Untitled Document
On November 1, President George W. Bush went to the National Institutes of Health
in Bethesda, Maryland to hold a high profile press conference, to announce a 381-page
plan, officially called the Pandemic Influenza Strategic Plan.
It was no ordinary Bush photo opportunity. This one was meant to be a big splash
event. The President was surrounded by almost half his cabinet, including Secretary
of State Condi Rice, joined by the Secretaries of Homeland Security, Agriculture,
Health & Human Services, Transportation and, interestingly enough, Veteran
Affairs. And, just to underscore that this was a big deal, the White House invited
the Director-General of the World Health Organization, who flew in from Geneva
for the occasion.
The President began his remarks with the now-obligatory scare-story from 1918:
‘At this moment, there is no pandemic influenza in the United States or
the world. But if history is our guide, there is reason to be concerned. In
the last century, our country and the world have been hit by three influenza
pandemics -- and viruses from birds contributed to all of them. The first, which
struck in 1918, killed over half-a-million Americans and more than 20 million
people across the globe…’
He was remarkably candid about the imminent danger to the American people:
‘Scientists and doctors cannot tell us where or when the next pandemic
will strike, or how severe it will be, but most agree: at some point, we are
likely to face another pandemic. And the scientific community is increasingly
concerned by a new influenza virus known as H5N1 -- or avian flu…’
Mr. Bush went on to stress, ‘At this point, we do not have evidence that
a pandemic is imminent. Most of the people in Southeast Asia who got sick were
handling infected birds. And while the avian flu virus has spread from Asia
to Europe, there are no reports of infected birds, animals, or people in the
United States. Even if the virus does eventually appear on our shores in birds,
that does not mean people in our country will be infected. Avian flu is still
primarily an animal disease. And as of now, unless people come into direct,
sustained contact with infected birds, it is unlikely they will come down with
avian flu.’
Despite the admission of absence of a clear and present danger to the American
public, the President called on Congress to immediately pass a new $7.1 billion
in emergency funding to prepare for that not-imminent, not-pandemic, possible-in-the-future
danger. The speech was an exercise in the Administration’s now-famous
‘pre-emptive war,’ this one against Avian Flu. As with the other
pre-emptive wars, there is a multiple agenda—one might say, killing two
birds with one stone, were it not so tasteless.
Prominent among the President’s list of emergency measures was a call
for Congress to appropriate another $1 billion explicitly for Tamiflu.
Conflict of interest or insider trading?
The saga of Tamiflu is just the tip of a big iceberg. As we noted in an earlier
article, the real point of interest is the company in California who developed
Tamiflu, Gilead Sciences, listed on the NASDAQ as (GILD). As we also noted,
US Secretary of Defense, Donald H. Rumsfeld, was Chairman of the Board of Gilead
Sciences from 1997 until early 2001 when he became Defense Secretary. Rumsfeld
had been on the board of Gilead since 1988, some thirteen years.
A as-yet-unconfirmed report is that Rumsfeld recently purchased additional stock
in his former company, Gilead Sciences, worth $18 million, making him one of
its largest if not the largest stock owners today. Whether that is true or not,
earlier this year, when the Bird Flu scare was just heating up, according to
a report in the November 14 Fortune magazine, the Defense Secretary decided
not to sell his many shares in Gilead so as to ‘avoid being accused of
insider trading.’ If true, that means Mr. Rumsfeld, apparently not one
to shy away from turning a fast buck, has bagged an eye-popping windfall, as
demand for Tamiflu worldwide explodes. Today it is the hottest drug in the world
market. On October 6, the Pentagon announced it had stockpiled quantities of
Tamiflu for members of the military.
Since early 2001 when Rumsfeld left the board of Gilead Sciences to become
Defense Secretary, Gilead’s stock price has gone from around $7 per share
to just a hair above $50 a share today. The future price direction? The stratosphere,
especially since the President made it an explicit goal of the US ‘flu
defense pre-emptive war’ on November 1. Gilead, which signed over the
world marketing rights to Hoffmann-LaRoche, gets 10% of every dose of Tamiflu
sold. Gilead is presently in a legal battle to retake 100% marketing control
as well.
From $7 to $50 translates into a neat 720% profit for Mr. Rumsfeld’s
Gilead stock holdings since he went to Washington four-and-a-half years ago.
Since the start of the carefully orchestrated current Bird Flu hysteria this
March, Rummy’s Gilead stocks have gained a neat 56% alone.
That might explain why, instead of dumping his shares as one might expect from
an honest government official wanting to avoid a conflict of interest, he instead
opted to buy another $18 million worth. Curiously, the Secretary waited until
October 26, 2005 before issuing an official Department of Defense press statement
that he had ‘recused’ himself from involvement in any future Pentagon
decisions involving Gilead Sciences. By then, of course, the horse had long
burst out of the barn door and the price of Gideon was racing at full gallop
as the Pentagon and the Administration had already decided to stockpile millions
of doses of Tamiflu.
In March the reliable Washington friend, Britain’s Tony Blair, ordered
the UK Government to buy enough Tamiflu drugs to supply 25% of the 56 million
British citizens. Mr Blair seems always ready to help his friends in Washington
whether backing Washington’s war against WMD in Iraq or Tamiflu. In Washington
it’s called the ‘Anglo-American Special Relationship.’
The Secretary of Defense, the man who allegedly supported the use of contrived
intelligence to justify the war on Iraq, who oversaw billions of dollars in
Pentagon no-bid contracts to Bechtel and Halliburton corporations, is now poised
to reap huge gains for a flu panic his Administration has done everything it
can to promote.
It would be useful to know whether the Pentagon’s successor to Douglas
Feith’s Office of Special Plans developed the strategy of bio-warfare
that is evidently behind the current Avian Flu panic. An enterprising Congressional
committee in ordinary times would already be looking into the entire subject
of plausible conflicts of interest regarding Secretary Rumsfeld, except for
the fact the Congress is controlled by Mr Rumsfeld’s own party.
Gilead Sciences is no small-time biotech startup, either. Helped by the propaganda
from its friends in Washington and other high places, today Gilead has a total
market capitalization of $ 22 billion. Its board today includes Bechtel Corporation
director and former Secretary of State, George P. Shultz. According to Fortune,
Shultz turned a neat $7 million profit earlier this year in insider selling
of some of his Gilead stock.
Bechtel is right up there with Halliburton in grabbing the lion’s share
of Pentagon sweetheart contracts to rebuild Iraq. Most certainly it did not
hurt Bechtel’s business that Shultz and Rumsfeld knew each other from
their common days on the board of Gilead. The Gilead Sciences board also includes
Gordon Moore of Intel, and Viscount Etienne Davignon, the Belgian Count who
seems to be involved in everything big and Atlanticist, whether it be Bilderberg
meetings or Trilateral Commissions, and now, profiting from the Bird Flu panic.
The Gilead model also suggests a parallel to the Halliburton Corporation, whose
former CEO is Vice President Dick Cheney. Cheney’s company has so far
gotten billions worth of US construction contracts in Iraq and elsewhere. Is
it just a coincidence that Cheney’s closest political friend is Defense
Secretary and Avian Flu beneficiary, Donald Rumsfeld?
Vistide, Small Pox, Big Bucks
The Defense Secretary is an accomplished hand at getting the government to
buy vaccines from companies in which he has a direct financial interest. Recall
the scare just following the events of September 11, 2001. One of the terror
scenarios discussed widely by the Administration was a possible release of a
deadly smallpox attack that would devastate the American population.
In November 2001 the Administration reversed a two decade policy. On the advice
of the Pentagon and others in the Administration, the President ordered that
the US’ remaining stock of smallpox microbes, stored at the Center for
Disease Control in Atlanta, not be destroyed as he world community had been
urging, but be kept until new vaccines were developed. The United States and
Russian Governments at the time held the only known smallpox microbe stocks
known. The disease had long since been eradicated.
The Administration announced at the time it was backing development of a new
vaccine for smallpox that could be given the entire population. The major media
from Judith Miller in the New York Times, to more widely read papers, carried
horror stories. Typical was one from Knight-Ridder which began, ‘When
counterterrorism officials compare notes on what keeps them awake at night,
the weapon they most fear is not a nuclear bomb or poison gas, but a disease
that was wiped off the planet 20 years ago. They worry about smallpox, a lethal,
super-contagious virus that, if unleashed, would spread quickly…’
The scare around smallpox and what to do was curiously similar then as it is
today against Bird Flu pandemics. Defense Secretary Rumsfeld at that time ordered
members of the Armed Forces to be inoculated against smallpox, an inoculation
with horrendous side-effects. Rumsfeld’s smallpox package also included
ordering Pentagon stockpiling of a drug named Vistide, supposedly to minimize
side-effects of smallpox infection should it occur.
The Bush Administration had made repeated attempts to convince the public and
above all, the health and medical profession to go with mass inoculation against
smallpox. In 2002 the CDC and certain high Administration officials were calling
for pre-emptive smallpox inoculation of broad sectors of the population against
threat of terrorists unleashing the pox. The Government began stockpiling hundreds
of millions of smallpox vaccine doses. It also stockpiled Vistide.
With every official statement by members of the Administration, population
panic regarding smallpox threats grew. Fear was driving the debate. Yet the
reality was that, contrary to what was being said, smallpox was not a highly
contagious disease. As Dr. Kuritsky, MD, director of the National Immunization
Program and Early Smallpox Response and Planning at the CDC put it, ‘Smallpox
has a slow transmission and is not highly contagious.’
Even were someone exposed to a known bio-terrorist attack with smallpox, it
would not mean that he would contract smallpox, Kuritsky added. The signs and
symptoms of the disease would not occur immediately, and there was time to plan.
Increasingly, experienced US health professionals began going public with the
dangers of the side effects from the smallpox immunization itself. These included
‘serious brain and heart diseases, autism, abnormal chromosomal changes,
diabetes, various cancers and leukemias, plus demyelination of nerve tissue
years after vaccination.’ Many thought it better to run the risk of a
bio-terror attack than take the ‘cure.’ The Administration mass
vaccination campaign for smallpox was a flop. Yet in the meantime millions of
doses of Vistide were produced and sold to the US government, to ‘ease’
the effects of smallpox should such an hypothetical attack materialize. The
Pentagon was one of the major purchasers of Vistide at the time.
The smallpox terror scenario fear-mongering reached a peak in the run-up to
the February 2003 war in Iraq, with scare stories speculating that Saddam Hussein
may have been holding stolen Russian stocks of the smallpox virus ready to unleash
an attack on the American public. In his January 2003 State of the Union Address,
the President proposed creation of Project BioShield to develop vaccines and
drugs against bio-terror attack including anthrax and smallpox.
On July 21, 2004 President Bush signed into law Project BioShield, to provide
‘new tools to improve medical countermeasures protecting Americans against
a chemical, biological, radiological, or nuclear (CBRN) attack.’ The fiscal
year 2004 appropriation for the Department of Homeland Security included $5.6
billion over 10 years for the purchase of next generation countermeasures against
anthrax and smallpox as well as other CBRN agents.
Mr Rumsfeld knew well what he was prescribing for his soldiers. Vistide was
also a product of Gilead Sciences, Mr. Rumsfeld’s former company. Rumsfeld
was the person who signed off on the decision to give US Troops Vistide. That
decision was obviously not made out of benevolence, or concern for the health
of the troops on the part of the Defense Secretary, who had been personally
involved with the side-efects of Vistide at Gilead since the company first developed
it in the late 1990’s as an AIDS treatment. As Rumsfeld well knew, Vistide
had some pretty hefty side effects. According to Dr. Christopher J Hogan, MD,
Professor at the Department of Emergency Medicine, Medical College of Virginia,
complications of Vistide include renal toxicity, neutropenia, fever, anemia,
headache, hair loss, uveitis and/or iritis, and abdominal pain.
Yet, despite the fact of who is making millions on the fears being stirred
over smallpox or Avian Flu, it would be a dangerous diversion to think the end
of the story is personal or corporate greed. The alarming aspect to this Tamiflu,
Vistide and proposed new legal regimes for the ‘vaccine industry,’
is the fact that it all fits, evidently, into a far larger strategy that the
Administration seems to have been developing for some time. During the smallpox
scare three years ago, the Administration got Republican Congressmen to insert
a paragraph into the Homeland Security bill that would give immunity for liability
to drug companies who manufacture smallpox vaccine.
Abolishing the Nuremburg Code on Human Rights in Experimentation
Now the Bush Administration is seeking to vastly expand that drug company immunity,
using the climate of fear around Avian Flu.
The President, in his November 1 NIH pandemic speech, proposed completely exempting
drug makers from being sued for their products. Explicitly he termed it ‘liability
protection for the makers of life-saving vaccines.’ Stripped of its nice-sounding
noble rhetoric, it means drug makers can produce and promote whatever they choose
to foist on the public, whether it be Vistide, Tamiflu or Thalidomide, and fear
no legal consequences.
One need only think for a minute about the consequences of removing the gains
of more than a Century of bitter battles to establish even minimal controls
over what drugs can be sold to the public.
During the 1960’s in Germany, Dr. Heinrich Mueckter, an infamous Nazi
doctor, wanted by the Polish government for hideous experiments using live Typhus
on concentration camp inmates, founded a drug company in West Germany where
he developed a drug he marketed as a harmless sleeping tablet. His product,
Contergan, was advertised as so harmless that it could be sold over-the-counter
and one million Germans used it daily to sleep. He specially marketed his drug
for ‘pregnant mothers’ having sleep problems. The results were soon
clear in the form of tens of thousands of grotesquely deformed births. The drug
he developed contained Thalidomide. At that time, German law left regulation
of such drugs to the industry, a kind of self-policing, or to local government.
Or consider the huge scandals surrounding the anti-arthritic drug, VIOXX, which
was being used by more than two million people around the world when it was
pulled from the market by Merck & Co. last September, after serious studies
indicated VIOXX users had a 400% increased risk of heart attack or stroke. Threat
of litigation was clearly a major factor leading Merck to pull VIOXX.
Merck & Co. began in Germany in the late 1800’s by selling products
including morphine, codeine, quinine and strychnine as ‘medications.’
There were no regulations on drug makers then. The German aspirin inventor,
Bayer Company, in 1898 sold heroin labelled as a ‘superior cough suppressant.’
It probably was, but they also didn’t speak of side effects in those days.
This was before many such scandals and serious consequences on the public forced
governments to begin regulating what was sold as drugs.
In 1962, in response to the Thalidomide scandals, Senator Estes Kefauver drafted
and got passed the Kefauver-Harris Drug Amendments of 1962, tightening drug
safety requirements and requiring pharmaceutical makers, or as George Bush prefers
to call it, ‘the vaccine industry,’ to prove a given drug is effective
before it can be sold to the public. Drugs were required to be registered with
the US Food and Drug Administration, and the FDA was given ‘explicit authority
to require compliance with good manufacturing practices.’ Safety and purity
standards were defined. It also required drug makers explicitly state risks
in their products.
In 1948 the member countries of the United Nations adopted the so-called Nuremburg
Code following the military trial in Nuremburg Germany in 1946 of 23 Nazi doctors
for crimes against humanity and experimentation with drugs and viruses on human
subjects. It was recognized as international common law guiding medical research.
With the grant of legal immunity from lawsuits for effects of their drugs, pharmaceutical
companies would succeed in rolling back not only the Nuremburg Code but also
more than a Century of bitterly-fought gains in public safety in the regulation
of drug manufacturing and promotion.
In promoting drug industry immunity from legal damage suits, the President
claims he is ‘breaking down barriers to vaccine production.’ In
reality he is taking steps to create an environment which not even the Nazi
doctors and drug companies during the Third Reich enjoyed—they had to
be secretive about their actions. This is a very alarming precedent should it
become law. The real question to ask is what could be so important to compel
the President of the United States to put his own population at risk in such
an unfettered drug environment?
That there exists a virulent viral strain affecting birds especially in parts
of Vietnam and China is not the issue at hand here. Rather it is the politicization
of such a condition to introduce a wholly other agenda, one whose ultimate consequences
on human life and well-being are potentially far more damaging than any conceived
damage from H5N1 or other virus strains