility — and it comes from the individual states.
The Last Hope?
Last year, Indiana became the first state to reject CBDCs as a form of money. This year it enacted an additional measure that prohibited state agencies from accepting CBDCs as payments.
Florida, North Dakota, South Dakota, Tennessee, Utah, Alabama and Georgia have passed similar laws to block the imposition of CBDCs.
Will they succeed? It would be a triumph of federalism if they did, which has a rich American tradition.
But proponents of Biden Bucks invoke Article VI, Paragraph 2 of the Constitution, otherwise known as the federal Supremacy Clause. It establishes that the federal law takes precedence over state law.
Over the years, the federal government has gradually expanded its powers under the Supremacy Clause.
It might be an uphill battle, but the states might just be our best defense against the implementation of Biden Bucks.
<<<
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Rickards - CBDC -
>>> The Last Hope Against Biden Bucks?
BY JAMES RICKARDS
MAY 21, 2024
https://dailyreckoning.com/the-last-hope-against-biden-bucks/
The Last Hope Against Biden Bucks?
For the past two years, I’ve been warning about the emergence of central bank digital currencies (CBDCs), or as I like to call the U.S. version, “Biden Bucks.”
Can good old-fashioned American federalism stop them? We’ll consider that possibility today.
If you’re a new reader who isn’t familiar with Biden Bucks, or an existing reader who could use a reminder, the Biden administration is planning to create a purely digital dollar.
These Biden Bucks would have the full backing of the U.S. Federal Reserve. They’d replace the cash (“fiat”) dollar we have now. And if Biden got his way, they’d be the sole, mandatory currency of the United States.
What does this mean for you? It would make your money less truly your own. It would be subject to government control.
We Just Want a More Efficient Payment System!
Biden Bucks are being peddled as a more efficient and convenient form of money. They say they’re just simplifying the payment system and making it more efficient. It’ll be much more convenient than the convoluted system we have today.
And they’re actually right about that. A digital dollar will be simpler, more efficient and more convenient to use.
Assume you buy gasoline at your local gas station. You pay with a credit card, which begins a payment process involving maybe five separate parties.
These include the merchant from whom you bought the gas, the credit card company, the bank and an intermediary called a merchant acquirer (no need to explain what a merchant acquirer does for today’s purposes, but just realize that it’s part of the payment system).
Ultimately the bank that issues your credit card sends you a bill, which you pay. You also pay a fee, maybe 3%, all to buy the gas.
But with a central bank digital currency, you could simply pay for the gas with an account you have at the Fed.
You would get rid of all the middlemen. You could bypass the merchant acquirer, the banks and the credit card company. A digital dollar would also eliminate many of the fees we currently face.
So yes, the payment system would be faster, cheaper, easier, more streamlined and more secure. What’s not to like as far as you’re concerned?
Well, if you’re concerned about your personal privacy, everything.
We Can’t Let You Destroy the Environment
Imagine this. To further advance his Green New Scam, what if Joe Biden and his cronies decided that gasoline needed to be rationed?
Your Biden Bucks could be rendered useless at the gas pump once you’ve purchased a certain amount of gasoline in a week! You want gas, but all you get is a one-word message: Declined.
How’s that for control?
Biden Bucks would create new ways for the government to control how much you could buy of an item, or even ban purchases altogether. It would keep score of every financial decision you make.
In a world of Biden Bucks, the government will even know your physical whereabouts at the point of purchase.
It’s a short step from there to putting you under FBI investigation if you vote for the wrong candidate or give donations to the wrong political party. If any of this sounds extreme, fantastical or otherwise far-fetched, it’s not.
Look at all the ways the government has abused its power to target its opposition in recent years.
Government Always Wants More Power
From unconstitutional “lawfare” against Trump, to the jailing of harmless J6 protesters who did nothing more than walk around the Capitol taking selfies (I’m not talking about those who committed violence that day, who should be punished to the full extent of the law), the federal government has overstepped its bounds.
Several months ago, the FBI and Financial Crimes Enforcement Network (FinCEN) sent letters to U.S. banks asking them to identify and provide a list to the government of customers using Zelle, Venmo and similar payment channels who mentioned “MAGA,” or “Trump” in their message traffic.
They also asked for details on bookstore purchases of religious articles including Bibles. Finally, they asked for details on those shopping at Cabela’s, Dick’s Sporting Goods or Bass Pro Shops, presumably on the view that those are places to buy guns and ammo.
This is a clear-cut violation of the First Amendment (free speech, freedom of religion), Second Amendment (right to bear arms) and Fourth Amendment (no unreasonable search and seizure).
It’s not a crime to write “MAGA,” etc. and therefore there’s no reasonable basis for suspecting a crime, and therefore no right to get the information without a warrant, which requires a judge. Any judge would likely reject the warrant request since there’s no probable cause.
This is an obvious case of profiling. If you shoot someone and you’re wearing a MAGA hat, you get arrested for the shooting, not the hat. In this case, the hat is enough to put you under surveillance because you have been profiled as “an enemy of the people” by the government’s definition.
I predicted this kind of surveillance would arise with the use of Biden Bucks since the government would have your financial records and would not have to go to the banks or get a warrant. I’d like to say I was wrong, but unfortunately I was right.
Why do you think it would stop there? Government always seeks to expand its power.
The Slippery Slope
In the latest example of federal overreach, the latest update of the IRS Internal Review Manual expands the scope of IRS investigation and audit activity to include anyone who impedes the government’s “ability to govern” or who poses a “threat to public safety or national security.”
Such phrases sound benign when applied to foreign terrorists or criminal masterminds. Then you realize they can just as easily be applied to political opponents, Trump supporters, podcasters, opinion writers, political organizers or everyday Americans who stand in the way of the administration’s ambitions.
The IRS can use threats of audits and investigations to intimidate social media platforms like Google, Facebook and Instagram into shutting down MAGA Republicans and others who oppose Biden policies.
The updated IRS manual also allows the IRS to leak taxpayer information to the Justice Department, the Department of Homeland Security or other agencies with enforcement power in order to sic those agencies on targeted victims.
This happens in a context where simple political opposition has been criminalized giving the IRS carte blanche to choose their victims. If you’re outspoken against the Biden administration, keep your tax records handy and get ready for a knock on the door.
So, again, why would you be surprised if the government used Biden Bucks to punish its political opponents? It’s just the natural progression.
Can it be stopped? There’s one possibility — and it comes from the individual states.
The Last Hope?
Last year, Indiana became the first state to reject CBDCs as a form of money. This year it enacted an additional measure that prohibited state agencies from accepting CBDCs as payments.
Florida, North Dakota, South Dakota, Tennessee, Utah, Alabama and Georgia have passed similar laws to block the imposition of CBDCs.
Will they succeed? It would be a triumph of federalism if they did, which has a rich American tradition.
But proponents of Biden Bucks invoke Article VI, Paragraph 2 of the Constitution, otherwise known as the federal Supremacy Clause. It establishes that the federal law takes precedence over state law.
Over the years, the federal government has gradually expanded its powers under the Supremacy Clause.
It might be an uphill battle, but the states might just be our best defense against the implementation of Biden Bucks.
<<<
---
>>> Netanyahu’s split with Biden and the Democrats was years in the making
The Washington Post
by Yasmeen Abutaleb, Steve Hendrix, Tyler Pager
5-26-24
https://www.msn.com/en-us/news/politics/netanyahu-s-split-with-biden-and-the-democrats-was-years-in-the-making/ar-BB1n4jWX?cvid=d6eb84bb3a9d4714edd224ba19453811&ei=27
When President Barack Obama hosted Prime Minister Benjamin Netanyahu in the Oval Office in 2014, the Israeli leader lectured him about Gaza’s future, a Palestinian state and an Iranian nuclear deal in a tone that Obama found condescending and dismissive.
After the meeting, an aide asked how it went. Netanyahu “peed on my leg,” Obama replied, according to two people familiar with the exchange who spoke on the condition of anonymity to disclose a private conversation.
The moment was emblematic of a dynamic that is culminating in the bitter debates over Israel now erupting across the American political landscape. Over the past 16 years, Netanyahu has departed sharply from his predecessors’ studious bipartisanship to embrace Republicans and disdain Democrats, an attitude increasingly mirrored in each party’s approach to Israel.
The war in Gaza has vastly accelerated the shift, as the once-broad support from Americans for Israel is shattering along partisan and generational lines. The divide, playing out in angry protests and Democratic debates, marks a fundamental shift in U.S. politics.
“I don’t think there’s any other way to say it: Netanyahu has been an absolute disaster for Israel’s support around the world,” said Sen. Chris Murphy (D-Conn.). “Here in the United States, Netanyahu made a reckless decision to integrate himself with the Republican Party, taking very clear sides in U.S. politics, and it has come with serious consequences.”
Netanyahu is not solely responsible for the shift. Israel has moved steadily to the right and the Democratic Party to the left in recent years, while memories of the Holocaust, which long undergirded Americans’ sympathy for Israel, have increasingly faded into the past. But Netanyahu has led the change with a strategy of aligning himself with the American right, former aides say — a decision that underlies his growing rift with Biden, who personifies the traditional Democratic affection for Israel.
The stakes for Israel could hardly be greater, as leaders on all sides agree that American military and diplomatic support is critical to the viability of the Jewish state as it faces powerful neighbors and a growing number of diplomatic challenges. The United States is by far Israel’s biggest backer.
Murphy, a member of the Senate Foreign Relations Committee, said he has personally warned Netanyahu several times over the past 10 years about the risks of aligning himself so closely with Republicans. The prime minister, he said, “has never wanted to listen.”
In the past, Netanyahu’s strategy was reflected in such moves as going behind Obama’s back to address a Republican-led Congress in 2015 to blast the president’s Iran policy, or signaling his preference for GOP presidential candidates Mitt Romney and Donald Trump. In the current conflict, his rejection of Biden’s pleas on delivering aid and protecting civilians have at times taken on an acid tone; a top Netanyahu cabinet minister recently went so far as to post on X, “Hamas ♥ Biden.”
Republicans, in turn, have rushed to highlight their embrace of Netanyahu and attack Biden over any sign of divergence from the prime minister’s policies. House Speaker Mike Johnson (R-La.) has said he plans to invite Netanyahu to address a joint session of Congress at a time of deep White House concerns about his policies. Rep. Elise Stefanik (R-N.Y.), a member of her party’s congressional leadership, recently traveled to Israel to assure members of the Knesset, Israel’s parliament: “There is no excuse for an American president to block aid to Israel.”
Some Israeli leaders are worried that Netanyahu is permanently wrecking the unified American support for Israel. Former Israeli prime minister Ehud Olmert, a onetime member of Netanyahu’s Likud Party, said in an interview that the current leader’s partisan strategy has “caused an erosion in the public support for the State of Israel.”
“I think that this is an acute threat to the basic needs of the state of Israel,” Olmert said. “Once we have threatened this consensus that both parties are equally important for us, once it starts to erode, it can be a very serious danger to what the American system, the American political bodies, will feel obliged to as far as Israel is concerned.”
The currents of Israeli and American politics are far too complex to attribute to a single person, even one as influential as Netanyahu, 74, who has served on and off as prime minister since 1996. In Israel, an array of social, political and security factors have pushed the country steadily to the right, ending its tradition of left-leaning leaders like Shimon Peres and Ehud Barak.
In the United States, Black activists increasingly identify with the Palestinian cause, even as they become a more important part of the Democratic Party and denounce Israel as a “colonial” entity. The Boycott, Divestment and Sanctions (BDS) movement began years ago to protest Israel’s handling of the occupied territories.
But nothing has shattered progressives’ sympathy for Israel like Netanyahu’s rhetoric and actions, Democrats say, particularly the high civilian death toll in Gaza and widespread hunger gripping the enclave because of severely restricted aid.
“Historically, Israel has always had a lot of support in the United States and around the world, and that’s because it was home to Jews who suffered unspeakable crimes during World War II,” said Sen. Bernie Sanders (I-Vt.), who is Jewish and lost relatives in the Holocaust. “But what I think is clear, especially among the younger generation, is the Netanyahu government’s war against the Palestinian people and their killing of tens of thousands of people … has significantly diminished support for Israel and especially among young people, which I think does not bode well for Israel’s future.”
Netanyahu’s office declined to comment for this article, though in the past he has publicly said Israel must be on good terms with both parties. A senior Israeli official, speaking on the condition of anonymity because he was not authorized to comment on the matter, said Netanyahu has always acted in good faith with American leaders.
“The prime minister has made good on every commitment he made,” the official said.
But Netanyahu’s divisive strategy has been evident for years to leaders in both countries. It emerged with particular clarity when Obama took office in 2009.
Michael Oren, Netanyahu’s ambassador to Washington at the time, said there were two schools of thought in the prime minister’s inner circle. Oren, who was in the minority, advocated nurturing ties with both Republicans and Democrats to ensure Israel had a strong relationship with all U.S. presidents.
The stronger faction — spearheaded by Ron Dermer, who succeeded Oren as ambassador and is now Netanyahu’s chief adviser — argued that Democrats’ growing sympathy for Palestinians was beginning to threaten Israel’s interests. That side asserted that “it was too late” to find productive ground with most Democrats, “that bipartisanship was already dead and if you have limited resources and energy, you should devote them to building up your base,” Oren recalled.
Dermer declined to comment for this article.
Olmert, the former prime minister, recalled Netanyahu asking him for advice before traveling to the United States to meet Obama for the first time in 2009. Olmert cautioned Netanyahu against being condescending or lecturing the U.S. president, whom many conservative Israelis viewed as naively sympathetic with the Palestinians.
Instead, he said Netanyahu “did the opposite,” taking a dismissive tone. “He was very arrogant and very patronizing, and he started this process which drew apart Israel from not just the president, but the party that he represented,” Olmert said.
That frosty relationship lasted throughout Obama’s eight-year tenure. Ben Rhodes, Obama’s deputy national security adviser, said that whenever Netanyahu felt Obama was pressuring him, he would go to Republicans in Congress who would then issue statements blasting Obama and create a multiweek political headache for the White House.
“He was duplicitous, self-interested and relentlessly meddled in American politics to undermine President Obama, and frankly was indistinguishable from a Republican political operative in his tactics,” Rhodes said. “Bibi Netanyahu treated Barack Obama differently than any U.S. president had been treated by an Israeli leader.”
Biden, who was then vice president and had known Netanyahu from his years on the Senate Foreign Relations Committee, would often use private meetings to try to smooth over tensions, aides recalled. Biden, unlike other Obama officials, liked Netanyahu personally and felt he could be reasonable in private despite his public bluster.
One such incident came when Obama delivered a speech at the State Department in May 2011 that, among other things, laid out proposed parameters for an Israeli-Palestinian peace agreement. The next day, Netanyahu dressed down Obama over the proposal in an Oval Office, aides say, and publicly misrepresented the president’s position.
Netanyahu walked into the White House a couple of days later and saw Biden, who said, “Let’s fix this,” recalled Dennis Ross, a former Middle East envoy who served in multiple administrations, including Obama’s.
“Biden saw himself as the guy who had to be constantly managing the relationship or repairing it when it looked like it was going off the rails,” Ross said. “He felt he understood the Israelis better and Bibi better” than Obama did.
Yet Biden himself could not escape Netanyahu’s snubs. When he visited Israel in March 2010, Netanyahu’s government provocatively announced a new set of Israeli settlements in East Jerusalem. Eight months later, Biden and Netanyahu met in New Orleans — and Israel again took the occasion to announce new settlements.
Oren recalled Antony Blinken, then Biden’s national security adviser and now secretary of state, saying to him, “You guys are really out to destroy this relationship, aren’t you?”
“What could I do?” Oren said. “I just shrugged.”
But Netanyahu’s most inflammatory snub of Obama was his surprise visit to the United States in 2015, when the president was negotiating a nuclear deal with Iran that the prime minister, like many Republicans, strongly opposed.
Netanyahu accepted an invitation from then-House Speaker John A. Boehner (R-Ohio) to address a joint session of Congress. He did not tell Obama he was coming, a virtually unprecedented breach of protocol, and Obama aides say they learned about the planned speech from a news report.
The address came two weeks before Israel’s elections in which Netanyahu was campaigning on his ability to stand up for the country’s security in Washington. Yohanan Plesner, president of the Israel Democracy Institute, said the prime minister had “basically used a joint session of the U.S. Congress for an election rally back in Israel.”
During the speech itself, Netanyahu acknowledged the controversy. “I deeply regret that some perceive my being here as political — that was never my intention,” he said.
By the final year of Obama’s term, some at the White House had an unofficial policy that Dermer was banned from the premises, according to two former Obama officials who spoke on the condition of anonymity to discuss a sensitive matter. (One aide said Dermer still worked with the White House on myriad issues.)
Although many of Obama’s closest aides say privately they came to detest Netanyahu, Biden’s devotion to Israel overrode any annoyance he might have felt. Biden had first visited the country as a young senator in 1973, meeting Prime Minister Golda Meir when Israel’s leaders were socialists, the kibbutz movement was powerful and the Holocaust was less than 30 years in the past.
In the final month of Obama’s term, the president and his top aides were debating a U.N. Security Council resolution declaring Israeli settlements in the occupied territories illegal. Nearly everyone on the call agreed that the United States should abstain to send Netanyahu a sharp message, letting the resolution pass rather than vetoing it as usual.
Biden disagreed, warning Obama that doing so would be a “black mark” on his legacy. Obama moved ahead with the abstention anyway.
When Trump became president in 2017, he and Netanyahu formed an immediate alliance — fostered in part by son-in-law Jared Kushner, who had family ties to Netanyahu. Trump relocated the U.S. embassy from Tel Aviv to Jerusalem, something presidents of both parties had avoided to preserve options for the peace process. He also recognized Israeli sovereignty over the Golan Heights, upending a half-century of U.S. policy.
Netanyahu, for his part, found numerous ways to show his attachment to Trump. He named a Golan Heights settlement Trump Heights. He erected a massive campaign poster of himself shaking hands with Trump over the slogan, “Netanyahu — in a different league.”
In recent weeks, Trump has waffled publicly about whether Israel should continue its war in Gaza or “finish it.” And he has made it clear that he resents Netanyahu for acknowledging Biden’s victory in 2020, and the two have not spoken in years.
By the time Biden took office, the rift between Netanyahu and Democrats was so marked that the president withheld the traditional White House invitation for almost a year. Relations grew even cooler when the prime minister introduced a controversial plan to rein in Israel’s judiciary, as Biden and other Democrats made clear that they saw it as a threat to the countries’ shared values.
But when Hamas attacked Israel last Oct. 7, killing some 1,200 people and taking about 250 hostages, everything changed — at first.
Biden unwaveringly backed Netanyahu in public in hopes of influencing him in private, even as the White House grew increasingly alarmed at the growing civilian death toll from Israel’s assault on Gaza, which has now surpassed 35,000. Netanyahu, whose political future was thrown into doubt by the attacks, initially appeared deeply grateful for Biden’s support.
But old tensions resurfaced as the conflict dragged on and Biden urged Israel to do more to protect civilians and let aid into Gaza. The two leaders’ private conversations have become testier and their public exchanges colder, as Biden’s own political prospects are threatened by anger from many Democrats over his handling of Gaza.
Rhodes, the former Obama official, said that for all Netanyahu’s aggressive policies and rhetoric, he is an accelerant rather than the cause of the growing rift between Democrats and Israel.
“It was building for a long time before this point. It will continue to evolve after this point. But unless there’s some totally unforeseen shift in Israeli politics, this is not just Netanyahu,” Rhodes said. “There was the artificial sheen of bipartisanship, but I think that’s in the past now.”
<<<
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Keith Richards shows how it's done -
#9 Dream -
Darkness / Earth In Search of a Sun -
RIP Jeff Beck -
Slapocalypse -
Wild Night -
Fire on the Mountain - live -
Are You Ready For The Country -
Old Man - live in UK -
Bad Company - Live
Blues Man -
Northwinds -
Camel's Night Out -
Love Struck Baby - SRV -
Bigworld, With Acurx, hopefully partnering interest is as keen as it sounds.
One thing with the reliance on ATM funding is that Luci will likely sell some shares whenever the stock price gets a pop. Investors know this, so this could mute the periodic bounces. Luci seems very averse to dilution, and is raising small sums incrementally via the ATM. This approach has its advantages, but it could also adversely affect the partnering and M+A terms by keeping the stock price muted.
On the clinical side, one problem was the lack of availability of key durability data announced back in Jan. It turned out that only 5 of the 15 Ibeza patients from the Phase 2b had agreed to be followed longer term (!) This is a big problem since the durability data is so key in showing Ibeza's main advantage over Vancomycin (lack of relapses). The 5 patients who agreed to the follow up analysis didn't relapse, which is good, but what about the other 10 Ibeza patients? Presumably there's no way to get this missing data, but I'm figuring these patients could at least be contacted on the phone by Acurx and/or interested pharma partners, and asked about their symptoms, whether the GI distress had returned, etc. So not exactly hard data, but still very useful anecdotal evidence of durability.
The clinical side is also clouded by the fact that one of the Ibeza Phase 2b patients failed on efficacy (1 out of the 16 Ibeza patients). Meanwhile, none of the Vancomycin patients failed on efficacy (0 out of 16). So this is a red flag, and when announced in early Nov the stock was cut in half.
Another problem on the clinical side is that in the follow up durability data in Jan, all the Vanc patients who had agreed to be followed longer term showed no relapses (7 out of 7), which was the same as Ibeza (5 out of 5). Durability is the key theoretical advantage for Ibeza, but unfortunately this could not be demonstrated by such a tiny Phase 2b, made even tinier because so many patients had refused to be followed longer term.
So lots of unknowns, but Luci's recent comments sound hopeful that there will be significant partnering interest.
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Rickards -- Land, Art, Gold, Diamonds -
>>> The “Old Money” Secret to Wealth
BY JAMES RICKARDS
MAY 20, 2024
https://dailyreckoning.com/the-old-money-secret-to-wealth/
The “Old Money” Secret to Wealth
I believe that we’re heading for another liquidity crisis or financial crisis. That doesn’t mean it’ll happen tomorrow, but there are disturbing signs that it might not be too far off.
It doesn’t mean the world’s going to end. But investors who aren’t prepared could see large portions of their portfolios wiped out. It could take years to rebuild them, and many investors just don’t have the time to recoup those losses.
But how do you prepare? You might want to start by looking at how “old money” preserves its wealth. Today I want to explore that.
On a cool evening in the fall of 2012, I joined a private dinner in Rome with a small group of the world’s wealthiest investors.
We dined at Palazzo Colonna, a private palace that’s been owned by one family for 31 generations or 900 years. My dinner companions were mainly Europeans, some Asians and relatively few from the United States.
Amid marble, gold, paintings and palatial architecture, I mused on the meaning of old money compared with the new money crowd that congregated for cocktails near the Connecticut home in which I lived at the time.
Old Money vs. New Money
Old money has proved they know how to preserve wealth over centuries, while the jury is still out on new money busy buying yachts, jets and exotic vacations.
In the United States, the “old money” is generally about 150 years old with fortunes dating to the mid-19th century. Families in this category include the Vanderbilts, Rockefellers and Carnegies.
Some U.S. family fortunes are almost 200 years old. But most of the great wealth today isn’t old at all.
It comes from success in the past 30–50 years including Mark Zuckerberg, Jeff Bezos and Warren Buffett.
Yet in Rome I was ensconced in a 900-year-old fortune still intact. Here was a family fortune that had survived the Black Death, the Thirty Years’ War, the wars of Louis XIV, the Napoleonic Wars, both world wars, the Holocaust and the Cold War.
I knew the Colonna family weren’t unique; there were other families like them throughout Europe who kept a low profile. These families are only too happy to be overlooked by the Forbes 400. That type of wealth and longevity could not be due merely to good luck.
In 900 years, too many cards are turned from the deck for luck alone to be sufficient. There had to be a technique.
How Do They Do It?
I turned to a striking Italian brunette to my right and asked, “How does a family keep its wealth for so long? It defies the odds. There must be a secret.”
She smiled and said, “Of course. It’s easy.” You just invest in “the things that last.”
She added that the secret was, “a third, a third and a third.”
She paused, knowing I needed more, and continued, “You keep one third in land, one third in art and one third in gold.” Her advice followed the first rule of investing — diversification
She meant that wealth should be allocated one-third to land, one-third to gold and one-third to fine art (of course, some cash is needed for operating costs and some business investment is fine also).
But the “old money” shows that true wealth preservation comes from art, gold and land rather than stocks and bonds.
That doesn’t mean you shouldn’t own stocks and bonds. You should — I own them myself. But for long-term wealth preservation, you should also dedicate a portion of your portfolio to the assets that “old money” invests in.
Many of my readers know that I recommend they hold 10% of their investable assets in gold. I’ve also written about the value of fine art.
But there’s another old money asset you might want to consider: diamonds.
Diamonds Are Forever
The cliche from ad campaigns about diamonds being “forever” rings true. And crucially, it’s no longer just a haven asset for the super wealthy. Diamonds are a protection asset for investors with a resale value.
As strategist Yoni Jacobs writes, while investors focus their attention on gold and silver (for good reason) they miss important benefits of diamonds.
Consider these four reasons he lists as to why diamonds are a good investment:
1. Highest Value per Unit Weight. Diamonds are the most valuable items in the world. And they are the most portable. A small number of diamonds can make you wealthy. So this portability is essential to store wealth in case of emergency. Would you rather carry a few diamonds in a small bag or have to carry gold bars?
2. Diamonds Have Industrial Use. Having the highest hardness and heat conductivity of any bulk material, diamonds possess tremendous value for industrial use. In fact, 80% of mined diamonds are used industrially. Many investors think the value of diamonds is only based on demand and speculation. The reality is they serve an important industrial purpose.
3. Necessary for Global Growth. With infrastructure projects developing in many emerging countries, roads and highways must be built. Diamonds are used in many tools for stone cutting, highway building and other technologies. Demand for diamonds used in these ongoing projects will increase, along with higher prices.
4. Diamonds Have Emotional Value. The value that diamonds give as gifts is immeasurable. Whether it is for engagement rings, anniversary gifts or Valentine’s Day presents, diamonds will always be a valuable asset and in demand for emotional relationships around the world. Diamonds’ portability may be one of the most important things to consider as the world faces turmoil.
Priceless
In some future crisis, when gold has spiked to $10,000 per ounce, a similar weight of diamonds would take you into the tens of millions range!
And like land, gold or art, diamonds are nondigital. They cannot be wiped out by power outages, asset freezes or cyberbrigades. That’s crucial in a time of looming central bank digital currencies (CBDCs) or as I call them in the U.S. context, “Biden Bucks.”
The biggest difference between diamonds and gold is that the market for gold is much larger. Gold is a more liquid investment that’s easier to assign a price to. But that is changing as we speak.
In fact, this year, the world’s second regulator-approved, exchange-tradable diamond commodity will launch. It’s a sign of the growing demand for alternatives to cash as a store of wealth.
I’m not suggesting you just rush out to buy diamonds. There are many factors that contribute to a diamond’s value. You need to do your homework and maybe solicit professional assistance.
But you want to create a portfolio that can stand the test of time. Land, gold and fine art are among that.
Diamonds can be too.
<<<
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Land, Art, Gold, Diamonds - >>> The “Old Money” Secret to Wealth
BY JAMES RICKARDS
MAY 20, 2024
https://dailyreckoning.com/the-old-money-secret-to-wealth/
The “Old Money” Secret to Wealth
I believe that we’re heading for another liquidity crisis or financial crisis. That doesn’t mean it’ll happen tomorrow, but there are disturbing signs that it might not be too far off.
It doesn’t mean the world’s going to end. But investors who aren’t prepared could see large portions of their portfolios wiped out. It could take years to rebuild them, and many investors just don’t have the time to recoup those losses.
But how do you prepare? You might want to start by looking at how “old money” preserves its wealth. Today I want to explore that.
On a cool evening in the fall of 2012, I joined a private dinner in Rome with a small group of the world’s wealthiest investors.
We dined at Palazzo Colonna, a private palace that’s been owned by one family for 31 generations or 900 years. My dinner companions were mainly Europeans, some Asians and relatively few from the United States.
Amid marble, gold, paintings and palatial architecture, I mused on the meaning of old money compared with the new money crowd that congregated for cocktails near the Connecticut home in which I lived at the time.
Old Money vs. New Money
Old money has proved they know how to preserve wealth over centuries, while the jury is still out on new money busy buying yachts, jets and exotic vacations.
In the United States, the “old money” is generally about 150 years old with fortunes dating to the mid-19th century. Families in this category include the Vanderbilts, Rockefellers and Carnegies.
Some U.S. family fortunes are almost 200 years old. But most of the great wealth today isn’t old at all.
It comes from success in the past 30–50 years including Mark Zuckerberg, Jeff Bezos and Warren Buffett.
Yet in Rome I was ensconced in a 900-year-old fortune still intact. Here was a family fortune that had survived the Black Death, the Thirty Years’ War, the wars of Louis XIV, the Napoleonic Wars, both world wars, the Holocaust and the Cold War.
I knew the Colonna family weren’t unique; there were other families like them throughout Europe who kept a low profile. These families are only too happy to be overlooked by the Forbes 400. That type of wealth and longevity could not be due merely to good luck.
In 900 years, too many cards are turned from the deck for luck alone to be sufficient. There had to be a technique.
How Do They Do It?
I turned to a striking Italian brunette to my right and asked, “How does a family keep its wealth for so long? It defies the odds. There must be a secret.”
She smiled and said, “Of course. It’s easy.” You just invest in “the things that last.”
She added that the secret was, “a third, a third and a third.”
She paused, knowing I needed more, and continued, “You keep one third in land, one third in art and one third in gold.” Her advice followed the first rule of investing — diversification
She meant that wealth should be allocated one-third to land, one-third to gold and one-third to fine art (of course, some cash is needed for operating costs and some business investment is fine also).
But the “old money” shows that true wealth preservation comes from art, gold and land rather than stocks and bonds.
That doesn’t mean you shouldn’t own stocks and bonds. You should — I own them myself. But for long-term wealth preservation, you should also dedicate a portion of your portfolio to the assets that “old money” invests in.
Many of my readers know that I recommend they hold 10% of their investable assets in gold. I’ve also written about the value of fine art.
But there’s another old money asset you might want to consider: diamonds.
Diamonds Are Forever
The cliche from ad campaigns about diamonds being “forever” rings true. And crucially, it’s no longer just a haven asset for the super wealthy. Diamonds are a protection asset for investors with a resale value.
As strategist Yoni Jacobs writes, while investors focus their attention on gold and silver (for good reason) they miss important benefits of diamonds.
Consider these four reasons he lists as to why diamonds are a good investment:
1. Highest Value per Unit Weight. Diamonds are the most valuable items in the world. And they are the most portable. A small number of diamonds can make you wealthy. So this portability is essential to store wealth in case of emergency. Would you rather carry a few diamonds in a small bag or have to carry gold bars?
2. Diamonds Have Industrial Use. Having the highest hardness and heat conductivity of any bulk material, diamonds possess tremendous value for industrial use. In fact, 80% of mined diamonds are used industrially. Many investors think the value of diamonds is only based on demand and speculation. The reality is they serve an important industrial purpose.
3. Necessary for Global Growth. With infrastructure projects developing in many emerging countries, roads and highways must be built. Diamonds are used in many tools for stone cutting, highway building and other technologies. Demand for diamonds used in these ongoing projects will increase, along with higher prices.
4. Diamonds Have Emotional Value. The value that diamonds give as gifts is immeasurable. Whether it is for engagement rings, anniversary gifts or Valentine’s Day presents, diamonds will always be a valuable asset and in demand for emotional relationships around the world. Diamonds’ portability may be one of the most important things to consider as the world faces turmoil.
Priceless
In some future crisis, when gold has spiked to $10,000 per ounce, a similar weight of diamonds would take you into the tens of millions range!
And like land, gold or art, diamonds are nondigital. They cannot be wiped out by power outages, asset freezes or cyberbrigades. That’s crucial in a time of looming central bank digital currencies (CBDCs) or as I call them in the U.S. context, “Biden Bucks.”
The biggest difference between diamonds and gold is that the market for gold is much larger. Gold is a more liquid investment that’s easier to assign a price to. But that is changing as we speak.
In fact, this year, the world’s second regulator-approved, exchange-tradable diamond commodity will launch. It’s a sign of the growing demand for alternatives to cash as a store of wealth.
I’m not suggesting you just rush out to buy diamonds. There are many factors that contribute to a diamond’s value. You need to do your homework and maybe solicit professional assistance.
But you want to create a portfolio that can stand the test of time. Land, gold and fine art are among that.
Diamonds can be too.
<<<
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Full transcript - >>> Q1 2024 Acurx Pharmaceuticals Inc Earnings Call
Thomson Reuters
May 15, 2024
https://finance.yahoo.com/news/q1-2024-acurx-pharmaceuticals-inc-024052823.html
Participants
David P. Luci; Co-Founder, President, CEO, Corporate Secretary & Director; Acurx Pharmaceuticals, Inc.
Robert G. Shawah; Co-Founder & CFO; Acurx Pharmaceuticals, Inc.
Robert J. DeLuccia; Co-Founder & Executive Chairman; Acurx Pharmaceuticals, Inc.
Antonio Eduardo Arce; MD of Equity Research & Senior Healthcare Analyst; H.C. Wainwright & Co, LLC, Research Division
James Francis Molloy; MD of Equity Research and Biotechnology & Specialty Pharmaceuticals Equity Research Analyst; Alliance Global Partners, Research Division
Unidentified Participant
Presentation
Operator
Hello, and welcome to the Acurx Pharmaceuticals First Quarter 2024 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the conference over to CFO, Robert Shawah. Please go ahead.
Robert G. Shawah
Thank you, Kevin. Good morning, and welcome to our call. This morning we issued a press release providing financial results and company highlights for the first quarter of 2024, which is available on our website at acurxpharma.com. Joining me today is Dave Luci, President and CEO of Acurx, who will give a corporate update and outlook; as well as our Executive Chairman, Bob DeLuccia. After that, I'll provide some highlights of the financials from the quarter ended March 31, 2024, then turn the call back over to Dave and Bob for their closing remarks.
As a reminder, during today's call, we'll be making certain forward-looking statements. These forward-looking statements are based on current information, assumptions, estimates and projections about future events that are subject to change and involve a number of risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Investors should consider these risks and other information described in our filings made with the Securities and Exchange Commission, including our quarterly report on Form 10-Q, which we filed on Tuesday, May 14, 2024.
You're cautioned not to place undue reliance on these forward-looking statements, and Acurx disclaims any obligation to update such statements anytime in the future. This conference call contains time-sensitive information that's accurate only as of the date of this live broadcast today, May 15, 2024.
I'll now turn the call over to Dave Luci. Dave?
David P. Luci
Thanks, Rob. Good morning, everyone, and thanks for joining us to review our financial results for the first quarter and also to hear some exciting recent updates. Then we'd be pleased to take any questions. First, I'll summarize some of our key activities for the first quarter of 2024, or in some cases, shortly thereafter. In January, we announced positive comparative microbiology and microbiome data for ibezapolstat, our lead antibiotic candidate in C. diff patients from the Phase IIb clinical trial segment.
Ibezapolstat outperformed vancomycin, a standard of care, showing eradication of fecal C. difficile at day 3 of treatment in 15 of 16 treated patients, 94%, versus vancomycin, which had eradication of C. difficile in 10 of 14 treated patients or 71%. Additional data from the Phase IIb clinical trial showed ibezapolstat, but not vancomycin, consistently preserved and allowed regrowth of key gut bacteria species believed to confer health benefits, including preventing recurrent C. diff infection.
Additional data from exploratory endpoints will provide further favorable separation between these 2 therapeutic options in our Phase III clinical trial program and ultimately in the marketplace, if approved. We remain particularly excited about the dual impact of ibezapolstat to treat acute C. difficile on the one hand, while appropriately managing the long-term care of each patient's microbiome, which we believe is truly exceptional for antibiotic therapy.
Having robust preclinical, clinical and manufacturing data to date, we submitted, in January, a formidable information package to the FDA, along with a request for an end of Phase II meeting, which was granted on February 26, and the meeting was convened on April 17. At the FDA meeting, we reached agreement on key elements of our Phase III program. including, importantly, agreement with the FDA regarding readiness to proceed to Phase III, as well as agreement on the regulatory pathway for a new drug application filing for marketing approval in the U.S. We will press release further details on the FDA meeting premarket this morning.
In February, we announced that the European Medicines Agency approved our application to be designated as a small to medium-sized enterprise or SME in Europe, which provides for certain benefits, including fee reductions and other support from the agency for seeking a marketing authorization in Europe. We attended the European Society of Microbiology and Infectious Disease or ESCMID Scientific Congress in April 2024, where Dr. Kevin Garey, Professor and Chair, University of Houston, College of Pharmacy, and the Principal Investigator for Microbiology and Microbiome aspects of our clinical trial program, and our Scientific Advisory Board member, provided an oral presentation of Phase II data entitled, "A Phase II Randomized, Double-Blind Study of Ibezapolstat Compared with Vancomycin for the Treatment of C. difficile Infection". The presentation included additional analyses of clinical and microbiological data and is available on our website at www.acurxpharma.com. The complete Phase II results are being prepared for submission to a prominent scientific journal for publication this year.
Throughout the rest of this year, we'll continue to roll out our Phase II results in either oral presentations or scientific posters, or in some cases both, which will include results from new analyses as data become available at various prominent scientific conferences, including the Houston C. diff & Microbiome Conference later this month, the Anaerobe Society of the Americas Annual Conference in July, the World Antimicrobial Resistance Conference in September. Also in September is the International C. diff Symposium, and of course, the Annual Meeting of the Infectious Disease Society of America, or ID Week, in October.
Throughout the first quarter, we continued preparations for Phase III trials, including advances in micro and manufacturing, CRO selection and clinical site screening, and building a team of international drug development experts to support our Phase III mandate. To ensure Phase III clinical trial enrollment as quickly as possible, we're adding substantially more clinical trial sites, way above the number used to conduct the U.S.-only Phase II trials.
We're now finalizing costs and time lines and our plan is to conduct the required 2 Phase III registration trials consecutively, not concurrently, given the size of our company, and need to use our financial resources most efficiently. The time line to conduct our Phase III trials is not a concern since ibezapolstat will have a rolling 10 years of regulatory exclusivity in the U.S. from the date of the FDA approval, with similar exclusivity available in Europe, the U.K., Japan, and Canada.
We will continue to seek a strategic transaction for the company, including a potential partnership for the further development and potential commercialization of ibezapolstat, alongside preparation for Phase III and our build-out strategy. At this time, we have no commitments to our potential partners or others to report. But now having FDA confirmation of the registration plan, this has become an active initiative.
As we've consistently reported, ibezapolstat clinical results continue to outperform in a series of potentially life-threatening infection. The CDC categorizes C. difficile as an urgent threat and calls for new classes of antibiotics for initial treatment that also have a low incidence of recurrence. Ibezapolstat is also FDA fast track designated for the treatment of C. difficile infection.
Initially, we believe ibezapolstat, if approved, could make a favorable impact by reducing the cost burden of recurrent C. diff infection on the U.S. health care system, which is estimated at $4.7 billion annually. We do believe the best is yet to come.
And now back to our CFO, Rob Shawah, to guide you through the highlights of our financial results for the first quarter. Rob?
Robert G. Shawah
Thanks, Dave. Our financial results for the first quarter ended March 31, 2024, were included in our press release issued earlier this morning. The company ended the quarter with cash totaling $8.9 million compared to $7.5 million as of December 31, 2023. During the first quarter, the company sold an additional 1,121,793 shares under its ATM financing program with gross proceeds of approximately $4.4 million.
Research and development expenses for the 3 months ended March 31, 2024, were $1.6 million compared to $1 million for the 3 months ended March 31, 2023. The increase was due primarily to an increase in manufacturing-related costs during the quarter. General and administrative expenses for the 3 months ended March 31, 2024, were $2.8 million compared to $1.9 million for the 3 months ended March 31, 2023. The increase was due primarily to a $0.7 million increase in professional fees and a $0.2 million increase in noncash share-based compensation.
The company reported a net loss of $4.4 million or $0.28 per diluted share for the 3 months ended March 31, 2024, compared to a net loss of $2.9 million or $0.25 per diluted share for the 3 months ended March 31, 2023, all for the reasons we previously mentioned. The company had 15,757,102 shares outstanding as of March 31, 2024.
With that, I'll turn the call back over to Dave. Dave?
David P. Luci
Thanks, Rob, and thanks to all of you for joining us today. I'll now ask Bob DeLuccia, our Executive Chairman, who managed the FDA post-Phase II meeting process, to provide his perspective on the FDA meeting in the company's Phase III mandate. Bob?
Robert J. DeLuccia
Yes. Thanks, Dave. So let me just add a few thoughts on top of Dave's comments about our end of Phase II meeting with the FDA. In general, it was a very thorough, productive, and successful meeting regarding 4 things.
First, we had overall agreement that was reached based upon the strength of our preclinical and Phase II clinical trial results, including the anticipated safety database, we're ready to move forward with plans for our Phase III program.
Second, with respect to the Phase III clinical trial design, as expected, it will be the same design as our Phase IIb trial, which is noninferiority to vancomycin, with the primary endpoint being clinical cure after 10 days of treatment, and a secondary endpoint of sustained clinical cure about 30 days after the end of treatment.
Third, we agreed on the statistical analysis patient population, which will be a modified intent to treat or what's called MITT population, with an estimated 450 subjects in that MITT group. And this is roughly what we had expected and will now be in sync with requirements for an EMA clinical trial authorization.
And lastly, agreement on the registration program for 2 noninferiority trials versus vancomycin, which would be required for marketing approval. Now I'd also add that we were very pleased with suggestions from the FDA, including ultimate labeling and overall supportive tone of the FDA from our submitted data to date and our plan going forward. So bottom line, we now have a complete regulatory road map to move forward with our Phase III program, which is the last clinical development step toward marketing registration of ibezapolstat globally. For a small entrepreneurial company like Acurx, this is a very significant milestone that we've reached.
And Dave, if you don't mind, I'd like to add one more thing just on top of what you said. Recall that ibezapolstat has FDA fast track designated status due to the urgent need classification by the U.S. CDC for new classes of antibiotics. And there are similar classifications like this available in other geographies, including Europe, the U.K., Japan and Canada. If approved, ibezapolstat will be the first new class of antibiotics brought to the market in over 3 decades. So we've got no time to waste to get this new product over the goal line. And with the continued support of all our shareholders, we have a clear vision and a strong passion to be successful for the ultimate benefit of patients who need better treatment for C. difficile infection and all our stakeholders and, in general, for better public health. Kevin?
Question and Answer Session
Operator
(Operator Instructions) Our first question today is coming from Ed Arce from H.C. Wainwright.
Antonio Eduardo Arce
Bob, I appreciate the comments at the end. Those were some of the questions I had regarding the specifics around the trial. A couple of follow-ups there. Firstly, the 450 patients or subjects that you mentioned, is that the total number for the trial? And also, the usual requirement from the FDA of 2 well-designed pivotal studies. I want to just confirm that the Phase Ib is being considered as one of those 2. And so this upcoming trial would be the final study?
Secondly, I wanted to ask about the costs and time lines. I know that you said that those are currently being finalized. But any preliminary or early commentary around those would be helpful for us. And then lastly, around the strategic partners and your efforts now that you characterized as being active, now that you have a pathway for a pivotal study. I'm wondering, although you don't have any current commitments, do you have any active discussions at this point? Thanks so much.
David P. Luci
Thank you for your questions, Ed. The last question being the easiest, I'll hit that 1 first. So we have several active discussions at the moment. Nothing to report. But for example, the company will be well represented at the BIO CEO conference in San Diego, and my schedule is chock full. So there's a lot of activity. We felt it most appropriate, before making outbound calls, to have the FDA piece to the puzzle in place, because we now are truly Phase III ready and that removes another piece of the puzzle in terms of things being set in stone. So that's all set.
On the first question, with regard to the 450 MITT patients, that's the total MITT patients for each of 2 Phase III registration trials. So the Phase IIb is not considered a registration trial. You may recall the small numbers of patients. And quite frankly, we needed a lot more patients to have satisfactory safety database for an NDA application thereafter. So it's 450 patients MITT for each of 2 trials, for a total of 900.
And to your question, we are still going through the cost things. So we don't know exactly how much it will cost. And in some cases, if we have a partnership, it may be that some of the work that we would have paid for would be internalized by a fully integrated pharma company that will be side-by-side with us with mutual interest to get the Phase III program done as quickly as possible, and using our Phase III data for filing in Europe, the U.K., Japan. So the MITT piece to the puzzle was a quick conversation with the FDA, because really, you need that to get to file for approval in Europe and the U.K. So by agreeing on that particular point, we were able to avoid further clinical trials beyond the 2 Phase IIIs. And quite literally, we have an equal pathway in the U.S., the U.K. and Europe. So we're kind of delighted with that piece to the puzzle. But I think that's -- is there another piece to your question that I may have missed?
Robert J. DeLuccia
Yes, Dave. Question on time line. I mean I can answer if you'd like to?
David P. Luci
Okay. Time line. Yes, we feel, based on what we spent out so far that would be 1.5 years to 2 years from first patient enrolled.
Robert J. DeLuccia
And Ed, this is Bob. Just to reiterate, too, the 2 Phase III trials are straightforward from the FDA guidelines, October 22, I think it was, guidelines. And that's a very clear path for what's needed for approval and an NDA.
Operator
(Operator Instructions) Your next question is coming from Mike Boyd, a private investor.
Unidentified Participant
Thank you for the update. It's very exciting, and I can't wait to see the next steps. I had a quick question, easy one I hope. Has the company considered a priority review voucher for this application?
David P. Luci
Thanks for the question, Mike. Bob, do you want to hit that one?
Robert J. DeLuccia
Yes. I mean we already have priority review because of our FDA fast track status. So we already have that.
Unidentified Participant
Yes. But the voucher itself is actually -- there's value to that. You could actually sell that if you chose. Current market value is about $100 million. So looking at that as a source of possible funding at some point.
Robert J. DeLuccia
We could certainly take a look.
Unidentified Participant
Okay. Cool. I mean the timing is right to begin thinking about it. It's associated with the NDA. So it's time to put it on the radar if it's something that the FDA would consider.
David P. Luci
Okay.
Operator
Your next question today is coming from James Molloy from Alliance Global Partners.
James Francis Molloy
Guys, I apologize if I missed it on the call. Did you guys state when you anticipate starting the first of the 2 Phase IIIs? And can you walk us through what the all-in cost on the Phase IIIs are anticipated?
David P. Luci
Thanks, Jim, and good morning. We hope to start -- we will be ready to start in the fourth quarter of this year with enrollment with our manufacturing update that we recently received. So we hope to be funded satisfactorily by then in order to start. So that's the gating factor. But yes, we hope to start in the fourth quarter, and then enrollment should take 18 to 24 months. And it's difficult for us to guesstimate exactly how much this is going to cost, because we have a lot of partnering discussions currently ongoing and they're all different. And they all have various internal capabilities that dramatically impact what the Phase III mandate will cost. It's certainly something in the $50 million to $60 million range if we were to do it all independently ourselves. So a partnership would be an appropriate course.
James Francis Molloy
How would you characterize the current partnership environment? And obviously, after Phase III, it's your best deal, you're obviously not there. But how do you characterize sort of going into Phase III, the partnership opportunities you're seeing?
David P. Luci
I would characterize it as pretty robust. I mean, probably my last 20 e-mails in my inbox are people wanting to meet me, and I haven't even looked at the e-mails yet. That's just from overnight. I mean, it's just a lot of interest, and we may not be enrolling in Phase III, but we're Phase III ready. And we know we have a drug from our Phase IIb data. So we have to be patient and we have to take the right deal.
And when things come along that are going to constitute 60% of the company being lost to a round of investment, then sometimes it's the deals that you don't do that make the most sense. So we're trying to be judicious about raising capital as nondilutively as possible, knowing that we have a drug, and we're Phase III ready. And there aren't a lot of Phase III antibiotics out there right now, especially not in a $1 billion-plus market, where you have a reasonable chance to be frontline therapy.
James Francis Molloy
Maybe last questions on my end. On the design, I know that, obviously, 1 year, 1.5 years to get to run the first of the Phase IIIs. Is there an opportunity for any interim looks and any thoughts on timing on that? And then any update on the PASTEUR Act? What's going on?
David P. Luci
Yes, I'll leave that -- the question on the PASTEUR Act, I'll leave to Bob. There's some new legislation -- actually old legislation that may be expanded to include antibiotics that treat life-threatening infections that Katie Britt in the Senate has gotten in touch with the Health and Human Services about, but I'll let Bob talk about that.
But the interim look thing, that's kind of like a head fake. I know it's NBA playoff time. So for you NBA fans, the interim look, that would go through an independent committee of scientists and doctors. And if you take an interim look, you necessarily statistically have to add patients to the trial. And the interim look doesn't give you any sense of, percentage-wise, how you're doing with the primary endpoint or secondary endpoints. All it does is this group of experts tell you to either keep going or to stop due to futility. So for the amount of information you get out of that, to me, is not worth adding millions of dollars in time to a trial.
Robert J. DeLuccia
Yes. I agree with you, Dave, on that, for sure. And I hope that answers the question. But remember, this is a blinded trial. So you really can't break the blind. You've got to continue to proceed. I think there was a second question here regarding...
David P. Luci
It was about PASTEUR Act.
Robert J. DeLuccia
What was the question?
David P. Luci
What's going on with the PASTEUR Act?
Robert J. DeLuccia
Yes, PASTEUR Act. There's a lot of effort to try to get that through. Really unlikely going to occur this year under the current political environment. However, there is some activity with a special program that requires a drug to be determined as a material threat in order to get some additional funding from a government organization called BARDA for new classes of antibiotics that are in late-stage clinical trials, namely Phase III.
So this is being circulated as pending legislation, trying to move it forward this year. I wouldn't put a high probability that it's going to get through this year. But if it does, we'll be able to tap into that for some partial funding for our Phase III program.
David P. Luci
Actually, just a slight nuance on that is that the legislation is actually old. It's been approved a long time ago. So what needs to happen is that the scope of the program would need to be expanded, which I understand can be done by HHS on their own. It would need to be expanded to include antimicrobials that treat life-threatening infections. So it doesn't rise to the level of needing a new law, the law is there, it's just the program needs to be expanded to include this new class of things that ultimately would be stockpiled by the Federal government through the Department of Defense.
Operator
We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments.
David P. Luci
We'd just like to thank everyone for participating today, and thank you for your patience and the best is yet to come.
Operator
Thank you. That does conclude today's teleconference. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.
<<<
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Bigworld, Yes, a nice 25% pop today. Here's the full transcript from last week's earning's call (next post). I'm not sure what exactly caused the big spike today, there was no SEC filing, etc, but it might have been that the full transcript of last week's earnings call finally became available (?) Last night I could only find the transcript summary from GuruFocus, and the links to the full transcript didn't link to anything, but now they do. So it could be that the Reuters full transcript was delayed and didn't become available until today in the afternoon, and that would explain the timing of the sudden surge. Just a guess though. Within that full transcript, when asked about the current partnership environment, Luci dropped this quasi bombshell -
>>> I would characterize it as pretty robust. I mean, probably my last 20 e-mails in my inbox are people wanting to meet me, and I haven't even looked at the e-mails yet. That's just from overnight. I mean, it's just a lot of interest, and we may not be enrolling in Phase III, but we're Phase III ready. And we know we have a drug from our Phase IIb data. So we have to be patient and we have to take the right deal. <<<
Those comments weren't included in the GuruFocus partial transcript, which only said that partnering prospects were looking 'robust'. Anyway, around noon today there was some increased buying, then around 1:00 the it really took off, and up she went.
Oh well. I had been considering a modest position, but by today's open, the previous aftermarket gain (3%) was gone, and the stock was down modestly on tiny volume (under 1000 shares). I was surprised, thinking it 'should' be rising, so I shelved the idea of going long, at least for now. Also, the broader market is risky right now due to tomorrow's Nvidia earnings, and if ACXP is already looking weak, why stick your neck out? Anyway, the market once more shows how unpredictable it can be lol..
---
>>> Q1 2024 Acurx Pharmaceuticals Inc Earnings Call
Thomson Reuters
May 15, 2024
https://finance.yahoo.com/news/q1-2024-acurx-pharmaceuticals-inc-024052823.html
Participants
David P. Luci; Co-Founder, President, CEO, Corporate Secretary & Director; Acurx Pharmaceuticals, Inc.
Robert G. Shawah; Co-Founder & CFO; Acurx Pharmaceuticals, Inc.
Robert J. DeLuccia; Co-Founder & Executive Chairman; Acurx Pharmaceuticals, Inc.
Antonio Eduardo Arce; MD of Equity Research & Senior Healthcare Analyst; H.C. Wainwright & Co, LLC, Research Division
James Francis Molloy; MD of Equity Research and Biotechnology & Specialty Pharmaceuticals Equity Research Analyst; Alliance Global Partners, Research Division
Unidentified Participant
Presentation
Operator
Hello, and welcome to the Acurx Pharmaceuticals First Quarter 2024 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the conference over to CFO, Robert Shawah. Please go ahead.
Robert G. Shawah
Thank you, Kevin. Good morning, and welcome to our call. This morning we issued a press release providing financial results and company highlights for the first quarter of 2024, which is available on our website at acurxpharma.com. Joining me today is Dave Luci, President and CEO of Acurx, who will give a corporate update and outlook; as well as our Executive Chairman, Bob DeLuccia. After that, I'll provide some highlights of the financials from the quarter ended March 31, 2024, then turn the call back over to Dave and Bob for their closing remarks.
As a reminder, during today's call, we'll be making certain forward-looking statements. These forward-looking statements are based on current information, assumptions, estimates and projections about future events that are subject to change and involve a number of risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Investors should consider these risks and other information described in our filings made with the Securities and Exchange Commission, including our quarterly report on Form 10-Q, which we filed on Tuesday, May 14, 2024.
You're cautioned not to place undue reliance on these forward-looking statements, and Acurx disclaims any obligation to update such statements anytime in the future. This conference call contains time-sensitive information that's accurate only as of the date of this live broadcast today, May 15, 2024.
I'll now turn the call over to Dave Luci. Dave?
David P. Luci
Thanks, Rob. Good morning, everyone, and thanks for joining us to review our financial results for the first quarter and also to hear some exciting recent updates. Then we'd be pleased to take any questions. First, I'll summarize some of our key activities for the first quarter of 2024, or in some cases, shortly thereafter. In January, we announced positive comparative microbiology and microbiome data for ibezapolstat, our lead antibiotic candidate in C. diff patients from the Phase IIb clinical trial segment.
Ibezapolstat outperformed vancomycin, a standard of care, showing eradication of fecal C. difficile at day 3 of treatment in 15 of 16 treated patients, 94%, versus vancomycin, which had eradication of C. difficile in 10 of 14 treated patients or 71%. Additional data from the Phase IIb clinical trial showed ibezapolstat, but not vancomycin, consistently preserved and allowed regrowth of key gut bacteria species believed to confer health benefits, including preventing recurrent C. diff infection.
Additional data from exploratory endpoints will provide further favorable separation between these 2 therapeutic options in our Phase III clinical trial program and ultimately in the marketplace, if approved. We remain particularly excited about the dual impact of ibezapolstat to treat acute C. difficile on the one hand, while appropriately managing the long-term care of each patient's microbiome, which we believe is truly exceptional for antibiotic therapy.
Having robust preclinical, clinical and manufacturing data to date, we submitted, in January, a formidable information package to the FDA, along with a request for an end of Phase II meeting, which was granted on February 26, and the meeting was convened on April 17. At the FDA meeting, we reached agreement on key elements of our Phase III program. including, importantly, agreement with the FDA regarding readiness to proceed to Phase III, as well as agreement on the regulatory pathway for a new drug application filing for marketing approval in the U.S. We will press release further details on the FDA meeting premarket this morning.
In February, we announced that the European Medicines Agency approved our application to be designated as a small to medium-sized enterprise or SME in Europe, which provides for certain benefits, including fee reductions and other support from the agency for seeking a marketing authorization in Europe. We attended the European Society of Microbiology and Infectious Disease or ESCMID Scientific Congress in April 2024, where Dr. Kevin Garey, Professor and Chair, University of Houston, College of Pharmacy, and the Principal Investigator for Microbiology and Microbiome aspects of our clinical trial program, and our Scientific Advisory Board member, provided an oral presentation of Phase II data entitled, "A Phase II Randomized, Double-Blind Study of Ibezapolstat Compared with Vancomycin for the Treatment of C. difficile Infection". The presentation included additional analyses of clinical and microbiological data and is available on our website at www.acurxpharma.com. The complete Phase II results are being prepared for submission to a prominent scientific journal for publication this year.
Throughout the rest of this year, we'll continue to roll out our Phase II results in either oral presentations or scientific posters, or in some cases both, which will include results from new analyses as data become available at various prominent scientific conferences, including the Houston C. diff & Microbiome Conference later this month, the Anaerobe Society of the Americas Annual Conference in July, the World Antimicrobial Resistance Conference in September. Also in September is the International C. diff Symposium, and of course, the Annual Meeting of the Infectious Disease Society of America, or ID Week, in October.
Throughout the first quarter, we continued preparations for Phase III trials, including advances in micro and manufacturing, CRO selection and clinical site screening, and building a team of international drug development experts to support our Phase III mandate. To ensure Phase III clinical trial enrollment as quickly as possible, we're adding substantially more clinical trial sites, way above the number used to conduct the U.S.-only Phase II trials.
We're now finalizing costs and time lines and our plan is to conduct the required 2 Phase III registration trials consecutively, not concurrently, given the size of our company, and need to use our financial resources most efficiently. The time line to conduct our Phase III trials is not a concern since ibezapolstat will have a rolling 10 years of regulatory exclusivity in the U.S. from the date of the FDA approval, with similar exclusivity available in Europe, the U.K., Japan, and Canada.
We will continue to seek a strategic transaction for the company, including a potential partnership for the further development and potential commercialization of ibezapolstat, alongside preparation for Phase III and our build-out strategy. At this time, we have no commitments to our potential partners or others to report. But now having FDA confirmation of the registration plan, this has become an active initiative.
As we've consistently reported, ibezapolstat clinical results continue to outperform in a series of potentially life-threatening infection. The CDC categorizes C. difficile as an urgent threat and calls for new classes of antibiotics for initial treatment that also have a low incidence of recurrence. Ibezapolstat is also FDA fast track designated for the treatment of C. difficile infection.
Initially, we believe ibezapolstat, if approved, could make a favorable impact by reducing the cost burden of recurrent C. diff infection on the U.S. health care system, which is estimated at $4.7 billion annually. We do believe the best is yet to come.
And now back to our CFO, Rob Shawah, to guide you through the highlights of our financial results for the first quarter. Rob?
Robert G. Shawah
Thanks, Dave. Our financial results for the first quarter ended March 31, 2024, were included in our press release issued earlier this morning. The company ended the quarter with cash totaling $8.9 million compared to $7.5 million as of December 31, 2023. During the first quarter, the company sold an additional 1,121,793 shares under its ATM financing program with gross proceeds of approximately $4.4 million.
Research and development expenses for the 3 months ended March 31, 2024, were $1.6 million compared to $1 million for the 3 months ended March 31, 2023. The increase was due primarily to an increase in manufacturing-related costs during the quarter. General and administrative expenses for the 3 months ended March 31, 2024, were $2.8 million compared to $1.9 million for the 3 months ended March 31, 2023. The increase was due primarily to a $0.7 million increase in professional fees and a $0.2 million increase in noncash share-based compensation.
The company reported a net loss of $4.4 million or $0.28 per diluted share for the 3 months ended March 31, 2024, compared to a net loss of $2.9 million or $0.25 per diluted share for the 3 months ended March 31, 2023, all for the reasons we previously mentioned. The company had 15,757,102 shares outstanding as of March 31, 2024.
With that, I'll turn the call back over to Dave. Dave?
David P. Luci
Thanks, Rob, and thanks to all of you for joining us today. I'll now ask Bob DeLuccia, our Executive Chairman, who managed the FDA post-Phase II meeting process, to provide his perspective on the FDA meeting in the company's Phase III mandate. Bob?
Robert J. DeLuccia
Yes. Thanks, Dave. So let me just add a few thoughts on top of Dave's comments about our end of Phase II meeting with the FDA. In general, it was a very thorough, productive, and successful meeting regarding 4 things.
First, we had overall agreement that was reached based upon the strength of our preclinical and Phase II clinical trial results, including the anticipated safety database, we're ready to move forward with plans for our Phase III program.
Second, with respect to the Phase III clinical trial design, as expected, it will be the same design as our Phase IIb trial, which is noninferiority to vancomycin, with the primary endpoint being clinical cure after 10 days of treatment, and a secondary endpoint of sustained clinical cure about 30 days after the end of treatment.
Third, we agreed on the statistical analysis patient population, which will be a modified intent to treat or what's called MITT population, with an estimated 450 subjects in that MITT group. And this is roughly what we had expected and will now be in sync with requirements for an EMA clinical trial authorization.
And lastly, agreement on the registration program for 2 noninferiority trials versus vancomycin, which would be required for marketing approval. Now I'd also add that we were very pleased with suggestions from the FDA, including ultimate labeling and overall supportive tone of the FDA from our submitted data to date and our plan going forward. So bottom line, we now have a complete regulatory road map to move forward with our Phase III program, which is the last clinical development step toward marketing registration of ibezapolstat globally. For a small entrepreneurial company like Acurx, this is a very significant milestone that we've reached.
And Dave, if you don't mind, I'd like to add one more thing just on top of what you said. Recall that ibezapolstat has FDA fast track designated status due to the urgent need classification by the U.S. CDC for new classes of antibiotics. And there are similar classifications like this available in other geographies, including Europe, the U.K., Japan and Canada. If approved, ibezapolstat will be the first new class of antibiotics brought to the market in over 3 decades. So we've got no time to waste to get this new product over the goal line. And with the continued support of all our shareholders, we have a clear vision and a strong passion to be successful for the ultimate benefit of patients who need better treatment for C. difficile infection and all our stakeholders and, in general, for better public health. Kevin?
Question and Answer Session
Operator
(Operator Instructions) Our first question today is coming from Ed Arce from H.C. Wainwright.
Antonio Eduardo Arce
Bob, I appreciate the comments at the end. Those were some of the questions I had regarding the specifics around the trial. A couple of follow-ups there. Firstly, the 450 patients or subjects that you mentioned, is that the total number for the trial? And also, the usual requirement from the FDA of 2 well-designed pivotal studies. I want to just confirm that the Phase Ib is being considered as one of those 2. And so this upcoming trial would be the final study?
Secondly, I wanted to ask about the costs and time lines. I know that you said that those are currently being finalized. But any preliminary or early commentary around those would be helpful for us. And then lastly, around the strategic partners and your efforts now that you characterized as being active, now that you have a pathway for a pivotal study. I'm wondering, although you don't have any current commitments, do you have any active discussions at this point? Thanks so much.
David P. Luci
Thank you for your questions, Ed. The last question being the easiest, I'll hit that 1 first. So we have several active discussions at the moment. Nothing to report. But for example, the company will be well represented at the BIO CEO conference in San Diego, and my schedule is chock full. So there's a lot of activity. We felt it most appropriate, before making outbound calls, to have the FDA piece to the puzzle in place, because we now are truly Phase III ready and that removes another piece of the puzzle in terms of things being set in stone. So that's all set.
On the first question, with regard to the 450 MITT patients, that's the total MITT patients for each of 2 Phase III registration trials. So the Phase IIb is not considered a registration trial. You may recall the small numbers of patients. And quite frankly, we needed a lot more patients to have satisfactory safety database for an NDA application thereafter. So it's 450 patients MITT for each of 2 trials, for a total of 900.
And to your question, we are still going through the cost things. So we don't know exactly how much it will cost. And in some cases, if we have a partnership, it may be that some of the work that we would have paid for would be internalized by a fully integrated pharma company that will be side-by-side with us with mutual interest to get the Phase III program done as quickly as possible, and using our Phase III data for filing in Europe, the U.K., Japan. So the MITT piece to the puzzle was a quick conversation with the FDA, because really, you need that to get to file for approval in Europe and the U.K. So by agreeing on that particular point, we were able to avoid further clinical trials beyond the 2 Phase IIIs. And quite literally, we have an equal pathway in the U.S., the U.K. and Europe. So we're kind of delighted with that piece to the puzzle. But I think that's -- is there another piece to your question that I may have missed?
Robert J. DeLuccia
Yes, Dave. Question on time line. I mean I can answer if you'd like to?
David P. Luci
Okay. Time line. Yes, we feel, based on what we spent out so far that would be 1.5 years to 2 years from first patient enrolled.
Robert J. DeLuccia
And Ed, this is Bob. Just to reiterate, too, the 2 Phase III trials are straightforward from the FDA guidelines, October 22, I think it was, guidelines. And that's a very clear path for what's needed for approval and an NDA.
Operator
(Operator Instructions) Your next question is coming from Mike Boyd, a private investor.
Unidentified Participant
Thank you for the update. It's very exciting, and I can't wait to see the next steps. I had a quick question, easy one I hope. Has the company considered a priority review voucher for this application?
David P. Luci
Thanks for the question, Mike. Bob, do you want to hit that one?
Robert J. DeLuccia
Yes. I mean we already have priority review because of our FDA fast track status. So we already have that.
Unidentified Participant
Yes. But the voucher itself is actually -- there's value to that. You could actually sell that if you chose. Current market value is about $100 million. So looking at that as a source of possible funding at some point.
Robert J. DeLuccia
We could certainly take a look.
Unidentified Participant
Okay. Cool. I mean the timing is right to begin thinking about it. It's associated with the NDA. So it's time to put it on the radar if it's something that the FDA would consider.
David P. Luci
Okay.
Operator
Your next question today is coming from James Molloy from Alliance Global Partners.
James Francis Molloy
Guys, I apologize if I missed it on the call. Did you guys state when you anticipate starting the first of the 2 Phase IIIs? And can you walk us through what the all-in cost on the Phase IIIs are anticipated?
David P. Luci
Thanks, Jim, and good morning. We hope to start -- we will be ready to start in the fourth quarter of this year with enrollment with our manufacturing update that we recently received. So we hope to be funded satisfactorily by then in order to start. So that's the gating factor. But yes, we hope to start in the fourth quarter, and then enrollment should take 18 to 24 months. And it's difficult for us to guesstimate exactly how much this is going to cost, because we have a lot of partnering discussions currently ongoing and they're all different. And they all have various internal capabilities that dramatically impact what the Phase III mandate will cost. It's certainly something in the $50 million to $60 million range if we were to do it all independently ourselves. So a partnership would be an appropriate course.
James Francis Molloy
How would you characterize the current partnership environment? And obviously, after Phase III, it's your best deal, you're obviously not there. But how do you characterize sort of going into Phase III, the partnership opportunities you're seeing?
David P. Luci
I would characterize it as pretty robust. I mean, probably my last 20 e-mails in my inbox are people wanting to meet me, and I haven't even looked at the e-mails yet. That's just from overnight. I mean, it's just a lot of interest, and we may not be enrolling in Phase III, but we're Phase III ready. And we know we have a drug from our Phase IIb data. So we have to be patient and we have to take the right deal.
And when things come along that are going to constitute 60% of the company being lost to a round of investment, then sometimes it's the deals that you don't do that make the most sense. So we're trying to be judicious about raising capital as nondilutively as possible, knowing that we have a drug, and we're Phase III ready. And there aren't a lot of Phase III antibiotics out there right now, especially not in a $1 billion-plus market, where you have a reasonable chance to be frontline therapy.
James Francis Molloy
Maybe last questions on my end. On the design, I know that, obviously, 1 year, 1.5 years to get to run the first of the Phase IIIs. Is there an opportunity for any interim looks and any thoughts on timing on that? And then any update on the PASTEUR Act? What's going on?
David P. Luci
Yes, I'll leave that -- the question on the PASTEUR Act, I'll leave to Bob. There's some new legislation -- actually old legislation that may be expanded to include antibiotics that treat life-threatening infections that Katie Britt in the Senate has gotten in touch with the Health and Human Services about, but I'll let Bob talk about that.
But the interim look thing, that's kind of like a head fake. I know it's NBA playoff time. So for you NBA fans, the interim look, that would go through an independent committee of scientists and doctors. And if you take an interim look, you necessarily statistically have to add patients to the trial. And the interim look doesn't give you any sense of, percentage-wise, how you're doing with the primary endpoint or secondary endpoints. All it does is this group of experts tell you to either keep going or to stop due to futility. So for the amount of information you get out of that, to me, is not worth adding millions of dollars in time to a trial.
Robert J. DeLuccia
Yes. I agree with you, Dave, on that, for sure. And I hope that answers the question. But remember, this is a blinded trial. So you really can't break the blind. You've got to continue to proceed. I think there was a second question here regarding...
David P. Luci
It was about PASTEUR Act.
Robert J. DeLuccia
What was the question?
David P. Luci
What's going on with the PASTEUR Act?
Robert J. DeLuccia
Yes, PASTEUR Act. There's a lot of effort to try to get that through. Really unlikely going to occur this year under the current political environment. However, there is some activity with a special program that requires a drug to be determined as a material threat in order to get some additional funding from a government organization called BARDA for new classes of antibiotics that are in late-stage clinical trials, namely Phase III.
So this is being circulated as pending legislation, trying to move it forward this year. I wouldn't put a high probability that it's going to get through this year. But if it does, we'll be able to tap into that for some partial funding for our Phase III program.
David P. Luci
Actually, just a slight nuance on that is that the legislation is actually old. It's been approved a long time ago. So what needs to happen is that the scope of the program would need to be expanded, which I understand can be done by HHS on their own. It would need to be expanded to include antimicrobials that treat life-threatening infections. So it doesn't rise to the level of needing a new law, the law is there, it's just the program needs to be expanded to include this new class of things that ultimately would be stockpiled by the Federal government through the Department of Defense.
Operator
We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments.
David P. Luci
We'd just like to thank everyone for participating today, and thank you for your patience and the best is yet to come.
Operator
Thank you. That does conclude today's teleconference. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.
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>>> BRICS Making Good Progress On Their Golden Path
Forbes
by Nathan Lewis
Jan 24, 2024
https://www.forbes.com/sites/nathanlewis/2024/01/24/brics-making-good-progress-on-their-golden-path/?sh=65db623c549b
After tossing around a few bad ideas, the BRICS countries have settled on using gold as the basis for international exchange, a role previously taken by dollars and euros. This does not mean today’s floating fiat ruble, real, or rand is going anywhere soon. Rather, just as the US dollar was used alongside those domestic currencies in the past, today and in the future gold will be more commonly used.
There would not be very much trade in actual gold coins — just as there is not much trade in actual dollar bills. Indeed, gold doesn’t work very well for this hand-to-hand exchange at all, since even small coins tend to be of very high denomination, worth $200 or more. Rather, it means that people around the world will increasingly use various vehicles — such as bank accounts, bonds, loans and cryptocurrencies — denominated in gold, just as they use the very same set of tools today, but denominated in dollars.
Already, some BRICS members — including Russia and newcomer Iran — have been basically banned from the dollar system. They literally cannot hold a “dollar.” They have no dollar “wallet.” For example, they cannot have a bank account, with a bank in the Federal Reserve clearing system. Other countries, including China, are eager to set up alternative systems, because they suspect that what happened to Russia and Iran could be done to them too. More countries, seeing where this is going, are making sure they have a seat at the table, for business opportunities alone. This could include former US allies such as Saudi Arabia, which joined the BRICS in January.
The most fundamental international role that the USD (or EUR) takes today is as a “currency of currencies” in foreign exchange. For example, let’s say that someone in Peru wants to buy some wool from New Zealand. There is no “bilateral exchange” between the currencies of Peru and New Zealand. Rather, there is a market between Peruvian soles and USD; and USD and New Zealand dollars. The same thing is seen on cryptocurrency exchanges, where there is no direct market between DogecoinDOGE 0.0% and Shiba Inu. Rather, there is a DOGE/USD (or USDTUSDT 0.0%, or maybe BitcoinBTC 0.0%) market, and a SHIBSHIB 0.0%/USD market. On the stock market, it might be MSFT and NVDA. Obviously, if you are unable to hold and make payments in this intermediary currency, in this case the USD, then you can’t exchange your PEN and NZD; or DOGE and SHIB.
There have been some steps toward “bilateral exchanges,” for example between Russian rubles and the Indian rupee. However, with 25 currencies, you end up with (N)(N-1)/2 = 300 bilateral exchange markets. Basically, it is currency barter. Also, most markets would have very little liquidity. Someone wanting to exchange PEN and NZD would have to wait for someone else to who wants to exchange NZD and PEN; and in the same size. Not going to work.
Already, major Russian banks including Sberbank have taken steps to provide such a universal currency, based on gold. A Sberbank launched a cryptocurrency stablecoin based on gold in December 2022. A more promising development, to my mind, has been the introduction of “gold checking accounts” in Russia. You can send digital grams of gold to various accounts — accomplishing what GoldMoney set out to do in 2001. The advantage here is that banks already have all the necessary infrastructure for checking accounts; adding a gold denomination is a minor extra step.
The next step would be to set up a foreign exchange market — that is, bids, asks, and some way to transact — using these gold checking accounts as the central unit, the role the USD usually takes today. Instead of RUB/USD and USD/INR, you would have RUB/BGD (”BRICS Gold”), and BGD/INR, probably hosted by an institution like Sberbank, here taking the role that Coinbase performs for cryptos. It seems, however, that Russians, Indians and so forth are not very good at financial engineering. They are awesomely good at aerospace and defense engineering, but this seems to leave them stumbling and bewildered. But, it’s not really that hard. If Sam Bankman-Fried can do it, one of those ace Chinese, Indian or Russian engineers can manage to set up a simple currency exchange market.
This basic plumbing of payments serves as a foundation for more interesting developments. Around the world, major companies, and even governments, finance in USD and EUR. They issue USD and EUR bonds, for the simple reason that there are a lot of people that want to buy USD bonds, but not RUB bonds, or BRL bonds — even in Russia and Brazil. Major Russian companies like Gazprom and Mobile Telesystems issued billions of dollars of USD and EUR bonds. In 2Q23 alone, $615 billion of USD bonds, and 443 billion of EUR bonds, were issued by international issuers worldwide. Plus, bank loans in USD and EUR. If companies like these are unable to issue USD or EUR bonds in the future, how will they finance themselves?
The obvious solution is gold bonds. In 2023, the government of India began experimenting with gold-based government bonds. These would probably be very popular with investors worldwide. From the start of the Floating Fiat era in 1971, to the present, a gold bond paying 4% would have outperformed all stock and bond markets worldwide. That outperformance would probably only get larger going forward.
A gold bond of this sort might be administered in Indian Rupee. Basically, a bond for “100 kilograms” would be purchased for the INR equivalent of 100 kilograms of gold at the time of issue. Interest and principal would be paid in INR equivalents to gold at that time. Brazil issues such “dollar-linked bonds” today. But, it would be better just to use gold itself as the payments basis. Payments related to the bonds would be made using something like the “checking accounts in gold” described earlier.
I would guess that not until long after a system of the “international use of gold” has been established, for example including gold-bond-based financing in large size, would we see movements toward getting rid of today’s floating fiat domestic currencies. Once a company, or government, is liable to pay bonds in gold, it makes sense to also denominate revenue in gold, or there could be a disastrous liabilities mismatch. Then, we might see a broad movement to organize all BRICS currencies on gold, much as the United States organized at Bretton Woods in 1944.
A lot of progress has been made down this path since the beginning of 2022. But, it has been clumsy, halting and hesitant. These things are not really that hard; and the benefits are great. There doesn’t seem to be much “financial engineering” talent in China or Russia. But, if they took some of those exemplary aerospace or electronics engineers, and applied them to the task, I think they would figure it out pretty quickly
Nathan Lewis
Fellow of the Wealth and Poverty program at the Discovery Institute.
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