Narco-Dollars For Dummies (Part 12)
How The Money Works In The Illicit Drug Trade
Part 11 in a 13 Part Series
First published in the Narco News Bulletin
EARLIER PARTS TO THIS SERIAL...
The Pogo Problem: We Have Met the Enemy and It is Us
The Sam and Dave dilemma of "to deal or not to deal" is made worse by the power of popular opinion.
Last summer, I made a presentation called "How the Money Works on Organized Crime" to a wonderful group of about 100
people at an annual conference for a spiritually focused foundation in Philadelphia. This is a group of people who are
committed to contributing to the spiritual evolution of our culture.
After walking through the various Sam and Dave dilemmas with Sam's SLIM PERCENTAGE profits sugar business and Dave's BIG
PERCENTAGE profits drug business, as well as the intersection between the stock market and campaign fundraising and
narco dollars for about an hour, I asked the group what would happen to the stock market if we decriminalized or
The stock market would crash, they said.
What would happen to financing the government deficit if we enforced all money-laundering laws? Since most of the bank
wire transfers are batched and run through the New York Federal Reserve Bank, this should not really be that hard,
Their taxes might go up. Worse, yet, their government checks might stop, they said.
I then asked them to imagine a big red button at the front of the lectern. By the power of our imaginations, if they
pushed that button they could decriminalize narcotics trafficking and stop all money laundering in the United States.
Who would push the button?
It turns out that in an audience of approximately 100 people committed to spiritually evolve our society that only one
person would push the button. Upon reflection, 99 would not. I asked why.
They said that if they pushed the button, their mutual funds would go down and their government checks might stop.
I commented that what they were proposing is that an entire infrastructure of people continue to market narcotics to
their children and grandchildren to ensure that their mutual and pension funds stay high in value.
They said, yes, that's right.
Which is why I say that America is not addicted to narcotics as much as it is addicted to narco dollars.
The National Security Council's
Double Bind in 1996
Here is the acid test.
It's August 1996. Gary Webb has just broken the story in the San Jose Mercury News about the CIA helping to deal drugs
into South Central LA. He has put the legal documents up on their website. The proof is hard. The government is dealing
Catherine Austin Fitts's company is publishing a tool on the web called Community Wizard that shows maps with Geographic
Information Systems software that include patterns of defaults on HUD mortgages in the areas of LA with the heaviest
concentration of CIA supported Iran Contra drug trafficking.
The patterns between HUD defaulted mortgages and narco dollars are much too close for comfort.
What would you do if you were Bob Rubin (Secretary of Treasury, now Co-Chairman of Citicorp), Larry Summers (Deputy
Secretary of Treasury, now President of Harvard), John Hawke (Undersecretary of the Treasury; now Comptroller of the
Currency), Al Gore (Vice President, now teaching) and John Deutch (Director of the CIA, now teaching) sitting on the
national security council or the related narco dollars task force?
Would you target Webb and get him fired and the story discredited or would you let the story grow and flourish?
Would you target Fitts and have her business and her software tools and databases destroyed or would you let her
business flourish, allowing every community to see and track the narco dollars that were helping to drive their Solari
Index to 0% while driving the Dow Jones Index higher?
Which will it be in an election year? Will you do everything you can do to attract the reinvestment of the narco dollars
into your campaign and into the stock market or will you let Fitts and Webb continue to illuminate "how the money works"
on narco dollars in a way that might crash the stock market and make it harder and more expensive for the government to
finance the deficit?
Before you answer, let me tell you one more story.
In 1999, I was at a revival for Christian women. One of the presidential candidates made a guest appearance. A friend of
mine, an Afro-American minister, who used to work for the Drug Enforcement Agency (DEA), leapt to her feet to applaud
him with tremendous enthusiasm. I was surprised at her response given that she understood his success in attracting
narco dollars - not to mention his and his colleague's silence on Gary Webb's Dark Alliance reports and the subsequent
CIA admission of drug dealing by the government.
She looked at me and said, "He is going to be the winner." So I said, "You mean, I am a loser because I tried to stop
the corruption and he is a winner because he profited from it and helped it grow. So you will clap for him and not for
me." She replied, "That's right. You are a loser. He is a winner"
Not such an easy decision to vote for the "rule of law" is it?
Indeed, Webb got fired and Fitts' was targeted and, after spending $6 million on legal and related expenses, my fortune
sank down to the same 0% as the Solari Index.
But whatever I do, I can't blame it just on the top guys. Whatever they did, whoever it was, they were doing what it
took to please and win the crowd.
...come back Monday for Part 13 and final 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.