In a stunning development, President-elect Enrique Peña and his Institutional Revolutionary Party (PRI), who won control of Mexico’s government on July 1st, moved to dissolve the Agencia Federal de Investigación (AFI).
....
I'm in favor of opening a new debate in the strategy in the way we fight drug trafficking. It is quite clear that after several years of this fight against drug trafficking, we have more drug consumption, drug use and drug trafficking. That means we are not moving in the right direction. Things are not working.
If you haven't figured it out by those two paragraphs you're dumber than a box of rocks.
It appears that Mexico is going to legalize drugs and tax them. All drugs.
Game's over folks. We can continue to try to legislate what people choose to do with their own bodies but we will lose. Mexico has had enough of our jackbooted crap. "Fast and Furious" may have been a part of it, but it wasn't the whole story. The rest is simply that criminalizing drugs -- any drugs -- does not work.
All it does is lock people up and destroy their ability to earn a living (and thus pay taxes), sapping government coffers in both directions. It feeds corruption. And worse, it makes the drug trade profitable enough that the people who are willing to risk prison now have the money to buy guns by the literal truckload, and since it's already a prison-time offense to sell the drugs shooting a few people is not much of a further stretch since the decision to be a criminal has already been made.
We learned this during Prohibition but conveniently forget to entertain that part of the debate, because if we were to do so we would have to admit that we proved what happens when you criminalize drugs and what happens when you stop criminalizing them. We stopped criminalizing booze and we're all still here -- the "nightmare" that was painted by those with a vested interest in the criminalization of alcohol simply did not happen.
Nor will it if we legalize and tax drugs, and those arguing the other side know they're lying.
The debate is not about and cannot be about "marijuana." It has to be about the entire paradigm. Those who want to focus only on their drug (e.g. pot) are not actually advancing the debate or providing a solution path.
Now it appears Mexico is going to force the issue whether we like it or not.
Our policy on reciprocal links: Send us an email with your
information and why you think your blog or news site would make a
good addition - in most cases reciprocal link requests will be
granted.
Legal Disclaimer
The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.
NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.
The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
Looking for "The Best of Market Ticker"? Check out Ticker Classics.
Visit the forum to discuss this and other investing-related topics; see the FAQ on the forum for information about Gold Donor status including access to our technical analysis video server.
Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.
Market Ticker content may be reproduced or excerpted online provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media.
Submissions may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.
Leads on stories of current economic and political interest are always
welcome. Our fax tip line is 850-897-9364; please include contact information
with your transmission.
Mortgageguymn
Posts: 1566
Incept: 2009-03-09
North Coast
Kudos to you, Karl, for making clear that the "legalize drugs" issue is not merely about pot. If you want to be fully libertarian, you need to be OK with the full gamut - heroin, bath salts, acid, etc. Here's one, for example: "Devil's Breath"
Asimov
Posts: 104013
Incept: 2007-08-26
East Tennessee Eastern Time
He's gonna be a huge hit with the cartels there too. So he's likely to hold the presidency for as long as they allow.
Mortgage: "bath salts" are horrific substitutes for other, expensive or impossible to get drugs. If all drugs were legal, that would just go away. Heroin would probably go away (or at least decline) if opium was widely availible. (Same drug, same high, heroin is just concentrated so it's easier to hide and transport.)
Meth would go away, because lab manufactured amphetamines would be availible again. Crack would go away because cocaine would be availible.
Examples like that go on and on.
----------
It's justifiably immoral to deal morally with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
There is no way the US lets this happen. Mexico is about to find that they, like most of the world are a client state of the US and they will enforce our moral crusades.
Redwolf...I would not be surprised at all to see the Mex president suddenly assassinated...and when it happens...most intelligent people will realize exactly who had everything to gain by doing it.
----------
Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken
Seaterk
Posts: 174
Incept: 2009-04-30
Los Angeles
Banned
I agree but the difference between the Prohibition of the 1930's and the "War on Drugs" is the profit the government is making off the drug war which is why the elites in government will never willingly end it. There are too many police departments and federal agencies that make a good living off of seizing peoples assets, they don't bother to charge you with a crime they just rob you of any money or valuables you may have. I didn't know this until the other day but federal agents actually get a cut of what they seize via a "bonus" that's a percentage of the take. If that's not an invitation for corrupt, anything to boost my pay behavior I don't know what is.
I'm hoping the Mexico and the rest of South America legalize the drugs and tell the US to stuff it as it may then force the US to end this corrupt war on drugs.
I have to wonder...a good 90% of our cops only have jobs because of the illegal war on drugs...yet, will this 'increase' their job security, or directly threaten it?
----------
Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken
Wasn't the US invasion of Panama under GHW Bush "justified" on the basis that Noriega was actually involved in the drug trade with the US? It's only a baby step down the slippery slope to justify US LE and/or military actions in Mexico on the basis that the Mexican gov't has ceased its efforts to curtail drug trafficking.
----------
". . . the Constitution has died, the economy welters in irreversible decline, we have perpetual war, all power lies in the hands of the executive, the police are supreme, and a surveillance beyond Orwell’s imaginings falls into place." - Fred Reed
This is all about cartels. Cartels known as Merck, Pfizer, Lily and others. Throw in Walgreens, CVS and all the mad doctors. Note how many people are killed by their drugs. Why let the market compete at 2 cents a dose when it can be sold for 50 to 200 times higher?
----------
The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
Nevertoolate
Posts: 1219
Incept: 2007-08-26
San Antonio de Bexar de runover with illegals, Texas
They have had legalized prostituition there for years. As far as alcohol is concerned, you had to be tall enough to reach the top of the bar. ANYTHING will be better than what we have now. GOOD FOR THEM. Maybe just maybe Mexico will return to the way it was. It became unsafe in the 80's and went downhill from there.
----------
"Socialist never mind stealing, as long as they are the ones doing the stealing. They never mind lying, as long as they are doing the lying."-Mannfm11
Before you attempt to beat the odds, be sure that you can survive the odds beating you.
After Felipe Calderon was elected president in 2006, he combined the AFI and another law enforcement body, the Federal Preventative Police (PF), as part of a move to crack down on drug trafficking. The combined organizations answered to the Ministry of Public Security. Since then, the AFI has seen its duties and personnel gradually decrease, and a 2009 law laid the groundwork for the institution's eventual dissolution.
While some premises of the Breitbart article and Karl's ticker are valid, namely that Mexico is going to change it's approach to the cartels and drugs, this particular "move" is not surprising, unexpected or "stunning".
End_the_bubbles
Posts: 9520
Incept: 2009-03-25
The New 3rd World
Quote:
He's gonna be a huge hit with the cartels there too. So he's likely to hold the presidency for as long as they allow.
Was that sarcasm? The cartels don't want drugs legal - because their profit structure will collapse. If anything, they want this guy dead.
----------
In the long run even the most despotic governments with all their brutality and cruelty are no match for ideas. Eventually the ideology that has won the support of the majority will prevail and cut the ground from under the tyrant's feet and rise in rebellion to overthrow their masters.
Asimov
Posts: 104013
Incept: 2007-08-26
East Tennessee Eastern Time
They don't make money in mexico, they make money in the US.
Making it legal in mexico just means they no longer get hassled by the law there. That's GOOD for them.
----------
It's justifiably immoral to deal morally with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
Hmmm, I suspect that this would help reduce crime in their country and would have a huge increase in tourism (which their crime rate is impacting at the moment.)
The War on Poverty - lost. The War on Drugs - lost. The War On Those Low Test Scores From The Childrenz - Losing.
Haven't won an actual war since '45...
Boy, where do I sign up for these? Oh, that's right I've already been signed up one way or another.
----------
I have never wished to cater to the crowd; for what I know they do not approve, and what they approve I do not know. - Epicurus Oderint dum metuant - Caligula & Police State USA
