Pubdate: Wed, 17 Sep 2003
Source: Good 5 Cent Cigar (RI Edu)
Copyright: 2003 Good 5 Cent Cigar
Author: Chuck Beyer


To the Cigar,

Once you understand the concepts of fractional reserve banking and
stock market leverage you will understand why the US pushes drug
prohibition so much and why drug prohibition is the biggest corporate
rip-off ever invented.

In our fractional reserve banking system banks can lend ten times or
more on the money that you deposit . Catherine Austin Fitts -
undersecretary of housing in the first Bush administration estimates
that the worlds drug economy is about $500 billion annually. She also
estimates that half of this money will reach American banks.

Once these banks get a hold of that $250 Billion they can lend 10 time
that amount or about $2.5 Trillion. The biggest borrower of this
drug-derived cash is the US government. Now, to complete the circle,
the banksdonate some of this money to politicians.

Fitts also showed how a lot of this money leverages the stock market.
A stock trades at 20 - 30 times its annual dividend. So, for example -
if you have a publicly traded company worth $2 million and cook the
books to ad $100,000 in illegal drug money annually within a year that
company is worth twice as much because of the stock trades at 30 times
the dividend, which increases due to the drug cash.

The fact is that the US and the world are awash in a sea of drug
money. Drug prohibition, which at some point may have been implemented
with good intentions is today merely a tool for banks, CEO's and
politicians to fill their pockets and they can only do it by putting
our children in jail.

Maybe Canada will the first to send this sorry lot back to do honest
work and legalize drugs.

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