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'Monetary dialysis' has proven to be much more effective in re-starting ... - Interest.co.nz PDF Print

By Raf Manji*

Quantitative Easing (QE) first entered popular language during the 2008 Global Financial Crisis.

Central banks, specifically the US Federal Reserve (Fed) and the Bank of England (BoE), tried to provide stimulus to their economies by buying government and corporate securities from banks.

The goal was to free up monetary conditions and, thereby, to induce an increase in lending and, as a result, new economic activity.

As interest rates fell to zero, the Fed began QE1 in November 2008 with a $600 billion purchase of Mortgage-backed securities (MBS). It did this by creating new credit in its own account and then exchanging this for the MBS held by the banks.

The purpose of this was threefold: to improve bank balance sheets, raise the price of securities (and therefore reduce interest rates along the yield curve) and stimulate new borrowing. This was not an entirely new policy, as Japan had been engaged in the same process for over 10 years, though with limited success. The Bank of England followed suit in March 2009 and started buying UK Government bonds and a limited amount of other high-grade assets.

The initial impact was felt in the asset markets with the price of stocks, bonds and commodities all rising.

In fact, rising commodity prices were seen as an unwelcome side effect of QE, given that QE was supposed to boost lending and, therefore, economic activity - more specifically, new jobs. Banks were supposed to be lending these excess reserves, not speculating in financial markets.

The reality was that banks had no interest in lending and businesses and consumers had little interest in borrowing.

The central bankers had failed to note that they were in the middle of a huge debt bubble and that offering new debt into a market saturated with the stuff was hardly going to be a winner.

There is no doubt QE helped restore confidence to the financial markets and, as a side effect, helped steady the general economy. Whether it actually worked in the manner it was supposed to, is highly debatable. As Bank of England Governor Mervyn King stated when giving evidence to the UK Treasury Committee on QE,

“I can’t guarantee that it (QE) means that bank lending will rise, but what I do believe is that it won’t fall as far as it might otherwise have done”.

In terms of impact, the US bailout of the auto industry had more success with over 1 million jobs saved. Whilst the financing aspects were contentious, the outcome has been positive. As Obama aides noted, direct government funding enabled the auto industry to survive and this would not have happened if it had been left to the market. Setting aside the merits of saving the US auto industry, what was crucial and different about this policy was that it involved spending direct stimulus into the real economy, where people are employed to make products.

As Nouriel Roubini noted, the US Government would have been better off just spending the new credit used for QE directly into the economy. He suggested in a co-authored 2011 paper that there should be a massive infrastructure rebuild ($1.2 trillion) in the US, which would create jobs and lay the foundation for “a more efficient and cost-effective economy”. He further noted that the crisis had been exacerbated by “inadequate action” by policymakers who had an “inadequate understanding of what ails us”.  

It’s clear that policymakers have not stepped back and tried to understand both the causes and outcomes of the crisis. In a debt deflating system, no amount of new debt is going to help the problem. Until the bad debt has been cleared, new investment is unlikely to happen and the economy dies a slow death. One option that hasn’t been considered, as Roubini alludes to, is to actually stimulate the real economy directly i.e. the economy that produces real goods and services. Governments can actually print new money and spend it directly into the economy through infrastructure projects. That way the money directly enters the economy and supports real economic activity, in a way that QE was supposed to do but never did.

The Sustento Institute actually proposed this type of policy in 2011, immediately after the devastating February 22nd Christchurch Earthquake.

A direct injection of $5 billion of new money was suggested as a way of financing new and necessary infrastructure for the rebuild of the city. At that time, this was calculated to save around $200 million a year in financing costs and avoid further increases in government debt.

Ironically, the Minister of Finance rejected this, on the grounds that it may cause “an adverse combination of high inflation, arbitrary wealth transfers and a loss of confidence in the creditworthiness of New Zealand”.

This response supports Roubini’s position that policymakers simply do not understand the problem. In the case of New Zealand, the Minister of Finance seems to be quite happy to keep borrowing money and worsening the financial position of the country.

As has been seen, inflation is non-existent in a debt deflating economy.

Of course, any new injections of new money must be carefully monitored and be at a level which is not likely to cause over stimulation of the economy. As Willem Buiter, a former external member of the Bank of England’s Monetary Policy Committee notes, an injection of base money “even in huge amounts, need not become inflationary ever”. Buiter goes on to state that “any inflationary increase impact of the enlarged stock of base money on the stock of bank credit or broad money can be neutralised by either raising bank reserve requirements, or by raising the remuneration rate on excess reserves held by banks” .

Thus, inflationary concerns can be set aside when this double-sided process is undertaken. This type of intervention has been called 'Monetary Dialysis' , where clean money comes into the system (newly minted e-notes) and replaces or causes a reduction in debt money (bank credit) in order to keep the money supply at a prescribed level.

In this process, all the objections raised by the Minister of Finance are dealt with. Infrastructure is rebuilt, people are employed, goods and services are provided, inflation is stable and money is saved, as there are no financing costs incurred. As to the creditworthiness of New Zealand, it is more likely that this will improve as debt falls and the productive economy recovers.

What’s not to like about that?

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Raf Manji heads the Sustento Institute, a think tank based in Christchurch

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New biomarkers, therapeutic targets for kidney cancer - HealthCanal.com PDF Print

SACRAMENTO — Using blood, urine and tissue analysis of a unique mouse model, a team led by UC Davis researchers has identified several proteins as diagnostic biomarkers and potential therapeutic targets for kidney cancer. Subject to follow-up validation testing, inhibition of these proteins and several related pathways holds promise as a form of therapy to slow the growth of kidney tumors.

In a paper just published online in the journal Cancer Research, the researchers found high concentrations of specific proteins that point to alterations in three sequences of chemical reactions known as biochemical pathways of mice implanted with human kidney cancer cells. The findings suggest that cancerous tumors modulate the pathways, which in turn makes these pathways potential therapeutic targets.

Nicotinamide and cinnamoylglycine, which were altered as a signature of one of the pathways, are just two of approximately 2,000 chemicals, or metabolites, that the human body produces. Metabolites, referring to any substance produced by metabolism, are a reflection of the body's processes in real time. The field of study, known as metabolomics, enables researchers to discover biomarkers and to identify novel therapeutic targets.

The study used metabolomics techniques and instrumentation to simultaneously examine chemicals in two biofluids (urine and serum, or blood) as well as tissue from kidney cancer mice models. Seeking to describe the utility of these fluids as tumor indicators, they found that serum metabolomics analysis is the most accurate proxy of chemical changes that are related to kidney cancer.

"It's exciting to report that our identification of several important metabolic processes may well result in the discovery of diagnostic markers and new therapeutic targets for kidney cancers," said lead author Robert H. Weiss, a professor in the UC Davis Division of Nephrology, Department of Internal Medicine. Currently, there are no tests to easily identify kidney cancer and current treatments are not always successful, so these markers will be important tools for detection and new treatments of the disease.

For the study, researchers transplanted human kidney cancer cells into a mouse model capable of growing human tumors.  Researchers compared the metabolites identified in the implanted mice against those in a control group of mice that had surgery, but no cancer cells implanted. 

If further research with mouse models demonstrates that inhibition of the newly identified targets works in therapy, then preparation for human trials will be a next step.

"This research represents collaboration among many kinds of experts, all of whom are concerned that kidney cancer patients have too few treatment options, which often have debilitating side effects," said Weiss, who serves as chief of nephrology at the Sacramento Veterans' Administration Medical Center in addition to his work at UC Davis.

The research was funded by the National Institutes of Health and the Medical Service of the U.S. Department of Veterans' Affairs, grants 1R01CA135401-01A1 and 1R01DK082690-01A1. Other UC Davis authors were Sheila Ganti and Omran Abu Aboud of the Department of Internal Medicine, Sandra L. Taylor and Kyoungmi Kim of the Department of Public Health Sciences, Joy Yang of the Department of Urology, and Christopher Evans of the Comprehensive Cancer Center and Department of Urology. Authors also included Michael V. Osier of the Rochester Institute of Technology and Danny C. Alexander of Metabolon in Durham, N.C.

UC Davis Comprehensive Cancer Center
UC Davis Comprehensive Cancer Center is the only National Cancer Institute-designated center serving the Central Valley and inland Northern California, a region of more than 6 million people. Its specialists provide compassionate, comprehensive care for more than 9,000 adults and children every year, and access to more than 150 clinical trials at any given time. Its innovative research program engages more than 280 scientists at UC Davis, Lawrence Livermore National Laboratory and Jackson Laboratory (JAX West), whose scientific partnerships advance discovery of new tools to diagnose and treat cancer. Through the Cancer Care Network, UC Davis collaborates with a number of hospitals and clinical centers throughout the Central Valley and Northern California regions to offer the latest cancer care. Its community-based outreach and education programs address disparities in cancer outcomes across diverse populations. For more information, visit cancer.ucdavis.edu.

Contact: Dorsey Griffith
Phone: 916-734-9118
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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Vitamin D or D2 and erythropoietin for hemodialysis patients - Teatro Naturale PDF Print
Teatro Naturale
An interventional study is being conducted by Dialysis Clinic, Inc. to determine the safety and effect of some supplementation by SC An interventional study is being conducted by Dialysis Clinic, Inc. (DCI) to determine the safety and effect of

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Survival Better with Continuous ADT - Renal and Urology News PDF Print

CHICAGO—Intermittent androgen deprivation therapy (ADT) has some quality-of-life (QOL) benefits for men with metastatic prostate cancer (PCa), but overall survival times are inferior to those seen with continuous ADT, according to the findings of a 17-year study (SWOG9346) presented at the American Society for Clinical Oncology 2012 annual meeting.

“Some doctors recommend intermittent hormonal therapy to men with metastatic prostate cancer, believing it will reduce their risk of side effects without compromising their outcome, but these findings demonstrate a downside to this approach for certain men,” said lead researcher Maha Hussain, MD, Professor of Medicine and Urology at the University of Michigan Comprehensive Cancer Center in Ann Arbor. “The findings clearly demonstrate that intermittent hormonal therapy is not as effective for all patients with metastatic prostate cancer. These findings are likely practice changing for many doctors in the U.S. and abroad who routinely use intermittent therapy; specifically, physicians must counsel interested patients regarding the potential negative impact on survival with intermittent therapy.”

The study enrolled 3,040 men with hormone-sensitive, metastatic prostate cancer between 1995 and 2008.  All men received an initial course of androgen-deprivation treatment for seven months. The 1,535 eligible men whose PSA level dropped to 4 ng/mL or less by the end of those seven months were then assigned at random to stop therapy (the intermittent therapy group) or continue therapy (the continuous therapy group).

Those randomized to the intermittent therapy arm had their treatment suspended until their PSA rose to a predetermined level, at which time they started another seven-month course of ADT. The patients cycled on and off therapy in this way as long as their PSA levels continued to respond appropriately during the “on” cycle.

The 1,535 eligible patients had a median age of 70 years; 48% had extensive disease and 12% had received prior neoadjuvant ADT. A total of 765 were randomized to continuous therapy and 770 patients were randomized to the intermittent arm. Men on continuous therapy had a median overall survival time of 5.8 years from the time of randomization, with 29% of these men surviving at least 10 years. Those on intermittent therapy had a median overall survival time of 5.1 years, with 23% surviving at least 10 years from randomization. Men with minimal disease (disease that had not spread beyond the lymph nodes or the bones of the spine or pelvis) did significantly better on continuous therapy, whereas men with extensive disease seemed to do about as well using either treatment approach.

“In the past when it came to using hormone therapy in this disease, doctors viewed the disease as one entity and adopted a ‘one size fits all' approach,” Dr. Hussain said. “Based on this study's findings, it seems that one size does not necessarily fit all.”

Intermittent hormonal therapy appeared to be safe in prior studies, but those studies generally included either men whose only evidence of prostate cancer progression was an increase in PSA level (as opposed to radiographic evidence of disease spread), or men with wide-ranging stages of disease (not just metastatic cancer).

Additional exploratory subgroup analyses of these new data indicated that after a median follow-up of 9.2 years, the median overall survival time for those with minimal disease was 7.1 years on continuous ADT compared with only 5.2 years on intermittent treatment. Patients with extensive disease had median overall survival times of 4.4 years on continuous therapy and 5.0 years on intermittent therapy. There was no evidence that the treatment effect differed by race. The study showed that Grade 3/4 related adverse events were similar for intermittent and continuous treatment (30.3% vs. 32.6%).

With respect to QOL measures, which were compared during the first 15 months following randomization, more men receiving intermittent rather than continuous therapy had significant improvements in the  level of sexual functioning..

“There is some improvement in aspects of quality of life, but the durability is the issue,” Dr. Hussain told Renal & Urology News. “Our study demonstrates that what may appear safe may not be completely so and it sometimes takes a large study to determine this. It's important to look beyond PSA responses when evaluating hormone therapy approaches and also it's important to have a control group in performing the trials.”

Even though these data showed potential QOL improvements with intermittent therapy, the primary findings of the study demonstrate that intermittent therapy is inferior with regard to overall survival, which should be the primary consideration when counseling all patients interested in intermittent therapy, particularly those with minimal disease, she said. 

“This clinical trial will change the use of intermittent therapy,” said study co-investigator E. David Crawford, MD, Professor of Surgery/Urology/Radiation Oncology at the University of Colorado in Denver. “This is the largest study to date and one we have all been waiting for. It shows that intermittent therapy is inferior to standard continuous androgen ablation. There were flaws in other trials such as not powered to show equivalence or even slight but significant differences.”

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Jesuit student still waiting for a kidney after almost two years - NOLA.com PDF Print

The last time I wrote about Jason LaHatte was in August, 2010. He was 13 and about to start eighth grade at Jesuit High School, and he was excited about playing trumpet in the Blue Jay Marching Band. But one thing was slowing him down: He needed a new kidney, preferably from a living donor.

jason-lahatte-and-parents.jpg Rusty Costanza, The Times-PicayuneJason LaHatte, center, poses with his parents, Joe, left, Jonnie, right, at their home in Metairie. Jason is in need of a kidney transplant.

“I wish I didn’t have to get one, but I know I do,” he told me. “It’s just aggravating to have to do it now because they put me in the accelerated program at Jesuit, and I’m going to have a lot of makeup work.”

After the story appeared, many people who had type O blood contacted me and Jason’s parents, Jonnie and Joe LaHatte, wanting to offer Jason a healthy kidney. But now, nearly two years later, he’s still waiting.

“It’s a never-ending story,” Jonnie said, when we sat down to talk at the LaHattes’ home in Metairie a few days ago.

Jason’s story began when he was 5 and he became ill during a family trip to the beach. As soon as they got home, Jason’s pediatrician did some blood tests and sent the LaHattes to Children’s Hospital where they learned the heart-breaking news: Their little boy had end-stage kidney disease and needed a new kidney.

Two weeks later, Jason went home with a shunt in his stomach and a dialysis machine. And for 10 hours every night he was on dialysis.

The LaHattes learned that kidney disease is called “the silent killer” because people die waiting for a donor. They also learned that a kidney from a living donor has less chance of being rejected than a kidney from someone who has died. So they, their two older sons, and their extended family got tested, but nobody was a good match.

Jason didn’t do well on dialysis and was often too sick to attend kindergarten at St. Ann Elementary School in Metairie. But in September the LaHattes listened to a life-saving message on their answer machine. It was from Cindy Hudson, who had known Jonnie and Joe from years earlier, when their older sons were grade-school friends. She had heard about Jason from her sister, who worked at St. Ann’s.

Hudson said, “I have type O blood, and I’ll give you a kidney.”

She proved to be a perfect match, and the transplant was done in November 2002, two days after Jason’s sixth birthday.

“Cindy is still doing fine,” Jonnie said. “She said if she had another kidney to spare, she’d give it to Jason.”

Hudson’s kidney gave Jason nearly eight trouble-free years. But two years ago, it began to fail, and the LaHattes began looking for a new one. Several people were tested in late 2010, and in December, they thought they had a donor. The transplant was scheduled over the holidays, but when Jason went into the hospital, the doctor noticed he was pale and dehydrated. Tests showed he had a serious virus, and he spent a week in the hospital recuperating.

“They canceled the transplant,” Jonnie said.

Later, the donor changed his mind, and they were back where they started. Still, Jason managed to keep going without dialysis, and last June the LaHattes took a special trip.

“We went to Lourdes, France,” Jonnie said.

Lourdes is the little town in southern France where Bernadette Soubirous had visions of the Virgin Mary in 1858. The 14-year-old discovered a spring near the grotto where she saw the Blessed Virgin, and it has been flowing ever since. Thousands of pilgrims visit Lourdes every year to bathe in the healing waters there.

“The bath was the best part,” Jason said. “They lay you down in the water and it’s really cold, but when you get out, you’re warm and dry.”

The LaHattes were able to go because of a nurse who volunteers on the special needs pilgrimages with the North American Lourdes Volunteers.

“She had a son who went to school with Jason’s older brother, and she had been praying for Jason,” Jonnie said. “She got someone to sponsor Jason, so how could we say no? It was like Mary was talking to us.”

At first, only Jonnie and Jason were supposed to go, but then the group offered to let Joe go along as a volunteer. He was even able to go in the water with Jason.

“It was touching, I tell you,” Joe said. “There’s so much faith there.”

It was a memorable week for all three of them, and they came home believing they would find a healthy kidney for Jason soon. But by January 2012, he was still waiting. By then, his kidney was functioning at less than 10 percent, and he was placed on the transplant list. And he was back on dialysis, something he had been dreading.

“I still remembered it from the last time,” he said.

Now, the teenage hangout room in the LaHattes’ house is a place to store boxes and boxes of supplies, and every night Jason is hooked up to a dialysis machine when he goes to bed.

“But I don’t feel bad. There’s not much I can’t do,” he said.

Jason is an honor-roll student at Jesuit and in the marching, jazz and concert bands. During Carnival season he marched in the Bacchus parade and the Carrollton parade and also was an honorary 610 Stomper in Thoth.

“That was fun,” he said.

jason-lahatte-mardi-gras-sign.jpg Rusty Costanza, The Times-PicayuneJason Lahatte sits next to his dialysis supplies at his home in Metairie. He is holding the sign he made for Mardi Gras parades, which earned him a bunch of coconuts from Zulu riders.

Jason tries to make the best of his situation. Before heading to the Muses parade, he made a sign that said, “On dialysis. Need kidney or shoe.” It worked so well he made another sign Mardi Gras morning and substituted “coconut” for “shoe.”

“I got 18 coconuts and eight shoes,” he said.

The day before Easter the LaHattes got a call saying that a young organ donor with type O blood had died in an accident. By that afternoon, they were at Children’s Hospital thinking that their prayers were about to be answered. A few hours later, though, they learned another boy was being considered.

They spent the night still hopeful, but in the morning the doctor came in and told Jason the other boy was a better match.

“We thought there would be two kidneys, but one was damaged in the accident,” Jonnie said.

So they keep waiting, and they keep praying.

“We should have enough prayers to get a new kidney," Jonnie said. "We have people from every religion praying. We have people in every part of the country."

After Jason got his first transplant, the Louisiana Make-A-Wish Foundation sent the LaHattes to Disney World for a wonderful vacation.

“And after I get my surgery, I’ll get another wish from Make-A-Wish,” he said.

But Jason has no idea what he’ll wish for. All he really wants is a kidney that works.

If you are healthy, have type O blood, are between 18 and 45 and want to learn more about becoming a donor for Jason, contact Joe LaHatte at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or Jonnie LaHatte at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . To sign up to be an organ donor, go to Donate Life Louisiana

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