Thursday, January 15, 2009

Cocaine inflation and Mexico

Back at the begginning of December,
a story on the cover of Forbes caught my eye. It focused specifically on Mexico's economy and particuarly how the narcotraficantes have infiltrated all sorts of levels in the government in Mexico; as well as the turmoil that has increased ten fold because of these things.

The Next Disaster
by Jesse Bogan, Kerry A. Dolan, Christopher Helman and Nathan Vardi

I'm going to break down the points that caught my eye:

1) Nov. 4 a Lear jet crashed into an upper middle class neighborhood in Mexico City. "All eight passengers were killed--including Interior Minister Juan Camilo Mouriño, President Felipe Calderón's right-hand man, and José Luis Santiago Vasconcelos, a leading prosecutor against the powerful drug cartels; seven people on the ground died, too."
**One of President Calderon's interior cabinet members AND the leading prosecutor against some of the cartel's BOTH die. Any person with any sense would be able to understand that was no accident, despite what the reports said, that no explosives were involved. It was said the error lied in the pilots' handle of bad conditions. HMMMMMM.***

2) From the begginning of 2008 up until mid-November, when this story was written, there had been 4,300 plus deaths that were related to the drug carteles, compared to the 2,500 in 2007.
***That is INSANE! The numbers are increasing almost by half of what it was before.**

3)You think American companies are feeling the losses because of our recession, Mexico is ALSO feeling it. The factories along the US/Mexico border called maquiladoras, which make supplies and parts for big corporations such as Lear, Cisco, and Johnson & Johnson, have laid off 22,000 plus workers since August of 08. Eighty percent of Mexican exports come to the U.S., where people aren't spending.
***You know it's bad if the sweatshops in Mexico are laying off their workers that they don't pay for shit despite the labor they do that no white middle-class American would want to do. Because Mexican exports are heavily relied on the U.S. buying them, us not buying means even harder times for Mexicans than what we face. ****

4) Economically speaking, Mexicans are more prepared to weather the times to come than they were 14 years ago; back when the U.S. and other countries had to step in and help save the peso.
****In my opinion, it's sad to me that they are gonna be set better to deal with harder times because for most, that is all the Mexican people know. Interestingly enough, Mexico's federal deficit is also alot lower, 0.2% of their Gross Domestic Product, and their inflation is actually somewhat manageable***

5)The drug gangsters are on their technology tip. They've started using Facebook and Myspace to track down people.
***Arturo Rolland, a broker at Latin Credit Mortgage & Realty in San Diego, guesses that maybe 100 families a month are moving from Tijuana to the Chula Vista/San Diego area to seek safety. Some because gangsters "are using Facebook and MySpace to track people and their relatives," says a source at the Asociación de Empresarios Mexicanos, an entrepreneurs group in San Antonio.***

6) President Calderon's assaults against the carteles has caused cocaine inflation. haha. suckss for the cokeheads.
***"The rising price of cocaine, recently $123 a gram on America's streets, up 27% since early 2007, notes Michael Braun, managing director at Spectre Group International in Alexandria, Va. and recently retired chief of operations at the DEA. Cocaine purity is down 16%."***

7) -90 % of cocaine imported into the U.S. comes through Mexico.
-$8 billion to $24 billion of cash generated by illicit U.S. drug sales is smuggled annually into Mexico from the U.S.
Sources: White House Office of National Drug Control Policy; Congressional Research Service; National Drug Intelligence Center; Stratfor

8) The mayor of Juarez` doesn't want no sketch ass police officers in his town. Juarez` is a town the lies close to the Texas/Mexico border. "Juárez's mayor fired 400 police officers for failing lie detectors and other tests to root out corruption and started to recruit federal troops to the force."
***Now THERE is how corruption or warning flags of corruption needs to be handled. Thats the one thing that always made me laugh about U.S. politicians and officials that get caught being naughty, to me, it always seemed like they received a slap on the wrist and that was it.***


  1. That's some crazy ass shit. I knew stuff was getting bad down there,but didn't realize just HOW bad.

  2. Damn, you have your facts on point. Good read.