Healthcare

Australia can learn from Ontario’s Doug Ford on energy policy

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Ontario Premier Doug Ford Jr’s Progressive Conservatives are pulling the plug on 758 renewables projects costing $790mn. The plan is to cut hydro rates by 12% which had been inflated by Wynne’s Liberals for 15 years to subsidize these green projects. Energy Minister Greg Rickford announced that none of the cancelled projects have reached “development milestones,” so believes it should be cheaper to scrap them now.

Three things stand out:

A senior Liberal spokesperson said, “Why would firms do business in Ontario if they see this kind of government meddling?

Well 12% lower electricity prices could be a start. The Liberals should look at how higher electricity prices in South Australia are driving businesses out of the state. The Independent Electricity System Operator said yesterday that “there are other means of meeting future energy supply and capacity needs at materially lower costs than long-term contracts that lock in the prices paid for these resources.

The German contractor needs better lawyers if this is a problem:

The CEO of wind turbine contractor WPD in Germany said in an open letter that it stands to lose up to $100mn on the cancellation of the White Pines project (which residents strongly opposed) for 9 wind turbines which commenced in 2009 yet is still not completed. A turbine a year? That’s a jobs creation scheme…stretch it out for as long as possible to fudge the employment numbers (at taxpayers expense). Did WPD just expect that Wynne would win another term hence not needing to lock down contract terms that covered risk of this sort. Where is the “based on clause 7, section 3 we will seek full compensation for your action.”? Why not mention that in the letter?

Fears of renewable job losses:

All this nonsense about green jobs creation is farcical. The Australian Bureau of Statistics (ABS) renewable employment figures which showed all states seeing declines. By state, South Australia has seen a 65% fall in green jobs since the peak in 2011/12. Victoria down 46%, Queensland down 49%, NSW down 32% & WA down 55%. The problem with green jobs is they are not sustainable.

Premier Doug Ford sacked Hydro One CEO Mayo Schmidt (whom he promised to fire at the June 7 election), a man he dubbed “the $6 million dollar man”without the expected $10.7 million severance payment (reduced to $400,000) and is replacing the company’s board of directors.

Let’s not forget Ford annihilated Liberal Kathy Wynne so badly her party can’t even serve in parliament. While liberals were complaining Ford won it for being a white heterosexual male they overlooked that most constituents which gave Liberals 15 years to show something were sick of being taken for mugs. High electricity prices were a major campaign issue.

An IPSOS poll taken before the poll showed that the Liberals polled “zero” for leading on any issues with respect to economy, energy costs, healthcare, taxes, education, minorities or any other issue…The Ontario Progressive Conservatives were polled as having the best policies for economy, energy and taxes. Just goes to show when you listen to the electorate and actually enact on promises they amazingly like it and can win office.

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Michelle Wolf is all class (yet again)

Michelle Wolf is all class yet again. It is amazing Netflix can even air such poor taste in programmes. She spends six minutes poking fun at abortion. Indeed it is Netflix’s  reputation at stake to air this crap. You might recall Wolf’s speech at the White House Correspondents dinner where her fingernails-down-a-chalkboard voice made off-coloured jokes surrounding abortion, Trump’s bedroom prowess, his daughter being as useful as an empty box of tampons and even portrayed WH Press Secretary Sarah Huckabee Sanders as a fat softball playing lesbian Uncle Tom for white women.

Even if one is pro abortion, it is hardly a topic which should be made the butt of jokes and flippant humour. Yes, comedy can cut across lines but there was zero content in this level of low base crass celebration. It is potty humour at best and vile at worst.

Watch the video on its merits and ask yourself did you laugh at any of her scripted attempt at humour? She lost a $4mn role to star in an Adam Sandler film after her White House stunt. Seems like doubling down is a thing for celebrities. Create shock value to make up for talent they don’t have. Was her comedy any good it would sell on its merit without having to resort to being face down in the gutter.

One thing is for certain, these events gift the mid terms to the GOP. Calling the Pro Life campaigners the equivalent of healthy ice cream or handsome testicles must have taken an age to think up. #WalkAway

EU – 1.3m abortions, 5m births p.a.

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Eurostat statistics on abortion reveal that Germany, France, UK, Spain and Italy alone terminate a combined 760,000 fetuses per annum. Across the EU-28 there are 1.25mn terminations. Without getting into a debate on abortion rights, the pure statistical number points to 20.4% of fetuses never make it out of the womb alive. Every. Single. Year. At that rate over 10 years that is 12.5 mn children that could have added to EU population sustainability do not occur but the EU seems to think embarking on mass migration is the only solution to plug the gap. Is it? Ironically child support is one area the EU is happy to cede control to individual Member States.

The fertility rate across the EU-28 is now 1.58 children per woman, flat for the last decade and down from 2.9 in 1964. Demographers suggest that a fertility rate of 2.1 is required in developed world economies to maintain a constant population (in the absence of any migration). The number of live births in the EU-28 peaked in 1964 at 7.8 million. In 2017 this had fallen to 5 million. There was a brief period (2003-2008) when live births in the EU-28 started to rise again, returning to 5.5 million by 2008 but the GFC sent it down again – as economic hardship tends to cause a decrease in births. So are economic incentives too low to cause a rebound?

France has the best incentives for children and the highest birth rate inside the EU at 2.0 up from 1.7 in the 1990s. Germany is around 1.4 drifting from 1.6 in the 1990s. The lives for child rearing French are eased by cheap health care, inexpensive preschools – for infants as young as 6 months old – subsidized at-home care and generous maternity leave. Mothers with three children can take a year off of work – and receive a monthly paycheck of up to €1,000 from the government to stay home. Families get subsidized public transportation and rail travel and holiday vouchers.

In order to stop the declining working population over time, imagine if Europe hypothetically put the onus back on consenting couples to take responsibility for their actions and makes abortions harder to access without compulsory consultation over options? Why not graphically show the entire process to get some sense of reality for both parties? You can gross yourself on this link.

Perhaps, in today’s electronic world, automatically deducting child support from fathers that run from responsibility might make sense? Why should the state pay for others’ lack of accountability? Even if the child is placed in foster care, why not wire child support to foster parents indirectly via the Ministry in charge of its administration? The population crisis is not going away in Europe. Why not provide more incentives to married/same-household couples?

Mathematically speaking the numbers are huge. Imagine if the million-plus fetuses every year had a vote to be raised with foster parents as opposed to being terminated, what they would choose? Consider the €23bn Merkel has spent on mainly economic migrants in the last 2 years being put toward preventing 200,000 abortions in Germany over that period? €115,000 to avert each one might have been better spent. That is a huge sum of money period.

CM is not advocating control over the womb but surely transparency in policy over individual responsibility is not a bad thing with respect to many issues, not just abortion. What level of economic incentives are required to prevent some couples/women choosing to terminate? Surely that plays a part in deciding to terminate. Consultation services with respect to the subject don’t seem too commonplace or at least structured in such a way as to prevent them.

According to Eurostat, since 1964 the divorce rate in EU-28 equivalents has doubled and the marriage rate has halved. For every eight marriages in 1964 there was one divorce, now there is one divorce for every two marriages.

The proportion of births outside of marriage now stands at 40%, from 27% in 2000 to less than 7% in 1964. 8.8 % of the EU-28 population aged 20+ lived in a consensual union (de-facto). In Japan the number of births out of wedlock is 25% according to the MHLW. The dynamics of the traditional nuclear family are fading.

51% of the Swedish population is now single household. 51%! While some is attributed to an aging population, 19 of the EU-28 members has a single household ratio of over 30%. 12 over 35%. By way of comparison, Japan’s single household ratio stands at 34.6% from 27.6% in 2000.

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To further analyse the new ways of living together and to complement the legal aspect, statistics on consensual unions, which take into account those with a ‘marriage-like’ relationship with each other, and are not married to or in a registered partnership with each other, can also be analysed.  Sweden (18.3 %) has the highest rate followed by Estonia (16.4 %), France (14.3 %) and the lowest in Greece (1.7 %), Poland (2.1 %), Malta (2.5 %) and Croatia (2.9 %).

Is employment a factor?  It is mixed. Eurostat reported in Germany, the fertility of non-employed women has increased and that of employed women decreased, while in Spain, the opposite occurred; in Greece, the total fertility rate (TFR) of non employed women fell below that of employed women, changing from a positive differential of about 0.2 average live births.

Is education a factor? Apart from Nordic countries (Denmark, Finland and Norway), Portugal and Malta, in general, women with lower education had higher TFR between 2007 and 2011. Eurostat state the fertility of women across the EU over the same period with a medium level of education dropped by about 9%, while the decrease for women with high or low education was less significant.

Eurostat argues that economic recessions have correlation to falling child birth rates. Apart from the direct impact of economic crises at an individual level, the economic uncertainty that spreads during periods of hardship seem to influence fertility. From this point of view Eurostat believes the duration of a crisis may play an important role and, the duration and the depth of the current recession are unprecedented in some countries. The agency states,

The expected relationship is that negative changes in GDP correspond to negative changes in the TFR, possibly with some delay, thus showing a high positive correlation at particular lags. The correlation with the TFR is relevant in Spain and Latvia without any lag; in Bulgaria, Poland and Romania with one year of lag; and in the Czech Republic, Denmark, Estonia, Greece, the Netherlands, Finland, Sweden, Iceland, Norway and Croatia with two years of lag. Taking the overall average across countries, a change in GDP is mostly positively correlated with a change in the TFR within about 19 months.”

Do we cynically argue that stagnant child birth rates aren’t just a factor of societal changes? Perhaps a truer reflection on the higher levels of poverty in the EU since GFC and the harsh realities for a growing number of people behind the growing levels of populism who are suffering greater economic hardship than statisticians are presenting to the political class? Hard decisions must be made before they are made by external factors.

Child Abuse – the shocking stats

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Child abuse is reaching shocking proportions globally. The stats you are about to read show just how widespread the problem has become.The National Institute of Health reports that approximately 80 % of those who attempted suicide had a history of child abuse. About 30% of abused and neglected children will later abuse their own childrencontinuing the horrible negative spiral.

We examine the US, UK, Australia and an outlier Japan, where child abuse cases have soared 111-fold in the last 30 years. Over 4,000,000 child abuse cases were reported in the US in 2015. Abused children show much higher tendencies for risky behaviours in later life. CM wrote about the shocking outcome of the independent report on child grooming gangs in Rotherham showing that the police and government were complicit for decades. We also wrote about abuse affecting safety at US schools, including mass shootings.

Warning – the data make for quite heavy reading. 

JAPAN

In 2016, CM wrote a piece on the breakdown in the nuclear family in Japan. The Ministry of Health, Labor & Welfare (MHLW) denoted that cases handled for child abuse in 2016 hit a record 122,578 cases, 111x the level of 1989. Part of the problem here would be due to a lack of reporting back then. However the growth in the last decade is still extreme. The MHLW denote over the last decade:

  • Physical related violence fell from 41.2% to 26% (despite doubling in absolute terms).
  • Neglect fell 38.5% to 21.1% (despite an 80% increase in absolute terms)
  • Sexual abuse fell from 3.2% to 1.3% (despite a 50% increase in absolute terms)
  • Psychological abuse jumped from 17.2% to 51.5% (a 10-fold absolute increase)

In the last decade filings of child abuse with the police have surged from 7% of all cases to 45%. Reporting to family or relatives has declined but neighbours remain the second largest factor in reporting abuse.

By prefecture, child abuse per 1000 children looks as follows as at 2016. The national average stands at 7.3 children per 1,000.

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AUSTRALIA

While the rate of growth is high, Australia’s Institute of Family Studies has reported in its June 2017 statistics that in 2015/16 a total of 355,935 notifications of child abuse were made vs 252,962 made in 2011/12. Total substantiations grew from 48,420 to 60,989 respectively.

The rate of notifications has risen from 33.8 per 1,000 children in 2011-12 to 42.0 per 1,000 in 2015-16 (AIHW, 2011, 2017).

  • Physical abuse accounted for 18.3%
  • Neglect  accounted for 24.9%
  • Sexual abuse accounted for 12.2%
  • Psychological abuse accounted for 44.5%
  • 51% of victims were female.

In Queensland, South Australia and the Northern Territory neglect was the most common type of substantiated maltreatment. Victoria had the largest proportion of emotional abuse substantiations (64.5%) compared to other states and territories, whereas South Australia had the smallest proportion of emotional abuse cases (25.2%).

While there were some gender differences for all abuse and neglect types, girls were significantly more likely to be the subject of substantiation cases of sexual abuse (15.8%) compared to boys (8.5%). The proportion of substantiated cases of harm/risk of harm from child maltreatment related to sexual abuse ranged from 3.4% in the Northern Territory to 16.6% in New South Wales and Western Australia.

Infants (children aged less than 1 year) were most likely to be the subject of a substantiation (16.1 per 1,000 infants), followed by children aged 1-4 years (9.0 per 1,000 children aged 1-4). Children aged 15-17 years were the least likely to be the subjects of a substantiation (3.9 per 1,000 children aged 15-17).

Australian children from remote and very remote areas were most likely to be the subject of a substantiation (16.2 per 1000 and 23.5 per 1000 respectively) compared with children in major cities (6.2 per 1000). Children in lower socio-economic areas were more likely to be the subject of a substantiation than children in higher socio-economic areas, with 6.9% of substantiations occurring in the highest socio-economic areas compared with 35.7% in the lowest socio-economic areas. 

This contradicts the trend in Japan were relatively poorer (tend to be remote) areas seem less prone to incidents of child abuse.

Perhaps the disturbing sign in Australia is the incidence of out of home care (OOHC) which continues to swell in numbers. Between the years 2014-15 and 2015-16 there was a 10.8% increase in children (from 11,581 to 12,829 children) admitted to OOHC. In 2015-16 there were 3,035 more children admitted to OOHC than were discharged.  In 2015-16, the median age of admission to OOHC was 6 years, with 46% of children admitted to OOHC aged under 5. In comparison, the median age of discharge from OOHC was 9 years and 32% were aged 15-17, compared with 8% admitted to OOHC.

Most children who were in OOHC on 30 June 2016 were residing in home-based care (94%). Of these children, 39% were in foster care, 49% were in relative/kinship care, 5% in third-party parental care and 1% were in some other type of home-based care.

USA

The US is a whole other category. While the media screams about the mistreatment of children at the Mexican border how many of them know the extent of child abuse within their own country? The American Society of Positive Care of Children notes,

  • 4 million child mistreatment referral reports received in 2015 vs 3.6mn in 2014.
  • Child abuse reports involved 7.2 million children vs 6.2mn in 2014.
  • 207,000 children received foster care services.
  • The financial cost of child abuse and neglect in the US is estimated at $585 billion (equivalent to the GDP of Sweden or Taiwan)
  • 75.3% of victims are neglected.
  • 17.2% of victims are physically abused.
  • 8.4% of victims are sexually abused.
  • 6.9% of victims are psychologically mistreated.
  • Highest rate of child abuse in children under one (24.2% per 1,000).
  • Over one-quarter (27%) of victims are younger than 3 years.
  • Almost five children die every day from child abuse.
  • 80% of child fatalities involve at least one parent.
  • 74.8% of child fatalities are under the age of 3.
  • 72.9% of the child abuse victims die from neglect.
  • 43.9% of the child abuse victims die from physical abuse.
  • 49.4% of children who die from child abuse are under one year.
  • Almost 60,000 children are sexually abused.
  • More than 90% of juvenile sexual abuse victims know their perpetrator.
  • 14% of all men in prison and 36% of women in US prisons were abused as children, twice the frequency seen in the general population.
  • In 2016, more than 2,300 children were reported as victims to the National Human Trafficking Hotline.
  • Average age of entry by a child prostitute is 13 yo. Life expectancy after becoming a prostitute is only 7 years57% of prostitutes were sexually abused as children.

UK

Government figures show that 3,171 offences have been recorded in England and Wales across 80 platforms in England and Wales since a new anti-grooming law was introduced in 2017 which criminalizes sexual communication with a child. This amounts to almost 9 grooming offences on average per day. The police noted that

  • girls aged 12-15 were recorded in 62% of cases of grooming
  • under-11s were recorded in nearly 25% of cases.

Child abuse figures in the UK according to the NSPCC reveal

  • 1 in 20 children in the UK have been sexually abused
  • Over 8,000 contacts to the NSPCC’s helpline last year were concerns about sexual abuse
  • There are an estimated 137,000 women and girls affected by FGM in England and Wales
  • 1 in 14 children have experienced emotional abuse by a parent or guardian.
  • Over 19,000 children were identified as needing protection from emotional abuse in 2017.
  • 6.9% of children said they had experienced physical violence at the hands of a parent or guardian (3.7% said severe physical violence).
  • The NSPCC’s helpline responded to over 11,000 contacts about physical abuse in 2016/17
  • Over 6,000 children were identified as needing protection from physical abuse last year

The message is clear. The incidence of child abuse continues to rise to sickening levels. Perhaps the EU sums up its problem to an even more shocking degree:

“Few studies have been done on neglect, but analyses of worldwide research shows that prevalence is also high − 16.3% for physical neglect and 18.4% for emotional…They show a prevalence rate of 9.6% for sexual abuse (13.4% in girls and 5.7% in boys), 22.9% for physical and 29.1% for mental. Applying these figures to the population of children in Europe suggests that 18 million children suffer from sexual abuse, 44 million from physical abuse and 55 million from mental abuse.”

Maybe part of preventing neglect starts with the very basics:

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So when we see media reports wailing about injustices which are relatively tiny in the grand scheme of things, perhaps we can reflect on the real problems that are right in front of our noses. #LetsEndChildAbuse

Israel – myths and realities

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You’ll never understand Israel until you visit it. Almost everything you read in the media is a falsehood. Nadav Tamir, former advisor to the late Prime Minister Shimon Peres, sarcastically quipped this week, “if Moses had possessed GPS there is no way he would have picked Israel as it is the only place in the Middle East without oil.” It might explain why this nation has had to work so hard to be innovative in order to survive. It has no natural resources. It had to invent drip irrigation so it could turn the arid chalky soil into fertile green pastures. Much of the technology inside your smart phone was designed in Israel. Household names Intel, Microsoft and Apple have all established their core R&D centers in the tiny nation state. Israelis are pragmatic and know too well that necessity is the mother of invention. Perhaps the great grandmother might be more apt.

It is perhaps one of the best kept secrets in the world. Sadly also one of the most misreported countries on the planet. Make that the most. Israel wants peace with its neighbors. Yet the mainstream media will not report the fact that Israeli hospitals are treating wounded Syrian troops of Assad as CM writes, The media won’t report that the local Druze population is livid that their fellow Israelis are doing this. Where are the media reporting the fact that hospitals not far from the Gaza Strip are caring for children who can’t get proper access to medical attention because Hamas is only concerned with spending on more rockets and building tunnels using the supplies given to it by the people supposedly oppressing it? Unfortunately the press seem to be stuck in the “if it bleeds, it leads” narrative.

The Israeli Foreign Ministry has launched a program of soft force. PM Benjamin Netanyahu launched a website in Farsi with full details of how to overcome drought gripping Iran through drip irrigation for free. While Iran shouts “Death to Israel”, Israelis shout, “we want to give life to the Iranian people.” Who is the aggressor? The Foreign Ministry is also gaining huge traction with Iraqis with an Arabic Facebook page discussing Iraqi-Jewish history. It launched in May 2018 and has 34,000 followers. Israel believes that the ‘digital embassy’ is an impactful way to get around the hatred often espoused by the regimes.

Then people miss out on news of amazing people like Tanya Oziel,  CEO of the Trans Tasman Business Circle who led a delegation from Australia & NZ to investigate tech fusion in Israel. Tanya, a Sydney based Jew of Iraqi origin, is someone of such passion and foresight that she arranged for AFL legends like Ron Barrassi to come to Israel to train local and Palestinian kids to play a game with a ball they’d never seen in mixed teams. All of a sudden the noise of the two peoples supposedly at each other’s throats was replaced by a sense of common purpose. While some of the Palestinian kids have been pilloried by some quarters in their community they still remain actively engaged with Tanya. They look beyond the hateful rhetoric so often fueled by the media. She has every right to be proud. The idea that this is some sort of jackbooted police state is engaged in apartheid and genocide is patently untrue.

Apartheid is a strange word to be used in an Israeli context. In a tiny country of just under 8 million citizens, the country’s 1.5 million Arabs, whatever challenges they may face enjoy full freedoms, voting rights and serve in the Knesset and the Supreme Court. Ask yourself how many Jews serve in any capacity (much less live) in Egypt, Morocco, Syria, Iraq, Algeria or many other countries? Egypt had 75,000 Jews once upon a time. Algeria 140,000, Iraq 135,000 Jews. Syria 30,000 Jews. Next to none now. Where is the apatheid? Where are their Jews?

Palestine is often a point of deep criticism. At the time of the State of Israel in 1948, 90% of Palestinian Arabs lived in Transjordan. A movement to create a Palestinian state never existed at the time. In fact it wasn’t until 1964 that the PLO was first established at a time the West Bank belonged to Jordan.

What is conveniently forgotten is that of the c.4mn refugees scattered across 60-odd refugee camps, the Palestinians have automatic rights to Jordanian citizenship yet they only covet Israel. Even though 21 Arab nations share a common language, they won’t offer asylum to Palestinian refugees which seems rather calculated. It provides a convenient excuse to maintain hostilities to Israel using the suffering of Palestinians as the bait.

Jordan doesn’t actively push Palestinians to take up citizenship which is their right to do so. While Israel remains an open, democratic and multi-ethnic society the PA has proven itself to be an intolerant, corrupt and self-serving dictatorship which has little interest in serving its constituents as the comptroller of its first ever audit revealed. International aid money lined the pockets of the leaders of the PLO. The French money laundering authorities discovered that Arafat’s wife’s bank account had amassed $3bn over 20 years. It is ironic that most of the original founders of the PLO didn’t live in the Palestinian Mandate when Israel was created. Arafat was born in Egypt. 

How is it that the army of Jordan’s King Hussein murdered thousands of PLO militants in 1970 yet the PLO has never called for the overthrow of the Hashemite monarchy? How is that even with the Oslo peace process coming into effect in 1993 that the PLO carried out 4,000 attacks till 1999. The Israelis so desperate (under Ehud Barak of all people) for peace gave the PLO 95% of their territorial demands yet they still kept up the attacks killing more than 1,000 Israelis, a total exceeding the previous 25 years combined. 

Arafat was presented with an outcome he did not want – peace with the State of Israel. Despite this serious peace offering Arafat accelerated the intifada. These are sad truths.

We need only look at the siege of Masada, the tale of the final revolt of the Jews against the Romans in 73CE. It truly points to the stoic nature we see today. Despite burning the citadel atop Masada and the killing of their families to evade capture, the Jews left the grain and food stores untouched as a way to tell the invaders that they were never at risk of starving but preferred death to being bonded in slavery. It typifies their pride and refusal to submit to persecution.

Jerusalem, the nation’s capitol, holds deep significance as it has been for millennia. CM’s grandfather stood by the Western Wall in 1940. The Jewish people who saw his picture felt a sense of deep gratitude that he helped defend her. The walls were built around the summit of Mount Moriah, where biblically, Abraham offered his son, Isaac, as a sacrifice. In 1948, the Jordanians took control of the wall and it was only in 1967 that Jews were able to pray at the foot of the Temple Mount again. To witness prayers on the Sabbath is something powerful. There is not one whiff of hatred. The chants, songs and prayers resonate throughout the walls. There is nothing but love in what they do. There is no extrapolation of the ancient texts to take extreme measures to murder in the name of their religion.

To witness Judaism, Christianity and Islam in the one city, one can honestly sense and feel similarities than differences. Think of the prophets. Abraham to the Jews was known as Ibrahim to the Muslims. Same for David/Daoud, Mary/Miriam and so on. Indeed if the Jews were as intolerant, racist and deranged as made out surely they would use the pretext to flatten the Al Aqsa mosque built over the Temple Mount ruins and restore it to its former glory.

Modern day history has been tough for Jews. The horrors of the Holocaust are documented at Yad Vashem. Trans Tasman Business Circle leader Johnny Weiss told the tale of how one of the guides showed a series of pictures of supposedly murdered Jews. One of them was his mother who is still alive at the ripe age of 94. What is more amazing is that she cut the guide off to say that “You are wrong. I know that girl is still alive. She is me!” After revealing her tattoo the entire tour group were floored by the revelation. Powerful beyond words. Living history as it were.

So when people wonder why the Jewish state take such measures against those that threaten to “drive them all into the sea” forgive them for doing their best to protect themselves. The last time they did not push back, 6 million died. It has taken 70 years to replenish those stocks. 70 years!

CM could go through the depths of innovation that was the key tenet of this tour. The sheer intelligence of those kids who learn advanced computer coding from age 7. We could discuss a 35 year old university doctor who has over 20 patents to his name but there is so much more to Israel. Its history has forced it to be the most advanced nation on earth. The start up nation is exactly that. When PM Benjamin Netanyahu says “we want your business” at a cyber conference speaking of the $50bn sunk cost in critical cyber infrastructure in the Negev Desert, he means it!

To sum up two weeks in Israel with this simplistic blog doesn’t do it justice. Israel is a proud country. Often brutally direct. Israelis will argue that if you think you’re the smartest in the room then it is time to change rooms. They are confident in their future because they back themselves explicitly. Failure is a good thing. Failing big is even better. Israelis think that experience is a hard teacher: they get the test first and the lesson afterwards. They believe that hard work, persistence and thinking outside the box is what counts. The education ecosystem breeds brilliance. There is no other word for it. This is deeply cultural and exceptionally hard to master.

Perhaps the highlight (there were too many to count) from the trip came on the final day. A photographer at a Tel Aviv flea market showed a picture (above) he took which chronicled a security checkpoint in 1990. The Israeli soldier and Palestinian female look tired of the situation. Things are not like that today. It feels no different to Japan. Not for one second has there been a nervous feeling about personal safety and security. Everyone who visits Israel for the first time will leave with the opposite preconceptions that they came with. It is by no means perfect but name a country that is.

It is with deep regret CM must board a flight tomorrow and leave a country that surprised on pretty much every level. It really is that amazing. Forget what you read in the papers. It is seriously fake news. See it with your own eyes and be prepared to blow your mind. Do it,

We want your business!

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Israeli Prime Minister Binyamin Netanyahu ran through the nation’s commitment to cyber noting the country has 200x the next country in per capita revenue in the area. They are 20% of global cyber revenue. Very scary outlook for the capabilities that cyber can do if in the wrong hands. In closing though the Prime Minister said four words:

We want your business!

It would be nice to see the Aussie PM shout as loudly for investment at home.

US Healthcare bankruptcies surge 270% in 2018 vs 2017

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6 months ago we wrote of the growing crisis of hospitals declaring bankruptcy in America. While The Affordable Care Act (Obamacare) is often lauded by some as noble legislation, according to bankruptcy lawyers, Polsinelli, the changes made to reimbursements that used to help cover hospitals who treated uninsured patients that were pulled under ACA have sent many hospitals to the bankruptcy A&E ward. Polsinelli wrote this month,

The Health Care Services Distress Research Index was 455.00 for the first quarter of 2018. This is an increase over 173 points from last quarter’s record high, approximately 62 percent. The index has experienced record or near-record highs in seven of the last eight quarters. Compared with the same period one year ago, the index has increased over 333 points, approximately 270 percent, and compared with the benchmark period of fourth quarter of 2010, it is up approximately 355 percent.”

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Polsinelli also wrote in 1Q 2017 that,

“Unlike the public markets, the Polsinelli/TrBK Distress Indices include both public and private companies, creating a broader economic view and one which may show developing trends on Main Street before they appear on Wall Street….Health care distress is high and it seems to be getting worse…

…The business of health care is unlike other industries, such as manufacturing, real estate, or retail. Health care faces all the traditional business challenges, such as competition, the impact of technology on services, and increasing wages. But more, the health care industry is needing to adapt to increasing regulations, changes in reimbursement rates from government or private payors, and a shift from traditional fee-for-service to value-based models that impact profitability…There is unprecedented pressure of major systemic changes to the existing health care system, particularly the implementation of the Affordable Care Act over the last several years and the current status of the program, which is alternately being repealed, repealed and replaced, phased out, or simply defunded…The (Obama) administration’s recent decision to terminate cost sharing reduction payments will also directly impact the health care market. Insurance companies may continue to provide insurance at a higher premium or decide to exit the markets. Eliminating these payments and the resulting premium increases may increase the cost to the government through premium subsidies.”

In short many Americans saw a doubling of premiums (an average increase of 113%) under Obamacare inside of 4 years causing many to forgo the insurance. The reimbursements under the old system (which helped compensate hospitals administering emergency treatment for the uninsured) that were stopped on the proviso people would take up ACA plans backfired. Not enough people signed up and more hospitals running on a days cashflow have been forced to close because the reimbursements designed to protect them against uninsured patients disappeared. When Jonathan Gruber, the architect of Obamacare, testified to Congress he candidly said,

The Affordable Healthcare bill was written in a tortured way to make sure the (Congressional Budget Office) did not score the mandate as taxes…If CBO scored the mandate as taxes, the bill dies, OK? Lack of transparency is a huge political advantage … call it the stupidity of the American voter or whatever … that was really, really critical to get the thing to pass … I wish … we could make it transparent, but I’d rather have the law than not.”

Makes one wonder what the status of the medical equipment suppliers who lease equipment to these hospitals does with the machines they repossess.