1. Chapter 8: Traffic

2. Evidence room: Culiacan, Mexico A soldier looks at a package of marijuana at a warehouse where the army stores drugs seized during operations as requested by federal authorities until the investigations conclude, at a military base in Culiacan in Mexico's northwestern state of Sinaloa.

3. Fort inside fort: drugs total more than 7 tons
Eduardo Solorzano
Rare types of narcotics within different bags, bricks, and bundles
Cut-up ganja plants
Black tar heroin
White slidge of raw methamphetamine: ice and sour milk

4. Meth varieties: bitter sweet, not tasty nor disgusting

5. Black tar heroin

6. Mexico’s drug industry never sleeps
El narco is just an industry:drug trade is the movement of narcotics, nothing more
Mechaincs of making and selling are more fundamental than the CEOS
No one cares about the kingpins
Unreliable data based on estimates
Mexico controlled ¾ of drugs, one year later Colombia controlled ¾ of drugs. Not consistant
Estimates based on estimates

7. Calderon’s war on drugs
Not slowing down the industry
Custom agents nabbed tons of drugs
Border patrol agents nabbed 1,159 tons of drugs marijuana, 10 tons cocaine, 3 tons of heroin
No one knows how much drugs haven’t been caught
Gangsters have shootouts with military, and still slough out the same amount of drugs, if not more

8. Question:
Should the border be more militarized to prevent drug smuggling?

9. Chagra: chemical process
Coca leaves: 80$
Coca paste:800$
Cocaine brick in Colombia:2,147$
Cocaine brick in US: 34,700$
Cocaine brick on the streets: 120,000$
6,000% profit

10. Drug planes in Sinaloa
200 planes seized in 2 years

11. No knowledge on the streets of which kingpin has touched the drugs.
Confusing web
Center of gravity: Turfs or plazas
Explains Mexican turf wars and why they are so bloody

12. Iran Escandon Raced cars “it was cars that brought me here”
Arrancons: street races
Businessman offered 10,000 pesos (900$) to transport drugs
Paid 4,500$ to transport 120 kilos of cocaine
40 kilos from cuauhtemoc to Colorado for 15,000$
“Maybe he was setup so that a bigger load would get through

13. Questions:
If someone offered you 15,000$ to transport 40 kilos, would you do it?

14. The art of disguise
Tunnel in Otay mesa, California measured 2,400 feet
Professional engineers create tunnels with concrete floors, electricity and rail carts
Guadalupe& her green candle (page )
Seduced someone for information
Cerebros “Brains”

15. Data based on estimates
Drug use rose from 8% to 8.7% from
21.8 million Americans were on some kind of drug
Cocaine use has dropped from 2.4 million in 2006 to 1.6 million in 2009
Shrinking market could be cause of Mexico’s butchery
Bill Clinton and Lawrence Taylor (1.4 million in blow)
154.3 billion in 1988 to 63.7 billion in 2008
2000 it costed ½ the price for a bag of heroin

16. Drug market 60 billion
30 billion goes to gangsters
Other 30 billion….?

17. Question:
Where do you think the other 30 billion are going?

18. Theories Keep peso afloat during economic crisis of 2008
Corrupt mexicos police enforcement
1.2 billion a year to triple salaries of police forces

19. Laundering
Treasury Blacklist- illegal for Americans to do business with them
Spa and taqueria
Cash flow keeps bad guys jumping to it
1979, 70 banks had offshore tax havens, today more than 3,000
Ye Gon: palace of money. 126$ million in losses at casino, 40% of losses given back

20. Conclusion All about the money Mafia Capitalism
El narco’s 2nd biggest product after drugs: murder