Intl. Notebook Feb 12 2016
SOUTHERN DISCOMFORT
The Devil went down to Georgia looking for souls to steal.


We found a little piece of real world pulp and thought we'd share it because it relates to what we wrote last month about Sean's Penn's El Chapo interview. A news story yesterday revealed that in the U.S. forty-six current and former officers of the Georgia Department of Corrections were arrested for running a drugs and contraband ring in prisons around the state. Yup, you read that right—forty-six officers. These cops and guards facilitated cocaine and meth deals both inside and outside of prison, and smuggled liquor, tobacco and cell phones inside in exchange for money. Convicts used the phones to commit wire fraud, money laundering, and identify theft. And we should point out that none of this is unique to Georgia. In 2014 a North Carolina convict orchestrated a kidnapping in Atlanta using a contraband cell phone.

In our Sean Penn piece we quoted Roberto Saviano, the internationally respected author and researcher, who has said the illegal drug trade has an influence on the global economy similar to that of oil or gold. That is to say, it's so lucrative international law is ignored, and people are killed by the thousands to keep the profits rolling in. The main difference is all the millions of dollars have to be cleaned in the legal financial system. But that's no problem. Several huge banks, including Wachovia and HSBC, have intentionally laundered drug money and gotten away with mere fines. Other huge institutions, such as Bank of America and J.P. Morgan, are known to have been used for money laundering but claim it all somehow happened without their knowledge.
 
To the FBI's credit, they're not treating this as a one-off. Special agent Britt Johnson, who you see above, hinted at wider problems, commenting at a news conference, “It makes a huge challenge for law enforcement. After you chase down, arrest, and prosecute criminals and put them away for life, they continue to direct crime on the streets from their jail cells.”
 
So what's the solution? Make the prisons even harsher? Legalize drugs? We have no idea. We're not suggesting that anyone have sympathy for the guards that got arrested, but you have to admit, when drug profits are so vast they corrupt entire third world political systems and entire first world banking systems, it's a lot to expect lowly prison guards not to try and join the party.

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Intl. Notebook Jan 10 2016
BUNGLE IN THE JUNGLE
Drug lord’s ego leads to capture, but bigger issues remain.


Last night Rolling Stone, one of the U.S.’s top investigative magazines, published a pulp-worthy article on its website about Mexican drug lord Joaquín Guzmán Loera, aka El Chapo. The magazine sent actor Sean Penn to the jungles of Mexico to interview Guzmán, a meeting that came about at the drug kingpin’s behest because he was interested in making a movie about his life. Long story short—Guzmán ended up being captured Friday in Sinaloa, Mexico after a gun battle with police, and his ongoing contact with Hollywood figures was the primary factor that led authorities to him.

Guzmán has been imprisoned before, so nothing new there. He escaped both times. He may well escape again. His most recent breakout is detailed in the Rolling Stone article—he disappeared through a hole in his shower (see below), dropped into a mile-long tunnel, and rode away on a specially designed motorcycle on rails that had been modified to runin a low-oxygen environment. All this took at least $1 million to achieve. According to Penn and Rolling Stone, Mexican engineers were flown to Germany for specialized training in tunnel building.

The article is worth a read. Penn describes being waved through police checkpoints to Guzmán’s jungle lair, and when that fact is measured against his capture, it suggests a factionalized Mexican state, with the president and certain other top authorities conducting an anti-drug crusade even as military figures, federal officers, and local cops often work for the drug lords. But Mexico is not uniquely corrupt, and that is something that must be emphasized. The wealthy north is also in the drug trade.

Consider—the British bank HSBC knowingly laundered hundreds of millions of dollars of Guzmán’s drug profits. Yes, they knew about it. The bank was caught, and its heads talked about a “failure of standards,” but all the bankers skated from justice for this terrible crime thanks to their connections in the political world. Is this any different from Joaquín Guzmán motorcycling to freedom through a tunnel? We don’t think so. This is something that global authorities desperately want to keep the general public from understanding—the drug trade is an integral part of capitalism, not some dark subset of it.

Not convinced? The U.S. bank Wachovia laundered drug cartel money and deliberately failed to apply anti-laundering measures to $378.4 billion that passed through the institution. That amount of money is equal to one-third of Mexico's gross national product. The result? Fines of about $160 million—less than 2% of the yearly profits—and no jail for anyone in the executive suite. The list goes on. Liberty Reserve, Bank of America, Western Union, and J.P. Morgan all have drug ties. There are doubtless more we don't yet know about.

Articles in The Wall Street Journal and other establishment papers try to paint the banks as victims. Yet in the end, there are always executives who know exactly what’s happening—just like the cops that waved Sean Penn through those Mexican checkpoints. Besides, since when do victims get to charge millions in fees for their crimes? In the same way U.S. slavery was enabled by banks in New York City and Boston, which even accepted slaves as collateral, the southern drug trade cannot exist without the money laundering operations of the northern banks. And the amounts of money involved don’t just influence markets—it shapes them. Roberto Saviano, possibly the world’s foremost expert on the global drug trade, and author of the blockbuster exposé Zero Zero Zero, says, “It’s not the world of cocaine that must orbit around the markets, but the markets that must rotate around cocaine.” 

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History Rewind
The headlines that mattered yesteryear.
January 23
1912—International Opium Convention Signed
The International Opium Convention is signed at The Hague, Netherlands, and is the first international drug control treaty. The agreement was signed by Germany, the U.S., China, France, the UK, Italy, Japan, Netherlands, Persia, Portugal, Russia, and Siam.
January 22
1946—CIA Forerunner Created
U.S. president Harry S. Truman establishes the Central Intelligence Group or CIG, an interim authority that lasts until the Central Intelligence Agency is established in September of 1947.
1957—George Metesky Is Arrested
The New York City "Mad Bomber," a man named George P. Metesky, is arrested in Waterbury, Connecticut and charged with planting more than 30 bombs. Metesky was angry about events surrounding a workplace injury suffered years earlier. Of the thirty-three known bombs he planted, twenty-two exploded, injuring fifteen people. He was apprehended based on an early use of offender profiling and because of clues given in letters he wrote to a newspaper. At trial he was found legally insane and committed to a state mental hospital.
January 21
1950—Alger Hiss Is Convicted of Perjury
American lawyer Alger Hiss is convicted of perjury in connection with an investigation by the House unAmerican Activities Committee (HUAC), at which he was questioned about being a Soviet spy. Hiss served forty-four months in prison. Hiss maintained his innocence and fought his perjury conviction until his death in 1996 at age 92.
1977—Carter Pardons War Fugitives
U.S. President Jimmy Carter pardons nearly all of the country's Vietnam War draft evaders, many of whom had emigrated to Canada. He had made the pardon pledge during his election campaign, and he fulfilled his promise the day after he took office.
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