America’s top trading partner is also one of its biggest sources of cocaine. For years, Mexican drug cartels have been sending their profits to the United States. In some cases, they have done this through a “sophisticated network of warehouses and front companies” turning “dirty cash” into legal U.S. dollars. Straight Arrow News contributor Peter Zeihan explains how the cartels launder their drug money through high cash flow North American businesses.
Excerpted from Peter’s Mar. 16 “Zeihan on Geopolitics” newsletter:
There are a few reasons the cartels love their cocaine, mainly because it’s easy to smuggle and cheap to make. But what happens when you sell it? You’re left with a boatload of “dirty cash” you can’t do anything with.
The solution is what has enabled the cartels to put down roots in the Mexican and American economies. And yes, we’re talking about everyone’s favorite pastime: money laundering!
So the cartels get involved with high cash flow businesses, think agriculture, real estate, bars, legalized weed, etc. And now we’re not just talking about a disorganized group of dudes carrying backpacks full of blow; we’re talking about multi-million dollar businesses with deep pockets and lots of connections.
Unfortunately, I can’t offer any quick fixes to this problem…other than STOP DOING COCAINE.