Narco-Dollars For Dummies (Part 9)
How The Money Works In The Illicit Drug Trade
Part 9 in a 13 Part Series
First published in the Narco News Bulletin
EARLIER PARTS TO THIS SERIAL...
At the Heart of the Double Bind
I tend not to get bogged down in discussions about how the various police, enforcement and prosecution industries relate
to narco dollars.
Here is my bottom line on how the money works on enforcement and the war on drugs.
Every year since I was a child the Solari Index goes down and the budgets that I pay for as a taxpayer to fund more
enforcement, prosecution and incarceration go up. If you look at what taxpayers are paying, you would think we were
picking up all the narco dollar industry's expenses.
The more we pay for enforcement, the more the Solari Index goes down and drug profits go up. The more we pay for
national security, the more thousands of boat loads of white agricultural products seem to have no problem moving back
and forth across the borders.
After fifty years, the correlation is documented and clear.
What is also clear is that the person who has inside help from the national security, intelligence, enforcement and
prosecution bureaucracies will have the biggest BIG PERCENTAGE cash margin (see Parts I & II for background on BIG vs. SLIM PERCENTAGE).
John Gotti, Jr, not a reliable source, when asked by a reporter whether or not the New York Gotti family was dealing in
narcotics said, "No, who can compete with the government?"
The CIA, also not a reliable source, backs up Mr. Gotti's postion. According to the CIA's own Inspector General, the
government has been facilitating drug trafficking. Indeed, according to the CIA and DOJ (Dept. of Justice), the CIA and
DOJ created a memorandum of understanding that permitted the CIA to help its allies and assets to traffic in drugs and
not have to report it.
Where I come from powerful people pay for performance. I can only presume that the narco dollars are getting the
performance they want from the expenditure of our tax dollars for more and more enforcement. After all, enforcement
keeps profit margins up and the franchise controlled.
The best example I know is my own case. My estimate is that the federal enforcement establishment may have spent more to
target me over the last six years then they spent to get Bin Laden before September 11. They clearly were not hampered
in my case by having to respect the spirit or the letter of the law. I deduce from that only that the Solari model is
not as good for the narco dollar and money laundering businesses as Bin Laden was - at least until recently.
...come back tomorrow for Part 10 of Narco-Dollars for Dummies...
- AUTHOR NOTE: Catherine Austin Fitts, author of Scoop's "The Real Deal" column, is a former managing director and
member of the board of directors of Dillon Read & Co, Inc, a former Assistant Secretary of Housing-Federal Housing Commissioner in the first Bush Administration, and the
former President of The Hamilton Securities Group, Inc. She is the President of Solari, Inc, an investment advisory
firm. Solari provides risk management services to investors through Sanders Research Associates in London.