Saturday, September 5, 2026

 

The

Medical Industrial Complex

Mass Media of Mass Deception!


The Media: 

Pharma’s Weapon of Mass Deception


Modern medicine is captured by the pharmaceutical industry, but that capture is only effective to the extent that it is accepted by the public. The media is the mechanism through which that influence is translated into public legitimacy.

The media is not a neutral pipeline 

for medical information. 

It operates within an information ecosystem shaped by financial incentives and institutional relationships that systematically favor pharmaceutical interests—determining which stories receive attention, which voices are amplified, and how evidence is understood.

Ownership and governance ties between media and pharma

Media coverage is shaped not only by journalists and editors, but also by the corporate structures behind the organizations that produce it. Ownership and governance ties between media companies and pharmaceutical companies create incentives that influence what issues receive attention and how they are covered.

Common ownership

The largest U.S. asset managers—namely BlackRock, Vanguard, State Street, and Fidelity—are the largest shareholders of both the largest media companies and the largest pharmaceutical companies

not just in the United States, 

but around the world!

This common ownership creates a structural alignment of interests. Asset managers do not need to telephone editors or issue instructions to newsrooms. The ownership structure does the work for them.

These asset managers wield enormous influence through corporate governance. Their ownership stakes give them the leverage to shape who sits on corporate boards, how executives are rewarded, and other major company decisions. Public-company executives know that maintaining the confidence of their largest institutional shareholders is essential, while losing that confidence can have serious consequences for both leadership and share price.

The result is a powerful system of institutional discipline. Media executives know who their largest owners are and what those owners expect. They do not need explicit instructions—incentives alone are often sufficient. 

A media company whose largest shareholders also own billions of dollars in pharmaceutical companies 

has little incentive to subject that industry to sustained adversarial scrutiny.

Overlapping board members

Beyond common ownership by asset managers, media and pharmaceutical companies have also been connected through overlapping board members—the same individuals can hold leadership positions in both industries. Corporate boards influence executive selection, strategic priorities, and major corporate decisions.

A 2009 analysis examined nine major U.S. media corporations and found that six had directors who also served on the boards of pharmaceutical companies. Including health insurance companies, eight of the nine media corporations had overlapping directors with either the pharmaceutical or health insurance industries—only CBS had no such overlap.

A more recent example is James C. Smith, who served as Thomson Reuters’ president, CEO, and a member of its board of directors from 2012 to 2020. In 2014, while leading Thomson Reuters, Smith joined Pfizer’s board of directors and was appointed to Pfizer’s Corporate Governance Committee and Science and Technology Committee. Thomson Reuters owns Reuters, one of the world’s largest and most influential news organizations, whose reporting reaches audiences worldwide and is widely republished by other media outlets.

Media’s dependence on pharmaceutical advertising revenue

The pharmaceutical industry is one of the largest sources of advertising revenue for U.S. media. Unlike many industries that have shifted heavily toward digital marketing, pharmaceutical companies devote an unusually large share of their advertising budgets to television, print, and radio, making them one of the most important financial supporters of legacy news organizations.

This relationship expanded dramatically after the FDA’s 1997 guidance unlocked large-scale direct-to-consumer prescription drug advertising on television and radio. Over the following two decades, spending on these advertisements grew nearly fivefold, from $1.3 billion in 1997 to $6 billion in 2016.

Commercial media organizations depend on advertising revenue to finance their operations. When an industry is one of their largest sources of revenue, that financial dependence will shape what gets investigated, how issues are framed, and how much scrutiny that industry receives—even without direct interference. The result is a structural incentive to limit coverage that could damage valuable commercial relationships.

This isn’t merely theoretical. A 2016 study analyzing more than 80,000 newspaper articles found that pharmaceutical advertising was associated with significantly less critical coverage. Articles about advertisers’ drugs used fewer negative words, and for every additional $100,000 a newspaper received from a pharmaceutical company, coverage of safety issues for that company’s drugs fell by 23–33%, while mentions of side effects declined by 9–20%. A follow-up 2020 study found that this bias was strongest when companies faced negative news events. Advertising doesn’t merely increase visibility—it provides protection from scrutiny.

These findings capture only the most measurable effects of advertising influence. Studies can quantify changes in coverage, language, and tone, but they cannot easily measure issues that are never investigated or perspectives that never enter mainstream discussion. Financial dependence influences not only how an industry is covered, but also the boundaries of what coverage is considered viable in the first place.

How pharmaceutical PR becomes medical news

Before health stories reach the public, they have often already passed through an extensive public relations pipeline. Pharmaceutical companies invest heavily in PR, and healthcare is the largest specialty sector in the U.S. public relations industry, with healthcare and pharmaceutical clients accounting for roughly one-third of revenue at large PR firms. Press releases, media briefings, broadcast packages, and sponsored content provide pre-packaged narratives that enter news organizations before independent reporting begins.

Press-release journalism

Health reporting often relies on press releases supplied by pharmaceutical companies and PR firms. This practice is known as “churnalism”—the production of news by recycling press releases and other pre-packaged material. A 2006 UK study found that health reporting was the news category most dependent on PR material: 37% of health news stories were based mainly or wholly on PR, compared with 20% of newspaper stories overall. 

Health news stories frequently reproduced press-release material with limited independent verification or additional reporting.

The problem is not merely that journalists rely on press releases, but that the framing of those releases is often carried directly into news coverage. A 2014 BMJ study examining 462 health-related press releases and 668 resulting news stories found that 33% to 40% of press releases exaggerated findings from the underlying research. When press releases contained exaggerated causal claims, resulting news stories were 20 times more likely to reproduce the same exaggeration. When press releases overstated the relevance of animal research to humans, news stories were 56 times more likely to reproduce the same exaggeration. Much of the distortion in health news was already present in the press releases that shaped subsequent coverage.

The PR pipeline also determines which information gets omitted. A 2021 BMJ Open study found that while 94% of scientific papers disclosed their funding sources, only 29% of press releases and just 9% of resulting news stories did. But when press releases included funding information, news outlets were three to seven times more likely to include it as well—showing that what public relations leaves out often disappears from the news altogether.

Broadcast-ready public relations

Pharmaceutical public relations extends beyond written press releases. 

Pharmaceutical companies and their PR agencies also produce video news releases (VNRs)

Professionally produced television segments designed to appear in news broadcasts with little or no additional reporting.

A 2006 study found that major U.S. television stations broadcast pharmaceutical-sponsored VNRs as news while almost never disclosing their source. The investigation tracked 87 instances of VNR use—only one included any disclosure, and even that identified the PR firm rather than the corporate sponsor. 

The VNRs tracked reached more than half of the U.S. population, showing that pharmaceutical PR reaches large national audiences rather than remaining confined to isolated outlets.

The problem was not only that stations used pre-packaged material, but that they often transformed it into something that appeared to be independent journalism. In more than 60% of documented cases, stations re-voiced VNRs using their own anchors or reporters, sometimes repeating the original PR script word for word. Some stations also added their own graphics and branding to further obscure the corporate sponsor.

Sponsored content and native advertising

The boundary between journalism and advertising has also blurred through sponsored content, advertorials, and native advertising. 

Unlike traditional advertisements, these formats are designed to resemble editorial content, adopting the publication’s style, language, and appearance while carrying messages on behalf of corporate sponsors.

Many readers struggle to distinguish native advertising from independent journalism. A 2016 study found that fewer than 8% of participants correctly identified native advertisements as advertising, even when disclosures such as “sponsored content” or “advertisement” were used. When readers were made aware of the commercial nature of native advertising, they became more skeptical of the content—suggesting that its effectiveness depends on being mistaken for independent information.

For pharmaceutical companies, this creates a way to present promotional messages in the language of medical education rather than traditional advertising.

Sources, framing, and narrative control

Pharmaceutical influence extends beyond the production of medical knowledge to how that knowledge is communicated, interpreted, and understood by the public.

Industry-connected commentators

Many health stories rely on physicians and researchers presented as independent authorities, yet these commentators often have financial relationships with the pharmaceutical industry whose products or research they are discussing.

A 2017 CMAJ study of 591 international medical news stories found that 32% of commentators described in coverage as independent had financial conflicts of interest related to the topic being discussed. When those financial conflicts aligned with the findings being reported, 93% offered favorable commentary, compared with just 17% when they did not.

These financial conflicts of interest are often invisible to audiences. A 2000 New England Journal of Medicine analysis of 207 news stories about new drugs found that half of the cited commentators had financial ties to pharmaceutical manufacturers. Yet in most cases, audiences were not told: the relationships were disclosed only 39% of the time. The failure was even more pronounced in television coverage, where none of the 14 reports that cited commentators with industry ties disclosed those financial conflicts of interest.

Patient groups

Patient organizations are frequently used as sources in health reporting, providing journalists with human stories, personal testimony, and public-facing perspectives that shape how medical issues are understood.

Industry funding is widespread among patient organizations. A 2017 New England Journal of Medicine analysis of 104 of the largest U.S. patient advocacy organizations found that 83% received financial support from drug, device, or biotechnology companies, while 39% had a current or former industry executive on their governing board. Transparency was limited: only 57% disclosed donation amounts, only 10% disclosed how donations were used, and only 12% had policies addressing institutional conflicts of interest. A 2023 BMJ Open study further found that pharmaceutical payments to UK patient organizations were overwhelmingly directed toward groups aligned with companies’ existing products and drug-development pipelines.

This creates a form of credibility transfer: pharmaceutical interests can be amplified through organizations portrayed by the media as independent patient advocates, leading audiences to view industry-aligned positions as grassroots perspectives rather than advocacy shaped by corporate funding.

Disease-awareness campaigns

Pharmaceutical influence in the media extends beyond promoting specific products. Disease-awareness campaigns shape public understanding of medical conditions without directly advertising a drug.

These campaigns often frame everyday symptoms and experiences through a medical lens, encouraging people to seek diagnosis and treatment. By shaping perceptions of disease before a product is ever mentioned, they can expand demand for medical interventions. FDA research has found that these communications can blur the line between education and drug promotion, causing consumers to associate disease information with pharmaceutical solutions even when no product is named.

The growth of disease-awareness campaigns has been dramatic. A 2019 analysis published in JAMA found that the number of U.S. disease-awareness campaigns running annually increased more than ninefold, from 44 in 1997 to 401 in 2016. In 2016 alone, pharmaceutical companies spent $430 million on unbranded disease-awareness campaigns.

Ultimately, these campaigns shape how people define illness and decide what warrants treatment.

Selective framing of medical evidence

The selection of sources is only one part of the process. How that information is framed also shapes how the public understands treatments, risks, and evidence.

Health news frequently omits critical context. HealthNewsReview.org, which evaluated 500 U.S. health news stories in a 2008 analysis published in PLOS Medicine, found widespread failures in reporting the information needed for informed decision-making. Between 62% and 77% of stories failed to adequately address harms, benefits, evidence quality, or alternative options. Only 33% adequately covered potential harms, while only 28% adequately quantified benefits.

When benefits are reported, they are frequently presented in ways that exaggerate their apparent importance. News coverage often emphasizes relative risk reductions without providing sufficient context about absolute risk reductions. This distinction matters because relative risk can make treatments appear far more effective than their actual impact. A treatment that reduces a risk from 2% to 1%, for example, can be described as cutting risk by 50%—a technically accurate statement that can nevertheless create a very misleading impression of the magnitude of the benefit.

Harms are also frequently filtered out. A study of health news stories featured on Google Health News found that 25% omitted adverse events from media coverage even though those same harms were explicitly reported in the underlying papers. More broadly, 88% of news stories contained at least one form of “spin,” including exaggerated claims, unsupported interpretations, or conclusions that went beyond the evidence.

The result is a pattern in which medical

 news consistently amplifies benefits while 

minimizing uncertainty and harms.

Thursday, September 3, 2026

Caution!

S&P 500

Dividend Yield

0.98%

Vanguard’s S&P 500 ETF (as of 9-2-2026) current yield is 0.98% a bearish signal that stocks are massively overvalued!

  

 Japan

The Bond Bear Market

Is Now International!


The two decades Sins of Financial Repression has awaken the Worldwide Bond Vigilantes!

Japan’s central bank running the printing presses to suppress interest rates to allow their officials to run massive budget deficits.  It’s all fun and games until someone gets hurt and that hurt is a falling Yen!  Prices for imported raw materials and finished goods have moved up in price significantly slowing Japanese GDP along with inflation all borne by the Japanese people.  In other words the free lunch Japanese officials thought they had for 2 decades the bill has arrived in the form of a free falling Yen.

This has killed off the Yen carry trade.

Investors would borrow in Japan at their sub atomically low interest rates and then use those monies to buy U.S. Treasuries notes and bonds along with corporate bonds plus stocks.  That game is now in the unwinding stage as investors sell seeking buyers for their assets.  This will put upward pressure on U.S. rates as this unwinding runs its course.

So far this has not affected stocks in any material fashion however Treasuries and especially long term investment grade corporate bonds have sold off making their current yield very competitive with stocks.  Vanguard’s ETF Long-Term Corporate Bond symbol VCLT current yield is 6.16% as compared to Vanguard S&P 500 index ETF symbol VOO with its tiny dividend yield at 0.98%! 

(6.16 – 0.98) ÷ 0.98 X 100 = 529% (rounded) greater yield than the S&P 500 index!  Investors – who are now actually speculators – is in the precarious position of not just expecting higher stock prices but are now demanding.  As I’ve stated before IMO bonds over the next 10 to even possibly 15 years will outperform stocks!

This is especially true for those with more than 15 years to go before retirement dollar cost average into a long term investment grade bond fund.  During growth periods rates will move upward in a saw tooth manner and during recessions rates will bottom at higher lows.

Till Next Time          



 Humble Pie

Saving

Social Security

&

Bolstering American’s Saving Rate

This Will Require Congressional Action & Signed into Law by the President

Far too many Americans are falling through the cracks going into their retirement years relying solely on Social Security.  To make matters worse Social Security’s trust fund is scheduled to run out in the 4th quarter of 2032 if no Congressional action is taken, by law the Commissioner will be forced to lower benefits by 23% (current estimation).

In order to have major improvements and reform the political left and political right will have to be pissed off equally.  Let’s toss a coin to see who goes first.

Public Accounts:

Saving Social Security in its present form is by increasing the earnings level subject to F.I.C.A. taxation (the caps - curr. $184,500).  Social Security will remain as a pay as you go – or (PAYGO) – system, each year the Commissioner’s report will determine the increase (if any) beyond an automatic increase based on the Consumer price index.  If there is any excess dollars they will be invested into existing marketable treasury securities by the Chief Financial Officer for Social Security.   This will allow at current benefit structure (kick the can down the road), estimated to the year 2055 at that time either an increase in the existing tax and/or a tax on dividends.

Private Accounts:

Way too many Americans have fallen through the cracks for retirement savings, so much so, it has become one of the larger problems acerbating our income and wealth inequality between race, gender, and age groups.

Add on mandated private accounts with 6% contributing by the employer and 9% by the employee.  The working poor will receive from income taxes a 3% add on boosting their savings rate to 18%.  

These monies will be invested separately with only one investment option.  That is the Permanent Portfolio concept pioneered by the late Harry Browne. The reason for this method is it’s very low downside risk despite a historical average annual return in the 7% range.

Mandated by law managing costs for these accounts will have an expense ratio no higher than 0.25%.  The maximum going into the accounts is capped at $50,000 per year and then automatically raised each year based on the previous year consumer price index.

25% in worldwide investment grade stocks.

25% in worldwide investment grade long term bonds (Government and corporate).

25% in worldwide investment grade bills and notes. (Government and corporate)

25% in gold

Monies going in will automatically split four ways equally to be invested and will only be rebalanced if one of the asset categories is 35% or greater.

Accounts are not subject to taxation until retirement; monies cannot be borrowed out early nor sold before retirement.  The only option for early retirement withdraw is due to total disability (stated by 2 physicians).  

Retirement withdraws may begin at age 62 and required minimum withdraw at age 71.  Two options will be presented for withdraw.  A percentage withdraw rate (changeable at anytime by the participant) from 1% to 8% calculated on an annual basis and then paid out monthly (minus taxes withheld).

The second option is the purchase (after taxes withheld) into a government sponsored non profit annuity.  With either option any monies remaining upon death of the participant will go to the individual(s) named in the plan documents.

Voluntary retirement option:

Super Roth IRA using after tax dollars to shelter earnings from taxation yearly deposits up to $50,000 per year automatically increased each year calculated by the consumer price index.  All other plans would be frozen (no further deposits) or converted into Super Roth IRA’s.    

Tuesday, September 1, 2026

Little less gold and a little more Cash; Bonds and Stocks remain the same.

 

Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 9/1/26

Active Allocation Bands (excluding cash) 0% to 50%
44% - Cash -Short Term Bond Index - VBIRX
32% -Gold- Global Capital Cycles Fund - VGPMX **
 24% -Lt. Bonds- Long Term Bond Index - VBLAX
 0% -Stocks- Total Stock Market Index - VTSAX
[See Disclaimer]
** Vanguard's Global Capital Cycles Fund maintains 25%+ in precious metal equities the remainder are domestic or international companies they believe will perform well during times of world wide stress or economic declines.  


Margin of Safety!

Central Concept of Investment for the purchase of Common Stocks.
"The danger to investors lies in concentrating their purchases in the upper levels of the market..."

Stocks compared to bonds:
Earnings Yield Coverage Ratio - [EYC Ratio]
Lump Sum any amount greater than yearly salary.

PE10  .........42.04
Bond Rate....5.76%

EYC Ratio = 1/PE10 x 100 x 1.1 / Bond Rate

2.00+ Stocks on the give-away-table!

1.75+ Safe for large lump sums & DCA

1.30+ Safe for DCA

1.29 or less: Mid-Point - Hold stocks and purchase bonds.

1.00 or less: Sell stocks - Purchase Bonds

0.50 or less:  Stock Market Crash Alert!  
Purchase 30 year Treasury Bonds! 

Current EYC Ratio: 0.45(rounded)
As of  9-1-2026
Updated Monthly

PE10 as report by Multpl.com
DCA is Dollar Cost Averaging.
Lump Sum is any dollar amount greater than one year salary.

Over a ten-year period the typical excess of stock earnings power over bond interest may aggregate 4/3 of the price paid. This figure is sufficient to provide a very real margin of safety--which, under favorable conditions, will prevent or minimize a loss...If the purchases are made at the average level of the market over a span of years, the prices paid should carry with them assurance of an adequate margin of safety.  The danger to investors lies in concentrating their purchases in the upper levels of the market.....

Common Sense Investing:
The Papers of Benjamin Graham
Benjamin Graham


%
Stocks & Bonds
Allocation Formula
9-1-2026
Updated Monthly

% Allocation = 100 x (Current PE10 – Avg. PE10 / 4)  ÷  (Avg.PE10 x 2 – Avg. PE10 / 2)]
Formula's answer determines bond allocation.


Core Bond Allocation:  144% 

% Stock Allocation     0% (rounded)
% Bond Allocation  100% (rounded)

Current Asset: 
Vanguard Short-Term Investment Grade Bond Fund   

Logic behind this approach:
--As the stock market becomes more expensive, a conservative investor's stock allocation should go down. The rationale recognizes the reduced expected future returns for stocks, and the increasing risk. 
--The formula acknowledges the increased likelihood of the market falling from current levels based on historical valuation levels and regression to the mean, rather than from volatility. Many agree this is the key to value investing.  

Please note:  I changed the formula when the Shiller PE10 is trading at it's mean - stocks and bonds will be at 50% - 50% representing Ben Graham's Defensive investor starting point; only deviating from that norm as valuations rise or fall.

Current Allocation:

Vanguard Short Term Investment Grade Bond Fund


Possible Allocations to Bonds vs Stocks:

Bonds %
100%+  Vanguard Short Term Investment Grade Bond Fund 

99% to 65% Wellesley Income Fund

64% to 35% 1/2 Wellesley Income Fund - 1/2 Wellington Fund

34% to 20%  Equity Income Fund

19% to 0%  Vanguard Small-Cap Value Index Fund
  
DYI

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This site strives for the highest standards of accuracy; however ERRORS AND OMISSIONS ARE ACCEPTED!
The Dividend Yield Investor is a blog site for entertainment and educational purposes ONLY.
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Use this site at your own risk.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

The Formula.