Pubdate: Wed, 28 Aug 2002
Source: Victoria Times-Colonist (CN BC)
Copyright: 2002 Times Colonist
Author: Chuck Beyer


I wonder how long Ottawa, like Washington, will keep supporting the world's 
drug cartels.

Catherine Austin Fitts, former assistant secretary of housing in the first 
Bush administration, estimated that $200 billion a year is funnelled into 
American banks from illegal drug sales throughout the world.

The U.S. banks suck up the drug funds like a vacuum cleaner and, due to the 
"fractional reserve" money ratio formula used in banking today, for each 
drug dollar deposited, they can lend $10.

Fitts showed the damage to the economy when this vast pool of money is 
invested in the stock market. For example a publicly traded company worth 
$2 million is worth $4 million if an extra $100,000 is funnelled through 
that company illegally because a stock trades at 20-30 times its annual income.

Thus prohibition is a controlling factor in the value in the stock market. 
If all drug dealers were to quit today we would have a stock market crash 
as stocks plummet to there real non-narco value.

Fitts described the effect of this vast pool of money on the U.S. political 
system as politicians compete for money that has its origins in illegal 
drugs, with or without their knowledge.

The way our narco-economy is built, it can only keep expanding by turning 
our streets into a prohibition war zone. And with the amount of drug cash 
that finds its way into politics, the stock market, and banks to finance 
the U.S. deficit -- we are stuck in a vicious circle that can only be 
solved one way.

Make the government the supplier or accept the fact that drug cartels will 
own our economy, our politicians, our legal businesses, the stock markets, 
banks and future.

Chuck Beyer,

- ---
MAP posted-by: Alex