Banks kept afloat by drug money

The mayor of Kabul was back at his desk the day after was sentenced to four years for corruption. Afghanistan is awash in only one kind of money these days - drug money.
One of the poorest nations on Earth exports $10 million every day in drug money, most of it right out of Kabul airport, and the world's bankers are hooked on it like junkies. In fact, this drug money probably did more to save the world's banking system than all the government bailouts.

Drugs money worth billions of dollars kept the financial system afloat at the height of the global crisis, the United Nations' drugs and crime tsar has told the Observer.
Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organised crime were "the only liquid investment capital" available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result.

Remember that only a few years ago these were the same banks that were insisting that they didn't need to be regulated. Did some of this drug money wind up being used to lobby Congress in their successful efforts to gut regulation? It's impossible to know for certain after it had been laundered so many times.

"Inter-bank loans were funded by money that originated from the drugs trade and other illegal activities... There were signs that some banks were rescued that way." Costa declined to identify countries or banks that may have received any drugs money, saying that would be inappropriate because his office is supposed to address the problem, not apportion blame. But he said the money is now a part of the official system and had been effectively laundered.

The question is: how do we plan on treating a banking system with a drug (money) problem?

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I question these reports

mainly because I don't think the drug market is enough money to keep banks afloat in total. What's the total global market? Also, what about the 9/11 changes to track on global deposits?

From 18 months ago

I believe these reports.

Attorney General Michael Mukasey warned Wednesday that organized criminal networks have penetrated portions of the international energy market and tried to control energy resources.
In a speech at the Center for Strategic and International Studies in Washington, he said similar efforts have targeted the international financial system by injecting billions of illicit funds to try to corrupt financial service providers.
The exploitation of the U.S. and international financial system to move illegal profits and funds, including sending billions in illicit funds through the U.S. financial system each year. To continue this practice, they seek to corrupt financial service providers globally.
The manipulation of securities exchanges and engaging in sophisticated fraud schemes that rob U.S. investors, consumers and government agencies of billions of dollars.

sure, but in terms of volume

is the total drug money enough to literally prop up banks? Seems the derivatives market was much larger, but I don't have a tally. It's not that I question illegal funds flowing around, in spite of 9/11

On drug money generally, it's most interesting that in the 80's, most of the Miami boom was funded by drug money, esp. real estate.

Then, drug money and remittances is a huge motivator for the infamous "unlimited migration" agenda. It's big business and billions in while things are cloaked into some insult driven rhetoric about "racist xenophobe" for anyone who disagrees with that...there are some serious $$ motivations going on.

Is this particular story referring to opium or all drugs?

This is also why it's so stupid to make marijuana illegal. That could be a legitimate nice cash crop for not only Mexico but also the U.S. and by making it illegal all that's happening is this border movement agenda plus a host of very violent cartels setting up camp in our woods.

Supposedly where I live, there are now reports of a very violent, with machine guns, group hanging out about a mi. E. of me in the woods. This is ridiculous for now locals are in fear to just go take a hike in case they stumble on "something". Even more ridiculous, people (locals) have been growing this stuff in the woods for a long time, just without the violence.

Remembering the connections

", what about the 9/11 changes to track on global deposits?"

Sorry, Mr. Oak, but you're still at the "almost true believer stage" --- those 9/11 changes were primarily about the IMF instituting FIUs (Financial Intelligence Units), via a private concern, throughout the world's offshore finance centers (which are principally concerned with profit laundering, tax avoidance, sheltering monies, and...almost forgot, money launder -- sounds kind of contradictory, huh?).

Remember, the banks involved with financing those politicians behind the passage of NAFTA (which resulted in the almost-immediate privatization of Mexico's banks, or at least 90% of them) were the same banks which reported significant drop in deposits after the passage of the Bank Reporting Act (which decreased, and made more detailed, the reporting of deposits of $10,000 and greater).

Today those banks have merged into only four: Citigroup, JPMorgan Chase, B of A, and Credit Suisse (they picked up First Boston, I believe).

Just compare the member banks of the Wolfsberg Group with the penalties and lawsuits against them (for fraud, money laundering, etc.).

almost true believer

Busted. Guilty as charged. I was hoping someone, somewhere at some time did something that didn't help out the financial oligarchy, regardless of how much it puts the globe at risk and is also immoral as hell.