Sunday, July 8, 2018

USA, the narco-nation

 
   The United States is in the midst of an opioid epidemic, as close to 3 million people battled opioid addiction (to either heroin or prescription painkillers) in 2015, the American Society of Addiction Medicine (ASAM) publishes.  Over 60 percent of the record-high overdose deaths in 2015 involved an opioid drug, and 91 people in the US die from an opioid overdose daily, the Centers for Disease Control and Prevention (CDC) reports.  In 2015, roughly 300 million prescriptions were dispensed for narcotic pain medications around the world, and Americans consumed 80 percent of them, CNBC publishes. 
https://americanaddictioncenters.org/the-big-list-of-narcotic-drugs/
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In a growing trend to protect itself from lawsuits against pharmaceutical companies, Wyeth Pharmaceuticals has brought a case before the U.S. Supreme Court asking to prohibit consumers who have suffered from adverse reactions, injury or death caused by medications from filing suit for damages. Essentially, the pharmaceutical companies and device manufacturers are falling back on FDA approval as their defense. They seem to want to hide behind the idea that if the FDA says it’s OK the manufacturers should not be liable when their products fail to work or prove to be dangerous in real-world conditions. 
If the Supreme Court rules in favor of the pharmaceutical companies, no American in the country will have the right to compensation.  https://www.cochranfirm.com/pharmaceutical-companies-seek-federal-immunity-to-lawsuits/
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12-3-17  In 1995 the Legislature voted to eliminate the rights of residents to sue pharmaceutical companies in the state. They passed an unprecedented law that prevents residents from gaining access to the civil justice system if they were harmed by dangerous drugs approved by the Food and Drug Administration, with the limited exception that the drugmaker didn’t withhold information from the FDA.  The idea behind the product liability legislation, at the time, was to incentivize pharmaceutical manufacturers to move to Michigan and hire the best workers in the country. Unfortunately, we now know that the reality of what played out is much different.  https://www.detroitnews.com/story/opinion/2017/12/03/drug-companies-deserve-immunity-bieda/108286536/
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      Mexican cartels control the supply chain connecting the Andes and Mexico to areas in the US, and as such control the wholesale market, but their influence over retail sales appears limited.
"US-based Mexican [transnational criminal organization] members generally coordinate the transportation and distribution of bulk wholesale quantities of illicit drugs to US markets," the DEA report states, "while retail-level distribution is mainly handled by smaller local groups and street gangs not directly affiliated with Mexican TCOs."
Cartel operatives and their counterparts in those gangs often have shared linguistic or ethnic backgrounds, but the latter are, in many cases, US citizens.
Mexican cartel members operating in the US, the DEA notes, "strive to maintain low visibility and generally refrain from inter-cartel violence so as to avoid law enforcement detection and scrutiny." Cartel-related violence in the US tends to be limited to people directly involved, and the US has mostly avoided spillover violence from areas in Mexico where cartels have clashed.
"It is anticipated that Mexican TCOs will continue to grow in the United States through expansion of distribution networks and interaction with local criminal groups and gangs," the DEA concludes. "This relationship will insulate Mexican TCOs from direct ties to street-level drug and money seizures and drug-related arrests made by US law enforcement."
You can see a map of the cartels' presence in the US in 2016 below.

Major Mexican drug cartels' areas of influence as of February 2016. DEA 2016 NDTA

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Here's how Mexican cartels actually operate in the United States
Christopher Woody Sep. 27, 2017
   Drug deals on US streets, and the violence done to enforce them, are the prerogative of US gangs, not the cartels….Chicago — where six major interstate highways put drugs within a day's drive of 70% of the US population — has become a particularly important hub of drug trafficking and illustrates how Mexican criminal organizations can operate in the US but remain separate from the domestic criminal landscape.  http://www.businessinsider.com/what-are-mexican-cartels-doing-in-the-us-2017-4
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1-26-18   Democrats in Massachusetts are pushing for their state to become the first so-called sanctuary from marijuana prosecution as Attorney General Jeff Sessions pushes a crackdown on the legalized drug.
Legislation proposed in the Massachusetts House of Representatives would prohibit state and local police from contributing resources to marijuana-related investigations, said Massachusetts Representative David Rogers. He told Newsweek that the bill responds to Sessions's recent reversal of an Obama-era policy that said the Justice Department would not interfere with marijuana businesses and use in states where it was allowed.
"The changed policy roiled the waters in these places where marijuana is legal," Rogers said. "If the FBI or federal cops or the U.S. attorney want to pursue these cases, perhaps that’s their prerogative. But they will get no help at all from state or local police."
Rogers filed the bill, called the "Refusal of Compliance Act," along with Democrat Representative Mike Connolly on January 19. The legislation is in the early stages and still needs approval from Democrat-led committees, as well as the Massachusetts Senate. If it is eventually approved, it would make Massachusetts the first sanctuary state for both immigrants and marijuana.  http://www.newsweek.com/marijuana-sanctuary-state-massachusetts-democrats-challenge-jeff-sessions-790123
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5-16-17   State lawmakers in Washington and Colorado also considered sanctuary-like bills this year that would have barred local law enforcement and other public employees from assisting in federal crackdowns on people engaging in the marijuana activities the state had authorized. Colorado's bill died amid concerns that it could make it too difficult to conduct joint investigations into marijuana operations that were suspected of violating state laws in addition to federal ones. Washington's bill was spiked because of worries that it might antagonize and provoke the federal government — a fear echoed by the California League of Cities and other groups.
Oregon, meanwhile, passed a law that bars pot shops from keeping customer data, lest the federal government attempt to subpoena that information….
Rep. Dana Rohrabacher (R-Costa Mesa) has introduced the Respect State Marijuana Laws Act of 2017 that would protect individuals from federal prosecution if they are adhering to state cannabis laws.
The number of states trying to end the prohibition on marijuana in favor of regulating it is growing, with Vermont, New Jersey and Delaware, among others, advancing proposals to legalize adult recreational use. And so far the Trump administration has not attempted to impede those efforts. http://www.latimes.com/opinion/editorials/la-ed-marijuana-sanctuary-20170516-story.html
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12-19-17    The California Department of Food and Agriculture – which licenses cultivators – released an economic impact analysis in January 2017 on the effects of the cultivation regulations.
“Their estimation is that the cost of compliance will be around $560 a pound,” Caston said.
Caston estimated cultivators’ costs to grow a pound at roughly $200 now, before California’s regulations take effect. He characterized the cost of compliance in the fully regulated market as “enormous.”…
Ceti said:  “People are going to say, ‘This is too crazy. I can make more money on the black market."
https://mjbizdaily.com/will-californias-regulated-market-see-drop-500-pound-wholesale-cannabis/……………………………………………………………
11-28-16   T. Wainwright:  Actually, the barriers to entry in the drug business are quite high.  The key important thing you have to be prepared for is violence, which is inextricable from the drugs trade.  And there is a sort of economic reason for that.
Because the business is illegal, the only way people have of enforcing contracts is violence.  The contract is a crucial basis of every other business.  http://politicalcritique.org/world/2016/how-to-become-a-drug-lord-in-a-couple-easy-steps-interview/
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  When Tom Wainwright became the Mexico correspondent for The Economist in 2010, he found himself covering the country's biggest businesses, including the tequila trade, the oil industry and the commerce of illegal drugs.
"I found that one week I'd be writing about the car business, and the next week I'd be writing about the drugs business," Wainwright tells Fresh Air's Terry Gross. "I gradually came to see that the two actually were perhaps more similar than people normally recognize."
During the three years he spent in Mexico and Central and South America, Wainwright discovered that the cartels that control the region's drug trade use business models that are surprisingly similar to those of big-box stores and franchises. For instance, they have exclusive relationships with their "suppliers" (the farmers who grow the coca plants) that allow the cartels to keep the price of cocaine stable even when crop production is disrupted.
"The theory is that the cartels in the area have what economists call a 'monopsony,' [which is] like a monopoly on buying in the area," Wainwright says. "This rang a bell with me because it's something that people very often say about Wal-Mart."


Enlarge this imageTom Wainwright is now the Britain editor for The Economist.
The Economist
Wainwright describes his new book, Narconomics, as a business manual for drug lords — and also a blueprint for how to defeat them. When it comes to battling the cartels, Wainwright says governments might do better to focus on controlled legalization rather than complete eradication of the product.  https://www.npr.org/2016/02/15/466491812/narconomics-how-the-drug-cartels-operate-like-wal-mart-and-mcdonalds

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