By Christopher R Rice, Underground Resistance Network
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It’s not a War on Drugs. It’s a War on People The War on Drugs is a WAR fought on American soil against American CITIZENS. No Victim, No Crime.
Joseph McNamara, a former San Jose police chief from the Hoover Institute at Stanford University, published some really telling figures. In 1972, when Richard Nixon started the War on Drugs, the annual federal budget allocation was 110 million dollars a year for enforcement. In fiscal year 2000, 28 years later, the budget allocation was 17 billion dollars a year, and yet, in the year 2000, there were more drugs in this country, they were cheaper, and more potent than they were in 1972. That has to tell you that there’s some other agenda going on here.
Clark Clifford, who was a Wall Street banker and lawyer, wrote the National Security Act that created the CIA in 1947. He brought us BCCI. John Foster Dulles and Allen Dulles gave both law partners in the Wall Street law firm of Sullivan and Cromwell wrote the outline for the CIA, the design for the Agency, to Clark Clifford. In 1969 after Nixon came in, the Chairman of SEC [Securities and Exchange Commission] was William Casey – who was Ronald Reagan’s Director of Central Intelligence. And the Vice President in charge of enforcement for the New York Stock Exchange was Dave Dougherty, a retired CIA General Counsel. The CIA is Wall Street, and vice versa. When you understand that, and that money is the primary objective, everything else just falls into place.
The distinctions drawn between business, politics, and organized crime are at best artificial and in reality irrelevant. Rather than being dysfunctions, corporate crime, white-collar crime, organized crime, and political corruption are mainstays of American political-economic life.
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Organized Crime aka the Mafia is just another arm of the government like the Army or the Navy
Investigations of organized crime in the United States, Europe, and Asia have all uncovered organized crime networks operating with virtual immunity from law enforcement and prosecution. Chambliss’ study of organized crime in Seattle exposed a syndicate that involved participation by a former governor of the state, the county prosecutor, the police chief, the sheriff, at least 50 law enforcement officers, leading business people, including contractors, realtors, banks, and corporation executives, and, of course, a supporting cast of drug pushers, pimps, gamblers, and racketeers (Chambliss, 1978). The Chambliss study is not the exception but the rule.
Other sociological inquires in Detroit, Texas, Pennsylvania, New Jersey, and New York have all revealed similar patterns (Albini, 1971; Block, 1984; Block and Chambliss, 1981; Block and Scarpitti, 1985; Jenkins and Potter, 1989; 1986; Potter and Jenkins, 1985; Potter, 1994).
As Chambliss comments: In the everyday language of the police, the press, and popular opinion, “organized crime” refers to a tightly knit group of people, usually alien and often Italian, that run a crime business structured along the lines of feudal relationships.
This conception bears little relationship to the reality of organized crime today. Nonetheless, criminologists have discovered the existence of organizations whose activities focus on the smuggling of illegal commodities into and out of countries (cocaine out of Colombia and into the United States and guns and arms out of the United States and into the Middle East, for example); other organizations, sometimes employing some of the same people, are organized to provide services such as gambling, prostitution, illegal dumping of toxic wastes, arson, usury, and occasionally murder.
These organizations typically cut across ethnic and cultural lines, are run like businesses, and consist of networks of people including police, politicians, and ordinary citizens investing in illegal enterprises for a high return on their money.
Catherine Austin Fitts, who was a Managing Director at Dillon Read before becoming Assistant Secretary of Housing under George Bush and who holds an MBA from Wharton makes things very simple. She points out that the four largest states for the importation of drugs are New York, Florida, Texas and California. She then points out that the top four money-laundering states in the U.S. (good for between 100 and 260 billion per year) are New York, Florida, Texas and California. No surprise there.
Then she rips the breath from your lungs by pointing out that 80 per cent of all Presidential campaign funds come from – New York, Florida, Texas and California.
Civics test: Who were the governors of Texas and Florida?
Using testimony of law enforcement officers and U.S. Government records, Dominican drug gangs, who dominate the trade in the northeast United States – especially New York and Pennsylvania – have been making regular campaign donations. California drug sales are currently split between Democratically allied crime factions and entrenched hard-core Republican strongholds from the Reagan era.
People who shudder at the thought of the Chinese buying into presidential politics would choke if they knew how much drug money was involved.
The Department of Justice estimates that $100 billion in drug funds are laundered in the U.S. each year. Other research, including research material from the Andean Commission of Jurists cited by author Dan Russell in his soon to be published book Drug War place the figure at around $250 billion per year. Catherine Austin Fitts places the figure at $250 to $300 billion.
Given the fact that the UN estimated that in the early 1990s world retail volume in the illegal drugs was $440 billion, $250 billion seems about right. Fitts, using her Wall Street experience as an investment banker, is then quick to point out that the multiplier effect (x6) of $250 billion laundered would result in $1.5 trillion dollars per year in U.S. cash transactions resulting from the drug trade. How many jobs does $1.5 trillion represent? Why do President’s get re-elected? As Bill Clinton’s staff recognized in 1992, “It’s the economy -Stupid!”
During the Contra years, when the CIA and Bill Clinton were swimming in cocaine, and Arkansas became the only state in the Union to ever issue bearer bonds (laundry certificates), employment in Arkansas rose to an all time high because there was so much money floating around. So what if they don’t count all the dead bodies “It’s the economy – Stupid!”
The Pop: Corporations trading on Wall Street, including many implicated in money laundering schemes where products are sold with questionable bookkeeping throughout drug producing regions, all have stock values that are based upon annual net profits. Known as “price to earnings” or “The Pop” the multiplier effect in stock values is sometimes as much as a factor of thirty. Thus, for a firm like GE or Piper Aircraft to have an additional $10 million in net profits based upon the drug trade, the net increase in these companies’ stock value could be as much as $300,000,000. Did GE make a $10 million net profit on consumer products in Latin America last year? Easily.
And since GE owns NBC is there a chance that accurate reporting on the drug trade and CIA’s involvement therein might hurt their stock?
Disney owns ABC and has a huge retail, resort and entertainment empire that benefits from the “drug multiplier.” Would ABC consider hurting its parent’s stock value? Ronald Reagan’s CIA Director, William Casey had been Chief Counsel to Cap Cities Broadcasting until 1981. His old law firm represented Cap Cities when it bought the ABC network in 1985. ABC’s Peter Jennings, by the way, had been doing a series of investigative reports on the CIA drug bank (and successor to the Nugan Hand bank) Bishop, Baldwin, Rewald, Dillingham and Wong when the buyout was initiated. Cap Cities (not surprisingly) secured SEC approval in record time and effectively and immediately silenced Peter Jennings who had previously refused to back down from Casey’s threats. Thereafter, ABC was referred to as “The CIA network.”
I have no doubt that the ABC “object lesson” was front and center for CNN founder Ted Turner and Time-Warner when Henry Kissinger, Colin Powell and (CIA vet) John Singlaub put the pressure on in the wake of April Oliver’s 1998 “dead bang accurate” Sarin gas stories connecting CIA to the killing of American defectors.
Every major media corporation in the country trades on Wall Street. There are no “independents” left and the American people are left with the increasing thought conflict of recognizing that they are being fed useless bullshit. I wonder how they would respond to real a news corporation if they saw or heard one.
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Despite president Trump’s announced US troop withdrawals, the Afghan opium trade continues to be protected by US-NATO occupation forces on behalf of powerful financial interests. Afghanistan’s opium economy is a multibillion dollar operation which feeds the surge of the US heroin market which is currently the object of debate and public concern. It should be noted that the relationship between the surge in Afghanistan’s opium production and the US opioid crisis is more complex.
In the course of the last decade, there has been a surge in Afghan opium production. In turn the number of heroin addicts in the US has increased dramatically. Is there a relationship?
“There were 189,000 heroin users in the US in 2001, before the US-NATO invasion of Afghanistan. By 2016 that number went up to 4,500,000 (2.5 million heroin addicts and 2 million casual users). Heroin deaths shot up from 1,779 in 2001 to 10,574 in 2014 as Afghan opium poppy fields metastasized from 7,600 hectares in 2001 (when the US-NATO War in Afghanistan began) to 224,000 hectares in 2016. (One hectare equals approximately 2.5 acres). Ironically, the so-called US eradication operation in Afghanistan has cost an estimated $8.5 billion in American taxpayer funds since the US-NATO-Afghan war started in October 2001.” ( See the article by Sibel Edmonds, August 22, 2017)
Afghanistan produces over 90 percent of the opium which feeds the heroin market.
Lest we forget, the surge in opium production occurred in the immediate wake of the US invasion in October 2001.
Who is protecting opium exports out of Afghanistan?
In 2000-2001, “the Taliban government –in collaboration with the United Nations– had imposed a successful ban on poppy cultivation. Opium production declined by more than 90 per cent in 2001. In fact the surge in opium cultivation production coincided with the onslaught of the US-led military operation and the downfall of the Taliban regime. From October through December 2001, farmers started to replant poppy on an extensive basis.”
The Vienna based UN Office on Drugs and Crime (UNODC) reveals that poppy cultivation in 2012 extended over an area of more than 154,000 hectares, an increase of 18% over 2011. A UNODC spokesperson confirmed in 2013 that opium production is heading towards record levels.
In 2014 the Afghan opium cultivation hit a record high, according to the United Nations Office on Drugs and Crime’s 2014 Afghan Opium Survey.( See graph below). A slight decline occurred in 2015-2016. War is good for business. The Afghan opium economy feeds into a lucrative trade in narcotics and money laundering.
“Opium production in Afghanistan rose by 43 per cent to 4,800 metric tons in 2016 compared with 2015 levels, according to the latest Afghanistan Opium Survey figures released today by the Afghan Ministry of Counter Narcotics and the UNODC. The area under opium poppy cultivation also increased to 201,000 hectares (ha) in 2016, a rise of 10 per cent compared with 183,000 ha in 2015. According to the YNODC
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Washington’s Hidden Agenda: Restore the Drug Trade
In the wake of the 2001 US bombing of Afghanistan, the British government of Tony Blair was entrusted by the G-8 Group of leading industrial nations to carry out a drug eradication program, which would, in theory, allow Afghan farmers to switch out of poppy cultivation into alternative crops. The British were working out of Kabul in close liaison with the US DEA’s “Operation Containment”.
The UK sponsored crop eradication program is an obvious smokescreen. Since October 2001, opium poppy cultivation has skyrocketed. The presence of occupation forces in Afghanistan did not result in the eradication of poppy cultivation. Quite the opposite.
The Taliban prohibition had indeed caused “the beginning of a heroin shortage in Europe by the end of 2001”, as acknowledged by the UNODC.
Heroin is a multibillion dollar business supported by powerful interests, which requires a steady and secure commodity flow. One of the “hidden” objectives of the war was precisely to restore the CIA sponsored drug trade to its historical levels and exert direct control over the drug routes.
Immediately following the October 2001 invasion, opium markets were restored. Opium prices spiraled. By early 2002, the opium price (in dollars/kg) was almost 10 times higher than in 2000.
In 2001, under the Taliban opiate production stood at 185 tons, increasing to 3400 tons in 2002 under the US sponsored puppet regime of President Hamid Karzai.
The role of the CIA, which is amply documented, is not mentioned in official UNODC publications, which focus on internal social and political factors. Needless to say, the historical roots of the opium trade have been grossly distorted.
According to the UNODC, Afghanistan’s opium production has increased, more than 15-fold since 1979. In the wake of the Soviet-Afghan war, the growth of the narcotics economy has continued unabated. The Taliban, which were supported by the US, were initially instrumental in the further growth of opiate production until the 2000 opium ban.
This recycling of drug money was used to finance the post-Cold War insurgencies in Central Asia and the Balkans including Al Qaeda. (For details, see Michel Chossudovsky, War and Globalization, The Truth behind September 11, Global Outlook, 2002, http://globalresearch.ca/globaloutlook/truth911.html )
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Narcotics: Second to Oil and the Arms Trade
The revenues generated from the CIA sponsored Afghan drug trade are sizeable. The Afghan trade in opiates constitutes a large share of the worldwide annual turnover of narcotics, which was estimated by the United Nations to be of the order of $400-500 billion. (Douglas Keh, Drug Money in a Changing World, Technical document No. 4, 1998, Vienna UNDCP, p. 4. See also United Nations Drug Control Program, Report of the International Narcotics Control Board for 1999, E/INCB/1999/1 United Nations, Vienna 1999, p. 49-51, and Richard Lapper, UN Fears Growth of Heroin Trade, Financial Times, 24 February 2000). At the time these UN figures were first brought out (1994), the (estimated) global trade in drugs was of the same order of magnitude as the global trade in oil.
The IMF estimated global money laundering to be between 590 billion and 1.5 trillion dollars a year, representing 2-5 percent of global GDP. (Asian Banker, 15 August 2003). A large share of global money laundering as estimated by the IMF is linked to the trade in narcotics.
Based on recent figures (2003), drug trafficking constitutes “the third biggest global commodity in cash terms after oil and the arms trade.” (The Independent, 29 February 2004).
Moreover, the above figures including those on money laundering, confirm that the bulk of the revenues associated with the global trade in narcotics are not appropriated by terrorist groups and warlords, as suggested by the UNODC report.
There are powerful business and financial interests behind narcotics. From this standpoint, geopolitical and military control over the drug routes is as strategic as oil and oil pipelines.
However, what distinguishes narcotics from legal commodity trade is that narcotics constitutes a major source of wealth formation not only for organised crime but also for the US intelligence apparatus, which increasingly constitutes a powerful actor in the spheres of finance and banking.
In turn, the CIA, which protects the drug trade, has developed complex business and undercover links to major criminal syndicates involved in the drug trade.
In other words, intelligence agencies and powerful business syndicates allied with organized crime, are competing for the strategic control over the heroin routes. The multi-billion dollar revenues of narcotics are deposited in the Western banking system. Most of the large international banks together with their affiliates in the offshore banking havens launder large amounts of narco-dollars.
This trade can only prosper if the main actors involved in narcotics have “political friends in high places.” Legal and illegal undertakings are increasingly intertwined, the dividing line between “businesspeople” and criminals is blurred. In turn, the relationship among criminals, politicians and members of the intelligence establishment has tainted the structures of the state and the role of its institutions.
Related article: CNN: CIA admits it overlooked Contras’ links to drugs
The Laundering of Drug Money
The proceeds of the drug trade are deposited in the banking system. Drug money is laundered in the numerous offshore banking havens in Switzerland, Luxembourg, the British Channel Islands, the Cayman Islands and some 50 other locations around the globe. It is here that the criminal syndicates involved in the drug trade and the representatives of the world’s largest commercial banks interact. Dirty money is deposited in these offshore havens, which are controlled by the major Western commercial banks. The latter have a vested interest in maintaining and sustaining the drug trade. (For further details, see Michel Chossudovsky, The Crimes of Business and the Business of Crimes, Covert Action Quarterly, Fall 1996)
Once the money has been laundered, it can be recycled into bona fide investments not only in real estate, hotels, etc, but also in other areas such as the services economy and manufacturing. Dirty and covert money is also funneled into various financial instruments including the trade in derivatives, primary commodities, stocks, and government bonds.
Concluding Remarks: Criminalization of US Foreign Policy
US foreign policy supports the workings of a thriving criminal economy in which the demarcation between organized capital and organized crime has become increasingly blurred.
The heroin business is not “filling the coffers of the Taliban” as claimed by US government and the international community: quite the opposite! The proceeds of this illegal trade are the source of wealth formation, largely reaped by powerful business/criminal interests within the Western countries. These interests are sustained by US foreign policy.
Decision-making in the US State Department, the CIA and the Pentagon is instrumental in supporting this highly profitable multibillion dollar trade, third in commodity value after oil and the arms trade.
The Afghan drug economy is “protected”.
The heroin trade was part of the war agenda. What this war has achieved is to restore a compliant narco-State, headed by a US appointed puppet.
The powerful financial interests behind narcotics are supported by the militarisation of the world’s major drug triangles (and transshipment routes), including the Golden Crescent and the Andean region of South America (under the so-called Andean Initiative).
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This problem is unlikely to go away anytime soon. There are as many opioid prescriptions written annually in the US as there are adults. With just 5% of the world’s population, the US consumes 80% of its opioids. And the impact goes beyond the health and wellness of the population.
Afghanistan supply’s about 90% of the worlds opium. We arrived in 2001. In the following nine years opium production has surged 700%. Recording all time record harvests beginning around 2010.
During the time opium production was being ramped up in Afghanistan, Mexico was retooling their ability to convert ever larger supply’s of opium into increasingly potent heroin and developing new infrastructure to transport it.
During the decade or so all this was going on in Afghanistan and Mexico, scripts here in America for Oxycontin, Fentanyl, Hydrocodone and the like were wildly available to any person claiming chronic pain. Nothing was done to confirm the claims of pain, sorta like the stated income, liar loans that set up the housing collapse. Basically scripts were available to almost anyone for the asking.
That all ended one day in 2011.
Almost overnight The Oxycontin and Fentanyl was turned into useless plastic and millions of scripts across the country were shut down with the exception of those few in truly chronic pain.
Simultaneously and amazingly as if by magic, that very day every city in America suddenly had a fresh two ton supply of high quality vary affordable heroin. In fact the prices have never been lower and the quality never higher.
Tips for Spotting an Undercover Cop
I Smoke Two Dabs
Codeine and Barbiturates
China White: Fentanyl or Heroin
Beat any drug test for free
The Fix: Drug Informants
Real Snitches (pictures/locations)
The CIA And The Drug Trade
C.I.A. Secrets: Afghanistan Heroin
Opium: The Other Failed US War in Afghanistan
Drug money is an inherent part of the American economy