China CAUGHT Supplying Drugs to Cartels
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We’ve spent a lot of time here on the program discussing China, our thoughts on China. And again, we differ a great deal from the conventional wisdom that’s being put out there on both left-wing networks and right-wing networks. I don’t know of any real true straight down the middle journalistic endeavor that that’s out there at this point in time. I really don’t. But anyway, both sides coming down on China. And again,
We just had Anthony Blinken that was there. Joe Biden stepped in again yesterday when he called Xi Jinping a dictator. It doesn’t help when you’re trying to do business with these guys, but we’ve basically been explaining that things are tough in China. The economy is not doing well. And I always stress the inevitability of China’s decline. Command and control economies will sputter out.
and they will fail. This is why we need to stop doing it as well. There’s an interesting story in the Wall Street Journal talking about how, you know, Wall Street and a lot of the investment banks and private equity and you name it, are they’re souring on China there, they’re looking at other places. You’ve got Modi coming to the United States from India, and it’s looking like a much more attractive place to invest money. I want to talk a little bit about Fentanyl.
Fentanyl China and money laundering. Fentanyl is a growth industry in China’s weakening economy. This is a column in the Wall Street Journal. And what’s interesting about this is how it all works. How it all works. I want to go through how the entire thing works. You must ask yourself. We got over 100,000 people dying a year here in the United States due to drug overdose.
primarily from opiates, fentanyl in particular. And how does it all work? How does it get here? We’re told a million things. We’re told that China is making it and shipping it to Mexico. That’s not true. We’ll go through this right now. They have a role, there’s no doubt about it. Now, how does this work? How does the entire system work? Chinese-based…
producers of chemicals. Of chemicals, what they do, and they also, they have, the Chinese are also behind, involved in the whole money laundering operation also. They work with the cartels and crime families in Mexico and Europe on this. They send the chemical components over. They’re in Mexico or wherever it may be in Europe. They’re made into
Fentanyl, final substance, finished substance. And this is moved to the United States in a myriad of different ways and oftentimes then mixed with other opiates. Okay, people buy this on the streets with what? Cash, cash. Now, these are often controlled by these networks of people that sell it are controlled by Chinese nationals or…
Chinese that are living here in the country legally. All the money’s collected. Again, if you’re familiar with the television show, The Wire, I mean, it’s pretty similar to that. So you’ve got dollars taken from the street dealers. It’s all consolidated, put together. And guess who’s doing this? Chinese students.
I’m not making this up. Chinese students, also front businesses, restaurants, bars. Again, that’s nothing new. It’s money laundering 101. Anyway, then the money, after they run to the front businesses, they go off to money launderers who then reimburse, reimburse the Mexicans or the other producers for the raw product.
The drug producers, they’re reimbursed in pesos. In pesos, how do you do that? Using electronic deposits in local banks where the drug makers have accounts that can be all over the United States. Cash doesn’t have to obviously traverse the border in that way. The providers of the chemical components in China are paid.
by corresponding Mexican sources. The money laundering scheme is expanding to encompass all illicit drugs finished in Mexico or South America and then sold abroad. Now, most transactions are done through the messaging and payment functions of WeChat. That is the world’s largest social platform. The…
Journal reported back in March that Chinese authorities found that WeChat Pay had flouted China’s anti-money laundering rules. American investigators have identified hundreds of Chinese students in the United States who have deposited hundreds of thousands of dollars or more in cash directly into US banks. Now I find that fascinating. Fascinating. Again, how do banks…
How are they allowed to get away? I mean, they want to take the money in, but are they not looking into where this money comes from? Again, I find this fascinating. If I saw, if I all of a sudden had Chinese students coming up to me looking to deposit great deal of sums of money into accounts, I would have to buy law.
By law, I’d have to report that to the authorities. Like something’s amiss here. This doesn’t make sense. And if I didn’t, I’d lose my firm. Again, this is nothing new for banks and their involvement in the drug trade. We’ve given countless examples over the years and some of them were extraordinary from massive size teller windows in Mexico so the cash could come in at HSBC.
And we talk about that little triad area down there in South America where all the banks set up shop because again, it’s money. Okay. And that’s all that they care about. Anyway, the cash that’s accumulated from these street sales remains in the United States. In China, what happens is the various different groups of network organizers.
What they do is they credits from the US Mexico is when that is accumulated in China, the cash that’s sitting here in the United States, I give them a credit. The cash that’s sitting here in the United States is offered for sale to Chinese citizens that want to avoid currency control rules that China puts in place, which limit moving won valued at more than $50,000 out of China.
So Chinese citizens wanting to pay college tuition for their kids, buy real estate or invest abroad, they buy this cash. I mean, what a system that they’ve got put up here. Listen to this, residential real estate records in the United States show that between 2011 and 2014, more than 60% of all purchases of properties by foreign buyers were all cash transactions.
The share is roughly 40% for such sales in the last five years. Chinese nationals have been the largest foreign purchasers of residential properties in the United States since 2012. And again, all the people in this network, they’re making money from commissions on this entire thing. I look at this again, I’m saying this is all laid out. This is how it works.
Why is this such a difficult thing to stop, quite frankly? I don’t get it. I really don’t. I go back in time a little bit. It’s like 2012, 2013, maybe in and around that time when ISIS was coming into play. I remember Obama calling them, the JV team and all that stuff. But anyway, ISIS actually put out an annual report.
like a publicly traded company about where all of their money was coming from and all the activities that they had from, I mean, they had a whole entire thing on selling antiquities that were in there, how it all worked. And I’m saying to myself, um, this is a lot of money. They’re not carrying it around in cash. It’s there’s bank. There’s an entire banking system set up here. How is it so difficult to follow the money?
You’re watching this. How is it that you’re not telling these banks we need you to let us know when this is taking place? I don’t know, I read this and I say to myself, there’s obviously not much urgency in doing away with this drug trade. I have to believe if this, they know all of this, they know all of this and they can’t do a damn thing about it, doesn’t make much sense. Watchdog on wallstreet.com.
