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Paul Merrell

As Federal Prison Population Spiked 790 Percent, Average Drug Sentences Doubled | Think... - 0 views

  • The federal prison population has ballooned 790 percent since 1980, and almost half of those now imprisoned are there for drugs. In the coming years, the Bureau of Prisons projects that prison overcrowding will get even worse. While federal prisons are now 35 to 40 percent over capacity, they are expected by 2023 to reach 55 percent over capacity without a policy change, according to a new report by the Urban Institute. The prison population explosion was not driven primarily by a spike in crime, but by a change in punishment. Over a 25-year period, average drug sentences doubled from 38.5 months in 1984 to 74 months in 2011. And over a similar period, the percentage of convicted federal offenders sentenced to prison spiked from 50 percent in 1986 to 90 percent in 2011. Before the passage of several draconian laws that impose mandated harsh sentences and remove judicial discretion, many offenders received probation or a fine for the same violations.
  • Now, public officials are among those looking for a solution. And the Urban Institute found that, while no one policy change will be enough to cure the inmate population explosion, the one single thing that could have the greatest impact is reforming mandatory minimum sentences. “Cutting mandatory minimums in half could save almost $2.5 billion in 10 years,” Urban Institute Senior Fellow Julie Samuels writes. “This measure alone would reduce overcrowding to the lowest it has been in decades.” There are now several bipartisan mandatory minimum bills pending in both houses of Congress. And the bipartisan momentum has never been greater, with even the world’s largest association of corrections officials and the conservative American Legislative Exchange Council urging mandatory minimum reform.
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    Life in the "land of the free." Five per cent of the world's population, but  25 per cent of the world's incarcerated prisoners. Drug legalization and release of all prisoners convicted of drug crimes not involving violence would do far more to bring some order to this mess.  But the desire to regulate seems irresistible, particularly when it serves as very thin cover for racial repression. Never mind that legalization would also end the drug war raging in Mexico.  "But we can't legalize immoral behavior." "Would you prefer that people buy their drugs from a government dispensary or from the kid down the block, you know, the one with the AK-47?"  
Paul Merrell

15 Benefits of the War on Drugs » Counterpunch: Tells the Facts, Names the Names - 0 views

  • With American drug use levels essentially the same as — and levels of drug-related violence either the same as or lower than — those in countries like the Netherlands with liberal drug laws, public support for the War on Drugs appears to be faltering. This was most recently evidenced in the victory of major drug decriminalization initiatives in Colorado and Washington. Some misguided commentators go so far as to say the Drug War is “a failure.” Here, to set the record straight, are fifteen ways in which it is a resounding success:
Paul Merrell

Marijuana Legalization in CO, WA, AK, OR, and Washington D.C.: So Far, So Good | Drug P... - 0 views

  • As Arizona, California, Maine, Massachusetts, and Nevada prepare to vote on the legalization of marijuana for adults 21 and over in a few weeks, all eyes are on the initial outcomes of those states that have already legalized marijuana. A new report from the Drug Policy Alliance finds a massive drop in marijuana arrests, no increase in youth marijuana use, no increase in traffic fatalities, and major fiscal benefits in states with legalized marijuana.
  • The new report reveals that statewide surveys of youth in Colorado, Washington, Alaska, and Oregon found that there were no significant increases in youth marijuana use post-legalization. Tax revenues in Colorado, Washington, and Oregon have all exceeded initial revenue estimates, totaling half a billion dollars in new revenue for those states. (Retail sales have not yet begun in Alaska.) Legalization has not led to more dangerous road conditions, as traffic fatality rates have remained stable in Colorado, Washington, Alaska, and Oregon. Arrests in all states and Washington, D.C. have plummeted since legalization, saving those jurisdictions millions of dollars and preventing the criminalization of thousands of people. Legalization, however, did not abate the disproportionate enforcement of marijuana laws against black people. While thousands less are being arrested, blacks are still arrested at vastly disproportionate rates, even though white people use and sell marijuana at similar rates. By shifting away from counterproductive marijuana arrests and focusing instead on public health, states that have legalized marijuana are diminishing many of the worst harms of the war on drugs, while managing to raise substantial new revenue for their state.
Paul Merrell

This Election Could Determine the Future of Pot in America - Rolling Stone - 0 views

  • California, Arizona, Nevada, Maine and Massachusetts will vote on adult-use pot legalization on Election Day, while North Dakota, Arkansas, Montana and Florida are considering medical marijuana. Combined, these states comprise about a quarter of the country's population. With widespread support across the nation – 57 percent of U.S. adults say weed should be legal – the issue of marijuana policy reform has achieved bipartisan regard, prompting active discussion among both laymen and legislators.Nearly 20 percent of states will be deciding on drug policy this election – "a reflection of the fact that we've long passed the tipping point [and] that marijuana advocacy has evolved and matured in the past few years," says Paul Armentano, deputy director of the National Organization for the Reform of Marijuana Laws, or NORML. But on the flip side, he says, it also represents a failure of the democratic process, since elected (federal) officials have yet to enact marijuana policy reform comporting with what polling indicates are their constituents' increasingly progressive views."If an overwhelming number of states that have marijuana-specific initiatives on the ballot pass those measures, that could be interpreted by federal lawmakers as a mandate," says Armentano. "But if several of them do not pass, then it is likely that lawmakers will continue to be reluctant to address marijuana law reform at the federal level."
  • The future of pot policy in America hinges heavily on the election this year. Marijuana law reform is on the ballot in nine states, and has momentum at the federal level in the form of several bills pending in Congress, including ones to deschedule cannabis, reschedule cannabis, legalize hemp and prioritize research trials.
Paul Merrell

Big Pharma-Backed Dems Join GOP To Block Sanders Effort To Lower Drug Prices - 0 views

  • While the Republican Party is publicly dismantling millions of Americans’ health safety net, more than a dozen Democrats late Wednesday quietly threw their weight behind Big Pharma and voted down an amendment that would have allowed pharmacists to import identical—but much less expensive—drugs from Canada and other countries. The “power and wealth of the pharmaceutical industry and their 1,300 lobbyists and unlimited sums of money have bought the United States Congress,” Sen. Bernie Sanders (I-Vt.) declared in a speech on the Senate floor while introducing the amendment, co-sponsored by Sen. Amy Klobuchar (D-Minn.), which would have been attached to the chamber’s budget resolution. It came amid a flurry of legislative activity during Wednesday evening’s “vote-a-rama.” “Year after year the same old takes place: the pharmaceutical industry makes more and more money and the American people pay higher ad higher prices,” Sanders continued, asking his colleagues if they “have the guts finally to stand up to the pharmaceutical industry and their lobbyists and their campaign contributions and fight for the American consumer?” It turns out, no. In fact, 13 Democrats voted against the measure (roll call here), siding with the Republican majority and drawing sharp rebuke from observers, who pointed out that many who voted “no” receive substantial contributions from the pharmaceutical industry.
Paul Merrell

Why America Can't Quit the Drug War | Rolling Stone - 0 views

  • orty-five years on, America is still grappling with the dark origins of the Drug War, launched in 1971 by President Richard Nixon – for political purposes. Nixon's domestic-policy adviser, John Ehrlichman, in an interview published posthumously in Harper's this year, revealed the true aim of the Drug War was to criminalize the administration's "two enemies: the anti-war left and black people." As Ehrlichman explained, "We could arrest their leaders, raid their homes, break up their meetings and vilify them night after night on the evening news." Nixon himself wove anti-Semitism into the mix. "Every one of the bastards that are out for legalizing marijuana is Jewish," Nixon groused to his chief of staff, Bob Haldeman, in a conversation recorded in the Oval Office in May 1971. "What the Christ is the matter with the Jews, Bob?" Nixon asked. "By God, we are going to hit the marijuana thing, and I want to hit it right square in the puss." More than $1 trillion later, Nixon's war has hollowed out urban black communities, visited death upon downtrodden whites in rural America and unleashed horrific violence from Bogotá to Ciudad Juarez. In Mexico, since 2007, as many as 80,000 civilians have been murdered in drug violence. Despite the carnage, prohibitionist policies enforced through military interdiction and domestic incarceration have done little to curb the American drug habit – which fuels $64 billion a year in cartel profits, according to an estimate by the Treasury Department.
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    From the horse's mouth, what has always been obvious. 
Paul Merrell

Evaluating Drug Decriminalization in Portugal 12 Years Later - SPIEGEL ONLINE - 0 views

  • Twelve years ago, Portugal eliminated criminal penalties for drug users. Since then, those caught with small amounts of marijuana, cocaine or heroin go unindicted and possession is a misdemeanor on par with illegal parking. Experts are pleased with the results.
Paul Merrell

The U.S. Government And The Sinaloa Cartel - Business Insider - 0 views

  • An investigation by El Universal found that between the years 2000 and 2012, the U.S. government had an arrangement with Mexico's Sinaloa drug cartel that allowed the organization to smuggle billions of dollars of drugs while Sinaloa provided information on rival cartels. Sinaloa, led by Joaquin "El Chapo" Guzman, supplies 80% of the drugs entering the Chicago area and has a presence in cities across the U.S.
  • There have long been allegations that Guzman, considered to be "the world’s most powerful drug trafficker," coordinates with American authorities. But the El Universal investigation is the first to publish court documents that include corroborating testimony from a DEA agent and a Justice Department official. The written statements were made to the U.S. District Court in Chicago in relation to the arrest of Jesus Vicente Zambada-Niebla, the son of Sinaloa leader Ismael "El Mayo" Zambada and allegedly the Sinaloa cartel’s "logistics coordinator."
  • El Universal, citing court documents, reports that DEA agents met with high-level Sinaloa officials more than 50 times since 2000.
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  • "The DEA agents met with members of the cartel in Mexico to obtain information about their rivals and simultaneously built a network of informants who sign drug cooperation agreements, subject to results, to enable them to obtain future benefits, including cancellation of charges in the U.S.," reports El Universal, which also interviewed more than one hundred active and retired police officers as well as prisoners and experts. Zambada-Niebla's lawyer claimed to the court that in the late 1990s, Castro struck a deal with U.S. agents in which Sinaloa would provide information about rival drug trafficking organizations while the U.S. would dismiss its case against the Sinaloa lawyer and refrain from interfering with Sinaloa drug trafficking activities or actively prosecuting Sinaloa leadership. "The agents stated that this arrangement had been approved by high-ranking officials and federal prosecutors," Zambada-Niebla lawyer wrote.
  • After being extradited to Chicago in February 2010, Zambada-Niebla argued that he was also "immune from arrest or prosecution" because he actively provided information to U.S. federal agents. Zambada-Niebla also alleged that Operation Fast and Furious was part of an agreement to finance and arm the cartel in exchange for information used to take down its rivals. (If true, that re-raises the issue regarding what Attorney General Eric Holder knew about the gun-running arrangements.)
  • El Universal reported that the coordination between the U.S. and Sinaloa, as well as other cartels, peaked between 2006 and 2012, which is when drug traffickers consolidated their grip on Mexico. The paper concluded by saying that it is unclear whether the arrangements continue. The DEA and other U.S. agencies declined to comment to El Universal.
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    Another chapter in the long-running history of U.S. government participation in drug-smuggling and gun-running. This one breathes new life into the notorious Fast & Furious scandal.
Paul Merrell

Armed citizens in more than 100 pick-up trucks seize Mexican town from drug cartel | Th... - 0 views

  • Vigilantes seized a drug cartel’s bastion in western Mexico, sparking a shootout as the civilian militias gain new ground in their struggle against drug gangs in a violence-plagued region. Hundreds of armed civilians riding in more than 100 pick-up trucks rolled into the Michoacan state town of Nueva Italia and were met by gunfire from presumed members of the Knights Templar cartel when they reached the municipal office. “They shot at us from two locations and the clash lasted around an hour and a half,” Jaime Ortiz, a 47-year-old farmer and vigilante leader from the town of La Ruana, told AFP. Two members of the self-defense unit were wounded, he said, standing in the 40,000-population town’s main square, surrounded by hundreds of men armed with AK-47 assault rifles, bulletproof vests and radios.
  • The growing civilian militia movement, which first emerged in Michoacan nearly a year ago, has seized more communities in recent weeks in their bid to oust the Templars from the state.
  • Interior Minister Miguel Osorio Chong has said the self-defense units are illegal. Yet some critics charge the government is protecting them. The Templars have accused the vigilantes of being a proxy force for the rival Jalisco New Generation drug cartel, a charge the militias deny. The militias have now surrounded Apatzingan, a city of 123,000 people considered the main Templar stronghold in Michoacan’s lime and avocado growing region known as Tierra Caliente, or Hot Country.
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  • Michoacan Governor Fausto Vallejo said new “coordinated actions” with the federal government would be announced on Monday to deal with the unrest. Critics say Michoacan has become a “failed state,” with local authorities powerless to control the situation. “What we are observing is the absence of the state, the absence of governability,” the head of the National Human Rights Commission, Raul Plascencia, told El Universal newspaper.
  • Towns began to form vigilante forces in February 2012, saying they were fed up with the local police’s inability of unwillingness to stop the cartel’s murders, kidnappings and extortion rackets.
    • Paul Merrell
       
      Note that the drug-cartel bloodbath in Mexico would be ended within months were the U.S. to end drug prohibition, which has had the same effects within the U.S. as alcohol prohibition, the emergence of powerful criminal organizations. 
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    What happens when government fails to protect its citizens from violence? Collective self-defense, sometimes deprecatingly referred to as "vigilantes." 
Paul Merrell

'War' on illegal drugs is failing: study | Fox News - 0 views

  • The global war on heroin, cocaine and cannabis is failing to stem supply, as prices of these drugs have tumbled while seizures of them have risen, according to a study published Monday.Researchers analysed data from seven government-funded programmes that tracked the illegal drug market over more than a decade.
  • The prices of heroin, cocaine and cannabis tumbled by 81 percent, 80 percent and 86 percent respectively between 1990 and 2007 in the United States when adjusted for inflation, the researchers found.Over the same period, the average purity of these drugs rose by 60 percent, 11 percent and 161 percent respectively.
  • "With few exceptions... illegal drug prices have generally decreased while drug purity has generally increased since 1990," they added.The global supply of illicit drugs had likely not been reduced in the last two decades, the study said, and the availability of cannabis and opiates like heroin may even have increased."These findings suggest that expanding efforts at controlling the global illegal drug market though law enforcement are failing," said the paper published in the open-access journal BMJ Open.
Paul Merrell

Justice Department seeks to undo thousands of old sentences | Al Jazeera America - 0 views

  • Setting in motion one of the most wide-ranging government efforts to roll back the legacy of harsh anti-crime laws dating to the drug wars of the 1980s, the Justice Department on Wednesday announced an initiative to extend presidential clemency to potentially thousands of federal prisoners who would receive more lenient rulings if they were sentenced and convicted today. 
  • Cole said the department would, in its effort to retrofit penalties, prioritize inmates who are nonviolent, low-level drug offenders without significant ties to large-scale criminal organizations. Such offenders must also have served at least 10 years of their prison sentences, not have a significant history of crime or violence and have demonstrated good conduct in prison. Though Cole declined to say how many prisoners that might encompass, The Associated Press, citing a person familiar with the matter, reported on Wednesday that the Justice Department had identified about 23,000 people who had served sentences of at least 10 years. While Cole said the most obvious candidates would be those inmates sentenced prior to the Fair Sentencing Act of 2010, which narrowed the disparity between sentences for crack and powder cocaine offenders, he said the initiative was not limited to them.
Paul Merrell

Jeb Bush, the Mexican Drug Cartel and "Free Trade". The Bush Family and Organized Crime... - 0 views

  • Jeb Bush is a presidential candidate. But Jeb is not only the brother of George W. and the son of George H. W. Bush. Jeb Bush also had close personal ties to Raul Salinas de Gortiari, brother of Mexico’s former president Carlos Salinas de Gortiari. In the 1990s, Raul the “drug kingpin”, according to Switzerland’s  federal prosecutor Carla del Ponte, was one of the main figures of the Mexican Drug Cartel.  
  • Jeb Bush  –before becoming Governor of the Sunshine State– was a close friend of Raul Salinas de Gortiari (image right): “There has also been a great deal of speculation in Mexico about the exact nature of Raul Salinas’ close friendship with former President George Bush’s son, Jeb. It is well known here that for many years the two families spent vacations together — the Salinases at Jeb Bush’s home in Miami, the Bushes at Raul’s ranch, Las Mendocinas, under the volcano in Puebla.
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    An issue likely to dog the Jeb Bush campaign during Auction 2016.
Paul Merrell

The US's Vicious Colonial War - LewRockwell.com - 0 views

  • The last British soldiers were airlifted out of Afghanistan last week, marking the sorry end of Britain’s fourth failed invasion of Afghanistan. With them went the last detachment of US Marines in Helmand. Well has Afghanistan earned its title, “Graveyard of Empires.” To be more precise, this honor belongs to Afghanistan’s Pashtun (or Pathan) mountain tribes, who bend their knees for no man and take pride in war.
  • The US garrison in Kabul will continue to make Afghanistan safe for opium, which is the base for heroin. Americans have simply turned a blind eye to their ownership if the world’s top producer of heroin. As Washington orates about the so-called War on Drugs, Afghan opium production rose in 2013 from $2 billion to $3 billion. The UN says over 500,000 acres of land in Afghanistan are now devoted to the opium poppy – right under the eyes of the US garrison. While US-installed rulers in Kabul pay lip service to opium eradication, the rural warlords who support them, and receive stipends from CIA, continue to grow rich on the opium trade. Trying to blame Taliban for the scourge of opium is dishonest: when Taliban was in power it eradicated almost all of the nation’s opium production, reported he UN Drug Agency, except in the region controlled by the Communist Northern Alliance – which today shares power in Kabul. When the full history of the Afghan war is finally written, CIA’s involvement in that nation’s drug trade will become a notorious episode. French intelligence became deeply involved in the Laotian opium trade to pay its Lao mercenaries. The US was up to its ears with its Contra allies in the Central American cocaine trade.
  • Any native “disturbance” would be bombed and strafed by the RAF. In the 1920’s, Winston Churchill authorized RAF to use poison gas bombs against restive Pashtun and Kurdish tribesmen. Ironically, seven decades later I discovered British scientists who had been sent by HM government to Iraq to build germ weapons for Saddam Hussein to use against Iran. Similarly, the “Pax Americana” will be enforced by US airpower based at Bagram. US warplanes flying from Bagram, Qatar, and aircraft carriers on 24 hour call have been the only force keeping the Pashtun movement Taliban at bay. Without intense employment of US air power, western occupation forces, like the Imperial British armies before them, would have been driven from Afghanistan. Without US air power, garrison troops and large numbers of “civilian contractors” and old-fashioned mercenaries the Kabul puppet regime would soon be swept away. Afghanistan’s government army is likely to collapse as quickly as Iraq’s did before ISIS. Most of southern Afghanistan would declare for Taliban which, however harsh, is the nation’s only authentic political movement apart from the Tajik and Uzbek Communists in the north.
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  • The old imperialists are gone, but the occupation of Afghanistan continues. The new regime in Kabul just installed by Washington to replace uncooperative former ally Hamid Karzai, rushed to sign an “agreement” allowing the United States to keep some 10,000 soldiers in Afghanistan for years. This garrison will be exempt from all Afghan laws. However, there’s much more to this arrangement. The US combat troops, tactfully labeled “trainers” or “counter-terrorist forces,” are too few in number to dominate all Afghanistan. Their task is to defend Kabul’s sock puppet government from its own people and to defend the all-important US Bagram airbase. Washington clearly plans to continue ruling Afghanistan and Iraq the same way that the British Empire did. Small numbers of British troops garrisoned the capital; white officers led the native mercenary army. But Britain’s real power was exercised by RAF units based in Iraq and Northwest Frontier Province.
  • Now, US intelligence has besmirched its name once again aiding and abetting Afghan drug lords so as to supposedly wage war on “terrorists.” In dirt-poor Afghanistan, there are only two sources of income: money from Washington, and from narcotics. The collusion of senior members of government, military and police is necessary to export tons of opium to either Pakistan, Central Asia or Russia – where morphine addiction is now a major epidemic. Adding to this shameful record, the US Congressional auditor for Special Reconstruction of Afghanistan just reported that much of the $104 billion appropriated for Afghan “reconstruction” has to no surprise been wasted or stolen. Some of it has been used to irrigate opium poppy fields. Spare parts are unavailable for Russian helicopters bought by the US for use in battling Taliban and supposed opium fighting. Why? Because the US-imposed trade sanctions on Russia bars the US from buying the spare part. Catch-22.
  • By now, the longest war in US history has cost some $1 trillion, maybe more. No one can properly account for the billions and billions of US dollars flown into Afghanistan and Iraq and dished out to the natives – or the numbers of Afghans killed. For Washington’s allies, like Canada and Britain, the war has been a total waste of lives and treasure. For Canada, 158 dead for nothing; for Britain 453. Forget all the phony claims about “mission” and “nation building.” This has been yet another dirty little colonial war that is better forgotten – and never repeated. So this war will simmer on, at least until Washington finds some face-saving way out of the mess in the Hindu Kush. If the US was wise, it would simply quit Afghanistan. But power, like opium, is highly addictive. So America’s longest war will drag on and on.
Paul Merrell

The US Led Drug War in Afghanistan Failed | nsnbc international - 0 views

  •  According to the latest reports opium poppy cultivation rates are growing consistently in Afghanistan, over the last year they have increased to another seven percent. As for the opium production, according to The Guardian, it has increased up to 17% in this period alone, reaching the staggering 6.4 million tons per year. Additionally, the poppy plantations keep on spreading at a record pace across the country, as of now they are covering 224 thousand hectares. The largest province of Afghanistan – Helmand accounts for 46% percent of Afghan poppy cultivation, due to this fact 69 % of opium is produced in the south.
  • In general, Afghanistan produces as much as 90% of all the opium consumed in the world, therefore this criminal business employs more than 400,000 people across the country.
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    Hard to fight a War on Drugs when drugs are a major off-books revenue source for the CIA. 
Paul Merrell

What did $7 billion spent on opium eradication in Afghanistan buy? More opium. - CSMoni... - 0 views

  • With the outcome of Afghanistan's controversial presidential election still in doubt, and uncertainty over Afghan forces' ability to stand against the Taliban after most US forces withdraw, it's hard to say with certainty what the US-led war there has accomplished, or failed to accomplish.But one thing is clear, as shown by latest quarterly report from the US Special Inspector General on Afghanistan Reconstruction: The $7 billion US program to eradicate poppy cultivation there over the past decade has been a flop. The country is today the world's largest supplier of opium, the purified latex sap from the Papaver somniferum poppy species that is usually then converted into heroin. It accounts for about three-quarters of the global recreational supply, and surging Afghan production is one reason why street heroin prices have been falling across the globe.
Paul Merrell

CIA Drug Trafficking Exposed by Political Prisoner - YouTube - 0 views

  • Published on Dec 30, 2012Political prisoner Beau Abbott, a former narco-pilot for the CIA, tells of his experience in the drug import business. He's now hidden away in a federal prison for his whistleblowing activities.
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    Video. Well worth watching this interview. Abbott is highly convincing and offers insider details of CIA and DEA drug-trafficking. 
Paul Merrell

US May Be behind Drug Accusations against Venezuelan Politician | News | teleSUR - 0 views

  • Diosdado Cabello, president of the National Assembly and first vice president of the United Socialist Party of Venezuela (PSUV), responded Tuesday to allegations by his former bodyguard that he supposedly has links to drug trafficking. “Every attack against me strengthens my spirit and my commitment. I am infinitely grateful for the solidarity shown by our people,” he wrote on Twitter
  • “Threats, slander, schemeing – we have experienced it all in these years of revolution. We learnt from the best to navegate storms with our morale high” “The campaign against Diosdado Cabello is tasteless,” Venezuelan President Nicolas Maduro said Tuesday, while participating in the national civic-military meeting against the economic war in Caracas. Historically, the U.S. has been documented to have used its so called “war on drugs” to criminalize revolutionary and poor peoples' struggles. Cabello's former chief of security Leamsy Salazar left Venezuela in December. He surfaced this week in the United States to accuse Cabello of supposedly having “links” to illegal activities. Venezuelan private media, as well as some international private media, have reported Salazar's claims as though they were true.
  • he accusations come three months after Venezuelan youth leader and legislator Robert Serra was murdered, with his own bodyguard among the conspirators. According to Maduro, the bodyguard confessed to conspiring with a  Colombian gang to kill Serra.  The Miami-based El Nuevo Herald said that Salazar is “collaborating” with U.S. investigators, citing anonymous sources. EFE too has quoted an anonymous U.S. official who supposedly said that the accusations made by Salazar were “consistent” with Washington's analysis about alleged collusion between the national Venezuelan government and drug cartels. However, pro-government legislator Pedro Carreno accused Salazar on Monday of being “bought by the CIA” in order to link Cabello to drug smuggling and delegitimize the government.
Paul Merrell

Bank Sued Over Cartel Money Laundering - WhoWhatWhy - 0 views

  • While bankers can probably get their highs any number of ways, the Mexican drug cartels need financial institutions to clean their dirty money. And, it seems, there is no better bank for that than London-based HSBC, which is one of the world’s largest. In the first six months of last year, it reported a pre-tax profit of $13.6 billion.According to a lawsuit filed against HSBC earlier this month, it earned some of those profits by allowing the drug cartels to cycle billions of dollars through it.“From 2004 through at least 2008, HSBC Mexico accepted over $16.1 billion in cash deposits from customers throughout Mexico. This amount eclipsed the amount of USD cash deposits at financial institutions with market shares multiple times greater than HSBC Mexico’s,” the lawsuit alleges.
  • HSBC is no stranger to accusations of helping the cartels. In 2012, the bank paid $1.9 billion as part of an agreement with the United States and admitted that it had failed to establish an effective anti-money laundering (AML) program. In spite of having to pay such a massive penalty, no HSBC employees went to jail.
  • Even though the new lawsuit addresses an old problem, the legal action is unique for several reasons. It was brought on behalf of the families of several Americans killed by the Mexican cartels. The action seeks redress under a 1996 law (amended following the 9/11 attacks) that allows victims of terrorism to seek compensation from any organization that supported the perpetrators of such crimes.
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  • This is the first attempt to apply the 1996 anti-terrorism law to the actions of the Mexican drug cartels. “The gruesome attacks on the innocent American victims on foreign soil were unquestionably acts of international terrorism,” said attorney Richard M. Elias, who represents the families.The lawsuit asserts that cartels now function as “paramilitary organizations” and have become one of the top threats to US national security.
  • The suit alleges that HSBC’s actions, or inactions, amounted to knowingly providing“continuous and systematic material support to the cartels and their acts of terrorism by laundering billions of dollars for them. As a proximate result of HSBC’s material support to the Mexican drug cartels, numerous lives, including those of the plaintiffs, have been destroyed.”
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    Sounds like a fun case.
jacob logan

Abbott's MitraClip device approved for heart failure patients with MR - 0 views

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    The US Food and Drug Administration (FDA) has expanded the indication of Abbott's MitraClip device to include the treatment of heart failure patients with clinically significant secondary or functional mitral regurgitation (MR).
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