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Illegal Drug Money Saved Banking Collapse

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  • In December 2009, the United Nations’ Drugs and Crime Tsar Antonio Maria Costa claimed that illegal drug money saved the banking industry from collapse. He claimed he had seen evidence that the proceeds of organised crime were “the only liquid investment capital” available to some banks on the brink of collapse during 2008. He said that a majority of the US$352bn (£216bn) of drugs profits was absorbed into the economic system as a result. “In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor…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 drug money, saying that would be inappropriate because his office is supposed to address the problem, not apportion blame

    :laugh_at:

    sweeeeeet

    Cool, well, not but yeah….you know what I mean……

    I hope.

    Due to its illicit nature, statistics about profits from the drug trade are largely unknown. In its 1997 World Drugs Report the UNODC estimated the value of the market at US$400 billion, ranking drugs alongside arms and oil amongst the world’s largest traded goods.[11] An online report published by the UK Home Office in 2007 estimated the illicit drug market in the UK at £4–6.6 billion a year

    It’s just amazing… such a high profit… can’t berrreeeveeee da governments missing out on that ting mang

    I actually had a fantastic conversation about this a while ago with my friend Rolf Harris (really that’s his name!), we pretty much came to the conclusion that we could off set a large proportion of the national debt, and still have money to give to either the health sector or provide schools with extra support. All from legalizing a few drugs. We came to the idea that a vetting system would be used to choose registered vendors, 6 month licence updating, every 3 months or so samples of what’s being sold is sent to an out sourced lab of quality control. Yadda yadda yadda, I’m too blapped to type, I’ll finish this tomorrow

    then you won’t have to pick up from Ikbar and get shitty 1.2 draws no more.

    We came to idea that £25 for 3.2g of any grade strain or genus is ideal. The extra fiver is for the security and peace of mind that what your buying is good and honest weed, we also deduced that the extra charge would mean that the shops licensed to sell could have membership fees too, say, I join ‘Jahs place’ weed vendor, for £50P/a, that would entitle me to an extra .5g on every draw I buy, give me late stay privileges and free use of the Internet.

    I really think me a Rolf should open a cafe man, we’d be too good at it!

    Cocaine produced in Colombia, Venezuela and Bolivia has been increasingly shipped via West Africa (Guinea, Guinea-Bissau and Liberia). The money is often laundered in countries as Nigeria, Ghana and Senegal.
    Cargo planes are now also used as a method of transport from the production countries to West-Africa. Before this, the cocaine was only shipped to the USA. Because the market became saturated there, illicit drug traders decided to increase shipping to Europe. When these new drug routes were uncovered by the authorities, West Africa was chosen as a stop-over. In 2005, the first major cocaine shipment was intercepted by the police. In 2007, 30% of all cocaine shipped to the UK was estimated to come from West Africa. In 2009, 50% of all cocaine shipped to the UK was estimated to come from West Africa.[citation needed]
    Drug mules, fishing boats, container ships, and submarines have been used to transship illegal drugs from West Africa to Europe.[citation needed]
    Especially in Guinea-Bissau, the drugs have been traded with the help of political leaders such as former presidents, the son of dictator Lansana Conté, and chiefs of staff of the army.[citation needed]
    According to the UN,[who?] the value of illicit drug smuggling in Guinea-Bissau is higher than the value of the country’s GDP. Policemen are often bribed. A policeman’s normal monthly wage of 75 € is less than 2% of the value of 1 kilogram of cocaine (7000 €).[citation needed]
    The money can also be laundered using real estate. A house is built using illegal funds, and when the house is sold, legal money is earned.[14]
    Inexpensive illicit drugs, such as crack, are now in distribution. This decreases the economic productivity and diminishes any safety goal for the intended end user.[citation needed]
    When drugs are sent overland, through the Sahara, the drug traders have been increasingly forced to cooperate with terrorist organisations, such as Al Qaida in Islamic Maghreb.[15][16]

    GUINEA-BISSAU MAN! country earning the least money so they sell drugs, even the president of the country does… LOLZERS

    Surely all this is proof, if it were needed, that it’s time to end the war on drugs. More declarable money for the economy, less money to organised crime (instead the criminals just become legitimate businessmen) and we can go down the shop and buy a bag of weed or mandy like it’s a bottle of beer or packet of cigs!

    @p0ly 505095 wrote:

    In December 2009, the United Nations’ Drugs and Crime Tsar Antonio Maria Costa claimed that illegal drug money saved the banking industry from collapse. He claimed he had seen evidence that the proceeds of organised crime were “the only liquid investment capital” available to some banks on the brink of collapse during 2008. He said that a majority of the US$352bn (£216bn) of drugs profits was absorbed into the economic system as a result. “In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor…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 drug money, saying that would be inappropriate because his office is supposed to address the problem, not apportion blame

    :laugh_at:

    sweeeeeet

    I don’t know about outside of the U.S, but in the U.S Tarp funds helped out banks a lot. I think the Federal Reserve even printed more new money, which the banks sat on and didn’t really use anyways

    The black economy might have saved the banks from collapsing but the same economy earned the UK an extra 1.7 billion euros as money coming in from drug sales, prostitution etc was counted towards the GDP making it higher than expected and then the contribution we had to make increased in line. Lot of money when the government has been able to tax none of it.

    interesting that NL only had to hand back a thirds of this and DK nothing at all; the Germans got a billion euros back!

    it seems to be €1.7 billion appears to be calculated on economic growth measured against social/public sector spending; those countries which invest in public services and/or set up social programmes for things like drugs rehab get the money back…. if you look on the blog post Sinner made with Simon Shackleton’s mix Simon explains the concept of zero economic growth which is perfectly feasible; better for the environment, does not forbid businesses from making a profit nor does it bring the country to the stone age…

    Sorry GL but I don’t know who I criticized or think we should live in the dark ages.

    The ONS has the figures including the new rules and what they effected available and many details were widely published anyway.

    @requiem 702091 wrote:

    Sorry GL but I don’t know who I criticized or think we should live in the dark ages.

    its not you who said that but the Protestant centre right anti EU politicians and their supporters who make that claim whenever the green/left parties call for zero growth economies. BTW I could read a rightwing Dutch news site long before I could understand the green/left ones so its true they are all written for 8 year olds ….

    @p0ly 505095 wrote:

    Antonio Maria Costa t

    Ah yes… it would appear he has all the hallmarks of being a complete dickhead.

    DISCLAIMER – I want to apologize to any dickheads reading this who feel insulted at the comparison with Signor Tony Cost-a-lotta-money-forra-my-services-you-like-a-spankeee-vereee-cheap-this-week.

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Forums Life Money Illegal Drug Money Saved Banking Collapse