Brazilian Drugs Lords Show More Integrity Than Central Bankers, Refuse To Sell Crack To Their People

Tyler Durden's picture

Just over three short years ago, as equity markets were re-surging on a wave of taxpayer-funded bailout euphoria, we wrote "There is nothing that can be done at this point to prevent the administration from leeching every last dollar out of its taxpayers to benefit the terminally addicted and zombied bank system". We, in the imagined words of Ryan Lochte on Saturday, "Nailed It" as we see a market now so bereft of any human-based reaction to reality and merely a product of a drug-peddling central bank that appears to have become self-aware in its omnipotence. To wit, the present day; as we are teased and tickled day after day with the promise of more CB crack if we are just good boys and BTFD, the sad nay terrible fact is that even the most 'say hello to my little friend' of drug-dealers - those of the Brazilian Favelas - have decided to refuse to sell their 'crack' to their own people since it "also brought destruction in [the] community". Maybe, just maybe, the Fed will up its level of conscience this week to that of Brazilian drug-dealers.

Spot the Fed analogies:

Via Al Jazeera: Brazil Drug Dealers: "Stop Buying Crack"


Rio de Janeiro, Brazil - Under a footbridge, when night falls and it's pitch black, the only light that emanates is from flames given off from a few cigarette lighters and a couple candles. On the dirt floor trash is scattered about, including condoms and plastic water cups with holes punched in the bottom to be used as rudimentary pipes; the pungent stench of urine hangs in the air. 


It's filthy, but nobody seems to notice. The couple dozen people here on the ground are all too fixated on taking their next hit of crack cocaine.


This scene plays out inside the Antares slum - or favela as it is known in Brazil - in the industrial outskirts of Rio de Janeiro. There are men, women, and even children, all using.


Paulo, a middle-aged man and father of three young children, is hunched over and inhaling a hit.


"I use crack every day, almost every hour," he said without hesitation. "This is a drug you fall in love with the first time you use it."


The Antares favela is under the command of dozens of machine gun wielding young men from a faction of the Comando Vermelho drug gang. It's generally considered a no-go area for police. A night-time visit inside the drug den in the slum reveals a troubling scene but points to a larger picture of how crack has become a security and public health epidemic in Brazil, spreading to all corners of the country and infiltrating all economic classes.


But since a rock of crack can be purchased for only R$5 (less than $3 USD), the most desperate and downtrodden users tend to congregate by the hundreds in and around Rio's favelas, where it can be easily purchased.  


Unprecedented move


That is partially why, in an unprecedented move, some drug traffickers have unilaterally decided to stop selling crack in the favelas they control. In both Mandela and Jacarezinho favelas - combined home to more than 100,000 residents - crack can no longer be purchased. Two drug bosses, who control each favela, gave the orders to halt sales.


A dirt road bordering Mandela favela that previously was known to be one of Rio's largest concentrations of users (known as "cracolanidias" in Brazil) is where hundreds of users and sellers would congregate day and night. 


The road is now clear of any signs of users or sellers.


"I am not going to lie to you, there is a lot of profit to be made on crack," said Rodrigo, a top trafficker in Mandela who used to manage all the crack operations, told Al Jazeera. He asked that his real name not be used. "But crack also brought destruction in our community as well, so we're not selling it anymore. Addicts were robbing homes, killing each other for nothing inside the community. We wanted to avoid all that, so we stopped selling it."


The traffickers in Mandela, like Rodrigo, readily admit they still sell marijuana and powder cocaine and were happy to show it to Al Jazeera. Business was good for those drugs; bags of money sat out on tables at sales points in the slum.   But those other drugs, they said, don't seem to cause the same social problems in the favelas they control.


Crack sales have been halted in just two of Rio's favelas, but Flavia Pinheiro Froes, a lawyer who represents many drug traffickers, said she expects more drug bosses to join in soon.




"Our campaign is not only done in the communities directly with the traffickers that are selling, but also with some of the drug gang leaders that are in jail," Pinheiro Froes said. "I think convincing the seller could be one of the most efficient ways to combat crack because if there is no supply we will be able to solve the problem of the consumer."


Pinheiro Froes, whose current and past clients make up a "most wanted" list of Rio's most notorious drug traffickers, said many traffickers witness the destruction crack wreaks on lives first hand as they have family and friends who are addicted.   


She said she is hoping for even commitments for the gangs to stop buying from the big suppliers, some of whom are in neighbouring countries.




Future of crack sales


Back at Antares favela, crack addicts are everywhere, scurrying through the darkness to find a corner to smoke, while crack sales continue unabated.


One trafficker, "Joao", said they are prepared to stop sales if told to. "If our boss tells us to stop selling crack, we will," Joao said.

* * *

Of course, that the Fed will never show the same "integrity" as Brazilian slum dealers was something we predicted back in March 2009, quite simply because the US system was beyond savings back in March 2009, most certainly is beyond saving now, and the Fed knows it very well:

There is nothing that can be done at this point to prevent the administration from leeching every last dollar out of its taxpayers to benefit the terminally addicted and zombied bank system. Using pretexts, subterfuge and lies, the administration's charade triage will only end once there are no more gullible taxpayers to provide their cash, no more demagogue senators and congressmen who will bend reality to make it seem that their actions benefiting a select few are for the benefit of all, and no more naive investors who buy into the promises that U.S. debt is the "safest investment." However, for the scope of this post, I can only hope that Perella Weinberg quickly realizes the futility of the TLGP fee increase, and that the goals of that particular action will be magnified when Dodd's hilariously titled DPA 2009 bill passes, as the negative consequences are likely to substantially surpass any positive ones.


In the grand scheme of things, at this point it doesn't really matter: at best, any FDIC action buys the U.S. financial system a year or so to delay the inevitable moment when the heroin addict decides it is time to seek the help of a methadone clinic before it is too late, only to realize that in its quest to feed the addiction, the administration forgot to provision for any precious methadone... but then again its availability would imply someone actually believes U.S. banks will, at some point, get to a point where detox is even a remote possibility which is obviously not the case (at least for now).


And if the unimaginable does happen, and the administration does comprehend that the wisest and correct thing is to use the cold turkey approach on U.S. financials, Zero Hedge provides some more sage advice from the protagonist of Trainspotting, who succeeded where so many U.S. banks have and will fail:

Relinquishing junk. Stage one, preparation. For this you will need one room which you will not leave. Soothing music. Tomato soup, ten tins of. Mushroom soup, eight tins of, for consumption cold. Ice cream, vanilla, one large tub of. Magnesia, milk of, one bottle. Paracetamol, mouthwash, vitamins. Mineral water, Lucozade, pornography. One mattress. One bucket for urine, one for feces and one for vomitus. One television and one bottle of Valium, which I've already procured from my mother, who is, in her own domestic and socially acceptable way also a drug addict. And now I'm ready. All I need is one final hit to soothe the pain while the Valium takes effect.


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UGrev's picture

You asshole.. you linked to a page that is WAAAAAYYYYY to short in content. if you're going to post a link to it.. go all the way brotha! Btw.. I'd hit everyone of them :)

Tsunami Wave's picture

Whatever it is, there's something in the air, water, or food in that country that make their girls so f*****g hot.

Haddock's picture

It's difficult to score crack?

jaffa's picture

Tertiary care is specialized consultative health care, usually for inpatients and on referral from a primary or secondary health professional, in a facility that has personnel and facilities for advanced medical investigation and treatment, such as a tertiary referral hospital.Thanks.
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Satan's picture

Now that's my kind of crack!

Ps. My granny doesn't look like that.

BigJim's picture

Your granny didn't start breeding at the age of 14

bank guy in Brussels's picture

Big fun music hit from Brazil sweeping global dance clubs these days - you see the 36 million views - very catchy song about sex -

Gusttavo Lima's 'Balada' -

For those who would like the lyrics in both Portuguese and English (links to the above video too) -

jaffa's picture

The suffix is located at the end of the term and is used to fine tune the primary meaning and acts as an inflectional ending, denoting specific features, such as the circumstances surrounding a condition, the progression of an ailment and the course of action to be taken. Thanks.

Haddock's picture

Whoever wrote this rubbish should probably stop smoking crack

BLOTTO's picture

If only the Favellas,



MS-13, etc... could/would harness all that mad energy and frustration towards the global elite...

We are fighting a WAY bigger war than just drugs and street - we are fighting the ultimate battle

Good vs. Evil.

Haddock's picture

If only the good men & women of our armed forces would do the same instead of the global elites bidding - things would really change

Lohn Jocke's picture

Call the broker, Go long crack.

busted by the bailout's picture

In a better world drugs would be legal and printing money would be illegal.

bigdumbnugly's picture

yes they are such humanitarians...

HD's picture

Maybe not, but they are smart enough to not to shit where they eat...

NotApplicable's picture

Exactly. The Central Banksters, meanwhile, are safely ensconed in their Ivory Towers for yet another day, far, far "above" humanity.

The there's the idea that these people aren't filled with the delusions of public service that turn the best  intentions into the worst actions.

Tsunami Wave's picture

Doing God's work in the City of God?

Mr Lennon Hendrix's picture

This is like when Don Corleone said he didn't want the drugs near schools.  Obviously the drugs would end up near the schools.

Instead of the headline, Tyler should have written, "Drug Cartels acting like Banking Cartels:  Say One Thing, Do Another"

Alcoholic Native American's picture

Don't the banking cartels launder all the drug cartels money?   The drug market soaks up a lot of excess cash money that is then used to invest in the markets.  It's like the petro dollar recycling mechanism of the cash world.  

+1 for you sir. I don't trust drug dealers either.

Tsunami Wave's picture

What woud happen though if a TBTF bank had the audacity to screw over a drug cartel and steal all their money?

jumbo maverick's picture

Well I remember reading a story in may of 2010, maybe 2011 in the wall street urinal. It talked about how former Libya leader col. Muamar Kadafi had invested billions with Goldman Sachs. Kadafi wanted his money back and he kept asking for it. He was getting the run around and all that. Well soon Libya fell into civil war, imagine that. The end result Kadafi got a big knife shoved up his ass a bunch of times before they killed him. So history shows what would happen to the drug Cartels if they stole bank money.
It really is an interesting article to read.

NotApplicable's picture

Either they would find themselves no longer TBTF, or you'd read about yet another banker suicide.""

Carl Spackler's picture

Actually, HSBC may do all the laundry.

JustObserving's picture

Drug Money Bailed Out Banks in 2008


Drugs money worth billions of dollars kept the financial system afloat at the height of the global crisis, the United Nations' drugs and crime tsar has told the Observer.

Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organised crime were "the only liquid investment capital" available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result.

This will raise questions about crime's influence on the economic system at times of crisis. It will also prompt further examination of the banking sector as world leaders, including Barack Obama and Gordon Brown, call for new International Monetary Fund regulations. Speaking from his office in Vienna, Costa said evidence that illegal money was being absorbed into the financial system was first drawn to his attention by intelligence agencies and prosecutors around 18 months ago. "In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system's main problem and hence liquid capital became an important factor," he said


All Risk No Reward's picture

Big Finance Capital runs the drug trade.

1. Create debt based monetary fraud in order to systematically siphon off the wealth of the productive class.

2. Use money to capture the media.

3. Use money and media to finance and promote political operatives.

4. Lobby for strong drug laws, in part to prevent someone from avoiding payments to Big Finance Capital Pharma.

5. Use US military to secure areas to grow drugs (#1 heroin and marijuana producer is Afghanistan).

6. Cut deals with mega drug cartels in order to launder the money through your mega bank corporate fronts.

7. Use media to make drug use look "counter culture" when the mega banks really want tax free profits.

8. Allow your controlled drug cartels to bring drugs into the country while fighting off the competition.

Oh, they aren't done yet.

9. Lobby to create the private prison systems.

10. Load up your prison system with people caught in your neo "Opium War" (this isn't the first time, folks - we can't be so naive).

11. Use the drug war BFC create in order to sell the people on the states right to confiscate private property - even without any evidence the person who owns the property committed any crimes.  Of course, the police can now dump some drugs in a house and seize the house when the budgets get bad.

12. Let's not forget using public money in order to arm your controlled drug cartels so they can murder thousands and you can then turn around and blame it on the 2nd amendment and use that as an excuse for victim disarmament in the United States...

I'm sure it is random chance this is occurring just before economic collapse and as the Central State is arming to the teeth in order to fight someone.

Which brings up an odd statistic.  The United States military budget is equal to that of the next 26 nations in the world.

25 of whom are allies.

So, what nation could be a threat to that kind of military dominance?

It sure looks to me like the governments are arming up for war with their populations.  You know, the ones they are trying to disarm through criminality and murder.




Oh regional Indian's picture

Excellent ARNR. Well "pointed" out...


Hype Alert's picture

"Maybe, just maybe, the Fed will up its level of conscience this week to that of Brazilian drug-dealers."


Get real.

sgt_doom's picture

Excellent point, and to understand how Brazil got to this point, one may wish to go back and review the CIA operation under the LBJ administration, Operation Brother Sam.

And better yet, read Gerard Colby and Charlotte Dennett's

Thy Will Be Done


bugs_'s picture

oh the quandary - is the cheap talk of a drug merchant slightly lower or higher than the cheap talk of a central banker?

LawsofPhysics's picture

Even drug lords recognize that there should always be real consequences for bad behavior, now how fucked up is that?  Where is Jon Corzine?

Dr. Engali's picture

When I saw this title I thought it was a Simon Black  from Soveriegn Man piece outlining the merits in relocating to a Brazilian drug lord location.

t_kAyk's picture

In due time.  He is busy blogging about his vacation home in Paraguay, his investments in Slovakia, his 18 passports and 'rabbits' in the Ukraine. 

rigeltrader's picture

Li'l Zé should run the fed

Neethgie's picture

Nah carrot or knockout ned.

Chupacabra-322's picture

The Central Intelligence Agency was intimately involved with the federal government’s infamous “Operation Fast and Furious” scheme to send American weapons to Mexican drug cartels while simultaneously working with other agencies allowing narcotics to be shipped over the border, according to a series of explosive reports.

Citing an unnamed CIA source, a Washington Times article theorizes that U.S. officials were actively aiding organizations such as the Sinaloa cartel with guns and immunity in an effort to stymie Los Zetas. That’s because, according to the piece, the powerful and brutal criminal Zetas syndicate has the potential to overthrow the government of Mexico — and might be planning to do so.

The entire leadership of the Sinaloa Cartel is made of CIA operatives and DEA informants. The Sinaloa Drug Cartel is headed by Joaquin ‘El Chapo’ Guzman, who is listed among one of the richest men in the world according to Forbes Magazine. Ever since his capture and ‘mysterious’ escape from a maximum security prison in 2001, everyone in Mexico believes Guzman reached a deal with the DEA to provide information about his rival cartels. In exchange, the DEA would provide protection for him, his people, and his drug shipments. Guzman would also allow DEA operatives into his organization.

sgt_doom's picture

Los Zetas?

And that's after all that free training they received at the School of the Americas at Ft. Benning!

Neethgie's picture

The sinaloa cartel prefers bribery and corruption to keep themselves out of jail.

los zetas prefer beheadings and mass murder, pretty sure i could guess who is gonna win this one, not to mention they are ex special forces.

Whiner's picture

Problem with -I say, the problem with strong drugs is that you have to take more and more of'em until they make you dead, so analogy is perfect. Pass the needle, Ben.

Chupacabra-322's picture
And all these bastards are related and deep into it. Obama, Panetta, the Bush family, Clintons. They are the lawless ones, the psychopaths and the people perpetuating crime and terror all over the world and they do it under the banner of the USA. Americans need to rise up and demand it stops. Not easy but it can be done. The CIA is funded some by Congress but mostly from it’s off the books drug running business which is then laundered through the IMF/Wachovia now Wells Fago Banks. They threaten and control almost every Congressman and Senator, they rig elections. Who showed up in Ventura’s office after he won election, THE CIA, OF COURSE. Ventura wasn’t supposed to have owon the election. And Obama, he’s so deep into the CIA some have said he was mnaufactured in Langley, Virginia. Wachovia's Drug Habit
Chupacabra-322's picture
The Mena Connection - Exposing the CIA, Bush, Clinton, Iran Contra, And Drug Running

Tells the story of the lies of the US Government concerning the Iran-Contra Affair.

George Bush Sr. & Bill Clinton oversaw the smuggling of TONS of Cocaine in & out of Mena, Arkansas (the hub of traffic if you will where the 'Enterprise' conducted business clandestinely.)

This is a must see....Just the first 10 minutes alone will leave your mind boggling.

earleflorida's picture

oli north was hiding out in clinton's governor mansion at the time, and using a local airport for ramping-up,...