Growing US Police State: War on Drugs

September 9, 2013

By: Paul Seymour, Director of Client Services

My last little ditty was a wandering rampage of current events which just happened to portray a lot of police state tactics and consequences.  That wasn’t what I had set out to write about.  It just so happened that the current events painted a nasty Orwellian picture.  I tend to only write when I’m inspired to do so which might explain the sparseness.  I suppose that being my lack of inspiration.  For whatever reason, those inspirations often come to me in pre-dawn half-awakedness.  Such being the case this morning when I had a strange, but pleasant dream.

As it turns out, I’ll be going up to our conference in Panamá in a couple of weeks, and giving a little presentation on offshore Self-Directed IRA’s.  If you haven’t already signed up to be in (what I hear from everyone) the awesome tropical paradise resort town of Bocas Del Toro, Panamá, I suggest you go here to sign up now.  As usual, most people have waited till these past 2-3 weeks leading up to the event to sign on, with the result being that the Red Frog hotel is about full.

I guess this trip has really been on my mind, since my sunrise dream this fine Colombian morning was about meeting Doug Casey, who will be speaking at our conference.  I’ve been reading him, and other guys like him, for about 20 years, dating back to the time when I was making the decision to pull the trigger myself, and get the hell out of the fascist police state I saw springing up all around me.  In my dream, we were sitting around in a very interesting group of people and conversing.  Shamelessly displaying my  obvious delusions of grandeur, in my dream, Doug was so captivated with my concepts that he asked me to do an interview on the spot………….I know, I know, (with the laughter now slowly subsiding).  Hey, I’m big enough to let others laugh at my expense.

I even recall how the “interview” started to develop.  We had no particular topic in mind, and he just started asking me questions, and it quickly evolved into a conversation about when the current Ameriken police state started to really get into high gear.  I went on to explain to the boy that it all started with my former hero Ronald Reagan.  I was just a kid back then, and really got sucked into all of the charm and charisma without doing so much critical analysis as I do nowadays.  Nowadays being those where grey hairs spring forth from places where there shouldn’t be any hair to begin with.

In my increasingly-less humble opinion, the MIC really got grip of the former America about the same time that first lady Nancy uttered those immortal and inspiring words; “just say no”.  How quaint, and charmingly naïve.   Of course we all know that it was already getting dangerous behind the scenes in the early 60’s when Ike gave the people a very explicit warning.  I provided this link last October in my very first GWP article, but here it is again.  

 “We now stand ten years past the midpoint of a century that has witnessed four major wars among great nations. Three of these involved our own country. Despite these holocausts America is today the strongest, the most influential and most productive nation in the world. (Was he talking about useless services?) Understandably proud of this pre-eminence, we yet realize that America’s leadership and prestige depend, not merely upon our unmatched material progress, riches and military strength, but on how we use our power in the interests of world peace and human betterment.

Any failure traceable to arrogance or our lack of comprehension or readiness to sacrifice would inflict upon us a grievous hurt, both at home and abroad.  

“In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.”  We must never let the weight of this combination endanger our liberties or democratic processes (‘fraid that ship has already sailed.  See all previous articles written by GWP). We should take nothing for granted. Only an alert and knowledgeable citizenry (there’s the problem) can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.” 

“Yet, in holding scientific research and discovery in respect, as we should, we must also be alert to the equal and opposite danger that public policy could itself become the captive of a scientific-technological elite”.  “Down the long lane of the history yet to be written America knows that this world of ours, ever growing smaller, must avoid becoming a community of dreadful fear and hate, and be, instead, a proud confederation of mutual trust and respect.”  

If I copied here all of the extremely salient points he made in that 15 minute speech,  I’d have to copy almost all of it.  READ IT!  Well, kids, here we are 52 years later…

Getting back to my foggy-brained interview with one of my unintentional mentors — When Lady Nancy made that infamous quote, it was the beginning of an increased, coordinated campaign between the MIC, the Congress they control, and their puppet Presidents to escalate what became the War on Drugs, which was actually initiated by Tricky Dick a decade earlier before he rightfully resigned (I wish Clinton, Bush II and Obama had so much character).   I recall vividly back in the early 80’s reading that the US government had commissioned a report from Columbia University on how best to resolve the problem of the insatiable demand for drugs in the US.  Recall how US citizens eagerly spend more for cocaine than they do for the same amount of gold.  Many times more over the past several decades.  After 2 years of research the University handed a several hundred page report to the US government which concluded that legality was the best solution. 

As that would have resulted in a shrinkage of both governmental and military spending, and therefore “wasn’t the right answer”, it was summarily logged in the circular file, and the story buried.  I’m not certain, but I think it was William F. Buckley who made that public.  I also clearly recall Buckley (I don’t agree with everything the guy said, but on this one I certainly do) in an interview with Mike Douglas, stating that all drugs should be legalized.  This was the mid-80’s.  His arguments were so logical, that I’ve been espousing them ever since, and will take this opportunity to spread the word a little more. 

At the war on drugs Wikipedia site it is stated that “according to a 2008 study published by Harvard economist Jeffrey A. Miron, the annual savings on enforcement and incarceration costs from the legalization of drugs would amount to roughly $41.3 billion, with $25.7 billion being saved among the states and over $15.6 billion accrued for the federal government. Miron further estimated at least $46.7 billion in (potential) tax revenue based on rates comparable to those on tobacco and alcohol.”  Therefore, legalization, in addition to reducing the police state tactics now employed by the DEA, ATF, FBI, ICE, TSA, etc. ad nauseam, would result in an approximated $90 billion swing to the good.   Also note at the Wikipedia page the involvement of the CIA in the illicit profits of drug smuggling.

That’s just in the US.  Maybe half a trillion world-wide? Who could possibly be opposed to that?  Well, the US Congress, and the MIC that runs it.  That $41.3 billion in annual taxpayer output/MIC income you see up there is the culprit.  That goes to them currently, thanks to you, the US taxpayer.  The fact that the social costs around the world are immeasurable has no bearing on the decision to keep the pain coming.  It’s pure greed with no moral conviction whatsoever.  The only weak argument that seems to have taken root, is that legalization would increase demand.  Horseshit.  That’s been proven wrong over the past 40 years to anyone with a pair of eyes, and half a brain to process the information that those eyes receive.  Supply has increased over that period, and the price, in constant dollars, although still well in excess of the price of gold, has declined.  In fact, cocaine consumption is legal here in Colombia, and as I’ve pointed out, a gram of cocaine sells for less than a 6-pack of beer due to the almost non-existent demand for it.

More ignored evidence of studies which the taxpayers have paid for.  “In 1986, the US Defense Department (read taxpayers) funded a two-year study by the RAND Corporation (also financed by the US Gov’t), which found that the use of the armed forces to interdict drugs coming into the United States would have little or no effect on cocaine traffic (as apparently does nothing else) and might, in fact, raise the profits of cocaine cartels and manufacturers (and the CIA? Now that’s getting synergy on taxpayer’s money). The 175-page study, “Sealing the Borders: The Effects of Increased Military Participation in Drug Interdiction”, was prepared by seven researchers, mathematicians and economists at the National Defense Research Institute, a branch of the RAND, and was released in 1988. The study noted that seven prior studies in the past nine years, including one by the Center for Naval Research and the Office of Technology Assessment, had come to similar conclusions. Interdiction efforts, using current armed forces resources, would have almost no effect on cocaine importation into the United States, the report concluded”.  So obviously Congress increased this activity, and took further steps to seal the borders.  Thanks. Great work.

The $90 billion swing could possibly be put to much better use?  Maybe spend $1 billion on education campaigns to avoid use in the first place?  Possibly $500 million more to fund some treatment centers for those who inevitably don’t listen?  That would leave a mere $88.5 billion (back in 2008 remember) to pay about a week’s interest on the $17 trillion national debt.

Also, why shouldn’t we, as law abiding citizens, to the extent that we can be in a state where so many laws exist that the average person routinely, and unknowingly commits felonies, be able to invest in ColCoca SA on the production/wholesale side, and US Coke, Inc. on the Import distribution and retail side?  Wouldn’t that provide a better distribution of capital?  Then all those billions would be above-ground.  Audited financial statements and all.  Why should we, as a society, mandate that those billions of dollars per year be forced underground and controlled by murderous thugs?  That’s exactly what you’re currently doing.  Not to mention financially backing terrorist groups like the FARC.  ColCoca SA and US Snow, Inc. would then be paying taxes and good wages to hard-working citizens, including medical insurance, etc.  Thousands of professionals and blue collar types.  A big boost to employment.  Logistics, lawyers, accountants, truck drivers, people to pack and ship, etc. etc.  Alternatively, a big cause of unemployment for armed, and dangerous criminals wearing or concealing badges, and the mafia as well.  Really, why the hell not?  Think about it.  

My point is, is that these are the types of decisions which have mortgaged the future of the former America, and have resulted in a police state.  Here’s a video taken by concerned citizens in the past week or so.  The level of stupidity has increased exponentially since 1961 when Ike told us so.  Land of the free?  That has become an international joke.  Don’t be the only one who doesn’t get it. 

If you still have doubts that the US is a full-fledged police state, watch this.  I’m not exactly a squeamish type, but I personally found it so shocking and disturbing that I couldn’t watch the whole thing.  Maybe they killed him.  What kind of people are these guys, and who is purposefully employing, and retaining them?  Why aren’t they in jail?  Where’s the public outcry? I don’t know what he did, but trying to execute him in a parking lot would seem to be a violation of basic human rights.  Let alone being just a tad in contrast to his right to due process, and maybe even a trial.  Possibly one of them lumbered over to him and said they wanted to feel him up without any probable cause, and he rightfully told him to go screw himself.  He’s obviously not armed, and doesn’t appear to toting chemical weapons.  If four homeless guys were beating a cop like that they’d scramble apaches and F-16’s.   

I couldn’t possibly be more disgusted with what you guys have done to what was once the greatest nation on Earth, but feel much safer down here, in a civilized country, where things like that never happen.  Let alone on a daily basis.  In fact, we have some public protesting going on here now.  Bordering on violent, actually, and the cops haven’t fired a single shot, nor tased a single citizen.  The Constitution, which is still in effect down here, allows for public displays of dissatisfaction.  Shrug your shoulders and go back to your shoot ‘em up video game, and the warm Schlitz. Well done.

The solutions I’ll just copy from a previous warning of my own.  Ignore at your own peril.

1. It takes a long time, and is very costly, to become the citizen of a free country.  You should start that process yesterday, if not sooner.  Contact us for referral to an expert.
2. Fortunately, moving assets offshore to a privacy-respecting jurisdiction is neither time-consuming, nor costly.  Hence Uncle Sam’s attempts to brainwash the masses into believing that it’s somehow unpatriotic to protect yourself, and your family, from their tyrannical power grabs, and the frivolous lawsuits which exist due to their complicity.  For a 1-time fee of $2,400 (only $1,800 with Seychelles company), including a bank account in the name of an offshore LLC, I can very legally make that happen for you.  In fact, I can even assure your legal tax reporting compliance.
3. Move your IRA and 401(k) out of harm’s way immediately, before it’s too late.  “In the past few days, the Polish government announced quietly that it would transfer to the state – i.e., confiscate – the bulk of assets owned by the country’s private pension funds (many of them owned by such foreign firms as PIMCO parent Allianz, AXA, Generali, ING and Aviva), without offering any compensation. In effect, the state just nationalized roughly half of the private sector pension fund assets, although it had a more politically correct name for it: pension overhaul.”   This was done due to the high debt rate in Poland of 52% of GDP, in order to allow the Polish government to improve its balance sheet and borrow still more.  Keep in mind that the US has a debt to GDP ratio double that of Poland.   I guess we can trust the words of people like Lew at the Treasury Department, and Barrack Obama when they say they won’t do something similar in the US?  They’ve never lied to us before.  The IRS has instituted increased reporting requirements for non-cash assets held in IRA’s, which clearly signals increased scrutiny to come.  We can move your hard-earned retirement funds out of harm’s way for $2,900 and keep it in qualified status under IRS regulations, as of now.   Our services include change of custodian, establishment of offshore LLC, and an offshore bank account, both in privacy-respecting jurisdictions where due process is still in vogue…  Strict tax compliance also offered.
4. Seriously consider the added protection of irrevocably gifting assets to an offshore trust or foundation.  This legally takes the assets out of your name and therefore, in a jurisdiction which still adheres to due process, protects them from frivolous lawsuits and governmental confiscation.  It also could save your heirs considerable taxes in the event the IRS changes the tax code in this regard, which almost happened last December.

You’ll need to reinvent yourself to pull this off.  That’s not necessarily a bad thing.  After taking the first two steps noted above, in a free country which makes cultural sense to you, you’ll be embarking on a new adventure that you won’t regret.  The feeling of freedom is exhilarating to those of you who’ve been trapped so long behind the curtain that you no longer know what real freedom feels like.

Hasta la próxima muchachos, y mucha suerte.

Paul is an escaped Big 4 CPA (financial statement auditor), and Corporate Controller/CFO who found a natural home in the offshore industry with Bobby Casey and the gang at GWP.   Contact him to learn more about the realities of economical offshore asset protection. 

An offshore company and bank account can be established for as little as $1,797, including my advice and assistance throughout both processes, and in both privacy-respecting jurisdictions, apostils required to open bank accounts, and courier charges to send original documents to you.  There’s never any need to visit the jurisdictions personally, although they’re very nice places, and I recommend a visit.  With our established agency agreements, we can do everything via e-mail.  We maintain long-term relationships with our clients, and remain available for consultation on an ongoing basis.