Financial economics of the urban drugs trade.

Volatire

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Our cities are infested with heroin, benzo, pregabalin, amphetamine users. Incredibly, there are an estimated 15,000 heroin users in Dublin, with 3000+ primarily street-based intravenous drug users. There is remarkably little curiosity in the media, among politicians or the general public as to the financial economics of this drugs trade.

Where does the money that sustains the street junkies come from?

The answer is that the system is sustained, primarily, you and me.

  1. Social Welfare. Junkies are entitled to welfare and are free to spend all of any welfare money on drugs.
  2. Street begging. "help the homeless" = "help pay for my heroin habit". Many well-meaning people give cash to the "street homeless". The homeless are effectively contractors working full-time for the drugs trade.
  3. Charities. So-called "homelessness" charities provide food and board, which enables the junkie to reserve almost all of his cash for his several-hundred euro per day drug habit. Thus the charities are a key pillar in the support of organised crime. Homes and hostels are almost always centrally located, close to the areas of maximal drug supply. Thus they are a key support to the drugs trade, facilitating the flow of maximal public cash to the drug dealers. Of course, the charities themselves are largely publicly funded, while charity bosses are very well remunerated for their work ..um.. "helping the homeless".
  4. Bookies. The drug dealers have a major cash laundering problem, which is solved in large part by the bookies and gambling. The presence of brick-and-mortar bookies and gambling outfits correlates with areas of high drug supply. This is a highly profitable business for the bookies, providing the paper trail to show how drugs cash was "won on the horses".

    https://www.irishtimes.com/news/ireland/irish-news/dublin-s-heroin-problem-1.2608877

    Criminals using betting accounts to move and hide large amounts of cash 'but nothing is being done to stop them' - Irish Mirror Online

This simple financial economic system - a symbiotic relationship between social welfare, charity, the bookies and organised crime - is perfectly well understood by the authorities. It is not rocket science, yet nothing is done to interrupt it.

Why? Qui Bono?
 


ruserious

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Why not pick on white collar cocaine users.
 

fat finger

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Our cities are infested with heroin, benzo, pregabalin, amphetamine users. Incredibly, there are an estimated 15,000 heroin users in Dublin, with 3000+ primarily street-based intravenous drug users. There is remarkably little curiosity in the media, among politicians or the general public as to the financial economics of this drugs trade.

Where does the money that sustains the street junkies come from?

The answer is that the system is sustained, primarily, you and me.

  1. Social Welfare. Junkies are entitled to welfare and are free to spend all of any welfare money on drugs.
  2. Street begging. "help the homeless" = "help pay for my heroin habit". Many well-meaning people give cash to the "street homeless". The homeless are effectively contractors working full-time for the drugs trade.
  3. Charities. So-called "homelessness" charities provide food and board, which enables the junkie to reserve almost all of his cash for his several-hundred euro per day drug habit. Thus the charities are a key pillar in the support of organised crime. Homes and hostels are almost always centrally located, close to the areas of maximal drug supply. Thus they are a key support to the drugs trade, facilitating the flow of maximal public cash to the drug dealers. Of course, the charities themselves are largely publicly funded, while charity bosses are very well remunerated for their work ..um.. "helping the homeless".
  4. Bookies. The drug dealers have a major cash laundering problem, which is solved in large part by the bookies and gambling. The presence of brick-and-mortar bookies and gambling outfits correlates with areas of high drug supply. This is a highly profitable business for the bookies, providing the paper trail to show how drugs cash was "won on the horses".

    https://www.irishtimes.com/news/ireland/irish-news/dublin-s-heroin-problem-1.2608877

    Criminals using betting accounts to move and hide large amounts of cash 'but nothing is being done to stop them' - Irish Mirror Online

This simple financial economic system - a symbiotic relationship between social welfare, charity, the bookies and organised crime - is perfectly well understood by the authorities. It is not rocket science, yet nothing is done to interrupt it.

Why? Qui Bono?
Good post, but could you explain how the bookies laundering mechanism works?
 

silverharp

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las vegas has that issue as well, you only have to declare gambling winnings not money lost, then if you are lucky like clinton you get a no lose stock account where only winning trades are booked to it
 

mr_anderson

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Legalise marijuana.
The dealers that do hard drugs also do soft drugs.
Its much safer for people buying marijuana that they do so legally and hence do not come into contact with pushers of harder drugs

Marijuana is not a gateway drug.
But many of the sellers are gateway drug pushers.

You need to separate the two.
 

Volatire

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Good post, but could you explain how the bookies laundering mechanism works?
Very simple.

For example, a money launderer might bet his cash on every horse in a race in proportion to the odds (most on favourite, least on outsider). He is guaranteed to lose money (because of bookies spread), but to have one winning ticket showing winnings of, say, 80% of the amount invested.

This cash can now be deposited on his bank account. This bank will be obliged to report the transaction under money-laundering regulation. When it is investigated by the authorities, the winning betting slip is produced and no action can be taken.
 

Cruimh

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Where does the money that sustains the street junkies come from?

Bookies. The drug dealers have a major cash laundering problem, which is solved in large part by the bookies and gambling. The presence of brick-and-mortar bookies and gambling outfits correlates with areas of high drug supply. This is a highly profitable business for the bookies, providing the paper trail to show how drugs cash was "won on the horses".
Surely the bookies is where the money from the Junkies ends up, rather than being a source of Money for the Junkies to fund their habit?

Qui Bono?
Cui Bono?
 

Volatire

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Surely the bookies is where the money from the Junkies ends up, rather than being a source of Money for the Junkies to fund their habit?



Cui Bono?
Time-wasting fückwit.
 

statsman

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Surely the bookies is where the money from the Junkies ends up, rather than being a source of Money for the Junkies to fund their habit?



Cui Bono?
You called?

 
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Very simple.

For example, a money launderer might bet his cash on every horse in a race in proportion to the odds (most on favourite, least on outsider). He is guaranteed to lose money (because of bookies spread), but to have one winning ticket showing winnings of, say, 80% of the amount invested.

This cash can now be deposited on his bank account. This bank will be obliged to report the transaction under money-laundering regulation. When it is investigated by the authorities, the winning betting slip is produced and no action can be taken.
It's easier than that. Betting on the favourite in every race works out over time to a 9% loss of your stake money. Now you retain your winning tickets only as proof of income. Your money is now laundered at a very cheap rate.
 

Volatire

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It's easier than that. Betting on the favourite in every race works out over time to a 9% loss of your stake money. Now you retain your winning tickets only as proof of income. Your money is now laundered at a very cheap rate.
Are you retarded?
 

SamsonS

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Our cities are infested with heroin, benzo, pregabalin, amphetamine users. Incredibly, there are an estimated 15,000 heroin users in Dublin, with 3000+ primarily street-based intravenous drug users. There is remarkably little curiosity in the media, among politicians or the general public as to the financial economics of this drugs trade.

Where does the money that sustains the street junkies come from?

The answer is that the system is sustained, primarily, you and me.

  1. Social Welfare. Junkies are entitled to welfare and are free to spend all of any welfare money on drugs.
  2. Street begging. "help the homeless" = "help pay for my heroin habit". Many well-meaning people give cash to the "street homeless". The homeless are effectively contractors working full-time for the drugs trade.
  3. Charities. So-called "homelessness" charities provide food and board, which enables the junkie to reserve almost all of his cash for his several-hundred euro per day drug habit. Thus the charities are a key pillar in the support of organised crime. Homes and hostels are almost always centrally located, close to the areas of maximal drug supply. Thus they are a key support to the drugs trade, facilitating the flow of maximal public cash to the drug dealers. Of course, the charities themselves are largely publicly funded, while charity bosses are very well remunerated for their work ..um.. "helping the homeless".
  4. Bookies. The drug dealers have a major cash laundering problem, which is solved in large part by the bookies and gambling. The presence of brick-and-mortar bookies and gambling outfits correlates with areas of high drug supply. This is a highly profitable business for the bookies, providing the paper trail to show how drugs cash was "won on the horses".

    https://www.irishtimes.com/news/ireland/irish-news/dublin-s-heroin-problem-1.2608877

    Criminals using betting accounts to move and hide large amounts of cash 'but nothing is being done to stop them' - Irish Mirror Online

This simple financial economic system - a symbiotic relationship between social welfare, charity, the bookies and organised crime - is perfectly well understood by the authorities. It is not rocket science, yet nothing is done to interrupt it.

Why? Qui Bono?
Obviously the economics are a bit more complex. For example health and justice costs as a result of drug using.
But the alternative - for example not paying the social welfare, and not having street begging, or charity supports - could actually cost the state more in increased crime, and areas that are outside the reach of state services.

I personally would be far more interested in the trade being legalised, regulated and taxed.
 

fat finger

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It's difficult to argue with the thread so far, but what should a person do? You see a body on the boardwalk, not sure is it dead or alive, but is that the time to be resolute and say giving them a sandwich is bad because it only encourages them? I'd say many of us walk past plenty of bleak cases and don't look or speak, just pass by, but sometimes we say I'm going to do something here and you give them some money or a sandwich. It's tough. Short of clearing them off the streets like dogs what are we to do?
 

Volatire

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It's difficult to argue with the thread so far, but what should a person do? You see a body on the boardwalk, not sure is it dead or alive, but is that the time to be resolute and say giving them a sandwich is bad because it only encourages them? I'd say many of us walk past plenty of bleak cases and don't look or speak, just pass by, but sometimes we say I'm going to do something here and you give them some money or a sandwich. It's tough. Short of clearing them off the streets like dogs what are we to do?
Never give cash to a "homeless" person - you are supporting organised crime.

  1. make it illegal for bookies to take cash bets
  2. We need drug rehabilitation centres located far from centres of heroin supply in inner cities. Stop pretending that our heroin problem is a "homelessness" problem.
  3. make it an offence to solicit cash on the street
  4. have a voucher system of welfare for junkies rather than a money based system. Only give welfare in the form of money to people who are clean.

Starve the heroin supply chain of cash and it will collapse.
 
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