On Corruption

July 3, 2009

“Everybody that gets into the drug industry becomes corrupted. It doesn’t matter if you’re a cop or a robber. There’s just too much money. All you have to do is blink and you can get paid. You’re standing there waving cars through at the border. You’re a U.S. official. You wave cars through all day. All you have to do is wave one more through and you can make $50-100,000 in the blink of an eye.

I’ll give you an example. They busted a drug ring in 1989. This ring had moved 900 consecutive loads of cocaine into the United States through one crossing in El Paso – one bridge – without ever being detected. That’s mathematically impossible unless you buy people…

Well, the ring got busted. But it terrified DEA and I’ll tell you why. They took down 21 tons of cocaine in a warehouse in California in 1989, and after they did that, the price of cocaine did not go up. It had no effect on the market, so much was coming in. That was the first time that DEA really understood the magnitude of the drug use in this country, because it’s very hard to track. People don’t report how much coke they use every week.”

From a Charles Bowden interview.

For reference, 21 tons is about $950 million worth of cocaine.

“Maquiladora originates from the word maquilar, the fee Spanish mill owners charged for processing wheat cultivated by local growers. Today the term Maquiladora in Mexico has evolved to include any industrial or service process, utilizing imported materials, that will be transformed, repaired, or elaborated and subsequently exported to the U.S. or other foreign country. Under the North American Free Trade Agreement (NAFTA), materials imported from the U.S. or Canada pay zero duties, as long as the components used are NAFTA certified.
For manufacturers, it is a way to remain competitive without moving operations to Asia, involving significant lead times, cumbersome freight charges, and U.S. import duties. The close proximity of Mexico allows easy, inexpensive transportation to and from the U.S.

Additionally, Mexico has a young, educated workforce, with a strong work ethic and a desire to remain in their own country. Mexico earns foreign exchange by exporting labor, without exporting laborers.”

From a production outsourcing company who can arrange to have your product built a few feet from the American border for considerably less cost. This is the parasitic nature of “free trade”.

Outskirts of Juarez

July 1, 2009