Wrecking Latin America, early 1980s

 

After America's 1931-1946 war on foreign drugs led through WW2, the UN replaced the League of Nations as vector of laws against production and trade. Nixon and Gov. Reagan banned psychedelics worldwide from 1967 through 1971--and money suddenly flowed into Latin American jurisdictions. Ronald Reagan stepped into Herbert Hoover and Harry Anslinger's shoes and per-capita manufacturing GNP in the largest such country, Brazil, promptly changed from increasing to decreasing in 1981. 

Probability tells us that two events A and B are independent if and only if the probability of event A does not change when B occurs or is a given condition. This requirement is written P(A|B)=P(A). From 1980 through 1987, American mixed-economy conservatives noticed that expensive cocaine had replaced cheap LSD--unobtainable thanks to their prohibiton laws. The 400% price hike resulting from prohibition laws made the crude replacement substance profitable enough to finance tens of thousands of Fabian socialist and communist candidates and movements south of Brownsville. The 18th Amendment Prohibition régime had in 1920 damaged the economy so that Communist Party membership increased 300%. After the 1929 Crash, Communist Party membership again blossomed in the Great Depression--this time increasing 700% as Hoover's "Ordered Liberty" replaced "dog-eat-dog" laissez-faire. Prohibition laws came before both crashes. Prohibition laws were widely enacted before the Panic of 1907 and before the market Crash and lengthy shutdown of August 1914, but those might have been coincidences. Does the probability of stock crashes, liquidity contractions, waves of bankruptcies, falling production, rising unemployment, hyprinflation and war increase when production and trade is banned by the violence of prohibition legislation? Consider these events: 

In April 1981 the DEA wound up a series of raids on marijuana shipments as pilot Barry Seal set up cocaine shopping in Mena Arkansas.(link) Cash-strapped communists had taken to kidnapping the children of Colombian drug exporters but were swiftly hunted down and butchered for their effrontery. Prohibitionists won a February lawsuit jailing defendants for possession of quinine which, like sugar, could be mixed with drugs.(link) By May, deaths from malaria had increased sharply.(link)  

The UN National Narcotics Board met for 11 days in May in continued efforts to redefine everything except gin and cigarettes as "narcotics," and make the equivocation legally binding on every nation on the planet.(link) Soviet-ocupied Afghanistan had ramped up opium production to fill the gap once occupied by drugs popular among Beatles fans. In June a monkey virus endemic to mohammedan Africa and transmissible by hypodermic needles took on epidemic proportions among Russian troops and heroin users worldwide. DEA agents meanwhile were taking over entire banks as decoys (Dean Investments f/ex.) offering to launder drug money away from the prying eyes of the IRS.(link)

By August 1981, dope dealers could ship half a million dollars to Panama--where dollars have circulated since 1904--for less than thirty grand thanks to DEA banks. OPERATION BANCOSHARES materials at the online Reagan Library give some notion of the secrecy and volume of these financial shiftings.(link p.12) Another such operation moved 200 million dollars, which is real money even by Washington and Federal Reserve standards. All of these fake banks, sting operations, retasking of dope dealers into government puppets--and gun battles--were the natural outcome of United Nations prohibitionism carefully laid out in detail in May--patterned after Hague, U.S. and League of Nations procedures developed in 1912, 1920, 1925, 1929-31 with results affecting every economy on Earth. 

Much of this background is proudly trotted out in the August 1981 World Health Organization magazine published 4x a year in English, French, Spanish, Portuguese, Russian, Arabic and Persian-- uncopyrighted and free to download: (link) Articles read like Women's Christian Temperance Union lectures urging prayer and abstinence against the Demon Rum, yet run the gamut from reefer madness, opium addiction and cocaine fiends smoking cheap unrefined cocaine sulphate paste instead of All-American crack. All of this on a budget of only 469 million dollars! Nowhere do you see mention of agents, cops, dealers, judges, prosecutors and bystanders shot dead or wounded in gun battles, nor youths/housewives/farmers spending lifetimes in prison over plants. Confiscations, seizures, attack helicopters, fake banks, financial instability, recessions and unemployment are conspicuous only in their absence. *

A bulleted list in the WHO magazine urges "Cooperate, Develop Strategies,  Coordinate research, Ensure training programs, Fulfil responsibilities..."  WHO authors and publishers express anxious perplexity at the way poisonous inhalants, narcotics, cigarettes and alcohol flourish everywhere the violence of laws they advocate has eliminated safe alternatives. But what about the economics of confiscating banks, shipping, buildings, aircraft... of huge fines and tens of thousands of man-years' imprisonment? And what about the central question? Does the presence of officious politicians, armed forces and swarms of agents unleashed upon a populace by the better folks who know what's good for the riff-raff have ANY effect on the probability of stock crashes, liquidity contractions, waves of bankruptcies, falling production, rising unemployment, hyprinflation and war?

How about counting words like "narcotic", "drug abuse", "asset forfeiture" and superimposing THEIR frequencies on time charts of stock crashes, unemployment, recessions and war? 

The Federal Reserve said: The economy officially entered a recession in the third quarter of 1981, as high interest rates put pressure on sectors of the economy reliant on borrowing, like manufacturing and construction. Unemployment grew from 7.4 percent at the start of the recession to nearly 10 percent a year later. (Monetary Policy Report 1982, 67). (link)  This might still be just another coincidence. The serious increased penalties acts weren't passed until 1986, and weren't enforceable before 1987.  The U.S. military invasion of Panama dawdled till December 1989.(link) Hyperinflation in Brazil dwarfing the German hyperinflation of 1923 would hardly be noticed before 1989. 

* If the WHO Magazine link is diabled, contact me in the Comments below.

Interesting Reading: Ghosts of Panama, A Strongman out of Control, a Murdered Marine, and the Special Agents Caught in the Middle of an Invasion, by Mark Harmon and Leon Carroll.(link) No it's not great literature, but the story unfolds day-by-day throughout the U.S. invasion of a once-friendly nation, naming names and dates. The officiousness is the same as led to book-burning Comstockism in 1873, through the brutalization of the Philippine Islands and Dominican Republic by abstemious and patronizing Christian Nationalism. Key to all these episodes since 1920 is the license to invade contained in the League of Nations Charter and Treaty of Versailles article 23: "entrust the League with the general supervision over agreements with regard to the traffic in opium and other dangerous drugs." In July 1986 U.S. newspapers labeled "Panama's Noriega" as tied to "the drug trade." From then till the close of 1989 the fix was in. Ghosts of Panama provides insights into how U.S. agents believe anything the government kleptocracy tells them to believe. 

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, as cheap as a pint of craft beer.

Brazilian Sci-fi from 1926 featuring the Hollywood-style beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)

Brazilian blog… Expatriotas

American blog… Libertariantranslator, with contact form

ASYLUM APPLICATION FORM i589 INSTRUCTIONS IN PORTUGUESE: INSTRUÇÕES PARA O FORMULÁRIO DE ASILO i589. What we did was make the instructions accessible to and understandable by people accustomed to thinking in Portuguese. This costs one dollar ($1) and you can read it on a cellphone with the Kindle app.(link)

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, as cheap as a pint of craft beer.

Brazilian Sci-fi from 1926 featuring the Hollywood-style beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)

Brazilian blog… Expatriotas

American blog… Libertariantranslator, with contact form

ASYLUM APPLICATION FORM i589 INSTRUCTIONS IN PORTUGUESE: INSTRUÇÕES PARA O FORMULÁRIO DE ASILO i589. What we did was make the instructions accessible to and understandable by people accustomed to thinking in Portuguese. This costs one dollar ($1) and you can read it on a cellphone with the Kindle app.(link)

Spot an error? Comment!

Before the 1987 Crash

 

Reagan Republicans and Clinton Democrats increased poisonous drug overdose deaths by banning natural and non-toxic preparations (link)  

Few noticed when California Governor Ronald Reagan banned LSD in 1967. An easily-transported  half-thimbleful made in Austin or Prague sufficed for some 5000 psychedelic experiences anywhere. But after Reagan became President, LSD was so effectively suppressed that primitive drugs moved into its vacant market niche, making use of existing trade networks. Middle-eastern countries such as Afghanistan and Iran ramped up narcotics production, and WW2-era poppy fields in Sinaloa, Mexico, were replanted with little delay. Dollars, spies and soldiers flowed abroad, overdose death rates grew exponentially. Totalitarian socialist congregants in South American countries--impoverished by U.S.-imposed prohibition laws--made hay with the fund-raising opportunities offered by fake U.S.-bought elections. American voters whose loved ones were incarcerated or dead at the morgue meanwhile supported Libertarian Party efforts to repeal deadly and economically destabilizing prohibition laws. 

Politicians of both looter parties struggled to ignore leveraged Libertarian vote clout demanding repeal. This became impossible in November 2016.

Product Comparison: In 1981 a Washington State prosecutor told reporters LSD wholesaled for 40¢ a dose.(link)  Cocaine at the time cost about $1000 an ounce, divisible into 50 doses liable to provide several hours' recreation at $20 a dose. In effect, cocaine sold for 25 times the cost of LSD, and so could organize proportionally more crime, bribery, graft, corruption, kickbacks, campaign funding, blackmail and such than amateur LSD markets. Cocaine did not raise challenging philosophical questions. LSD users tended to question the proper function of government and contemplate ethical limitations on the initiation of force. Government testing of LSD as a brainwashing drug revealed the opposite effect. See Blewitt, 49m (link) When they gave it to the soldiers, the first thing the soldiers wanted to do was quit the Army. Ken Kesey was one of those test subjects.

To prohibitionist politicians and the sort of  law enforcement officials that organized liquor gangs from 1920 though 1933, cocaine was a godsend! Any sharecropper with some shrubs, kerosene, hydrochloric acid and water can churn out paste using ancient methods--no chemistry degree needed. Superstitious christian coercion again set the stage for organized mischief--this time funding the very communism Congress had defined not as a party, but rather, a conspiracy against the United States in August of 1954.(link) Nixon's Quaker 2.0 Administration declared war on things that cannot surrender, thereby again wrecking the economy and electing the Dems, thanks to its international lynching of all things psychedelic.(link) With this "Psychotropics" ball set in motion, opportunity beckoned. The USSR invaded Afghanistan, Cuba shipped criminals into Florida, and young people in Nicaragua formed guerrilla bands to repel foreign usurpers just as Paul Revere, Thomas Jefferson, George Washington, Patrick Henry had done centuries before. 

Mohammedans, deeply upset by libertarian gains for women as of 1973, conveniently set fire to a US Embassy in Pakistan. In a scene from a Frank Herbert novel a new Mahdi--one Muhammad Abdullah al-Qahtani, soon added clout to the Billy Graham Crusade to elect Ronald Reagan and put women in their proper places.(link) This Victory of Faith unfolded like a Leni Riefenstahl movie, and the assault-rifle takeover of the Grand Mosque at Mecca, was eclipsed by the kidnapping of U.S. Embassy staff in Iran. Jimmy Carter, who had legalized nothing, was beaten like a yellow dog in the 1980 election.   

On 19FEB1980, the 891st meeting of the Commission On Narcotic Drugs met in Hitler's homeland to urge all Governments to implement myriad coercive measures against mostly harmless drugs disliked by Republicans. To this end they asked the Secretariat to demand worldwide forfeiture and confiscation of  financial assets (XXVIII) (link) The same mixed-economy media machine that had sprayed forth anti-LSD propaganda also went into action with documendacities against Andean country products. 

On March 1, 1981, CBS' "60 Minutes" program set sights on Bolivia, alleged Arce Gomez had drug connections, and included accusations against him by then-DEA chief Peter Bennsinger and U.S. Sen. Dennis DeConcini, D-Ariz.(link) This same media crew that aired an attack on Illinois Power's efforts to build its Clinton reactor to generate electricity. Illinois Power filmed the 60 Minutes crew and produced its own documentary exposing lies and fabrications.(link) The important point is that U.S. civilian nuclear power plants, like peyote, marijuana and LSD, have never killed anyone. Time magazine had cocaine on its July 6 cover, disclosed it was not a narcotic and had been sold over the counter in drugstores to popes and paupers everywhere as late as 1906.(link) On a more ominous note, that linked story quoted a cop as saying that if drug money were chased out of south Florida, "the economy would totally collapse." 

A recession just then took hold, which would last over a year. Without betraying a hint as to the real cause, a Richmond Federal Reserve pundit reports that "the 1981-82 recession was the worst economic downturn in the United States since the Great Depression. Indeed, the nearly 11 percent unemployment rate reached late in 1982 remains the apex of the post-World War II era."(link) To this day none of these economists dares admit that the 1929 Crash and Great Depression had everything to do with prohibitions on drugs and alcohol, or that political pressure to force Germany and Japan to give up their cocaine markets in 1930-1932 led directly to industrial funding of the Hitler party and withdrawal of both countries from the League of Nations.

Good Reading: Manias, Panics, and Crashes: A History of Financial Crises by Charles P. Kindleberger(link) The original struck me as so exploitatively overpriced that I instead invested in a translation--to incidentally help me with my blog in Portuguese.(link) Already I am convinced my first impression was wrong. Of the dozens of writers explaining away the Crash and Depression, only Peter Temin, Tobias Straumann and Herbert Hoover convinced me they understood correctly but were consciously lying--by omission or outright. Kindleberger, on the other hand, has in early chapters avoided the usual arm-waving or socialist sermonizing to which one quickly becomes inured in this field. Rather than sidestep taboo subjects, Kindleberger searches everywhere for odd and poorly-understood panics, crashes, depressions, recessions and calamities--many of which were entirely new to me. His approach is skeptical; he contrasts bad explanations so that the weakesses in one call into relief the problems with another.  

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, as cheap as a pint of craft beer.

Brazilian Sci-fi from 1926 featuring the Hollywood-style beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)

Brazilian blog… Expatriotas

American blog… Libertariantranslator, with contact form

ASYLUM APPLICATION FORM i589 INSTRUCTIONS IN PORTUGUESE: INSTRUÇÕES PARA O FORMULÁRIO DE ASILO i589. What we did was make the instructions accessible to and understandable by people accustomed to thinking in Portuguese. This costs one dollar ($1) and you can read it on a cellphone with the Kindle app.(link)

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, as cheap as a pint of craft beer.

Brazilian Sci-fi from 1926 featuring the Hollywood-style beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)

Brazilian blog… Expatriotas

American blog… Libertariantranslator, with contact form

ASYLUM APPLICATION FORM i589 INSTRUCTIONS IN PORTUGUESE: INSTRUÇÕES PARA O FORMULÁRIO DE ASILO i589. What we did was make the instructions accessible to and understandable by people accustomed to thinking in Portuguese. This costs one dollar ($1) and you can read it on a cellphone with the Kindle app.(link)

Spot an error? Comment!