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Mexico’s drug cartels are moving into the gasoline industry

rollingstone.com

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Re: Mexico’s drug cartels are moving into the gasoline industry

#111

Post by marcosdumay »

gleenn wrote: post #91
marcosdumay wrote: post #75

Earlier quoted context omitted.

There is no doubt that a fully formed criminal organization would diversify its income if the drug money suddenly vanished. The question is how lucrative its their new initiatives, how much of structure they are able to upkeep and how much crime there consist of "inherited" structure that is not viable with their new margins. No organizational collapse looks good, and this is one that didn't look any good even on its…

FTA, the stolen gas money already is as good or a bigger source of money than the drugs

There's another comment of mine on the thread, but basically, I doubt the small gang their interviewed has the big picture correctly (distressed gangs are not famous for correctly assessing the big picture).

Specifically, I do think they aren't correctly measuring their risks, so the gangs will fall, one by one, while all of them think they are making a great deal.

Re: Mexico’s drug cartels are moving into the gasoline industry

#112

Post by narrator »

HarryHirsch wrote: post #36
jimnotgym wrote: post #29

Earlier quoted context omitted.

> That legalizing drugs would make the cartels and the violence disappear. I wonder, however, if drugs had never become illegal would a major crime organization managed to form in the first place?

We know the answer already. The Sicilian Mafia was a landowners' association and traded in citrus fruit. Vito Corleone was a literary figure, but it's understandable why he was averse to moving into the drug trade.

The mob in Japan runs Pachinko parlors.

Re: Mexico’s drug cartels are moving into the gasoline industry

#113

Post by mkstowegnv »

zeroname wrote: post #35
21 wrote: post #31

Earlier quoted context omitted.

Russia has major crime organizations without having a reputation as a narco place.

Every country has crime organizations than runs illegal drugs. Mexico or Colombia are special because they're right where the one most profitable drug in the world is produced.

Mexico has only recently become a major poppy growing heroin producer. Before that the cartels were largely making money by dominating the flow of cocaine produced in South America. http://www.eluniversal.com.mx/english/mexico-primary-source-... A saying in Mexico is that the nation's troubles are due to being so far from God and so close to the United States.

Re: Mexico’s drug cartels are moving into the gasoline industry

#114

Post by remarkEon »

moorhosj wrote: post #104
remarkEon wrote: post #90

Earlier quoted context omitted.

>That legalizing drugs would make the cartels and the violence disappear. I'm super skeptical of this argument. My sense is that they'd just diversify into other industries and create their own black markets - and it seems they're already doing this.

You should be skeptical of that argument, which is why nobody has ever really used it. Drug cartels have long been in the business of people trafficking, kidnapping, illegal casinos and weapons trafficking. Drugs are one of their most lucrative industries, but certainly not their only income stream.

>which is why nobody has ever really used it.

Indeed, though it's often paradoxically employed by some libertarians who advocate for full decriminalization.

Re: Mexico’s drug cartels are moving into the gasoline industry

#115

Post by liftbigweights »

syntaxing wrote: post #58

I always wondering how the US managed to tame the Mafia in the early 20s to late 70s. Is there something the Mexican government can mimic or is there something either political or cultural that prevents this?

It was multifacted involving culture, demographic, immigration, law enforcement and external competition.

1. Banning of italian immigration in 1924 ( Immigration Act of 1924 ).

2. The integration of italians into american life.

3. Poor immigrant italian families transitioning to wealthier italian-american families generation after generation.

4. Decades long government crackdown on organized crime.

5. Competition from non-italian mafia ( russian, ukrainian, asian, cuban and of course the mexicans ).

As immigration stop and as italian american moved out of cities to suburbs and got professional jobs, the mob lost its prestige and demographic base. And as the government cracked down, the structure of the mafia was slowly dismantled along with its reputation. Finally, just like the italian mafia usurped the irish mafia, the italian mafia was being squeezed by other younger and stronger ethnic mafia groups.

Re: Mexico’s drug cartels are moving into the gasoline industry

#116

Post by ryanmarsh »

pier25 wrote: post #99
nyolfen wrote: post #49

Earlier quoted context omitted.

it says in this article that the fuel theft is cheaper and easier, and one former cartel member says it makes as much money as drugs >their market and margin is much smaller you think there's a smaller market for gasoline than drugs?

For illegal gasoline? Yeah totally. Buying illegal gasoline only makes sense for some individuals in transportation because in Mexico there is no fiscalization on a large portion of the economy (street vendors for example). Big transportation companies couldn't do it. They need to justify expenses, get invoices, etc. A couple of years back it was easy to get fake invoices since everything was on paper, but there was…

Many US truck drivers are owner-operators. They pay their own taxes and only have to keep driver logs. They are audited as often as the average American. Buying stolen gasoline is a no brainer.

Re: Mexico’s drug cartels are moving into the gasoline industry

#117

Post by pier25 »

ryanmarsh wrote: post #116
pier25 wrote: post #99

Earlier quoted context omitted.

For illegal gasoline? Yeah totally. Buying illegal gasoline only makes sense for some individuals in transportation because in Mexico there is no fiscalization on a large portion of the economy (street vendors for example). Big transportation companies couldn't do it. They need to justify expenses, get invoices, etc. A couple of years back it was easy to get fake invoices since everything was on paper, but there was…

Many US truck drivers are owner-operators. They pay their own taxes and only have to keep driver logs. They are audited as often as the average American. Buying stolen gasoline is a no brainer.

Sure, but do you think the number of taxi and truck drivers is larger than the number of drug users?

Also, do you think the profits are so big that gangs would fight for territory to be able to sell illegal gasoline?

I seriously doubt it.

Re: Mexico’s drug cartels are moving into the gasoline industry

#118

Post by your-nanny »

vermontdevil wrote: post #93
remarkEon wrote: post #90

Earlier quoted context omitted.

>That legalizing drugs would make the cartels and the violence disappear. I'm super skeptical of this argument. My sense is that they'd just diversify into other industries and create their own black markets - and it seems they're already doing this.

Like the American mafia after alcohol prohibition ended.

the American mafia may have diversified after prohibition ended, but it also diminished.

Re: Mexico’s drug cartels are moving into the gasoline industry

#119

Post by poisonarena »

crb002 wrote: post #15

Construction is still king for money laundering. $1 bulldozer rental here, $500 toilet seat there, just like a bank for deposits and withdrawals.

hey so I noticed you were getting downvoted, but in a way you are right.. I worked at a large bank in mexico and construction business is divided by different firms, some more corrupt than others, the construction isn't really controlled by cartels or mafias, but their own construction corrupt syndicates, kinda.. but definitely it is a pain to deal with them when they decide certain bribes are not enough, they often block entrances to buildings with heavy machines or interfere in other construction firms work.. But is is a seperate problem from drug cartels completely

Re: Mexico’s drug cartels are moving into the gasoline industry

#120

Post by [deleted] »

vermontdevil wrote: post #93
remarkEon wrote: post #90

Earlier quoted context omitted.

>That legalizing drugs would make the cartels and the violence disappear. I'm super skeptical of this argument. My sense is that they'd just diversify into other industries and create their own black markets - and it seems they're already doing this.

Like the American mafia after alcohol prohibition ended.

[deleted]
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