Are these banks installing a lot of ATMs at the border or something?
The War Strategy Escalates the Drug War: The Banking Crises Deepens the Ties with Drug Traffickers
The massive escalation of homicides and violence in Mexico began with the declaration of a war on the drug cartels by the fraudulently elected President Calderon, a policy pushed initially by the Bush Administration and subsequently strongly backed by the Obama – Clinton regime. Over 40,000 Mexican soldiers filled the streets, towns and barrios – violently assaulting citizens - especially young people. The cartels retaliated by escalating their armed assaults on police. The war spread to all the major cities and along the major highways and rural roads; murders multiplied and Mexico descended further into a Dantesque inferno. Meanwhile, the Obama regime ‘reaffirmed’ its support for a militarist solution on both sides of the border: Over 500,000 Mexican immigrants were seized and expelled from the US ; heavily armed border patrols multiplied. Cross border gun sales grew exponentially .The US “market” for Mexican manufactured goods and agricultural products shrank, further widening the pool for cartel recruits while the supply of high powered weapons increased. White House gun and drug policies strengthened both sides in this maniacal murderous cycle: The US government armed the Calderon regime and the American gun manufacturers sold guns to the cartels through both legal and underground arms sales. Steady or increasing demand for drugs in the US – and the grotesque profits derived from trafficking and sales--- remained the primary driving force behind the tidal wave of violence and societal disintegration in Mexico .
Drug profits, in the most basic sense, are secured through the ability of the cartels to launder and transfer billions of dollars through the US banking system. The scale and scope of the US banking-drug cartel alliance surpasses any other economic activity of the US private banking system. According to US Justice Department records, one bank alone, Wachovia Bank (now owned by Wells Fargo), laundered $378.3 billion dollars between May 1, 2004 and May 31, 2007 (The Guardian, May 11, 2011). Every major bank in the US has served as an active financial partner of the murderous drug cartels – including Bank of America, Citibank, and JP Morgan, as well as overseas banks operating out of New York , Miami and Los Angeles , as well as London .
While the White House pays the Mexican state and army to kill Mexicans suspected of drug trafficking, the US Justice Department belatedly slaps a relatively small fine on the major US financial accomplice to the murderous drug trade, Wachovia Bank, spares its bank officials from any jail time and allows major cases to lapse into dismissal.
The major agency of the US Treasury involved in investigating money laundering, the Undersecretary for Terrorism and Financial Intelligence, deliberately ignored the blatant collaboration of US banks with drug terrorists, concentrating almost their entire staff and resources on enforcing sanctions against Iran . For seven years, Treasury Undersecretary Stuart Levey used his power as head of the Department for Terrorism and Financial Intelligence to pursue Israel ’s phony “war on terrorism” against Iran , rather than shut down Wachovia’s money-laundering operations with the Mexican drug terrorists. In this period of time an estimated 40,000 Mexican civilian have been killed by the cartels and the army.
Without US arms and financial services supporting both the illegitimate Mexican regimes and the drug cartels – there could be no “drug war”, no mass killings and no state terror. The simple acts of stopping the flood of cheap subsidized US agriculture products into Mexico and de-criminalizing the use and purchase of cocaine in the US would dry up the pool of ‘cartel soldiers’ from the bankrupted Mexican peasantry and the cut back the profits and demand for illegal drugs in the US market.
The Drug Traffickers, the Banks and the White House
If the major US banks are the financial engines which allow the billion dollar drug empires to operate, the White House, the US Congress and the law enforcement agencies are the basic protectors of these banks. Despite the deep and pervasive involvement of the major banks in laundering hundreds of billions of dollars in illicit funds, the “court settlements” pursued by US prosecutors have led to no jail time for the bankers. One court’s settlement amounted to a fine of $50 million dollars, less than 0.5% of one of the banks (the Wachovia/Wells Fargo bank) $12.3 billion profits for 2009 (The Guardian, May 11, 2011). Despite the death of tens of thousands of Mexican civilians, US executive branch directed the DEA, the federal prosecutors and judges to impose such a laughable ‘punishment’ on Wachovia for its illegal services to the drug cartels. The most prominent economic officials of the Bush and Obama regimes, including Summers, Paulson, Geithner, Greenspan, Bernacke et al, are all long term associates, advisers and members of the leading financial houses and banks implicated in laundering the billions of drug profits.
Laundering drug money is one of the most lucrative sources of profit for Wall Street; the banks charge hefty commissions on the transfer of drug profits, which they then lend to borrowing institutions at interest rates far above what – if any – they pay to drug trafficker depositors. Awash in sanitized drug profits, these US titans of the finance world can easily buy their own elected officials to perpetuate the system.
Even more important and less obvious is the role of drug money in the recent financial meltdown, especially during its most critical first few weeks.
According to the head of United Nation’s Office on Drugs and Crime, Antonio Maria Costa, “In many instances, drug money (was)… currently the only liquid investment capital…. In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor…interbank loans were funded by money that originated from drug trade and other illegal activities… (there were) signs that some banks were rescued in that way.” (Reuters, January 25,2009. US edition). Capital flows from the drug billionaires were key to floating Wachovia and other leading banks. In a word: the drug billionaires saved the capitalist financial system from collapse!
An excerpt of an article by Professor James Petras, the rest is here
http://globalresearc...xt=va&aid=24856
Edited by Floppin, 11 July 2011 - 04:37 PM.
