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Pulp International - Wachovia
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.
April 23
1986—Otto Preminger Dies
Austro–Hungarian film director Otto Preminger, who directed such eternal classics as Laura, Anatomy of a Murder, Carmen Jones, The Man with the Golden Arm, and Stalag 17, and for his efforts earned a star on Hollywood's Walk of Fame, dies in New York City, aged 80, from cancer and Alzheimer's disease.
1998—James Earl Ray Dies
The convicted assassin of American civil rights leader Martin Luther King, Jr., petty criminal James Earl Ray, dies in prison of hepatitis aged 70, protesting his innocence as he had for decades. Members of the King family who supported Ray's fight to clear his name believed the U.S. Government had been involved in Dr. King's killing, but with Ray's death such questions became moot.
April 22
1912—Pravda Is Founded
The newspaper Pravda, or Truth, known as the voice of the Communist Party of the Soviet Union, begins publication in Saint Petersburg. It is one of the country's leading newspapers until 1991, when it is closed down by decree of then-President Boris Yeltsin. A number of other Pravdas appear afterward, including an internet site and a tabloid.
1983—Hitler's Diaries Found
The German magazine Der Stern claims that Adolf Hitler's diaries had been found in wreckage in East Germany. The magazine had paid 10 million German marks for the sixty small books, plus a volume about Rudolf Hess's flight to the United Kingdom, covering the period from 1932 to 1945. But the diaries are subsequently revealed to be fakes written by Konrad Kujau, a notorious Stuttgart forger. Both he and Stern journalist Gerd Heidemann go to trial in 1985 and are each sentenced to 42 months in prison.
April 21
1918—The Red Baron Is Shot Down
German WWI fighter ace Manfred von Richthofen, better known as The Red Baron, sustains a fatal wound while flying over Vaux sur Somme in France. Von Richthofen, shot through the heart, manages a hasty emergency landing before dying in the cockpit of his plane. His last word, according to one witness, is "Kaputt." The Red Baron was the most successful flying ace during the war, having shot down at least 80 enemy airplanes.
1964—Satellite Spreads Radioactivity
An American-made Transit satellite, which had been designed to track submarines, fails to reach orbit after launch and disperses its highly radioactive two pound plutonium power source over a wide area as it breaks up re-entering the atmosphere.
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