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Cocaine cheaper and Gasoline more expensive

(AP) Cocaine prices in the United States have dropped and the drug's purity increased, despite years of effort and nearly $5 billion spent by the U.S. government to combat Colombia's drug industry, the White House drug czar acknowledged in a letter to a key senator.

The drug czar, John Walters, wrote Sen. Charles Grassley, R-Iowa, that retail cocaine prices fell by 11 percent from February 2005 to October 2006, to about $135 per gram of pure cocaine — hovering near the same levels since the early 1990s. In 1981, when the U.S. government began collecting data, a gram of pure cocaine fetched $600.

The purity of this cocaine, meanwhile, has “trended somewhat toward former levels,” as well, Walters said in the letter, citing data from the U.S. Drug Enforcement Administration.

Colombia supplies 90 percent of the cocaine consumed in the United States. Declining prices and rising purity could also suggest weakening demand, but several household and school-based surveys show that America's cocaine consumption has barely budged since 2000, and demand in Europe has increased.

Colombia's president, Alvaro Uribe, is set to meet with President Bush at the White House on Wednesday to discuss U.S. support for Plan Colombia, the anti-narcotics and counterinsurgency program that has cost American taxpayers more than $4 billion since 2000.

Walters' letter to Grassley, the Republican co-chair of the Senate Caucus on International Narcotics Control, was sent in January in response to a request from the senator. It was made available to The Associated Press by the Washington Office on Latin America, a liberal lobby group.

U.S. officials have insisted repeatedly that Plan Colombia is reducing the quality and availability of to American users.

But Grassley, in an e-mailed statement to the AP, said the new data is “all the proof that anybody needs” that the White House drug office “has gotten quite good at spinning the numbers, but cooking the books doesn't help our efforts to curb cocaine and heroin production and consumption.”

Rep. Jim McGovern, D-Mass., said senior U.S. Embassy officials gave him older, more encouraging data during a visit to Bogota in March — two months after the drug czar quietly released his more downbeat appraisal.

“We've given this program a chance to work and clearly this is not producing the results we were promised,” McGovern said. “Cocaine is priced as low and purity is as high as it was before Plan Colombia began six years and $5 billion ago.”

Rafael Lemaitre, a spokesman for the White House Office of National Drug Control Policy, told the AP that Walters would not comment on the letter but Lemaitre described it as “an accurate reflection of our agency's thoughts on the issue.”

In November 2005, Walters announced that cocaine prices had risen by 19 percent and purity had dropped by about the same. He touted the development as a sign that the United States had turned the corner in the drug war. Drug policy experts rejected his assertions at the time, and Grassley called for his dismissal.

“When the data show a brief rise in cocaine prices, the drug czar holds a high-profile press conference,” said Adam Isacson, an analyst at the Washington-based Center for International Policy. “But when the trend goes back down again, the drug czar sends it in a letter to one senator. Why is that?”

© MMVII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

By El_Rey_de_Rey_Siempre on Apr 28, 2007, 00:17 in Friendly Talkzone.

El_Rey_de_Rey_Siempre says on Apr 28, 2007, 00:20:

Bush and Uribe their the Men More drugs and lower prices,and less oil and higher
prices.

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goin_south says on Apr 28, 2007, 00:41:

hey, maybe we can quickly develop un coche que runs on cocaine! que piense, mate?

Why Colombianitas? Personally... I just don't like pink areolar tissue.

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scotty says on Apr 28, 2007, 01:55:

prices up the price of gas is only going to go higher regardless of who is in office in US and Colombia, this is a sign of the times, get used to it.
Gas will probably hit $4.00 a gallon by end of 2007.
If things get worse in the middle east, if USA or Israel attack Iran then get ready to pay $9.00 a gallon.

Get Rhythm, when you got the blues. Johnny Cash

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rocinante says on Apr 28, 2007, 08:55:

Plan Occidental Pipeline A great deal of this this money labeled "Paln Colombia" is for protecting international oil interests in Colombia - or specificially the Occidental Petroleum pipeline.

Does anyone really belive that large corporations and high level politicians really care about the coke snorting American drug addicts?

The technology exists where a satllite can read a newspaper on a street in Afganastan, a man can be sent to the moon and millions of instructions per second can be processed on a microchip the size of a fingernail. But billions of dollars and years of efforts can't cripple a crop? OK, They're heavily armed and protected...

SO,

Forget the crop and fields and labs burried deep in the bush....

How hard is it to beleieve that tons of cocaine going to the US is going via a handful of drug mules and travelers taking risks with their luggage? Very hard. Those are the small timers - representing a very small percent of the volume. There are most likely between 10 and 20 entry points where the mass drugs (tons) are getting through. Certain airports and Ship ports. If 6 billion dollars were to be spent IN THE US, finding these points and smoking out the action would choke the supply coming in - it would be easy. 6 billion bays for a lot of intelligence.

But the drug profits coming to Colombia feeds two sides - let's be honest, but let's not change the subject.

Call it "War Against Drugs" but Plan Colombia is responsible for more than just spraying fields with insecticide and supplying some helicopters.

So what's going to happen? Now that the war on drugs is finally beeing deemed a failure, the US is planning on sending money to Colombia disguised as AID for something else - I forget - someone posted the article here last week.

Regardless, plan Colombia (war on drugs) will fizzle or receive less funding and the money needed to protect oil interests will still get to Cololmbia thanks to the tax payers of the US. It will just be called something else.

The bottom, bottom, bottom line is US tax payers are paying for the protection of huge corporate oil interests. You know, the cronies of US politicians?

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Not that the US president actually runs the US." Feb 5, 2008

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scooby_1781 says on Apr 28, 2007, 09:41:

Personally we should take over all the oil exporting countries. I'm sick and tired of being held up by greedy oil companies.

"SEMPER FI"

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rocinante says on Apr 28, 2007, 10:02:

scoobs exporting countries - greedy oil companies - two different things. You think Exxon, Texico Chevron and a multitude of other US oil companies who get and refine most of thier crude from 3rd world nations are hurting finncially? Do you think they are profiting?

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Not that the US president actually runs the US." Feb 5, 2008

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rocinante says on Apr 28, 2007, 10:12:

Tinto I agree Tinto - I agree. The huge oil companies taking all the profits from third world oil producing countries can pay for their own protection. Not the tax payers. Also, regardless of how much was wasted in various efforts throughout history there can be no denying that Plan Colombia is not working to fight the war on drugs. Do I think the pipeline should be protected? Of course - but let's call a spade a spade. I guess what gets my goat is the uneven distribution of wealth - wealth reaped by the large corporations at the expense of:

US taxpayers

Consumers of gasoline ($6 a gallon by next summer?)

Exploited foreign labor

Destroying other countries' natural resources and displacing their people like dogs.

Horrible imbalance of funds that go to the large oil companies
AND
The imbalance of funds that go to the politicians and already wealthy families in these third world countries.

JMHO

"World economic indicators point to a democrat winning 2008. It will surely be Obama. Not that the US president actually runs the US." Feb 5, 2008

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adrimm says on Apr 29, 2007, 12:26:

Oil Price isn't driven by greed, but by development. China (2 billion people) is catching up to (and surpassing in some ways) development in other nations.

We're on the climb to peak oil prices and the only way out of it is to either a) make every vehicle far more efficient and b) start relying on renewable alternatives. that and North America will have to start managing it's addiction to cars a little better.

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miamimike says on Apr 29, 2007, 12:56:

Adrimm, I doubt that will happen in the USA,,, and here is why! We had some relief at the Pumps for 3 or 4 months with somewhat lower pump prices and what did most Americans do? They went right back to their old gas guzzling habits and purchased more SUVs and Hummer type Wagons! Toyota Priuses sat on the Car Lots(at least in Miami)collecting Dust with no sales! Now that has changed, last night on South Beach, I saw Gas prices at 3.35,3.44 and 3.55/gal. I think Americans won't learn energy conservation until they get hit with $5/Gallon Gas in the Wallet!

On Sept 17, 2008: Senator John McCain said, as he had many times before, that he believed the fundamentals of the economy were "strong."Hours later he backpedaled, explaining that he had meant that American workers were Strong.

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goin_south says on Apr 29, 2007, 13:43:

Hey .... has someone forgotten? It is summertime, the time when North Americans travel by car more and prices ALWAYS tweak up in the summer. And, then ... and hopefully this year as well... ease slowly back down (somewhat) when school begins again in fall.

Not that I would bet, necessarily, that they will in fact lower the price this or any future autumn season. Oil companies and Insurance companies will take care of themselves, have no fear.

Why Colombianitas? Personally... I just don't like pink areolar tissue.

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raulinho says on Apr 29, 2007, 14:08:

cocaine use is incredibly prevalent among white collar workers business men,corporation types, lawyers, doctors, politicians, IT rich people with money it is totally acceptable to them and there is no way that they are trying to win a war on drugs. I have no problem with that if these people want to risk their bodies but I do have a problem because of people dying because of their greed so maybe the answer is to make it ridiculously cheap and legal so there is no profit in making it...

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jay1234 says on Apr 29, 2007, 17:23:

Tinto The point about the US getting only 20% of its oil from the region is interesting. Canada and Mexico are our top two exporters of US
crude oil.
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html
I used to think that Venezuela had us in a death grip over there high percentage of oil exports. But I read somewhere an interesting article that made me rethink that. The article pointed out that oil is a global commodity, so if something were to happen, we could just buy from another source on the international market, though with a higher price. So, even though we may be subsidizing security for Japan, India, China, and Europe, in a way it still benefits us because a spike in prices for them would have an impact on our oil prices, too.
On the other hand, I read an article about processing the crude into products that we can use. I think there is something about the grade of oil that we get from Venezuela that we can process very well, but other countries cannot (without changing their processing plants). Anyways, I think there were some PBHers who work in this industry who may know more. I think Southern151 is in the oil business, though I haven't seen him here in a while, maybe he or someone else knows?

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aztec says on Apr 30, 2007, 05:14:

jay1234, I believe the word is fungible. All that is important is that it be on the market somewhere.

On the matter of the density of Venezuelan oil it is defined as heavy crude. There are only a few refinery's in the world that can handle Venezuelan crude. One of the largest is in the U.S. Virgin Islands.

Of course refinery's can be built. In light of Chaveze's latest threats what country or company will be willing to allocate such large sums to a project that may be expropriated.

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miamimike says on Apr 30, 2007, 06:26:

Chavez owns 6-8 Gulf coast Refineries that are geared up to process this heavy crude. Word has it these Gulf coast refineries are up for sale. On Chavez's Takeover of Oil In Venezuela:

http://goerie.com/apps/pbcs.dll/article?AID=/20070430/NEWS07/70430007

Like the writer says, "Big Oil Goes where the Oil is and where is the Oil in Latin America?"

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adrimm says on Apr 30, 2007, 06:49:

Yes but the lower off-season Adrimm, I doubt that will happen in the USA,,,
and here is why! We had some relief at the Pumps for 3 or 4 months with somewhat lower pump prices and what did most Americans do? They went right back to their old gas guzzling habits and purchased more SUVs and Hummer type Wagons! Toyota Priuses sat on the Car Lots(at least in Miami)collecting Dust with no sales! Now that has changed, last night on South Beach, I saw Gas prices at 3.35,3.44 and 3.55/gal. I think Americans won't learn energy conservation until they get hit with $5/Gallon Gas in the Wallet!
--------------------------------------------------------------

Yes but the lower off-season prices won't be so low anymore as global demand increases. It will go up.

Besides, compared to other nations there isn't much to complain about.

Keep in mind that we (Canada) produce more oil than we consume:
We're paying the equivelant of 4.26 (USD) per Gallon here right now, and in the winter is was $4 (USD) per gallon with summer prices predicted to hit about $4.60 per Gallon...

I thought european prices were high 5 years ago... here is what they are now:

France about 6.54 (USD) per gallon
UK about 7.00 (USD) per gallon
Norway about 7.61 (USD) per gallon

And it will keep going up, the number of people driving with probably double within then next few years, rgo global demand will go up as well. China has nearly 1.3 billion people, India has how many?

Oil companies could let the taps flow more freely but then they'd run out of oil (and profits) sooner and everyone driving petrol/gasoline cars would suffer. Complain now, but how would it be if in 10 years we all suddenly saw a jump (overnight) from 3.60 a gallon to $100 a gallon?

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JMCana says on Apr 30, 2007, 07:01:

Apparently Occiental does pay some Tinto's comment about the USA paying to protect a pipeline of a private company and the CEO getting paid a ridiculous amount got me wondering. I guess Occiental does sometimes pay, but apparently they are a little bit heavy handed. I found this from several years back.

(Los Angeles, CA)-- On April 24, 2003, a group of international human rights attorneys shall be bringing suit under the Alien Tort Claims Act against Occidental Petroleum (OXY) and its security contractor, Airscan, Inc., for their role in the murder of innocent civilians in the hamlet of Santo Domingo, Colombia on December 13, 1998. The suit is being filed by International Labor Rights Fund (ILRF) and the Center for Human Rights at the Northwestern University School of Law.

The lawsuit, which will be filed in the U.S. District Court for the Central District of California, centers around the aerial assault on the small town of Santo Domingo which led to the deaths of 19 civilians, including the mother, sister and cousin of the Plaintiff in the lawsuit, Luis Alberto Galvis Mujica. “This case builds upon the success we have had in using the Alien Tort Claims Act (ATCA) to address egregious human rights violations committed by U.S. companies in their overseas operations,” said Terry Collingsworth, ILRF’s Executive Director. “The ILRF has made it a priority to focus on human rights violations in Colombia, and based on recent decisions in cases brought against Coca-Cola and Drummond Coal, we are confident that our case against OXY will go forward. Companies should not be profiting from murder. This case is the first of several we envision against OXY for its ongoing and willful participation in murder and other human rights violations in Colombia.”

On December 13, 1998, the Colombian Air Force (“CAF”) -- an official branch of the Colombian military receiving direct funding from Occidental in return for protecting Occidental’s pipeline in Cano Limón -- dropped U.S.-made cluster bombs upon Santo Domingo. The CAF, carrying out this raid in U.S-made Blackhawk helicopters, received the coordinates for this bombing directly from Defendant AirScan, Inc., which was working in its capacity as a security contractor and agent of Defendant Occidental. AirScan, through three of its U.S.-born employees who were flying a Skymaster plane at the time -- the Skymaster plane having been provided directly by Occidental -- provided aerial surveillance for this mission during the bombing, helped the CAF identify the target for bombing and chose the places for Colombian military troop disembarkment during the mission. Accompanying the three Airscan pilots in the Skymaster plane during the bombing raid was a Colombian military officer who at the time served as air force liaison to Occidental. This bombing, moreover, was planned by the CAF and AirScan in Occidental’s complex in Cano Limón, Colombia.

http://clajadep.lahaine.org/articulo.php?p=85&more=1&c=1

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JMCana says on Apr 30, 2007, 07:20:

Yes $400 million Tinto, I found the confirmation of what you stated about the CEO income:
"CHICAGO (Reuters) - Occidental Petroleum Corp.'s (NYSE:OXY - news) chairman and chief executive took in more than $400 million in compensation last year, the company said in a filing, one of the biggest single-year payouts in U.S. corporate history."

http://news.yahoo.com/s/nm/20070407/bs_nm/occidentalpetroleum_pay_dc

Also found where the board of directors of Occidental was announced by Fortune Magazine as one of the 12 worst American Company board of directors.

On the Cocaine side, I listened to a discussion yesterday among several Colombians. Their contention seem to be that the price of the cocaine is dropping because there is an increase in supply from South American Countries besides Colombia. They were saying that Brazil and Peru and Ecuador are becoming major players and cutting into Colombian profits. No one could provide references or statistics though.

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