EXPOSED: CIA drug connection shows how they support USD and manipulate foreign markets
Drugs have been a part of human society forever – however far back you go, humans have used drugs in one form or another; medicine, recreation, spirituality (Shamans of simple tribes often ate psychedelics). In the world today there is an interesting schism between the puritan “America” and “Europe” about this issue – in Europe they consider drug addiction a health issue, and in places like Switzerland you can literally get strong narcotics like heroin from the Government. In America it’s the opposite, there is an exploding prison population for small non-violent offenses. But as with many things in America there are lots of ironies and hypocrisies, America also has the highest per capita rate of users of legal pharmaceuticals ‘drugs’ – and is one of the only countries in the world where drug companies are allowed to advertise on TV (In Europe you won’t see commercials for Prozac, Viagra, or other questionably useful drugs).
As the CIA represents the main head of the octopus that controls America’s society on behalf of their Illuminati owners, it is only fitting that the CIA has its hand in the international drug trade. It is also an interesting side note that since its early days the CIA has been interested in drugs for the use of interrogation, mind control, crowd control, and other purposes. In fact there have been suggestions based on circumstantial evidence that the entire ‘hippie’ movement came straight out of a CIA drug lab vis a vis Tim Leary and other affiliated icons.
The inspiration of this article is the book and legend of Gary Webb, the book is Dark Alliance – a must read for any trader or investor. Here’s a real blueprint how groups like the CIA manipulate markets. While the story of Dark Alliance which was originally published in a small California regional newspaper the San Jose Mercury News. The book is a great example of how to properly research a topic where its difficult to find information (in this case, because most of the CIA involvement was ‘secret’ and thus information was classified or destroyed, mostly). In trading, information is also difficult to find – analysts can learn a great deal from reading this book and understanding how one investigative journalist broke open the biggest secret the CIA had in its closet of deep secrets: The CIA was managing the international drug trade. The book concludes with the impeccable logic of the agency and how they could be involved in such dastardly deeds. When the topic was officially investigated it was discovered that the CIA had a secret legal agreement with the Department of Justice (DOJ) stating that through the CIAs business of spying, it was not their obligation to report illegal activities they witnessed to the DOJ (such as drug trafficking) as it may compromise their intelligence gathering. And lo and behold, most of the CIAs international assets happened to be major drug kingpins like Manuel Noriega. So based on this understanding, no employee of the CIA ever directly brought drugs into the USA, and likely never touched the operation directly. It was CIAs job to provide logistic support, planes, pilots, operational instructions, airfields, needed gear, and most importantly – protection from prosecution in USA due to ‘national security.’ And there were side benefits to this operation. They got to redirect funds from Central and South American cocaine to the fledgling contra revolution in Nicaragua which the US Congress didn’t want to continue funding. They got to destroy the black community in South Central Los Angeles with the crack explosion (not only by health, but by using it as a tool to pass draconian laws). They also could easily use the information on the drug trade to go after their enemies in Central America. It seemed to be a win-win-win for USA. And according to this secret agreement with DOJ it was all legal!
Before continuing, let’s un-muddy the waters about key points on this issue. An investigation found that no CIA employee was found bringing illicit narcotics into USA. That’s probably true. In “Dark Alliance” there is no suggestion that the CIA itself was bringing drugs into the country. The drug kingpins such as Norwin Meneses, Danilo Blandon, and others – were simply protected as ‘assets’ – the CIA not only looked the other way, they stopped other US Government investigators from uncovering anything substantial. Several instances where the drug operations were discovered by DEA, FBI, and others – turned into a situation where they were instructed to cease the investigation and if they did not, the individual was targeted.
So how is all this connected to the markets? The CIA is a fairly large organization, 20,000 employees working in the US and in practically every country in the world. Their operations are vast, just to name a few not commonly known but public CIA operations, they are active angel and seed investors in Silicon Valley and have even created a budding DC based VC community that develops technology with primarily intelligence and military applications (such as face recognition). The most absurd example of a CIA project was when they hired psychologist BF Skinner to train pigeons to aid in missile guidance systems:
One of the most seemingly preposterous military programs of all time occurred during WWII, when famed behavioral psychologist B.F. Skinner was enlisted by the government to try and train pigeons for use in a missile guidance system. At the time, Skinner was known as one of the major practitioners of operant conditioning, a system that used reward and punishment as a means of controlling behavior. With these ideas in mind, Skinner placed a series of specially trained pigeons inside missiles. A camera on the front of the missile recorded its flight path, which was then projected on a screen for the pigeon to see. The birds were trained to recognize the missile’s intended target, and they would peck at the screen if it was drifting off course. This information was fed to the weapon’s flight controls, which would then be changed to reflect the new coordinates. Skinner was originally given $25,000 to get the project up and running, and he actually managed to make some minor progress with it. But government officials were never quite able to get past the obvious absurdity of the program, and it was eventually shut down. .. and another one “Acoustic Kitty”
Most people wouldn’t think of the common house cat as being a potential master of espionage, but the CIA sure did. In the 1960s, American intelligence is said to have spent over $20 million on “Acoustic Kitty,” a top-secret project that used cats as recording devices. The project took a group of specially trained cats and surgically implanted microphones, antennae and batteries into their tails, and then set them loose near the Russian embassy. The idea was that an unassuming cat would be able to stride right up to groups of communist officials and listen in on their conversation, which it could then beam back to agents with its sophisticated radio equipment. The plan was eventually put into action, but the first cat sent into the field was supposedly run over by a taxi before it could make a recording, and operation ‘Acoustic Kitty” was abandoned shortly thereafter.
Why did we use this ridiculous example? Because it is a known project, that the CIA was using Pigeons to guide missiles – it’s not so hard to believe they provided drug traffickers with the logistic and legal support needed to bring Cocaine into USA (and many other activities). For more absurd CIA programs see this article.
But the primary role of the CIA, is that of intelligence gathering and analysis which puts them right in the middle of the information war – and the battlefield is the financial markets. As we explain in our book Splitting Pennies Understanding Forex – the only thing that backs the US Dollar are bombs. Basically, the US Military, and in this case the CIA primarily, protects the US Dollar globally. If you look at any foreign CIA operation it’s all about one thing: money. Cuba became an enemy only after the communist government nationalized US owned businesses there (effectively, seized). You can literally overlay a global map of CIA activity which is negatively correlated with Coca Cola and McDonald’s sales (which are all denominated in US Dollars). And by the way, that is the connection to the CIA and FX – wherever there’s a foreign market, there is the CIA. They fight for market domination of the US Dollar (and the US corporations and culture that comes with it) no different than a major US corporation competes for market share. But their ‘client’ is one single entity: The US Government (and US Citizens, but rich ones). They are protecting capitalism at the front lines – fighting communism while making a few dollars along the way – what could be more American than that? They use the same playbook as they’ve developed internally for most of their operations – thus, by understanding the Contra-Cocaine operation one can understand any operation. They aren’t really so different.
Here’s a document that shows how the CIA has been supporting the US Dollar, regarding Gold markets (bear in mind, this document is dated 1970, one year before Nixon created the free floating FX regime we use today, which means the US Dollar was pegged to Gold). CIA support of US Dollar and USD interests is implied; that’s at the core of what they do – it is their doctrine. Intelligence gathering, is the tactical level and Communism, and other threats to the USD global hegemony are strategies. And relatively speaking, they do a good job. The USD has never been used so widely around the world, the US stock market has enjoyed a bull run never seen before in history. All the crap in the news and investigations into their drug operations are really an irrelevant side issue – what the CIA was created for, they succeed.
Probably, let’s hope this is not the case, probably – there wasn’t a CIA plot to bring Cocaine into America and turn it into crack and flood the black community. These were all convenient circumstances to achieve what they wanted operationally – fund a covert war and at the same time make a little money and use the issue to ruin their local enemies. Central America has few natural resources to speak of without sophisticated mining and/or manufacturing operations to tap them; in other words, there isn’t any ‘oil’ to exploit, as in the middle east. The one thing that is easy to grow and is more valuable than any other naturally growing substance, is Coca (when refined into Cocaine). And as explained in the book, before it was realized that it could be turned into crack – Cocaine was the habit of the Elite themselves, due to price and the fact that you could literally continue working while you were high on the powder (such as Wall St. traders during the trading session). So while it seems extreme, and the crack epidemic of Los Angeles is clearly a huge social problem – it isn’t really surprising that the CIA was involved in such profitable business. Similar circumstantial evidence suggests that a similar operation was run in Afghanistan, a land where the Poppy plant grows wild. George H.W. Bush’s CIA nickname was George “Poppy” Bush. Like “Grandpappy” right? In the book Gary Webb claims that Pablo Escobar had a photo of “Poppy” standing in front of a huge pile of cash and cocaine, but the photograph never surfaced and he was killed shortly after making this statement about the photograph (it may be another funny coincidence).
In conclusion – this book is a must read for any trader or investor: Dark Alliance. Also it’s a must read for any lawyer – as this is a unique situation where you have a hidden hand protecting defendants in Federal cases with ‘national security’ – silencing witnesses (with gag orders) and other mechanisms not common in district courts.
TLB recommends other interesting reading at GlobalIntelHub