Mexico, Cartels, and Drugs, Oh My!

Mexico's Peculiar Institution:

An Overview of Mexico's Cartel Culture and a
Call for Those More Knowledgeable to Tell Me What You Know

Part I

I assume that everyone has at least some limited or vague awareness of the Drug Industry and how it relates to Mexico and our America. Being American's, we give this Mexican plight polite lip service by acknowledging the intensity and increasing brutality of it all, but if most are like me, we are (even while sharing a border, in Texas) disassociated and really haven't begun to care. I think that is a problem.

Do you remember how it feels like only those who were responsible enough to stay abreast of geopolitical issues and had the luxury and capacity of understanding and engaging in discussions of the world's topics (and I don't mean pissants like me who read The Economist on booze-filled road trips and knew the name but nothing else) knew who Osama bin Laden was before September 11, 2001?

I hope we all remember how engaged, civic-minded people were utterly powerless (and even more ignorant) to the whims and inner workings of Wall-Street and Big Banks before the shoe fell in 2008? Only a small sliver of our population with strong to very strong economic and high finance backgrounds and experience could understand and interpret it for us groundlings, and even then it was rough translation fraught with bias and agenda (no Sushi-homo)
It is my gut feeling that the meth lab of a country and the volatile chemicals that comprise the illegal drug trade, lead by its head chef, El Chapo, is going to blow up in our face and we are going to be "caught", like the aforementioned and as only we American’s can be, unawares.

Currently it seems that America's (and specifically us Texans) official stance is one of irresponsible content that the manufacturing, violence, corruption and destruction is, for the most part, contained to the Mexican mainland and American border towns. Our party line is often real, but most of the time fake, disgust followed by an inaudible truth, like a man who feigns sympathy but really is only grateful that he is not the recipient of bad luck or tragic circumstances. We read a headline, skip the bulk of the story and completely dismiss any effect or consequence it might have for us and before moving on with our day to day lives we think,

"Ohhh that really sucks to be them and have those issues, bless their hearts”

or

“They really need to control their state and people because if shit starts inconveniencing me, I am going to be pissed.”Or

“Fucking Mexicans. They are primitive and worse than barbarians, those manual labor motherfuckers,"

All of which underlines a clear lack of understanding to the depth and severity of the problem(s).

So with that said, I would like those in the know to chime in and make people (those who read this thread) aware of what is actually going on in Mexico. I think a lot of the problem is, much like the Mafia and Advanced Mathematics, it is hard to understand and follow once one moves past the basic principals and principles (he-he-he) and variables are added in an already illusive and faster evolving black market.

Part II

Let me back up for a moment and explain a bit of my motive and incentive. I am a man with little regard for “tradition” and “universal morality”. As such, I have considerably more freedom and space with which to exist and things outside of the lanes of normalcy and the status quo, while not always enjoyable, are very fascinating and intriguing to me.

Like the Pirates of Somalia, the dilapidation of a republic to that of a “Narco” state run by outlaws is so amazingly brazen that one would think it can only be the stuff of great literature and action movies. The fact that there are men who are so brutally powerful, rich and industrious and that these men risk their lives every day and share certain qualities of men we deem heroes- fearlessness, intelligence, and courage- I find their story compelling. Add to this a background of our modern era technology and weaponry and it’s downright absurd (and I am a sucker for the capital “A”, Absurd)!

Further, perhaps with a full and robust understanding of this complicated dynamic, we can get to the point where we can make educated assumptions and logical predictions on what will happen, how markets will react and what future opportunities, if any, are- like those handful of opportunistic, brilliant profiteers found themselves in (presumably, at least) when the banks started falling.

Part III

So this is what I know (and correct me where I am wrong or underdeveloped):

Currently, the Cartels that historically wreaked the most havoc are the Sinaloan Cartel, The Gulf Cartel, Los Zetas, Beltran Levya Cartel, and Tijuana Cartel.
Table of Contents

The Tijuana Cartel- is basically defunct with the caputure/deaths of the Arrelleno Felix brothers (the family members of "The Godfather", the founder of Mexican drug trade "El Padrino"). This Cartel has a lot of cache and the name is prestigious, but those in the know say they are pussies and they fail to register as a big player these days.

Beltran Levya Cartel- The Beltran Levya brothers, while historically big time players and the pioneers who took the political corruption game to the next level, also represent a lame duck Cartel. Their better days are behind them and they are now only influential in being a minority member of a coalition.

Sinaloan Cartel- This is El Chapo's baby and the big dog on the block. They are the most ruthless and resilient. They have increasingly gone global and El Chapo has been consistently listed on Forbes list of top businessman or some shit.

Los Zetas- This Cartel started as a paramilitary/executioner wing of the Gulf Cartel (think La Costra Nostra's Murder, Inc). They splintered off and became a Cartel in their own right and are now lined up against their former parent, Gulf Cartel. These guys are the most likely will be an issue for Texas and her citizens.

Gulf Cartel- This is the one that most directly affects us as Texans. With the capture of the leader in 2008 (Osiel Cardanas, I think), there has been a power vacuum that has instigated a lot of the violence and brutality that we in Texas have heard about it. Because the area the Gulf Cartel ruled, Brownsville/Matamoros and the rest of "The Valley" is weak, it is volatile and a very real battleground for Chapo's Sinaloa Cartel, Los Zetas and Gulf Cartel all trying to gain an upper hand. If you have ever played Risk, think of Kamchatka, the country that is a weak gatekeeper that keeps getting defeated by a different army every turn.

The Mexican Government, Police, and Army- These people comprise the most corrupt "democratic" political system in the Modern Era. At every turn, there is some, if not a shit-ton, of involvement with any three of these entities that have helped cultivate and grow Mexico's Global Drug Cartel Corporation. Though sworn to serve nobly and serve the law and the people, because of abject poverty and destitution (and for some, a very human emotion of greed and desire for sensory pleasures), the more attractive and viable option for imperfect humans is to work, indirectly and sometimes directly, with the Narco's. There are dozens of examples of this, ranging from the high profile arrests of ranking officers to the the Boss of all Bosses, El Chapo's, inside job of an escape from prison.

Part IV

Some facts to help spur our discussion:

El Chapo and the Sinaloan Cartel is much more advanced and entrenched than any rebel guerilla government, republic or organization we have ever seen. In fact, El Chapo has basically gone global corporation on us; you can call it Sinaloa, Inc.
Consider these facts:

Uncovered recently in Canada was a “Super Meth Lab” (20 tons of meth, $700 Million street value) and a lab that produced 12,000 ecstasy pills an hour.
Chapo’s organization operates in every nation in Central America, from Guatamala to Panama.

In the key cocaine-producing countries of Peru and Bolivia, Chapo has already moved in on what had formerly been Colombian and Medellin turf. In fact, even in Colombia itself, Chapo is operating deep in Colombian territory.

Chapo has a huge interest in Argentina now as well, but not for Cocaine, for Meth. Ephedrine imports rose from 5 tons in 2006 to 28.5 tons in 2010 and recent raids in Buenos Aires revealed 23 of his Sinaloan “Super Meth Labs”.

Chapo has long ties to Asian nations, like China, India, Thailand and Vietnam where they obtained chemicals need to make methamphetamine. (Chapo allegedly imported heroin directly from Thailand, at one time, in order to distribute to the US which suggests that Mexico alone couldn’t keep up with the US demand. I think it is hilarious we are a bunch of junkies.)

Recently the new frontier for Chapo is West African nations and Europe’s mainland. Chapo has known dealings in Portugal, Spain, Germany, Italy, Poland, Slovakia and the Czech Republic. And one can see why- Africa is attractive because it is a bad lands much like Mexico. Failed governments and rebel movements have made it easy for Chapo to gain a stronghold, get passports, and transport guns and drugs to Europe. The danger is evident, if Chapo can create a stronghold in shitty, bottom of the barrel third world countries, he could easily service a growing European demand for illicit drugs. He can easily replicate a Mexico: U.S. model with West Africa: Europe.

A Former DEA chief of Operations Michael Braun implied it the best: “Think of it this way: what the Caribbean and Mexico are to the US, West Africa is to Europe.” and he ominously warned after reports that Chapo had men training in Iran, “They’re staying in the same shady bars, sharing the same prostitutes, developing relationships today that will soon evolve from personal to strategic. In the foreseeable future corporate al-Qaeda will be able to pick up the phone and call corporate Sinaloa…”

Part V

Is America to blame? I added this part because invariably there are Mexican apologists who will allow that “Yes, Mexico is largely to blame But But But, what about America and her love of drugs? She deserves some of the blame too, that slut!”
America, indeed, loves its drugs.

The DEA estimates we spend $65 Billion dollars on illegal drugs, annually. The facts are:

$36 Billion on cocaine
$11 Billion on heroin
$10 Billion on marijuana
$5.8 Billion on methamphetamine
$2.6 Billion on all other drugs combined

(Anybody else find this surprising? I figured Marijuana and Ice would be higher than Heroin)

While this is a very real and true addiction that we harbor, to say that we, the consumer, are to blame for the provider’s free willed, and illegal, production and delivery of outlawed drugs is to rebuke reason and logic and to vouchsafe irresponsibility. The reality is, the problem is with Mexico. Mexico as a country has failed its people and everyone except the highest, most ceremonial and out of touch layers, like the President, is in on the business.

Because Mexicans, much like American’s, are feeling the sting of a failed Drug War, they are calling for an end to it and the PRI party, the party which largely created this Narco-culture, is a favorite to take back the presidency in 2012.

I will share with you some personal insight:

I grew up in a suburb with a lot of minorities. I saw (and participated in, I might add) my fair share of griminess and drugs. There are opportunities to be a part of movements like these and I’ve seen some of it live in a limited scope- the small time dealers who mostly work with friends to middle level players that deal in kilos. There is a very real opportunity to make a lot of money that otherwise would not be possible without a life time of experience, knowledge and hard work.

In my experience and opinion, what America has done a GREAT job of is in creating a disincentive and deterrence to drug dealing on medium to large scales. The consequences of the crimes, in most opinions, are far more severe than the gravity of the crimes and that instills a sense of fear and a general “fuck that” attitude.
After doing a cost/benefit ration analysis, I myself came to the conclusion that it would probably never be worth the potential consequences for me to engage in this activity and, as our society intended, I moved on to try and monetize what little value (skills and abilities) I can contribute legally. Luckily, I will always make, or have the opportunity, to make a decent living (at least, I think) so I will never feel the need to gamble with my life.

And this is where Mexico has failed its people and this is why, I argue, Mexico is a failed state. Mexico, through corruption and greed, has allowed for this to escalate to where it is now out of control. Mexican’s in a lot of areas have very little opportunity for comfort and happiness and, recently, no reasonable expectation to civil rights. It is basically one big New Orleans with a few exceptions and pockets of wealth and international sophistication. Mexico has broken its social contract with their people and we American’s wonder why they kill their countryman for $35?

Part VI
What am I missing?

What are the opportunities for an average to above average American, if any?

Do you think Chapo uses his own products?