In this discussion, Dr. Shiva provides a market systems analysis to reveal the REAL Reason for the shortage of Baby Formula. And, guess what this will happen more and more unless we solve the real problem, Beyond Left & Right.
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- Dr.SHIVA Ayyadurai, MIT PhD – Inventor of Email, Systems Scientist, engineer, educator – presents a market systems analysis on the real reasons behind the Baby Formula shortage.
- Only 25% of infants are exclusively breastfed through the first six months, meaning that most mothers need formula due to having to work, food allergies or stress related reasons. This other 75% depends on Baby Formula.
- The largest supplier in the country of baby formula is Abbott Laboratories which is a Big Pharma Company. They make a ton of money selling pharmaceutical drugs and COVID kits.
- Abbott Labs holds the Exclusive Supplier Contracts such as Women’s Infants and Children Supplemental Food Programs known as WIC. Almost 50% of all infants born in the United States rely on the service. The WIC program has created virtual monopolies with four or five companies.
- They want Centralization, because Centralization leads to Corruption, it leads to consolidation. It supports Power, Profit and Control. But if the System requirement is Decentralization, we would never have had this problem.
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Good evening, everyone. And we have a very, very, hopefully good discussion here for all of you to really understand what really happened with this baby formula, quote, unquote, shortage. And in this conversation, I’m not going to talk about whether people should do breast milk or baby formula, it’s a whole other discussion.
What I really want to open everyone’s eyes to, that this discussion is going to share, is a very great example, to really talk about why we need more people, whether it’s in governance, or whether it’s in politics, or whether it’s everyday citizens, to really understand the complexity of Engineering Systems.
Okay. And what do I mean by that? What I mean by that, if you take any of the problems that we have in the world, you know, that are purported or not purported, be it stuff in Banking Systems, or Climate Systems, or Pandemic Systems, and you go down the list of all the different issues that we’ve discussed. And, you know, we’ve led the discussion on.
Did Politicians Create the Baby Formula Shortage or the Monopoly?
This discussion with the Baby Formula shortage is going to hopefully make it impress upon you and inform you that you can’t be freaking taking these Left & Right, Pro & Anti positions anymore, because you have one set of politicians on one side and another set of politicians on the other side, just dividing us.
The problems we’re talking about in today’s world are very complex problems are Complex Systems. So, what happens is, you have a bunch of MORONS who have No Skill Set in addressing these problems, ZERO Skill Set. And then what they do is then, everyday working people like you and I and others, are out there working to basically make ends meet, or build something, or create something.
And we don’t, most of us don’t have the time to get into the nuances. So, we just trust one set of politicians or another.
Embrace A SYSTEMS APPROACH to Determine REAL Reason of SHORTAGE
And what ends up happening is that what really happens is that nothing is ever getting solved. And what’s actually getting solved is that one wing of the Establishment has one solution, another wing has another solution. And then you have people coming across, who hype up one set or diminish another set, and nothing ever gets solved.
And this is why it becomes really, really important that all of you really start embracing a Systems Approach. Otherwise, you’re frankly screwed, because you’re going to be in the pro-side or the anti-side, or then you’re going to come up with crazy conspiracy stuff and support people who want to sell more pillows or other stuff, right? Or don’t want to sell pillows, whatever you want to say it is.
But the bottom line is that this Baby Formula thing, which I hope I can walk you through effectively, because it’s a complex problem, but it’s going to really show you, it’s a par exemplar way to show you that what we really have going on here is that you have both wings of the Establishment have colluded together against everyday working people, period.
That’s what you’re gonna see. You’re going to also see both wings of the Establishment. I’ve talked about this one wing claim that they want to help all the poor people and all the disenfranchised.
Regulations for SAFETY? Or Rather for MONOPOLY of the MARKET
Therefore, we need regulations, right, to Control People, Businesses. And what they end up doing out of that is actually Creating Monopolies. And Both Wings, and then the other wing of the Establishment on Wall Street profits from that. And in fact, both wings at the end of the day, they both buy stocks in these companies, and they’re Both Profiting. So again, they work together to really create a bullshit narrative.
And this happened in the Banking Systems area. If you think about Dodd Frank, you had screaming nut jobs like Elizabeth Warren running out there saying, Oh, my God, you know, by the way, when the Banking Systems had issues, and you can go look at this, right? They said, oh, we need to regulate all the banks. When most of the Banks doing this, for the small set of Big Banks, they were the ones who were really screwing around.
The United States has 12,000 Banks, they went and imposed these regulations to save you to keep you safe. And whenever you hear politicians saying to keep you safe, understand what they’re saying is they’re gonna come with regulations to create monopolies.
In the Banking area, and giving this as a data point. So, you’ll see how this plays out here. So, in the Banking area, there were a few five or 10 Banks that were actually screwing over people.
The nut jobs like Elizabeth Warren. Warren came and said, We need to regulate them, we need more imposition, we need that out at it out. So, they create all these banking rules. And what it did was it actually wiped out two to 3000 Small Banks who weren’t doing anything wrong.
The same thing occurred when the auditing crisis took place. Right? You had when the Enron scandal took place, oh, my God, we got to, do better audits, while my auditing fees as a small business went up.
And many small businesses went out of business, and the Big Guys, they had enough money to pay for extra regulation.
So that’s what you’re gonna see here, I’m giving you a little preview, that when we take a Systems Approach, you’re going to see how the Left & Right wing colluded together.
MONOPOLY for Profit is REAL Problem, NOT a SHORTAGE of Formula
They Created Monopolies, both Profited from that. And again, I’m not going to talk about the benefits of Baby Formula or not Baby Formula, that’s a whole other discussion, but ultimately screwed over lots and lots of working people who rely on this formula. And we can, again, discuss the merits of that or not, but they do and in fact, it’s not only babies who rely on it, there’s other people who have all sorts of other diseases who rely on it.
And they Created a quote unquote, a “Shortage” because of this MONOPOLY. And ultimately, what it shows you is that when you look at it from a Systems Approach, you will realize that this is nothing about a “shortage”. And you will see very shortly how the Left, try to make it one kumbaya type thing, or we’re going to solve this and then the Right try to blame illegal immigrants as a problem, right to rile up you know, a sediment on the Right.
And they let all of these Big Monopolies go Scot Free. And that’s what both wings of the Establishment do, they work together.
Do not Stay BLIND to the REAL Problem, and the REAL Solution
You as a working person never see the REAL Problem, and the REAL solution. And only a Systems Approach can do that. That’s why I keep impressing how to play the little banner right here. That’s why I keep telling all of you guys that you need to take, you know, the Foundations of Systems courses, it’s not me pitching something, it’s really to help, frankly, save you guys a lot of heartache.
So, you can learn on your own, how to look at the world from a Systems Perspective. So, I hope all of you, you know, learn that by going to VASHIVA.com/join, I’ve made the course very accessible. So, you don’t have to go to MIT, you can learn this stuff. But that’s what I really want to impress on you here. And I want to share a quick video, because I think it’s important that everyone here understand the reason that you take a Systems Approach.
But anyway, those of you joining, we’re going to have a REAL Discussion of Why the Baby Formula Shortage really took place, What was a REAL reason, and those of you can go to VASHIVA.com/join if you want to learn more, but and also, as I mentioned, as a as a little ticker there, please go take the Foundations of Systems course, I’ve given people Scholarships, because you’ll be able to use this knowledge as what we call Warrior Scholars go to VASHIVA.com/join.
Get Educated-Learn Foundations of Systems
I’ve created an entire University online, a Community, but I want to drive you to take the Foundations of Systems, those of you can also, who can’t afford that are not ready even for $100 bucks, just go get the book, the book is called a “System and Revolution“, it will actually provide you a very nice way to learn what a System is, what is Revolution, not from some political way, but from an Engineering Systems way.
How we actually change the world in a positive way with you guys doing it, not with Leaders, me or others or Politicians, but you guys learning how to do it. So, I hope you go do that. I’m going to play a quick video and I’ll be right back. But to those of you joining, we’re going to really do a Systems Analysis. And I encourage all of you to learn how to do a Systems Analysis, learn the Science of Systems, but I’m going to play a quick video.
Which will give you a perspective on “My Journey to Systems” and then we’re going to take a couple of breaks but we’re going to come right back and I’m gonna give you a REAL Introduction to the problem and just dive in deep, so just give me a couple of minutes. I hope you enjoyed this video.
I want to, again, encourage all of you. If you’re listening, you want to get the book the System and Revolution, you can go get it. By the way, we made this book absolutely free. For anyone just covering shipping and handling, go get it, it’ll really teach you the Science of Systems that took me about 50 years to put this book in a format that anyone can take advantage of it.
Do that and take the course anyway, let’s talk about the Baby Formula Event and What’s going on?
Baby Formula Ingredients
And let’s begin with an Introduction first. What was actually going on with this Baby Formula. And by the way, if you want to get an idea, this is what’s typically inside these Baby Formulas, it’s got some carbohydrates. And this is typically the Infant Formula. It’s got fat, linoleic acid, it’s got protein, it’s got iron, and it’s got other vitamins and minerals.
And these Baby Formulas were created to mimic the breast milk, obviously, they can’t do it anywhere near nature. But those are the ingredients of the types that are in there, carbohydrates, fat, protein, iron, and other vitamins and minerals.
We’re not going to do a CytoSolve® Analysis of any of this today, but we’re gonna go into the Systems Analysis, a Market Systems Analysis. That’s the sort of the guts of what’s in the Baby Formula at a high level now.
Baby Formula Supply Chain Issues, Recalls, and WIC
The Baby Formula first started disappearing from store shelves, some of you may know due to what they claimed were supply chain issues. And also, a massive recall took place from the largest supplier in the country of baby formula which is Abbott Laboratories. Some of you may know that Abbott Laboratories is, when I first heard that Abbott was in the Baby Formula business,
I was a little bit shocked, frankly, because I always knew them as a Big Pharma Company. They make a ton of money selling pharmaceutical drugs, right and other types of and in fact, the COVID kits. So, I was a little bit, as I was watching this, what were these guys doing in the Baby Formula business?
How much was it? Now, the Baby Formula requires regular purchases. And why is that because the shelf life, you know how long it lasts, is very low, and you have the frequency of use. So typically, a mother will spend about $18, just think about these numbers, you may want to write these down every three to five days, to keep their supply on hand. So, you’re looking at a month, people are spending about $80, right? 70-80 bucks, right? In a month. So, it’s not a small amount of money. If you’re a working person, it’s and that’s just for the Baby Formula.
And now, if you are, Middle Class, Working class, what’s interesting is because of the demands placed on Mothers, right, it’s not like they’re living in some idyllic environment in a village, like I visited in India, or your husband is the only person working and you can live on a one individual’s income, you know, mothers are working right. And, or they have stress, so only 25% of infants are exclusively breastfed through the six months, meaning that most mothers need formula. And they were and they were affected by this, quote, unquote, “shortage.
Let me repeat that, again. Only 25% of infants are breastfed, exclusively breastfed through the six months. Which means the other 75% because of the demands placed on working people, they don’t, you know, the child is not getting the nutrients from breast milk. Okay, so those are some Important Facts.
Now in the United States, right? 10 to 15% of the mothers also have low breast milk supply. And so, and many of the infants, because they have specific food allergies, that preclude them from most other feeding alternatives, right. So, you have infants who have food allergies, and you have 15%. So again, another reason that people are driven to these formulas, again, we’re not talking about other REAL alternatives, we’ll do that in another discussion.
Left and Right Colluding, Creating Monopoly to Profit on WALL STREET
So, what happened was when these “shortages” took place, some of the stores also imposed buying limits. But this didn’t really solve the problem, it only managed the scarcity, which you’re going to realize was really, in my view, fabricated by the Inefficiency of a System, which is based on the Left and Right Colluding, through Creating Monopolistic vehicles. So, you protect Wall Street and a few companies.
And this shortage is frankly fabricated. And it really was an attack on working people. And in fact, you’re going to see how these large Corporations, a few of them profited from these, from these shortages. Now, the crisis, as in many crisis that occurred, whether it’s whatever is created, whether it’s a pandemic, or whether it’s the issues of a shortage, or it’s the issue of a banking regulation, ultimately, really affects the small consumer, the small entrepreneur that were the working person, right.
Abbott Labs holds the WIC EXCLUSIVE SUPPLIER CONTRACTS
That’s how it affects if you’re super wealthy, you can handle regulations, or, you know, you’ll figure out some other way to get your milk right. And the wealthy always have a way but typically, this affects everyday working people. And what’s interesting is Abbott Labs holds the Exclusive Supplier Contracts. Okay, with, we’re going to talk about, we’ll come back to, it’s called a Women’s Infants, and Children Supplemental Food Programs, also known as WIC, W I C and everyone should research this.
The Women’s Infants and Children Supplemental Food Program, which is supported by the Government, which is to really be able to get these Infant Formulas to people, they have Exclusive Supplier Contracts with four companies, one of them being Abbott, which means to put it in a very simple way. The Government has created EXCLUSIVE SUPPLIER CONTRACTS with four or five major, large mega companies. And so, 50% of working people, poor people rely on these WIC programs to get those infant formulas which means you’re essentially handing over MONOPOLIES to a few companies. And that’s, and we’re going to talk about how that was created by these quote unquote “regulations”- orchestrated by the Left & the Right.
Supplemental Food Programs is Half of All Formula Sales Nationwide
So, these WIC purchases makeup half, which means the Government Supplemental Food Programs, half of all the formula sales nationwide. And the access to these infant formula is one of the primary benefits of the WIC program. And in fact, listen to this almost 50% of all infants born in the United States rely on the service. So, 50% of all infants born rely on the WIC program, and the WIC program has created virtual monopolies with four or five companies.
What is Going On? A Resilient or Brittle System
That’s what’s going on. And this has been done by both left and right, very, very Complex Systems from but that’s what you have. So, you have to ask, so you have to ask if, if the Establishment is so smart, has so many intelligent people, how the hell can something like this occur? I mean, they should have redundancy, they should have ways to protect people. But remember that most of these are going to working people.
So frankly, in Systems Science, we say that these programs, these Systems are brittle, they’re not resilient, may want to write those two words down. And in our Systems course, and Foundations of Systems. We talk about this when you really understand Systems, you understand Resilient Systems.
And Resilient Systems, by the way, are Decentralized Systems. So you don’t have just four producers of something, you have hundreds of 1000s of producers of something, okay, not just one. That’s called Decentralization, but those in power do not want Decentralization of anything. They want Centralization, because Centralization leads to Corruption, it leads to consolidation. It supports Power, Profit and Control. But if the System requirement is Decentralization, we would never have had this problem. So, the Establishment for themselves, they create very, very Resilient Systems.
But for the rest of the world, they create Brittle Systems, so they don’t give a damn about whether these Infants survive or not, they create these Brittle Systems, as I have. And so, now, the claim is, if this is such an important industry, that’s so important for everyday working people to survive, you know, and, you know, don’t you think that they would make the System’s totally non-brittle, resilient, and furthermore, for many, many years, you know, there’s been lots and lots of Safety Issues with these Formulas. They found high levels of dangerous levels of Arsenic and Lead and Cadmium, and Mercury, in many of these common baby food brands, okay, that are sold in these US stores.
Contaminants in Baby Formula
So, it’s not like this problem has not existed in terms of the constituent materials that make up these Formulas. And by the way, the Arsenic, Lead, the Cadmium, and Mercury are things that lead to Cancer, Neurodevelopmental issues, Kidney issues, right? All sorts of Osteoporosis, Immune System Deficiencies, Lung disease, and you wonder why young people are having all these problems. But anyway, these have also been known.
Cronobacter Infection between September 2021 and January 2022 at Abbott Laboratories in Michigan Plant
Now, when we’re talking about the quote, unquote, the recent “CRISIS” that took place, this actually occurred because in one of the Abbott Labs, again, interestingly enough in Michigan. Where the Flint, Michigan took place. They found there were actually four complaints received by the FDA of a cronobacter, C R O N O B A C T E R, infection between September 2021 and January 2022. And in fact, two babies died from this infection. And now four infants that actually consumed the Abbott formula. So, it is the Abbott lab. It was the Abbott Factory, which produced this which had this bacterial infection.
VOLUNTARY RECALL, Plant Shut-Down, WORKERS Affected
Now think about it. This is a multibillion-dollar pharmaceutical company, which also is in the Baby Formula business, you would think they would make their factories you know, top notch, Six Sigma, right, ISO 9001, all those very important Certifications, they wouldn’t even have this issue given the amount of investments that they would putting into it.
And the FDA claims they’d already been working on some of the supply chain issues in the industry. They were aware of this. And what, when Abbott found out about this, or when they got involved in this, they did a quote unquote, a “VOLUNTARY RECALL”, and they shut down its Michigan factory.
That was the event leading to the “shortage”, right? You have Abbott Labs, which was one of the four or five big suppliers. They had a bacterial infection being reported, two babies died, and then that plant was shut down. And that led to this. That led to this so-called, you know, “shortage”.
WhistleBlower Reports ABBOTT Falsifying Reports
Alright. So, one of the important things to understand is that not long before, not long after, there were some initial reports of these infections in these infants. An Abbott employee, actually a former Abbott employee, had sent a whistleblowing document to the FDA and other agencies concerning that Michigan facility. And the employee was fired for his, you know, bringing this up.
And there was a 34 page document, you outline the history of Abbott falsifying reports, you know, cleaning practices, right, bad cleaning practices, lack of traceability, so this was known out there. And the important thing is the FDA really neglected to recognize these issues, and the food safety issues.
And in fact, the fact that there was damaged equipment, right, and they sort of, you know, look the other way. And, in this case, Abbotts, really should have, you know, properly maintained these mission machines and the piping and the drying and not exposed, because you’re supposed to really dry all the equipment that exposed the formula to this bacterial contamination.
$5 Billion Dollar Stock Buyback by Abbott
And so why did Abbott do this? Right? Why wouldn’t a multibillion-dollar company take care of this, right? Why wouldn’t they address it, they got a ton of money, right. And so that really shows that for Abbott, this wasn’t really a profit center that they really cared about. And you’ll see that because they actually did a $5 billion dollar stock buyback, so they had tons of money in their bank account. And they could have set a small amount to go fix these problems, but they didn’t.
And the reason they didn’t will talk about this is for Abbott, this was a very small piece of their portfolio, the baby formula business was sort of over here making their pharma business and COVID testing was making most of their money. So when they heard about these, they didn’t really have any incentive to really fix this. And you have to understand, and we’ll get more into this.
But at a high level, the entire market for Baby Formula in this together. That was sort of the PR that the Left or the Democrats put out. And he was really appealing to these Monopolists, the three, four companies to work together to really solve this problem. And he never really threatened their profits, did he?
He didn’t go to Wall Street and say, you know what, I’m going to do this, this and this, you guys are going to pay for what you did not was never done, because I’m sure Biden and Nancy Pelosi and Left and Right, Jared Kushner and Ivanka, whatever you want to look at the Left and the Right wing, both own stocks in these companies, so they’re never going to go “Bite the hand that feeds them”.
They just said, Oh, let’s all work together, we’re one big, and that was the left thing saying, we don’t want it to, but they never wanted to threaten the profits of these companies. And this was sort of, you know, no real pressure. And it was about bringing everyone together to rectify and this is what the politicians do on one wing, you know, we’re all going to work together. Right. But they never make people accountable. Okay, so that’s the left approach.
What did the Right do in this crisis? Well, the Right took this quote, unquote, they wanted to rile up all the Right wing. Right. And they wanted to make it a culture war. Right. And you had Congressman saying, you know, we got to make sure the Baby Formula goes to Americans before it goes to Illegals, right? That’s what they said, you know? And this is a complete bullshit misdirection, because I’m sure these Congressmen had stock investments and all these be it Nestle, or be it Abbott or be it Mead Johnson, right.
They’re never going to attack again, the “hand that feeds them”, because I’m sure both wings have gotten and I haven’t done the research, probably have both wings and someone should go look at Nestle. Go look at Abbott go look at Mead Johnson, I’m sure they fund both wings of the Establishment. So they never really addressed the REAL issue. The MONOPOLIES, which we’re going to talk more about, they never addressed the fact that the FDA looked the other way.
The Right wing started blaming illegals, right? Blame the Mexicans when in trouble, right. And the reality is, in my view, if you want to take a compassionate view, everyone, you know, every baby whether you’re, wherever you’re from deserves to eat, right? But instead of taking that view, the one wing blames the illegals. The other view does this kumbaya nonsense, right? So that’s what, how the Left and Right took place, right.
Baby Formula, NOT just for BABIES
And, by the way, we have to understand, one point I want to make is, remember, they call it Baby Formula. But Baby Formula is not just for Baby Formula, whether again, we’re not discussing the merits of Baby Formula, we will do a whole CytoSolve® Analysis. There are many people who have other types of disorders who are not just babies, 14-15 year old teenagers who have, let’s say, some Brain issues, right? They rely on Baby Formula through feeding tubes, right? So many people Beyond just Babies, rely on this Formula, for better or worse.
And of the companies as I mentioned, there’s actually one I just want to correct myself. There’s four companies, okay. Abbott, Nestle, Perrigo, P E R R I G O, and Mead Johnson. They actually control 98%. 98. Abbott controls around 40% of the Baby Formula in the United States. About four companies control 98% of the Baby Formula. There is not, like you and I cannot get into the Baby Formula business. Isn’t that interesting?
Suppose I came up with a healthy, organic, alternative way to feed, it would be so expensive for me to get into this industry because of the regulatory framework that’s been put in place that you or I cannot really get into this. And that’s a very, very important point.
Yes. As Kathy Travis says, “Yes, it’s a MONOPOLY.” Right. And someone else who says, “Yes, elderly use this, too.” There we go. Right. Thank you for that clarification, but as Kathy says, “It’s a MONOPOLY.”
Four Companies Control the Supply Chain
That’s the first thing we got to get four companies to control the supply chain. And this was brought to you by the left and the right. All right, don’t just put it on the left. Don’t just put it on the right. That’s being stupid. Let’s take a Systems Approach to understand what’s going on.
What’s also important to understand is that the FDA, when this bacterial infection took place, really looked the other way. Then they did their own investigation. But they really didn’t do a thorough job. Of this entire thing. Thanks, it wasn’t like they were all in it to find out what was actually going on. All right. So now, I’ve alluded to the MONOPOLY. I’ve talked about the fact how the Left and the Right when this crisis took place, they didn’t really address the central issue. And we’re gonna get to that central issue of just giving you sort of glimpses about it.
What is W I C? Women’s Infant Children – Supplemental Nutrition Program
But before I go to that, let me talk about WIC, WIC, you may want to write this down. What is W I C? WIC is really how the quote unquote this shortage took place. And, you know, one of the things we need to understand is that this dates back, the WIC dates back to 1972.
We may want to write that down when it was the program, WIC, which means Women’s Infant Children, Supplemental Nutrition Program snap, some people call it but SNP (Supplemental Nutrition Program) for Women, Infants and Children (WIC), today known as WIC was created in 1972. It was a Federal Program that was created in 1972 to feed infants.. And the USDA, the US Department of you know, Agriculture, they’re also involved in this, they estimate that WIC accounts for more than, as I mentioned, half of the country’s Infant Formula.
Through WIC, 50% of the Infant’s get fed. It’s a Supplemental Nutrition Program. And 50% of American babies rely on the WIC Program and are eligible for it as of 2018. Okay, so if you take 50% of the babies right now, they rely on WIC to get them that Infant Formula. So you have the babies here 50%. They rely on WIC to get them the infant formula. Well, where did the Infant Formula come from?
Well, it comes from those four companies, which have monopolistic relationships with them, because the regulatory framework was wiped out. Everyone else couldn’t offer it. So, it’s highly, highly Centralized. So, WIC, therefore WIC, is crucial in this model, Government Program in the Infant Formula market. And it was really structured in such a way that it led to these MONOPOLIES. And how did that happen?
Formula Rights to Distribution Rights and the Lowest Bidder
And that’s in the majority of the United States and the majority of the United States. There is, either, one company in that state, which owns all the Formula Rights to Distribution Rights. So in 1989, for example, it was Congress that mandated that all States listen to this very carefully, Congress, the same politicians were being the lobbyists fund these guys from those four or five major companies, that they mandated that all States adopt competitive bidding for their WIC program, right, quote, unquote, nudge nudge “competitive bidding”. And under that law, that Federal Law, States were required to award a contract to the lowest bidder.
You take all the States, let’s take the State of Massachusetts, right. According to this, they had to do competitive bidding. Let’s say four companies compete. But at the end of the day, the law states that you have to award it to the lowest bidder. So if you’re a Big company like Abbott, and you’re making billions of dollars from pharmaceutical sales, you could probably outbid somebody else.
In most cases, this only left one company and controlled the entire state WIC Formula allocation. Remember, if you take Massachusetts 50% of the infants are getting their formula from WIC, and then one State controlled all of that. Which means if you look at all 50 states, there was typically one company, which did the lowest bid and got the entire contract. Okay, so think about that, one State controlled, it’s not Decentralized, highly, highly Centralized, the Elites, as we talked about, in our course, love, a principle called Centralization.
Government Centralized Surveillance of Speech with Four Big Tech Co.
They do not want Decentralization, just like I, when I did the Free Speech Analysis, right, the Government has Centralized the Surveillance of Our Speech with the four Big Tech companies. So that’s what occurred here. So, this law which actually benefited the MONOPOLIES, which is why Congress passed that law, because they’re all getting paid off by these guys, and I’m sure everyone can go trace this right.
Government Centralized Baby Formula with Four Big Manufacturer Co.
What ends up happening was, Abbott has become the major player through this System. With the company now providing the Formula for nearly half of the babies covered by WIC nationwide. So, half of the babies in any state or half of them rely on WIC and half of that MONOPOLY in the State is the money at least half in any State of half of those babies. WIC is Abbott, is supplying okay? The MONOPOLIES basically, WIC, created by Congress literally created MONOPOLIES.
Let me repeat that, again, WIC created by all these freakin Politicians Left and Right who voted for it Created MONOPOLIES. For four majors, for Wall Street, Left and Right work together.
Please don’t vote for any of these foolish guys. And remember, I’m telling you this that we’ve talked about Election Systems, outsiders can never win these Elections. Because if you’re truly an outsider and you want change, you’re for Decentralization of Power, all right, so the rigging of the System is done in Collusion between the Left and the Right, both of them working together. And that’s what’s wonderful about this example to see, you’re witnessing it right here, in REAL time. So, these MONOPOLIES were CREATED by CONGRESS.
WIC Baby Formula Contract ONLY GIVEN TO THE LOWEST BIDDER. WHY?
And it’s very hard for any other brand, let’s say you and all of us on this 500 of us, we wanted to start our own company to break into this. And even if you want to be just a small player in the industry, you need the WIC contract. So, think about that. If you and I wanted to start a Baby Formula Company today, there’s no way we’re going to survive without getting a WIC contract. But the WIC contract is given to the lowest bidder.
Suppose we made a great organic formula with great nutrients, better than all that crap out there with arsenic, cadmium, that the other guys are putting, we’re never going to be able to win one of those WIC Awards, because it’s ONLY GIVEN TO THE LOWEST BIDDER. Everyone gets what I’m saying. It’s ONLY GIVEN TO THE LOWEST BIDDER.
An Entrepreneur Company, like you or I, wants everybody to have healthy babies and we create some great formulas. We’re never even going to be able to ever survive.
Someone just said, “We’re living with Dems, wanting to Centralize everything.” But remember, JM Lisa, this was also brought to you by the Republicans. Don’t let the Republicans off the hook. I know we have a lot of people who previously took a potentially a Right approach, whatever. But please don’t let the Republicans a right off the hook. All right, you’re basically playing into one wing, you’re in the W E. F. Model, okay? Of wrestling. All right.
Congress is Granting Abbott, Mead Johnson, Perrigo, Nestle Exclusivities
The important thing is these WIC contracts play a very, very Big Role in a Formula Maker, in a given State, and other consumers as well. So, when a manufacturer gets a deal with a WIC contract, it boosts sales of its product, you know, to the non-WIC consumers, according to a study that was done by the US Department of Agriculture, right?
So, the opposite is also true, which means when a manufacturer loses a WIC contract, its market share in the non-WIC segment drops dramatically. So, for example, if you look at 2007. And this is a wonderful example, California had, they had the contract, the MONOPOLY was given to Abbott. So, the WIC contract, so 50% of all the babies, let’s say in California, were fed by Abbott, they had the MONOPOLY.
And when they switched to Mead Johnson, what’s fascinating is Abbott’s market share to the WIC consumers and the non-WIC dropped from 90% to 5%. Okay, so let me explain what I’m saying. So in a State, remember, there’s two sets of baby formula consumers, the poor, who need WIC, and then the people who don’t need WIC, the let’s say, the Middle Class, they have enough money, so they don’t need the Supplemental Nutrition Program.
But if you’re Abbott and you have the MONOPOLY in California, then not only are the WIC consumers buying Abbott formula, but also the non-WIC. So Abbott essentially has a MONOPOLY not only on the poor, buying their Formula, but also the Middle Class and the instant that California switches from Abbott to Mead Johnson, guess what?
You see this massive revenue drop for not only Abbott’s WIC consumers, but also their non-WIC, so you’re basically giving these companies a total virtual MONOPOLY on the WIC and in the non-WIC. I hope that’s clear?
It’s basically Congressional people granting Abbott, Mead Johnson or Perrigo, or Nestle. Exclusivities. And think about how Money flows. There’s Republicans in one State, Democrats in another State.
What About Goat’s MILK?
Goat. By the way, someone says, “What about goat’s milk?” Goat’s milk is a very, very nutritive thing. You know, when I was growing up in India, just a quick aside, my Mom and I were very sick. My Dad thought we were both going to die when I was born. And my mom was unable to breastfeed, making getting a little personal, but I survived on goat’s milk, by the way, the molecular size of goat’s milk is very close to breast milk. But anyway, quick aside.
Government worked with Big Manufacturers to Create these MONOPOLIES
But I hope you’re understanding that it’s a Left & the Right in all the States. Give these guys MONOPOLIES. That’s what’s really going on. All right. So now that we’ve gotten that, it’s important to understand that one of the studies showed that when they looked at 30 States, where manufacturers had won WIC contracts, they experienced an average, listen to this, an 18-point increase in market share among the non-WIC consumers.
If they, when they won the WIC contract, the 18% increase in the non-WIC consumers, right, while the other manufacturers who lost their contract have experienced a 19% decline. So bottom line is, I want to impress on you that the Government worked with Big Manufacturers to Create these MONOPOLIES. And so you can really think about it. I haven’t done the research.
When Abbott went from Abbott in California to Mead Johnson, it would be very interesting for any one of you to go see who they funded. Did Mead Johnson fund one politician over another, right? Why did it suddenly switch? So, it’d be very important to go look at those kinds of connections from a Systems Approach.
The Bottom Line- A Centralized Brittle System is not Resilient
So, the bottom line is this kind of market concentration, when you really think about it. Think about what it does, meaning System standpoint, we and System Science, we in System Science, look at the world as two different kinds of Systems Brittle Systems, which means a System that is very Centralized, that can break very easily. Okay, you base if you basically if these four companies blow up, you’re done. That’s called a Brittle System.
When the internet was created, the Pentagon was thinking about how do you create a computer network that could be resilient. So one model was the old model was hub and spoke, you had a central network, you know, and then you had a few spokes while the problem is if a nuclear bomb took out that central network, your network is gone, right? Or that central computer, the Internet was peer to peer, and we created a network Decentralized, that is called a Resilient System Decentralized.
But what they’ve created here is a highly Centralized System. It’s a highly brittle system. So da, you’re going to create shortages. And you have to wonder, that means why would you create Brittle Systems, you would create Brittle Systems, because you don’t give a damn about the people that you serve? So this was designed by the Elites because they don’t give a damn about everyday people. Because super wealthy people, they’re probably going to pay some woman to breastfeed their kids. We don’t know. Right? They can afford that.
The Baby Formula CENTRALIZED Cartel
The shortage really brings out the fact that, you know, all of this started, when Abbott, one of the suppliers, one of those four had that bacteria issue. So think about this, even with this consolidation, among those four, when one of them had a problem, it created this problem, because that’s the consolidation of that Centralization. That’s what it does.
When one of the four members of the Cartel had a problem. It created this. That’s important to understand, all right. So that even the FTC, a couple of weeks ago, told the panel that now they were going to look at how Mergers right? Contributed to this fragile state, right? But we know many of the people, the FTC and the FDA, and all these people are part of the Politicians. They’ll say this in words, but they really don’t care.
The important point is just one plant. Just one plant. The Michigan plant from Abbott, just that being impacted among the four people in the Cartel had a whole effect on the entire supply chain. That’s the important takeaway with the WIC piece with these MONOPOLIES. Right? It’s essentially created a situation that you have these MONOPOLIES.
United States Mexico Canada Agreement (USMC)- Massive Monopolies
Now, the other interesting thing to point out is how the Left and the Right work together. The United States Mexico Canada agreement (USMC) that was adopted by the Trump Administration in 2020, also restricted Infant Formula Imports from any other country. And this was a part of an effort to protect the US Dairy Farmers from being undercut from Canadian rivals. Okay, so on the front face, that looks like a pretty good deal, right? But remember, this, again, helps create these Massive MONOPOLIES.
And all of this was really meant, at the end of the day, to have a few brands have massive control of the US Formula market. That’s really the takeaway. That’s really what you want to take away from this. Now, theoretically, if you remember the Antitrust laws that were passed during the 20s, and the 30s, which haven’t been enforced, by the way, which have not been enforced because of the Insider Trading and Left and Right. This is why this was created.
Support the People Who Pay Them Off on the Left and the Right
Again, I keep harping on this. When you take a Systems Approach, you realize it’s about Power, Profit and Control. It’s not about Truth, Freedom or Health. It’s about a few sets of people not enforcing any of the laws, because they want to “Support the People Who Pay Them Off on the Left and the Right”. On the Left and the Right, they support the Dairy Farmers, by the way, the Dairy Farmers in the United States are not Joe, who runs a little dairy farm, it’s Massive Conglomerates, there’s probably four or five guys who own that business. So this is not about every day, Joe farmer, who they were protecting, or Trump was protecting.
And it’s, you know, very, very hard for anyone else to get into this, market. In fact, there was a company called ByHeart and they tried to get into the market, right? It took them many, many years to even get approval. And their co-founder said it was very complex to fill out all this paperwork, it took them, you know, you know, they had to invest millions into even getting into this market. So the Bottom Line is, it’s very hard for outsiders to get into this market, it’s near impossible for you or I to get into this market.
Putting the Pieces Together
What I want to do now is put all these pieces together from a Systems Approach. I want to now talk about following the money? FOLLOW THE MONEY. And before I do that, I’m just going to take a quick water break. And I’m going to come right back. And again, I want to emphasize to all of you, please become a System Scientist, you don’t have to rely on me to, quote unquote, lead you into these analyses, I want all of you to be able to do this, please take the System’s course.
I’ll be right back in two minutes, gonna get a glass of water, but just wait, because I’m going to now follow the FOLLOW THE MONEY Analysis and what the REAL Solution is. So, we’re not done. We have another 20 minutes to go, 15-20 minutes to go, but listen to this video, hopefully, it’ll inspire you to become a Truth Freedom Health® Warrior and Join the movement. Here we go.
Alright, everyone, so I hope that was inspirational. A lot of people liked that video, but it inspires you to recognize that we have to all raise our consciousness, and the problems of the world are not going to be solved by Left or Right, the problems of the world are going to, are complex, you need to have an Engineering mindset and Engineers, Working people, Plumbers, Electricians. We have to roll up our sleeves and actually look at what the REAL Problem is. And this takes effort.
And Politicians aren’t going to do it. Whether it be, any of these problems are always going to try to come up with a quick solution, which is never the REAL Solution. And try to split all of us into Left and Right and hype it up. And then they create crises, hype it up a little bit. One guy gets one set of votes, the other guy gets another set of votes. And then the crises go away. And the REAL Problems never solved.
But our Goal in our movement is to really enlighten you on how to go solve these problems. And the only way to do that is if you take a Systems Approach. So, you’re given a huge opportunity and please take it. I can’t say that anymore. But that and I put a lot of effort into creating this course and a community so if you go to VASHIVA.com/join Take the Foundations of Systems course.
I used to teach this for $2600-$2700 bucks. We’ve given a full scholarship essentially full one you pay $100 bucks. And you can use it, and you can give it to any of your children for free, anyone, any child between ages 13 to 18, once you take the course, give it to any. any child that you want. So, the goal is to educate our young people to take a Systems Approach. And as I mentioned earlier, you can also get the book “System and Revolution” absolutely FREE. Just cover shipping and handling. So anyway, please take advantage of that. It’s really for you. And I hope you do that for yourselves and your family. All right.
FOLLOW THE MONEY – The REAL Issue
I want to as I mentioned, I want to now FOLLOW THE MONEY. Because when you take a Systems Approach when you do all the Interconnections, it lets you really understand the Market Dynamics and who’s REALLY making out like a bandit, because ultimately, people will do these distractions, blame illegals, or, as I said, make you think, you know, it’s all about people coming together. But the reality is, the problem never gets addressed, unless you know what the REAL problem is.
What’s the REAL issue here? What you find out is that first, that this was a crisis that people knew was coming. They should have been prepared, but they don’t care. They knew that baby formula is a monopoly. And it’s a partner. It’s a partnership between the FDA and the Department of Agriculture.
So, you have the three or four major companies, the FDA, and the Department of Agriculture all working together. And obviously Congress supports all this because they get paid by all of the Companies Lobbyists.
Now, as I mentioned earlier, Abbott controls 43% of the Baby Formula in the United States, they go under the names Similac, Alimentum, and EleCare. And Abbott and Mead Johnson control 80%. And if you take Abbott, Mead Johnson and Nestle, that’s 98%.
REAL Issue is there is CENTRALIZATION
The REAL Problem, the REAL Issue, is not that there’s not enough Formula. So let’s get that clear. It is not like there’s not enough Formula. That’s not the issue. And if anyone ever tells you that, it’s total BS, and I hope that’s the Most Important Takeaway, you take from this.
The REAL Issue is there’s CENTRALIZATION. Okay, MONOPOLY of the Distribution System. And when you have Centralization like that, the Elites can create “shortages” in specific States. That’s what’s really happened.
And that’s what I, if you go back and review what I talked about with the WIC Partnership that they did. And there’s really two basic mechanisms in how this is created.
Congress/Lobbies Create Artificial Regulatory Framework with Competitive Bidding giving Monopoly to the Lowest Bidder leading to Centralized Brittle System
The first is the Congress, and the lobbies, through corruption, have created regulations to “Protect You”, SUPPOSEDLY for SAFETY. So, no newcomers can ever come into the market. So that’s step one, you may want to write that down. It’s a regulatory, artificial regulatory framework that’s done. That is really nice to the existing people, but doesn’t let new people come in.
The second is that the Federal Government buys more than half of the Baby Formula in the market, under the pretense that they’re going to support competitive bidding, right? And in fact, what that does is the lowest bidder gets the MONOPOLY. So, think about what they’ve done. The federal government gets involved. They said, oh, we want to get the best competitive bidding. You see, it all sounds good on paper.
But what competitive betting leads to is one person gets into an estate. You don’t have like 10. Makers, you just have one guy. And Congress has designed that, but they sell it to the public. Oh, you know, we had a competitive bid. It’s all bullshit, okay.
Now, so again, it makes it impossible for any newcomers to come in if you create a Brittle System, highly Centralized. And if you look at the last Abbott call that took place, they had their Wall Street reporting earnings report, and you would think in the midst of a crisis like this Abbott would be “Oh, my God, we have this major crisis, what do we do,” on their earnings calls, and you would probably think that their stock would go down, right.
Think about Abbott having a major crisis that controls nearly 50% of the market. It’s all out there that this Baby shortage, would you not think that the market forces would ding Abbott? And their stock would go down? Well, did that in fact happen? What really happened? Abbott said that, oh, this was just a short term issue, no big deal. Move along, nothing to see here.
And in fact, average shares rose by 2.4%. And because, and Wall Street didn’t do anything to them, not even one Analyst said anything against Abbott. You know why? Because Abbott is making billions of dollars on many other things, right, their COVID testing, medical devices, healthcare, right.
And this nutritional baby segment is a very small piece. So basically, a very large company where the nutritional piece is a small piece gets to have the monopoly. It’s not like you and I were we really care, we could start an organic food company for, you know, something that could work, it can only be controlled by the Big Guys.
A Shared Monopoly
And again, Wall Street gave them an increase in their stock price in the middle of all this, which means all the Congressional people who have equity in these companies did really, really well. Someone said short term, everything is transferred. I remember inflation too. Yeah, they have it in cycles. So, FDA and agriculture and Wall Street all benefited these guys. And again, it’s “A SHARED MONOPOLY”.
So, in closing, I hope you understand what’s really going on here. We have complete control of the Formula market by a few people, this was granted to them by Congress. And it was all branded as a way that we’re doing competitive bidding.
Alright. And that’s what’s really been created. All right, this was all brought to you by the Elites. And they don’t give a damn about whether babies get fed or not. We’ve talked about the Formulas, which have all sorts of high risk, heavy metals in them. And no one’s really, you know, talked about it. And in the middle of all this Abbott, bought back nearly $6 billion worth of stock.
They didn’t put any of it to fix their dilapidated or their machinery or their things that actually started this crisis. And I don’t think they’ve yet to do that, you know, at least as far as I know, I haven’t seen any indication of that. So I hope that gives you the REAL Analysis of what is the Solution? What is the way forward, right, that we really can win on this, right? You know, what really needs to be done.
Who Really Got Affected?
And when you really think about this, and we step back, we have to recognize that as we talk about in our movement, as I shared in the previous video, it’s only a Bottoms-up movement, that’s going to really change anything significant because who really got affected in all of this. Who got affected? Let’s ask who actually got affected so people can come in? Who really got screwed over in this? Did Joe Biden. John did Joe Biden?
John Medlar: Nah, He’s not really affected.
Dr.SHIVA Ayyadurai: NOPE. Did Donald Trump? Did Ivanka’s kids get screwed over in this? I don’t think so. Right? No, these the Elites can go literally, probably rent somebody and probably get milk from somebody, right? Nursemaids, right? They can pay for that. But who really got affected by this were Working People.
In fact, it was a worker at that factory. Thank you, John Morrell, it was a worker at the factory, who lost his job, who’s the one who blew the whistle on this, right. And he was fired for this. And no one and he’s not, I don’t know if the guy was on Tucker Carlson or wherever, right if he got any play, right. But it was a whistleblower who brought this up, a working person in that factory, working people are the ones who got screwed. And working people are still getting screwed.
Systems Elites Create are Highly CENTRALIZED And Brittle
And these Systems are brittle. The Financial Systems are brittle. The Political Systems are brittle, which means highly CENTRALIZED, right? The Baby Formula Systems are brittle, the Car Manufacturing Systems are brittle. All the Systems that the Elites create for you and I are highly CENTRALIZED. And so, they are bound to have these issues. And the REALITY is They Don’t Care! Because let’s say, we have some shortage, I’m sure all of these guys who have a gas shortage, they probably have their own ways to sustain gas, and underground bunkers, or whatever they have, right.
Elites/Politicians Make Money at the Working People’s Expense
That’s what we need to understand that ultimately, the Systems are NOT designed to be DECENTRALIZED and Resilient. Right there. They are designed. So, it’s highly CENTRALIZED. So, they make money as bandits at our expense.
And you and I, and take this away as a key thing, are fighting among each other, supporting one idiot or another idiot, every recurrent Election Cycle. And we get into that like a sports team every two years. And then we say, oh, we have to get that person elected because Joe Biden is so bad or we have to get him elected because Trump is so bad, and it’s just as bullshit. So, we always take the lesser of two evils
REAL Solution is to Create Systems of Truth Freedom Health®
We never solve the REAL Issue. I hope this Analysis, the Systems Analysis has done two things. First, inspire you to get out of the Left and Right. But most importantly, inspired you to become part of the Truth Freedom Health® movement, which is a movement for you to become Leaders in your own Communities.
But start by really taking a Systems Approach Beyond Left and Right. But you got to study, there is no way out of this without doing the Analysis, putting the homework in, and I’ve made this course accessible.
Anyone on the planet can take it, you can afford it, and you can give it to your kids. So I keep harping on this. Again, it’s to really help you recognize that we need to build a movement, a Bottoms up movement that goes Beyond Left or Right.
Yeah, so someone here says, “People do not feel empowered to change Systems. You have a point working with the grassroots?” So, JM Lisa, the other point here is that it’s not just working, but you can’t, even if you want to build a grassroots movement, you have to have the right theory, The Theoretical Framework, you have to have the Systems Approach. Our School Systems don’t teach this. So, it took me, you know, time to put this together to articulate this.
Elites Create Systems of Power, Profit and Control = FAKE Solutions
But I hope you recognize that the Elites don’t give a damn about you. They’re creating Systems which are based on Power, Profit and Control. It’s not about Truth, Freedom and Health. And it’s time that all of you learn this approach, because I’ve organized this curriculum.
Let me play this video that’ll tell you what we’re creating. We’re creating the course curriculum. We’re creating a Worldwide Community where you can learn with other people and a way that you can get on the ground, you can take this knowledge, you can interact with people, it’s not something you learn right away, you have to interact with people. So, let me play this and I’ll come back for Summary.
Alright, everyone, I hope this was valuable. I’m just trying to finish up something right here. I just took a quick break here. As you guys were. Anyway, I hope this is valuable for all of you. And we will be doing more of these Systems Analysis. Please go to TruthFreedomHealth.com or VASHIVA.com/join. I look forward to seeing you.
We do many, many events. We have Open Houses that we do. We do Warrior Scholar meetings. But we really are Building a Community to take a Systems Approach Beyond Left & Right, to really elevate the discourse, so we create people who don’t get exploited anymore. And the only way forward is to go Beyond Left & Right, so I hope this Analysis with the Baby Formula shortage gives you a glimpse of how we can really try to understand issues Beyond Left & Right.
And so have a good evening and Be Well and let me just play the closing logo right. Where is it here? Thank you, Be well.
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