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.
October 28
1919—Volstead Act Passed
The U.S. Congress passes the Volstead Act over President Woodrow Wilson's veto, paving the way for alcohol Prohibition to begin the following January. The Act, named for Chairman of the House Judiciary Committee Andrew Volstead, was supposed to create a better society but instead helped lead to the rise of violent organized crime gangs. The law wouldn't be repealed until 1933.
1922—Mussolini Comes Into Power
During the second day of the event known as the March on Rome, Fascist leader Benito Mussolini officially takes control of the Italian government when King Victor Emmanuel III cedes power. Supported by a coalition of military, business, and right-wing leaders, Mussolini remains in power until 1943, when defeat in World War II begins to look inevitable.
October 27
1994—U.S. Prison Population Reaches Milestone
The U.S. prison population tops 1 million for the first time in American history. By 2008 the U.S. Justice Department pegs the number of imprisoned at 2.3 million, and the overall U.S. correctional population, i.e. those in jail, prison, on probation or on parole, at 7.3 million, or 1 in every 31 adults.
October 26
1951—Churchill Becomes Prime Minster Again
The Conservative Party wins the British general election, making Winston Churchill prime minister for the second time. Churchill is nearly 76 at the time, making him the second oldest prime minister in history after William Gladstone. Churchill remains PM until 1955, when he steps down at 81 due to ill health.
1964—The Night Caller Is Executed
In Australia, Eric Edgar Cooke, who had earned the nickname Night Caller, is hanged after being convicted of murder. He had terrorized Perth for four years, committing 22 violent crimes, eight of which resulted in deaths. He becomes the last person to be executed in Western Australia.
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