Tags

, , , , , , , , , , , , , , , , , , ,

From the Wayback Machine… George Webb’s “No More Informants” blogsite

Wednesday, January 20, 2016

Too Many Cooks Spoil the Pot – How the US Drug Business Will Implode

Unfortunately, US Federal law enforcement hasn’t been able to resist the riches that are possible by participating in the drug business.  The US Gov’t enforcement leaders have directed a few key agents to steadily increase their involvement – moving from shipping to production to distribution to consumer targeting over the last four decades.  The attraction of tremendous wealth, however, will also be the Achilles Heel of the US Government drug business.  As more agencies want to participate, the existing drug profit structure is strained, sometimes beyond the breaking point.

The most recent example was ATF and their Fast and Furious program.  They supplied 10,000 weapons to “buy-in” to the lucrative marijuana, heroin, and cocaine trade from Central America.  In order to afford the ATF participation in the drug profits, DEA had change its favored Mexican drug cartel from Tijuana to El Chapo Guzman’s Sinoloa cartel.  El Chapo was willing to accommodate a higher payout.  But the US Secret Service now also wants in on the deal, primarily based on the fact they have the world best money laundering skills.  (No, Bitcoin is not secure).

To accommodate US Secret Service, smaller cartels are developing new fields in El Salvador, Costa Rica, and Nicaragua.  With every new US Federal law enforcement agency elbowing their way in, more pressure on profits is created.  Additionally, marijuana legalization in the US is adding tremendous sales competition to Mexican marijuana.  This marijuana market pressure is causing cartels to switch to heroin and to a lesser degree cocaine.  DEA informants, who have defined territories and immunity to sell drugs in the US, are switching their entrapment techniques to middle class targets, many who are first time users.

The targeting of the middle class by DEA informants has skyrocketed, and so have middle classes overdoses on heroin and suicides.  This system will reach a breaking point when the middle class realizes this wide scale targeting is really occurring on a massive scale.  Too many cooks will spoil the pot.