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A Vicious Stagflationary Environment Awaits

A Vicious Stagflationary Environment Awaits

Authored by Tavi Costa and Kevin Smith via Crescat Capital,

Today’s restrictive Fed policies…



A Vicious Stagflationary Environment Awaits

Authored by Tavi Costa and Kevin Smith via Crescat Capital,

Today’s restrictive Fed policies in a rapidly deteriorating economy are the preconditions for a steep recession. Contrary to the unprecedented monetary and fiscal support we had following the last economic downturn, we are currently experiencing a major withdrawal of liquidity at a time when corporate fundamentals are starting to contract. Despite the deepest yield curve inversion in decades, the Fed is raising rates at its fastest pace since 1984 as it prepares to shrink its balance sheet by $90 billion per month, starting next month. Already, in the last three months, M2 money supply also contracted by its largest amount in 63 years!

In the meantime, inflation remains deeply entrenched in the economy. These are arguably the most challenging set of circumstances the Fed has confronted in many decades. Central banks can sacrifice economic growth as long as unemployment rates stay low, which we believe to be highly unlikely.

Looking back at the Great Inflation period from the late 1960s to the early 1980s, the rise in consumer prices preceded substantial increases in unemployment rates. On average, after two years of the initial appreciation in inflation rates, labor markets started to falter. Today, it has been exactly two years and three months since CPI rates began to trend higher. With such a level of monetary tightening with already eroding economic conditions, we strongly believe unemployment rates are poised to rise significantly from their current levels.

Inflationary Recession

In 1973-4, it took a decline of 48% in stocks for inflation to start trending lower for the next couple of years. The persistent increase in consumer prices at the time forced the Fed which had to radically tighten financial conditions. As a result, a brutal inflationary recession followed and, outside of precious metals, overall equities and Treasuries collapsed together. A similar macro setup is unfolding today.

In our view, the US and most other developed economies have decisively entered an inflationary regime. Consequently, the role of monetary policy will be much more directed towards price stability which inhibits the backdrop of excessive central bank liquidity that drove overall market prices to today’s unsustainable levels.

We believe January 3rd marked the peak for US stocks and this is just the beginning of a bear market from truly historical overvaluations.

Opportunities Abound

Decades of reckless Fed actions have created one of the most frenzied investment environments in stock market history. Outside of natural resource industries, we are seeing a profusion of unsustainably high valuations across most of the equity market.

Unsurprisingly, today’s consumer discretionary sector is now worth 2.6 times the size of the energy sector, while the latter generates over 5 times more in free cash flow. We believe these price imbalances are true opportunities. In our global macro and long/short hedge funds, we are long undervalued stocks in scarce commodity industries today, including precious and base metal miners, oil and gas E&Ps, and fertilizer producers while we are short a variety of overvalued stocks in a variety of sectors with deliberate over-weighting of short positions in consumer discretionary and information technology, in particular mega-cap tech.

The Fundamental Setup for Mining Stocks

In a similar concept to how historically undervalued energy companies continue to be, other commodity businesses may offer an even stronger value proposition. Mining stocks, for instance, are currently trading at multiples not seen since their historically most depressed levels. This is a function of falling stock prices coupled with strong fundamentals. The P/E ratio for metals and mining stocks in the S&P 500 are now retesting the lows of the 2008 bottom.

Greatest Dividend Yield in Almost a Decade

Gold miners also have the highest dividend yield in almost ten years. While this seems compelling, it is just a supplementary part of our bullish thesis on gold and silver mining stocks. These companies are almost paying more dividends than utility stocks for the first time in the history of the data.

Similarly, energy stocks are paying more dividends than any other sector in the S&P 500 today.

Energy Stocks-to-Oil Ratio on the Rise

Energy stocks have underperformed oil prices for almost six years. Even after most energy commodities reached a bottom in April 2020, exploration and production companies have not kept up with the level of appreciation. It is interesting, however, that in this recent pullback in WTI and Brent oil prices, energy stocks behaved significantly better. We think this is a very bullish sign for the overall industry. It is always important to see the risker parts of a sector leading the way. We believe the energy stocks-to-oil ratio will break out from this key resistance and continue to move higher.

The Resurgence of the Inflation Narrative

None of the structural issues causing inflation have been resolved. Overall CAPEX for commodity producers has gone nowhere and monetary tightening has only reduced capital available for new investments. We believe that the Fed still runs a major risk of prematurely shifting its hawkish stance and re-igniting the inflation narrative. The softer tone we have seen from policy makers recently is likely to drive commodity prices higher again. That has already begun. Look no further than natural gas prices making new highs recently.

Natural Gas Sends Strong Message

The surge in natural gas prices to recent highs is perhaps one of the most important developments unfolding in the macro environment today. It is happening right at a time when the inflation narrative has dissipated due to recession fears. The appreciation of natural gas reminds us that commodity markets are fundamentally linked. Rising energy prices often drive rising agricultural and materials prices.

Natural Gas and Ammonia Prices Are Strongly Correlated

Note the historical correlation between natural gas and ammonia prices. In the past, one has led the other. Higher ammonia prices mean higher fertilizer prices which trigger agricultural commodities to rise leading to higher food prices.

Most Erratic Energy Policy in History

In case one thinks that the selling pressure in oil has been solely driven by recession fears, the US government just sold another 27 million barrels last month. At this pace, the strategic petroleum reserves (SPR) will be zero in 18 months.

Nonetheless, with recent recession fears, the demand deterioration in the Chinese economy, and the US government selling its SPRs, one would think oil would not be trading anywhere close to as high as $90 per barrel. Such strength in the price speaks to the overall supply tightness in the energy market. We believe oil is headed substantially higher.

The Early Innings of a Bear Market

Equity markets are not priced for the vicious stagflationary environment that we envision. Overall, stocks are behaving as if we were still in a secular disinflationary environment which allows the Fed to loosen monetary conditions without causing inflationary pressure. As prices for goods and services continue to increase at historically elevated levels, so will the cost of capital. That is not a positive scenario for growth stocks, particularly relative to value companies. The Russell Growth vs. Value index spread still is near the peak levels reached in the Tech Bubble of 2000. This further supports our view that the decline in the overall equity markets is just the beginning.

Value vs. Growth

The long-term double bottom in the energy-to-tech stocks ratio illustrates how early we are in this upward trend for oil and gas stocks. For over a decade, capital flows have solely focused on growth-related companies and have completely forgotten about businesses that are crucial to the basic functioning of the global economy. We are excited to be able to invest in historically undervalued energy companies at what we believe to be only the beginning of an inflationary era.

Job Openings Collapsing

Maybe it is just a coincidence, but 774 CEOs have left their roles this year in the US alone. That is the highest number in 20 years!

What do these high-profile executives know that investors don’t?

There have been significant changes in labor market indicators recently. Job opening just had their largest 3-month decline in the history of the data, excluding the initial shock of the pandemic. This is probably just the beginning. Fed tightening with PMIs already at levels only seen in the Global Financial Crisis is just one more nail in the coffin for the economy.

Tech Bubble on Steroids

At the height of the Tech Bubble in 2000, the top-10 US market cap tech stocks collectively reached an enterprise value of 30% of GDP. The problem then was the same as it is today. Growth expectations were too high for these companies. Their valuations had simply become too rich relative to the size of the overall economy to justify the growth assumptions.

Furthermore, the spending boom to address the Y2K computer problem made the fundamentals truly unsustainable. Investors were extrapolating high short-term growth rather than realizing that it was a top in both growth and profitability for the business cycle. Over the next two and a half years, the enterprise value of these companies would plunge to just 5% of GDP as the combined revenue, earnings, free cash flow, and stock prices for these companies plummeted and led the entire economy into recession.

Fast forward to year-end 2021, the height of today’s mega-cap-tech-led stock market bubble. The top-10 US market cap tech stocks collectively reached an even higher 56% EV to GDP, 87% higher than it was at the peak of the 2000 tech bubble. The record-breaking fiscal and monetary stimulus during Covid accelerated the move to the cloud and the corresponding IT spending boom, just like Y2K. Once again, investors have extrapolated unsustainable growth and profitability to justify high valuations.

Remarkably, even as the fundamentals are already deteriorating, the further downside risk for these mega-caps remains totally incomprehensible to most market participants today. The common investment narrative remains that these companies have reasonable P/E ratios. Not only is the E coming off unsustainably inflated levels, but the P/E multiple is also too high compared to likely future growth.

The chart below shows the potential further downside risk for the top-10 mega-cap tech stocks today, on an EV-to-GDP basis, if they were to approach the same cyclical low valuation levels that they did in 2002 of 5 times EV to GDP. We are not necessarily calling for a full retest of those multiples, but we believe the market will continue to head in that direction. We are indeed looking for substantially lower stock prices for many of these companies along with continued downward revisions to earnings and free cash flow projections and contracting multiples, all of which should coincide with an economic recession over the next several quarters.

Investors have been buying the dip and continue to get sucked into what we believe has been a mere bear market rally over the last two months, one that is starting to roll over again. The technical analysis of this macro/fundamental chart looks like a monster head-and-shoulders pattern.

Payrolls: Still Partying Like It’s 1999

Nonfarm payrolls recently surprised the markets with a surge of 528,000. Despite what seems to be very positive news, here is a reminder that nonfarm payrolls also surged by almost 500,000 right at the peak of the tech bubble in March 2000. It is important to understand that most labor market gauges are lagging indicators. An extremely low unemployment rate is often a contrarian indicator.

Hardly Even Growth Stocks Anymore

In contrast to what most investors believe, the “FAANG” stocks are starting to show serious signs of weakness in their fundamentals. The median real revenue growth for these companies has officially turned negative for the first time in almost two decades. Interestingly, investors still consider them “growth” stocks despite their meaningful exposure to a cyclical downturn in the economy at large. We think mega-cap tech companies pose a significant risk to the overall equity market. After years of attracting investment flows from capital markets on the back of incredibly successful business models, these stocks are deteriorating fundamentally, and most investors are not even paying attention.

More Buybacks Than Capex

S&P 500 companies are spending more money on share buybacks than they are investing in their businesses. They are doing this at the highest ratio in the history of the data which goes back 25 years. Aggregate annual buybacks are 134% of CAPEX. This trend is likely to crimp productivity growth and innovation for years to come.

Financial Engineering Failure

While many investors believe share buyback programs have been widely successful, the data shows otherwise. Stocks with the highest buyback ratios have underperformed the overall market in the last three years. It gets worse. If we look at the members of the S&P 500 Buyback index, 89% of their cash flow generated in the last 12 months was used to buy back their shares. Managers have been making poor capital allocation decisions, buying back expensive shares, and under-investing in future growth.

Contracting Fundamentals

While we have seen most stocks in the technology sector being re-rated at lower price levels, fundamentals for these businesses continue to weaken, particularly for the smaller players. Aggregate profit margins for the Russell 2000 Technology index members are now at their lowest level since the Global Financial Crisis.

Yield Curve Inversions During Tightening Cycles

In the last 30+ years, every time the yield curve inverted, the Fed was forced to end its tightening cycle as the economy was heading into a recession. Over time, the sharp reversal of these policies, i.e., subsequent easing cycles, are what have fueled the excesses we see in financial asset valuations today.

For every economic downturn we have had since the late 1980s, government and Fed support became progressively larger. Such policy behavior is only achievable in a macroeconomic environment where inflation is not a long-term problem.

In the inflationary late 1960s to early 1980s, in contrast, central banks were much more limited in their ability to deploy liquidity measures during recessions. We think we are entering a similar macro setting today. This potential lack of liquidity is yet to be reflected in the prices of risky assets, which remain near historic high levels. Nonetheless, despite the steep inversion in the US yield curve, we think the Fed will be forced to remain hawkish for longer. In our strong view, the tightening of financial conditions in a fragile economy should be detrimental to equity markets.

Unsustainable Inversion

The 1-year Eurodollar curve is now as inverted as it was at the beginning of the Global Financial Crisis. That just means markets believe the Fed will be forced to cut interest rates in the next 12 months. For us, this inversion reflects how investors continue to bet on the potential for a deflationary outcome.

We believe it is unlikely that the Fed will be able to loosen financial conditions given that long-term inflation expectations are likely to remain well above the 2% target. In this sense, today’s setup reminds us of the 1970s when policy makers will be forced to maintain a hawkish stance for longer. As a result, market liquidity will remain challenged.

China’s Balance Sheet Recession

China is currently facing a full-blown balance sheet recession due to an over-levered banking system and real estate market. The unwinding of its severe macro imbalances has forced the PBOC to loosen monetary conditions not only in an inflationary environment but also with a significantly more restrictive Fed policy. In our strong view, a devaluation of the Chinese yuan is the next wrecking ball that very few investors are positioned for.

Note how China’s imports of steel products are now at the lowest level in 24 years.

The Fed is Tightening While the PBOC is Easing

The PBOC-to-Fed’s interest rate policy spread has consistently led the changes in USDCNY by 6 months.

Such divergence in central banks’ stance is likely to add major pressure on the yuan to depreciate relative to the dollar.

The disconnect between the Chinese yuan and the required deposit reserve ratio for major banks remains one of the most important charts in the current macro environment.

Tyler Durden Sat, 08/27/2022 - 10:30

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Who Can You Trust?

Who Can You Trust?

Authored by James Howard Kunstler via,

“I’m sick and tired of hearing Democrats whining about Joe Biden’s…



Who Can You Trust?

Authored by James Howard Kunstler via,

“I’m sick and tired of hearing Democrats whining about Joe Biden’s age. The man knows how to govern. Just shut up and vote to save Democracy.”

- Rob Reiner, Hollywood savant

Perhaps you’re aware that the World Health Organization (WHO) is cooking up a plan to impose its will over all the sovereign nations on this planet in the event of future pandemics.

That means, for instance, that the WHO would issue orders to the USA about lockdowns, vaccines, and vaccine passports and we US citizens supposedly would be compelled to follow them.

Why the “Joe Biden” regime would go along with this globalist fuckery is one of the abiding mysteries of our time - except that they go along with everything else that the cabal of Geneva cooks up, such as attacks on farmers, and on oil production, and on relations between men and women, and on personal privacy, and on economic liberty throughout Western Civ, as if they’re working overtime to kill it off. And all of us with it.

I think they are working overtime at that because the sore-beset citizens of Western Civ are onto their game, and getting restless about it. So, the Geneva cabal is in a race against time before the center pole of their circus tent collapses and the nations of the world are compelled to follow the zeitgeist in the direction of de-centralizing, foiling all their grand plans.

The “Joe Biden” regime is pretending to ignore the reality that this WHO deal is actually a treaty that would require ratification by a two-thirds vote in the senate, an unlikely outcome. In any case, handing over authority to the WHO — in effect, to its chief Tedros Adhanom Ghebreyesus — to push around American citizens like a giant herd of cattle would be patently unlawful.

That center pole of the circus tent is the wobbling global economy. It’s barely holding up the canvas over the three rings of the circus. In the center ring, the death-defying spectacle of the Biden Family crime case is playing out before a huge audience (us). This week, a gun went off at the FBI and smoke is curling out of the barrel. FBI Director Christopher Wray was forced to verify that he’s been sitting on an incriminating document for three years from a “trusted” confidential human source, i.e., an informant, stating that the Biden Family received a $5-million bribe from a foreign entity when “JB” was vice-president.

That’s only one bribe of many others, of course, as documented in the Hunter Biden laptop, and it must be obvious it represents treasonous behavior that will demand resignation or impeachment. As this spools out in the weeks and months ahead, do you think Americans will be in the mood to accept further insults such as “Joe Biden” surrendering our national sovereignty to the WHO?

Anyway, you must ask yourself: why on earth should I trust the WHO about anything? Did they not participate in laying a trip on the world with Covid-19? How did those lockdowns work out? Do you think they destroyed enough businesses and ruined enough households? How’s the vaccination program doing? Effective? Safe? Yeah, maybe not so much. Maybe killing a lot of people, wrecking immune systems, sterilizing reproductive organs, causing gross disabilities, shattering lives.

Of course, in over three years neither the WHO nor the US medical authorities showed the slightest interest in helping to figure out how the Covid-19 virus was made in a lab, and exactly how it got loose in the world. Lately, Dr. Ghebreyesus has warned the world about much worse future pandemics supposedly coming down at us. Oh? Really? What does he know that we don’t? That possibly new efforts to concoct chimeric diseases are ongoing in labs around the world? (You know that dozens of such labs were discovered in Ukraine as the war got underway there in 2022.) What’s Dr. Ghebreyesus doing to stop that?

If US orgs and citizens are involved in this “research,” why doesn’t the WHO alert our government leaders so they can stop it? (Would they? I’m not so sure.) And, who is behind it this time? The Eco-Health Alliance again, like with Covid-19? By the way, that outfit got another whopping grant last fall from the NIH to “study” bat viruses — right after the NIH terminated a previous grant on account of The Eco-Health Alliance failing to turn over notebooks and other records.

No, you cannot trust the WHO about anything. The “trust horizon” (a concept introduced by the great Nicole Foss, late of The Automatic Earth dot com) is shrinking. You can no longer trust any distant authorities. You also cannot trust the US federal government (especially the executive branch behind “Joe Biden”). And notice: the trust horizon is shrinking just as the world is de-centralizing. This, you see, is the main contradiction behind all the Globalists’ twisted ambitions to control everything, including you. They are working against the current tide of human history which is pushing everything toward down-scaling, re-localization, and re-assertion of the sovereign individual person.

That trend will become increasingly evident as things organized at the giant scale start to implode — giant retail chains, medical behemoths, hedge funds, big banks, you name it. The world no longer has the mojo for globalism. There’s reason to wonder these days whether the USA has the mojo to remain a unified national polity of states. Our federal government is not only financially bankrupt beyond any coherent reckoning, it is also morally bankrupt, and it has decided to make war against its own people. None of this is satisfactory and none of this is working. It’s time to figure out who and what you can trust and act accordingly.

Tyler Durden Sun, 06/04/2023 - 09:20

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Spread & Containment

Removing antimicrobial resistance from the WHO’s ‘pandemic treaty’ will leave humanity extremely vulnerable to future pandemics

Drug-resistant microbes are a serious threat for future pandemics, but the new draft of the WHO’s international pandemic agreement may not include provisions…




Antimicrobial resistance is now a leading cause of death worldwide due to drug-resistant infections, including drug-resistant strains of tuberculosis, pneumonia and Staph infections like the methicillin-resistant Staphylococcus aureus shown here. (NIAID, cropped from original), CC BY

In late May, the latest version of the draft Pandemic Instrument, also referred to as the “pandemic treaty,” was shared with Member States at the World Health Assembly. The text was made available online via Health Policy Watch and it quickly became apparent that all mentions of addressing antimicrobial resistance in the Pandemic Instrument were at risk of removal.

Work on the Pandemic Instrument began in December 2021 after the World Health Assembly agreed to a global process to draft and negotiate an international instrument — under the Constitution of the World Health Organization (WHO) — to protect nations and communities from future pandemic emergencies.

Read more: Drug-resistant superbugs: A global threat intensified by the fight against coronavirus

Since the beginning of negotiations on the Pandemic Instrument, there have been calls from civil society and leading experts, including the Global Leaders Group on Antimicrobial Resistance, to include the so-called “silent” pandemic of antimicrobial resistance in the instrument.

Just three years after the onset of a global pandemic, it is understandable why Member States negotiating the Pandemic Instrument have focused on preventing pandemics that resemble COVID-19. But not all pandemics in the past have been caused by viruses and not all pandemics in the future will be caused by viruses. Devastating past pandemics of bacterial diseases have included plague and cholera. The next pandemic could be caused by bacteria or other microbes.

Antimicrobial resistance

Yellow particles on purple spikes
Microscopic view of Yersinia pestis, the bacteria that cause bubonic plague, on a flea. Plague is an example of previous devastating pandemics of bacterial disease. (NIAID), CC BY

Antimicrobial resistance (AMR) is the process by which infections caused by microbes become resistant to the medicines developed to treat them. Microbes include bacteria, fungi, viruses and parasites. Bacterial infections alone cause one in eight deaths globally.

AMR is fueling the rise of drug-resistant infections, including drug-resistant tuberculosis, drug-resistant pneumonia and drug-resistant Staph infections such as methicillin-resistant Staphylococcus aureus (MRSA). These infections are killing and debilitating millions of people annually, and AMR is now a leading cause of death worldwide.

Without knowing what the next pandemic will be, the “pandemic treaty” must plan, prepare and develop effective tools to respond to a wider range of pandemic threats, not solely viruses.

Even if the world faces another viral pandemic, secondary bacterial infections will be a serious issue. During the COVID-19 pandemic for instance, large percentages of those hospitalized with COVID-19 required treatment for secondary bacterial infections.

New research from Northwestern University suggests that many of the deaths among hospitalized COVID-19 patients were associated with pneumonia — a secondary bacterial infection that must be treated with antibiotics.

An illustrative diagram that shows the difference between a drug resistant bacteria and a non-resistant bacteria.
Antimicrobial resistance means infections that were once treatable are much more difficult to treat. (NIAID), CC BY

Treating these bacterial infections requires effective antibiotics, and with AMR increasing, effective antibiotics are becoming a scarce resource. Essentially, safeguarding the remaining effective antibiotics we have is critical to responding to any pandemic.

That’s why the potential removal of measures that would help mitigate AMR and better safeguard antimicrobial effectiveness is so concerning. Sections of the text which may be removed include measures to prevent infections (caused by bacteria, viruses and other microbes), such as:

  • better access to safe water, sanitation and hygiene;
  • higher standards of infection prevention and control;
  • integrated surveillance of infectious disease threats from human, animals and the environment; and
  • strengthening antimicrobial stewardship efforts to optimize how antimicrobial drugs are used and prevent the development of AMR.

The exclusion of these measures would hinder efforts to protect people from future pandemics, and appears to be part of a broader shift to water-down the language in the Pandemic Instrument, making it easier for countries to opt-out of taking recommended actions to prevent future pandemics.

Making the ‘pandemic treaty’ more robust

Measures to address AMR could be easily included and addressed in the “pandemic treaty.”

In September 2022, I was part of a group of civil society and research organizations that specialize in mitigating AMR who were invited the WHO’s Intergovernmental Negotiating Body (INB) to provide an analysis on how AMR should be addressed, within the then-draft text.

They outlined that including bacterial pathogens in the definition of “pandemics” was critical. They also identified specific provisions that should be tweaked to track and address both viral and bacterial threats. These included AMR and recommended harmonizing national AMR stewardship rules.

In March 2023, I joined other leading academic researchers and experts from various fields in publishing a special edition of the Journal of Medicine, Law and Ethics, outlining why the Pandemic Instrument must address AMR.

The researchers of this special issue argued that the Pandemic Instrument was overly focused on viral threats and ignored AMR and bacterial threats, including the need to manage antibiotics as a common-pool resource and revitalize research and development of novel antimicrobial drugs.

Next steps

While earlier drafts of the Pandemic Instrument drew on guidance from AMR policy researchers and civil society organizations, after the first round of closed-door negotiations by Member States, all of these insertions, are now at risk for removal.

The Pandemic Instrument is the best option to mitigate AMR and safeguard lifesaving antimicrobials to treat secondary infections in pandemics. AMR exceeds the capacity of any single country or sector to solve. Global political action is needed to ensure the international community works together to collectively mitigate AMR and support the conservation, development and equitable distribution of safe and effective antimicrobials.

By missing this opportunity to address AMR and safeguard antimicrobials in the Pandemic Instrument, we severely undermine the broader goals of the instrument: to protect nations and communities from future pandemic emergencies.

It is important going forward that Member States recognize the core infrastructural role that antimicrobials play in pandemic response and strengthen, rather than weaken, measures meant to safeguard antimicrobials.

Antimicrobials are an essential resource for responding to pandemic emergencies that must be protected. If governments are serious about pandemic preparedness, they must support bold measures to conserve the effectiveness of antimicrobials within the Pandemic Instrument.

Susan Rogers Van Katwyk is a member of the WHO Collaborating Centre on Global Governance of Antimicrobial Resistance at York University. She receives funding from the Wellcome Trust and the Social Sciences and Humanities Research Council of Canada.

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Repeated COVID-19 Vaccination Weakens Immune System: Study

Repeated COVID-19 Vaccination Weakens Immune System: Study

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

Repeated COVID-19…



Repeated COVID-19 Vaccination Weakens Immune System: Study

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

Repeated COVID-19 vaccination weakens the immune system, potentially making people susceptible to life-threatening conditions such as cancer, according to a new study.

A man is given a COVID-19 vaccine in Chelsea, Mass., on Feb. 16, 2021. (Joseph Prezioso/AFP via Getty Images)

Multiple doses of the Pfizer or Moderna COVID-19 vaccines lead to higher levels of antibodies called IgG4, which can provide a protective effect. But a growing body of evidence indicates that the “abnormally high levels” of the immunoglobulin subclass actually make the immune system more susceptible to the COVID-19 spike protein in the vaccines, researchers said in the paper.

They pointed to experiments performed on mice that found multiple boosters on top of the initial COVID-19 vaccination “significantly decreased” protection against both the Delta and Omicron virus variants and testing that found a spike in IgG4 levels after repeat Pfizer vaccination, suggesting immune exhaustion.

Studies have detected higher levels of IgG4 in people who died with COVID-19 when compared to those who recovered and linked the levels with another known determinant of COVID-19-related mortality, the researchers also noted.

A review of the literature also showed that vaccines against HIV, malaria, and pertussis also induce the production of IgG4.

“In sum, COVID-19 epidemiological studies cited in our work plus the failure of HIV, Malaria, and Pertussis vaccines constitute irrefutable evidence demonstrating that an increase in IgG4 levels impairs immune responses,” Alberto Rubio Casillas, a researcher with the biology laboratory at the University of Guadalajara in Mexico and one of the authors of the new paper, told The Epoch Times via email.

The paper was published by the journal Vaccines in May.

Pfizer and Moderna officials didn’t respond to requests for comment.

Both companies utilize messenger RNA (mRNA) technology in their vaccines.

Dr. Robert Malone, who helped invent the technology, said the paper illustrates why he’s been warning about the negative effects of repeated vaccination.

“I warned that more jabs can result in what’s called high zone tolerance, of which the switch to IgG4 is one of the mechanisms. And now we have data that clearly demonstrate that’s occurring in the case of this as well as some other vaccines,” Malone, who wasn’t involved with the study, told The Epoch Times.

So it’s basically validating that this rush to administer and re-administer without having solid data to back those decisions was highly counterproductive and appears to have resulted in a cohort of people that are actually more susceptible to the disease.”

Possible Problems

The weakened immune systems brought about by repeated vaccination could lead to serious problems, including cancer, the researchers said.

Read more here...

Tyler Durden Sat, 06/03/2023 - 22:30

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