The Trillion Dollar Scam
The Drug War is a Trillion dollar a year scam. Really? Well let us see what the UN anti Drug Agency has to say.
Criminals, especially drug traffickers, may have laundered around $1.6 trillion, or 2.7 per cent of global GDP, in 2009, according to a new report by UNODC.
So is it just a bunch of criminals, or is there something more nefarious going on?
According to Oliver Villar it is something more.
if you go back to the history of the global drug trade, which I did pursue, you find that states, not just individuals or criminals, were also part of the process of production and distribution. The most notorious example is the British colonial opium trade, where much of that process was happening in a very wide scale, where the British not only gained financially but also used it as a political form of social control and repression.
Well. OK. That is from a lefty rag and you know they are not a totally trustworthy lot.
Lets try Catherine Austin Fitts, who was a former managing director and member of the board of directors of Dillon Read & Co, Inc, a former Assistant Secretary of Housing-Federal Housing Commissioner in the first Bush Administration, and the former President of The Hamilton Securities Group, Inc.
She said in 2002:
In late June 1999, numerous news services, including Associated Press, reported that Richard Grasso, Chairman of the New York Stock Exchange flew to Colombia to meet with a spokesperson for Raul Reyes of the Revolutionary Armed Forces of Columbia (FARC), the supposed “narco terrorists” with whom we are now at war.
The purpose of the trip was “to bring a message of cooperation from U.S. financial services” and to discuss foreign investment and the future role of U.S. businesses in Colombia.
Well isn’t that interesting?
HSBC had to pay nearly $2B in fines after its Bank CEO was allegedly caught overseeing the laundering of $7B in drug money for the notoriously violent and ruthless Sinaloa drug cartel among other Mexican drug cartels and committing a wide array of other crimes like laundering $290MM from Russian mobsters that told HSBC bankers that their vast profits came from a “used car business”. I say “allegedly caught”, because every time this happens, the bank CEO, in this case, HSBC CEO Stuart Gulliver, inevitably denies ever knowing that the cartel he was overseeing was laundering dirty blood money. The Bank Lords issue these ridiculous denials despite the fact that every independent investigator not on a Bank’s payroll that investigates banks’ money laundering schemes arrive at the same conclusion as Jose Luis Marmolejo, the former head of the Mexican attorney general’s financial crimes unit: “[The money laundering] went on too long and [the bank CEOS] made too much money not to have known.”
I could go on. For a long read that goes a little way back in history you might want to try reading Alfred McCoy’s book The Politics of Heroin in Southeast Asia – pdf free on the www. If you want a more up to date version look it up at your favorite book seller. If you want the movie version get “Air America”.
This New York Times article has more about Air America. The title of the article is The CIA Drug ConnectionIs as Old as the Agency – from 1993.
CIA ties to international drug trafficking date to the Korean War. In 1949, two of Chiang Kai-shek’s defeated generals, Li Wen Huan and Tuan Shi Wen, marched their Third and Fifth Route armies, with families and livestock, across the mountains to northern Burma. Once installed, the peasant soldiers began cultivating the crop they knew best, the opium poppy.
When China entered the Korean War, the CIA had a desperate need for intelligence on that nation. The agency turned to the warlord generals, who agreed to slip some soldiers back into China. In return, the agency offered arms. Officially, the arms were intended to equip the warlords for a return to China. In fact, the Chinese wanted them to repel any attack by the Burmese.
Soon intelligence began to flow to Washington from the area, which became known as the Golden Triangle. So, too, did heroin, en route to Southeast Asia and often to the United States.
If the agency never condoned the traffic, it never tried to stop it, either. The CIA did, however, lobby the Eisenhower administration to prevent the Bureau of Narcotics and Dangerous Drugs, the DEA’s predecessor, from establishing monitoring posts in the area to study the traffic. Today, the Golden Triangle accounts for about half the heroin in circulation in the world.
Well things have changed. These days it is Afghanistan.
And then there is his: Decades-old CIA crack-cocaine scandal gains new momentum..
Nearly two decades after a US reporter was humiliated for connecting the CIA to a drug-trafficking trade that funded the Nicaraguan Contras, important players in the scandal – which led to the journalist’s suicide – are coming forward to back his claims.
Back in 1996, Gary Webb of the San Jose Mercury News broke a story stating not only that the Nicaraguan Contras – supported by the United States in a rebellion against their left-leaning government – were involved in the US crack cocaine epidemic of the 1980s, but also that the CIA knew and turned a blind eye to the operation.
As a result, Webb concluded, the CIA was complicit in a drug trade that was wreaking havoc on African American communities in Los Angeles.
There is lots more out there but I’d like to look at “the most addictive drug known to man” as the popular press would have it. Heroin. Let us start out with my thesis and see if it makes sense:
People in chronic pain chronically take pain relievers.
According to Dr. Lonny Shavelson 70% of female heroin users were sexually abused in childhood. – So the pain is PTSD.
When the pain goes away (enough) people stop using.
In addition PTSD is genetic. To activate it you need trauma. About 20% of the population has the genetics. About half those get enough trauma to activate it. Most people have zero risk of “addiction”. Not very scary is it?
But scaring you is how they keep the Drug War alive. Or to quote a popular movie, “Fear will keep the Star Systems in line.” Well, what if we gave up our fear?
According to this 3 minute video by Catherine Austin Fitts discussing a talk she gave at the Spiritual Frontiers Foundation, the fear is still too great. Not because of Heroin. But because as another popular figure once said, “There is too much money in it.” Or put a little differently, if we don’t keep persecuting the unfortunates the value of our retirement funds will decline. You should watch the whole video. And if there is a demand for it I will write more on the subject. And maybe a few other things.