Matthew Cox | Inside True Crime Podcast - Cartel Insider Reveals the Biggest Threat to American Society

Episode Date: September 16, 2024

Cartel Insider Reveals the Biggest Threat to American Society ...

Transcript
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Starting point is 00:00:00 The government keeps spoon-feeding us these narratives that ultimately proved to be false. It's not the left or the right. It's people on both sides have completely lost confidence in the institutions that govern this country. Whether it's the media, whether it's the government, whether it's corporate elites. So what you have are the people that are in charge leading you to believe we're doing something for a particular reason when in reality there's something else going on. So, welcome back. How are you going to do this?
Starting point is 00:00:32 Welcome back. This is Pierre Racini. We're going to be talking about the New Generation Cartel. Unlike the other cartels, which are your conventional drug trafficking organizations, the Helisco New Generation has transformed itself into something more akin to a traditional organized crime family. And as we'll discuss later on, it's created a circumstance in Mexico that has completely unprecedented and, in certainly my estimation in a moment,
Starting point is 00:01:00 I'm sure, an estimation of others, this is the particular group that's going to cause the American government to finally have to intervene because their conduct is just simply beyond a pale at this point. In fact, just a couple of days ago, the FBI, along with the U.S. Treasury Department, issued a notice concerning the new generation's real estate scams that they've now implemented. The police of cartels targeting U.S. owners of timeshares. and in just the preceding two years, they've gotten over $300 million
Starting point is 00:01:33 they've defrauded American citizens out of. There's 6,000 documented cases. Well, these aren't individuals. 6,000? 6,000. Like, it's one thing for you to be involved in drug trafficking. Okay, it is what it is. Right.
Starting point is 00:01:48 Because the people on the American side are generally other drug traffickers doing business with the Mexican nationals. Right. They're choosing to do business with them. This is targeting innocent Americans. These are guys just sitting at home getting a call from a phony lawyer who's saying, hey, we got an interested party to want to buy your time share.
Starting point is 00:02:04 Right. You know, you got $80,000 tied up in with their offer new $140. And they end up just, you know, we'll discuss the actual intricacies of the scam later on. But it's just you've seen a transformation from traditional drug trafficking activity to something that full blown. Full-blown Mexico has never seen before. And quite frankly, the United States has never seen before. You know, at its peak... I was going to say, word about with the Italian mob, nothing like this.
Starting point is 00:02:35 The Gambino's had maybe a couple thousand people between main members and associates. Right. You know, collectively, there may have been 5,000 or 6,000 people and the entire country involved in that particular sphere of activity. In Mexico, the new generation has got 45,000 members. So it's orders of magnitude greater in a context where they have... freedom to move.
Starting point is 00:02:56 I was going to say and carte blanche to do what they want to do because they... Yes, and so you've got a threat that is present south of the border
Starting point is 00:03:04 that has never existed before. All right, so what do we start? Where are we starting? Well, how would you like to be in? Would you like a little background? I would like a little back.
Starting point is 00:03:14 Do we have background? We have a little bit of background for you. Excellent. Look, the Halesco cartel, notorious for his violent tactics, has become Mexico's most influential drug cartel.
Starting point is 00:03:26 It's, although it's second in size. Second to who? Sinaloa. Okay. Which are his principal rivals. It has become the most powerful. And the cartel has accumulated power in two ways. One, they've branched out into what is traditionally characterized as organized crime-related
Starting point is 00:03:46 activities. See, for a number of years, the American government has always characterized Mexican drug cartels as being organized crime. And on a superficial level, that'd be accurate, because they are criminals and it is organized. But it's specific. Organized crime is a term of art legally. Right. And what it generally represents are those type of organizations, principally ethnic, whether it's the Italians, the Israelis, the Chinese, the Russians, who are engaged in racketeering activity.
Starting point is 00:04:13 Whether it's illegal bookmaking, lung sharking, extortion, prostitution, various species of fraud. all that these are characterized as rackets, and any one of them legally are characterized as predicate acts. So if you were charged under a RICO prosecution, they just have to prove three predicate acts for you to be found guilty. And so that framework doesn't generally apply into drug trafficking context.
Starting point is 00:04:42 Well, now it does, because what the new generation has done has migrated into this particular sphere. And so in order to understand its background, you know, as we previously discussed, Cina Loa had its golden era from, let's say, 2004 to 2010. Okay. And at this point, you're talking an organization that the government has accurately characterized as the largest and most powerful drug syndicate in the history of the world.
Starting point is 00:05:11 They operated on a level not seen since the British Empire back in the 17 to 18 to 19th centuries. All right. And so what is the British Empire? How does that relate to a drug trafficking operation? Drug trafficking. They're the largest opium traffickers in the history of the world. Oh, like the opium wars and that they were moving opium. Okay, I'm sorry.
Starting point is 00:05:32 Yes, the fortune of the king of England's fortune is based on the built on the back of heroin trafficking. And so that's why they had to keep India behind and Hong Kong. Yeah. Because Hong Kong was a segue into southern China. And so, you know, the British Empire's response. for creating tens of millions of heroin and opiomatics. And so that, of course, was state-sponsored trafficking activity. They seem so polished, though.
Starting point is 00:06:00 Yeah, but, you know, those are usually the guys you got to watch out for. Whereas, Sinaloa now, you know, a couple centuries later, right. We were essentially able to replicate something not as massive, but not sanctioned. Right. And so you saw an operation that, from the American perspective, was obviously enormous. Well, the Sinaloa cartel is not a single organization.
Starting point is 00:06:29 It constitutes a federation of, at that time, let's say, 40 different organizations, spread out over 27 states. Right. And so what made Sinaloa different... Mexican states. Mexican states. Okay. I'm just saying, not everybody knows that Mexico is made up of states. Yes, it's the United States of Mexico.
Starting point is 00:06:47 And so you have a horizontal leadership structure that was essentially based on how the Romans configured their organizations after Julius Caesar betrayed the republic. When he took over, he was essentially dictator, but he characterized himself as first amongst equals. It's funny you mentioned that because Colby and I were actually discussing that yesterday. Okay. Well, Julie Caesar and the whole thing. Okay. I know. I'm joking.
Starting point is 00:07:19 Go. Well, the whole point is, Julie Caesar, and then he gets killed. Augustus. Well, he's the first who adopts that name. First amongst equals. That's his title.
Starting point is 00:07:28 It's the same model that the Catholic Church adopted. You see all the bishops are all equal. The pope is first amongst equals. First amongst. That seems like that's, that doesn't make sense. That's first. We're all equal,
Starting point is 00:07:41 but I'm first. Yes, but he's nominally in charge. Because when you look, if you've got an organization that spans 27 states, well, let's put it in the American context. If you've got a group in Los Angeles, a separate group in San Francisco, a group in Seattle, a group in Phoenix, Las Vegas, and Denver. Well, the guys in Denver got nothing to do with the guys in L.A. Right. It's not the same organization. These are independent organizations.
Starting point is 00:08:04 They operate completely autonomously. But they're all kind of listening to somebody. No, they're not listening to anybody. They're all connected. They're nodes on an independent network. Okay. And so the alpha nodes got nothing to do. with the Charlie node, but they both share the Bravo node.
Starting point is 00:08:17 Okay. And so the group that nominally is in charge are the ones who can provide the protection. And so the first amongst equals in the Sinaloa context, for instance, is its leader Miles and Bada. Right. He's not in, you know, he's in Sinaloa. He's not controlling the guys in Sonata. Right.
Starting point is 00:08:37 Okay. But he's providing political protection. Meanwhile, the guys in Sonora have access to the border crossings in O'Gallis. So they're saying, hey, we'll handle the border crossings. Right. And he's saying, I'll handle the politicians. Meanwhile, the guys in Kalim are saying, well, we'll handle the port. Right.
Starting point is 00:08:52 And so what you have is a collection of organizations. Working together. Working together. None of them taking orders from Central Command. All of them completely autonomous, which is why it's so resilient. We're now 35 years into the Sinaloa cartels' existence. And you can't attend. attack it. It's like attacking water. Right.
Starting point is 00:09:16 It's like you ever watch a flock of birds flying? They all move in unison, but there's no one directing their movements. Right. It's an emergent property. And so that's what essentially you have here. You have to look no further than 2017. You know, for years, for two decades, the government characterized, you know, Joaquin Guzman, Chappo, has the leader of the cartel. Yeah, they take him out. They brought him to New York. He's in New York as of January of 2017. and what happened? More drugs in the U.S. in 17 than in 16. More in 18 than in 17. More and it actually just got worse. Right. You've got a higher level of fatalities, more amount of
Starting point is 00:09:54 product. So what's that tell you? That didn't change a thing. That he was never in charge. Right. It was all bullshit. Okay. The, and we can discuss this later on if you'd like to, the fundamental problem with our society. And I have an interesting perspective because when I got charged, with the federal drug kingpin prosecution, it was 1997. So I leave society. I don't come back until 2023. It's a totally different world.
Starting point is 00:10:24 Right. Like people out here now have just lost their effing minds. Right. Right. And I believe the primary issue, and it's not a political thing, it's not the left or the right, it's people on both sides have completely lost confidence in the institutions that govern this country. Whether it's the media, whether it's the government, whether it's corporate elites,
Starting point is 00:10:46 nobody's trusting nobody. Right. And what happens is for the last three to four decades, the government keeps spoon-feeding us these narratives that ultimately proved to be false. Trapu Guzman is the bad guy, bad, bad, bad, bad. Right. You arrest them, you get more product the next year. You're full-shut the whole time, man.
Starting point is 00:11:09 What did you accomplish by doing that, right? It couldn't have been true what you were saying. Unless you're saying, couldn't have been true. And this is what's caused the political divide in our country today. You know, three decades ago, you know, we were in our 20s back in the 90s. What was the big phrase you would hear for years? Rising Tide lifts all boats. Oh, yeah, yeah.
Starting point is 00:11:29 Well, that was the premise from which NAFTA was approved. Right. Well, anybody with any critical thinking skills would have immediately recognized that, hold on a second, this is total bullshit. How can shipping a factory from Ohio to Mexico, help that community in Ohio. Right. Or help that worker in Pennsylvania. Right.
Starting point is 00:11:47 And so what we've had is decades of these narratives, which are ultimately false. One of which is, of course, the Joaquin Guzman. Another one is, you know, a rising tide of self-boats. Another one, you know, the whole drug war, we're going to disrupt the drug markets by attacking supply. That's total bullshit. Markets are not a function of supply, and they never are. There's a function of demand. If you sleep hot at night, you know how disruptive that can be.
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Starting point is 00:13:43 when you removed Guzman, it actually got stronger. Right. The drug problem actually got worse. And so that model is very effective. But it's also like hurting cats. You're not going to be able to work in unison, and it allows for masses of material, but it doesn't really allow for concentrations of power.
Starting point is 00:14:10 Because for concentration of power, you need a unified central command. Right. That's what the new generation is. Okay. The new generation is on a totally different model. It's vertically integrated. It's hierarchical nature.
Starting point is 00:14:23 Everything stems from mental. So while Sinaloa may have 27 organizations, the new generation is less manpower, with 37 organizations, but everybody's operating on the franchise model. So if you open up a McDonald's, you can't change the ingredients in a Big Mac. Right. That's why they're able to concentrate force in a manner. The other organizations simply aren't.
Starting point is 00:14:51 And that's why they're able to create this enormous portfolio of criminal activity that none of the other groups have been able to replicate. Doesn't that make it more susceptible to? disruption? That's where ultimately we're going to get to is the new generation is less resilient because at this point it's essentially a cult of personality. Everything is centered around Mensho. And so a decapitation strike on a vertically integrated network is actually effective
Starting point is 00:15:25 in that it's going to disrupt the network. It doesn't disrupt Sinaloa. Right. They just morph into a new blob. Right. See, but no, we know. Now, the downside, of course, there's always trade-offs. If you were to take out, Mancha, what happens?
Starting point is 00:15:42 It fragments. Right. And that was the point that we were about to get into, because when Sinola was at its peak, the third most powerful drug lord in Mexico was an individual named Nantra. Well, he was responsible for overseeing the Mexican state of Alisco.
Starting point is 00:16:00 He operated out of Guadalajara. Well, his business associate was a guy named Oscar Lobo, or excuse me, Oscar Valencia, known as El Lobo. Okay. So in 2009, Lobo gets knocked off. In 2010, Atro Cordonell gets killed. You know, the Mexican military services went to apprehend Cordonell. Well, they couldn't take him alive. Right.
Starting point is 00:16:23 Because he knows too much concerning political stuff. You know, the guy lived in the same house for 10 years. How could you be looking for him? You know, you want to know where he's at. He's on that, called a Sack third house from the corner. Right. So when they finally made the decision to move on him, they sent to 100 guys. Yeah.
Starting point is 00:16:38 And made sure they didn't kick him into custody. Well, that action, although hailed as a victory by the American law enforcement community, actually set in motion a chain of events that created the new generation. Because when Nacho Coronel was in charge, and I'm sure he wasn't, you know, Mr. Friendly. But on the other hand, he's the guy. who's able to keep all these other maniacs, when he had their, you know, he had their, he had his foot on their necks.
Starting point is 00:17:05 Right. You know, there's a whole field of mento's ready to spring into action once you remove, you know, the adult supervision. Right. You know, and see, and that's a lesson that we still haven't learned because they're going for the headlines. And so when Natural Kodonell got taken out of the picture, now you had the Kordonell family
Starting point is 00:17:29 who are blaming Sina Loa, whether it was Bata-Hleva, whether it was Guzman, they're just saying, hey, look, you guys crossed us. They remove themselves from the equation. Meanwhile, the Valencia organization, known as the millennial group, they're in the middle of a squabble. The faction that prevails is the one led by Menchel. So now Menchel and his organization, known as Porcitos, joined forces with Gordonel's organization. called themselves the new generation.
Starting point is 00:18:01 So then at this point, they're still within the Cina Loa framework. Now they decide, no, we're going to leave. So now they leave Cina Loa. They formed their own cartel. Well, initially, there was a working relationship between the two groups. Then, of course, you know,
Starting point is 00:18:18 they start fighting for territory. They start fighting for assets. They want to secure their position. Once they do so, they maintain a working relationship for them for a number of years. Well, so long as the American law enforcement community was distracted chasing Choppel, it allowed for the new generation to just grow.
Starting point is 00:18:39 Right. And at that point, it's strictly just a drug trafficking syndicate. And so up until about 2015, you never really heard about them. You had to be in the know, like in prison, you get new guys showing up. And so, you know, I'm Latino, so I knew somebody. And I talked to the new arrivals and they got new stuff, new guys down there, new operation, a new group. And it's just like, okay, let's just limited to halisko. Right.
Starting point is 00:19:06 And then like a couple years later, it was Halisko, Kalima, and Niyadi. You know, now it's Mitchell Khan. It's like, how are he spreading like this? Right. You know what I mean? And so you're seeing this group start to metastasized. And then in 2015, you had their essentially their coming out party when the Mexican government tried to apprehend Menchel, that's when, you know, they ambushed a bunch of military personnel.
Starting point is 00:19:32 They shot helicopters out of the sky. They created enormous chaos. Chaos. In Guadalajada, they were able to get the guy out of the picture. And so, you know, Mencho became public enemy number one until Chappo escaped from prison. Like, he keeps catching these breaks. Right. Not now, but, yeah.
Starting point is 00:19:50 You know, not now, but, you know, so then when Chabo escaped, now everything went back to him. So that gave Mentional a little bit of breathing. room. And so when Guzman gets knocked off again in 16 and this time extradited to the United States in 17, that's when the situation in Mexico genuinely became a threat to the United States. Up until that point, and you can say for the first 25 years of cartel activity, it was just drug traffickers being drug traffickers. They didn't force anybody to buy their product. Nobody had to do it, and you chose to do it, and then it was available.
Starting point is 00:20:31 Yeah, there's a demand. There's a demand. The new generation created a different paradigm because they were a militarized group. They demonstrated the capacity to fight the military. They demonstrated the capacity to knock down aircraft. And so from the American law enforcement perspective, like this group is now on the radar, Well, the reason why they became so potent is because they had control the two main ports on the Pacific Coast
Starting point is 00:21:02 which allowed them to import all the precursors. They had the former Coronel network of superlabs. You know, Coronel was known as the King of Crystal. Right. Well, he's the one who industrialized the production. Well, you already had all these labs in place. the Chinese started sending the precursors for, you know, the fennie. Right.
Starting point is 00:21:31 That's what changed the dynamic. Because once you introduce the fenni into the equation, it resulted in orders of magnitude's more profits. For the first 25 years, the premise underlying the operations in Mexico across all cartels was you make your money in volume. Right. Sinoloa became biggest because they were making less money per unit they just sold a hell of a lot more units well it was actually forbidden for you
Starting point is 00:22:04 to adulterate the material diluting its quality or and then on top of that lacing it with the compound that could potentially be the customer right that was that's just unheard of yeah unheard of and so what happened is the guys that maintained that kind of ethos
Starting point is 00:22:22 establishing these type rules back in 1990, well, 25 years later, they're now in their 70s. You've got a guy like Zambata. He's in the mid-delay 70s. You've got these other guys that are under 60s. You know, these are older men with, you know, the benefit of experience and wisdom. They understand how important it is
Starting point is 00:22:44 not to attract the attention from the American law enforcement community. Right. Unfortunately for the domestic drug market in the United States, this newer crop of individuals don't have the experiences the older guys have. And so, like, one of the biggest problems, you know, that worked out to be a disaster was arresting Chapa Guzman
Starting point is 00:23:05 because the faction of the control cartel that he controlled now reverted to his son's control. But these are all guys in their 30s. Okay. This particular faction known as Los Chapitos are, is the faction within Sinaloa that went all in a, Fennie. Okay. And so when the government says, well, Sinaloa was involved in trafficking Fenni, no, no, no, no, no. This faction
Starting point is 00:23:29 is involved. See, the Los Chapitos are at war with the new generation. The new generation is all in on Fenni. So the chapitos are matching up. You know, in Mexico, power is defined through political connections. And in order to accrue into a crew power politically, you have to have money. Whoever has more money has the most power in Mexico. Not weapons, not hitmen, not rockets, not munitions, political protection. Right.
Starting point is 00:24:07 And so if the new generation is able to generate three to four times the profit per unit, hypothetically, let's say you got a thousand kilograms coming from Columbia. Or you could take 2,000 kilograms of gold metal flour, mix it into a huge mixture of 3,000 kilograms. Now, it's only a 30% purity level at this point. Right. Who's going to buy it? No one on the American side is going to buy it.
Starting point is 00:24:31 But if you lace it with a few kilos of fennie, all of a sudden you supercharge its power. The consumer doesn't realize you're only getting one third of coke. Right. You're actually getting primarily gold metal flour that's been laced with fennie. And depending on who's doing the mixtures,
Starting point is 00:24:49 it's just some guy it's just some poncho guy with buckets so if it's not equally distributed you may end up taking a dose which is saturated with Fennie
Starting point is 00:25:01 in which case it leads to all these you know the majority of the individual from drug use are casual users who are out partying who take the equivalent
Starting point is 00:25:13 of a hot shot whether they're doing a line or they're doing a line of crystal they have no intention on doing to Fennie. That's why, like, in one of our earlier podcasts, I made this, you know, the statement and I stand by it in the sense that, like, you in good faith today
Starting point is 00:25:29 can't get involved in drug trafficking. Like me as a 19-year-old that was deeply libertarian could, you know, rationalize it. Yeah, yeah. Saying, hey, no one's forcing me to put it into my body. I choose to do so.
Starting point is 00:25:43 And if you want to put some in your body, that's your decision. But it wasn't laced with Fennie. It wasn't laced with the compound. There wasn't even the potential of it being laced. Of course, once we got involved with the manufacturing, we controlled it. We had a chemist who was making sure that it was pharmaceutical grade, no harmful impurities. Right.
Starting point is 00:26:01 And so there was, you know, you got to be fair to the Mexican equation, they didn't cut their product. They came to the United States unadulterated. Right. You know, that was the understanding within the groups. Well, now it's coming, you know, all. All of it is essentially saturated. Right. So if you're at some nightclub in New York or a nightclub in L.A.
Starting point is 00:26:22 And you think you're going to go do a bump, but that could be your last dose because you have no idea what you're actually taking. Right. And so what you're seeing is an enormous spike in the number of fatalities. You're having guys that are just nickel and I am drug dealers selling something at a nightclub. They're getting charged for homicides because they can't attest to the quality of material. Right. Everything down the line.
Starting point is 00:26:42 Everybody's just hoping it's not cut. Right. well you're all going to get hammered for you know the unfortunate woman who did a line at a nightclub and passed away and so because of this new model that the new generation adopted they're able to take those shipments that come from Colombia dilute them 200 if not 300% well that increases vastly the number of units you're selling so if you're generating $5,000 profit per kilo prior to to adulterating it. And that 1,000 keys, you're making $5 million.
Starting point is 00:27:20 Well, all of a sudden, you take that $1,000, turn it into $3,000. Now you're making $15 million. Now, do that with $20,000. All of a sudden, they're accumulating money at a rate that no other cartel can match. Right. So then... They get more political power. They get more political power.
Starting point is 00:27:36 That expands their areas of influence. So Chappo Guzman's kids, like, Chappo Guzman's solution to this was killed up. Yeah. The kids are saying, no, we'll just fight fire with fire. But what it creates is a race to the bottom where all parties know that the short-term gain is going to result in a huge negative long-term loss. Which is why not only were the Chapito's fighting the new generation, there was actually squabbles within the Sinaloa context themselves because they're fighting Zimbada. Right. Because their organization is saying, we don't want none of this any stuff involved.
Starting point is 00:28:16 And unfortunately, you know, in 2023, the Guzman faction gets charged for being the largest fending producers. Right. Earlier this year, just a few months ago, back in February, they charged on Bada's faction. Like, they had to match the opposition. It's like in the, you know, the armament context. China, Russia, and the United States all have nuclear weapons. Yeah. China develops hypersonic weapons.
Starting point is 00:28:43 Well, we have to match them. you know we can't afford to allow them to have a message the Russians get ballistic missiles we have to create a that's right so then we all talk we you know create autonomous weapons now the Russians have to do so so you've got groups that are engaging in conduct that they don't want to engage in but they have to do so because they can't coordinate with the opposition survival right and so what it creates now is this dynamic where it's literally a race to the bottom and the people that are actually suffering for the first time are the individuals who have no intention of consuming something that are essentially getting dosed, which is why in the end, you can see where this is going.
Starting point is 00:29:27 You know, we had an earlier episode where we did a game theoretic analysis on what the optimum solution would be. The government's analysis. It's not going to do that. We're not going to enter an agreement with one of these groups. Right. essentially give them a license to operate on the condition of no more fennie. Right. That's the optimum solution. Politically, it's not tenable.
Starting point is 00:29:50 In Mexico, it's not tenable because there's already a history. You know, here in the United States, we are very fortunate in that we're not privy to a lot of what's going on. You know, our media does a lot of filtering. Or even if all you like, just watch the Spanish language news. the news productions on the Spanish language is very different from the American English language. You know, there was a huge scandal where, you know, Mayo Zimbada's son,
Starting point is 00:30:22 who was the heir apparent to the Sinaloa cartel, Vicente Zambada, was in a relationship with high-level American government officials. Right, he was providing, they're providing information. So you had, you know, from the highest levels of the DOJ, highest levels of the DEA, had approved a relationship with one of the leaders that have seen a local cartel
Starting point is 00:30:42 who was there on behalf of the cartel or at a minimum, the Zambada faction of the cartel. And this was concealed from the Mexicans. So here you got Vizente Zambata coming out of some, you know, upscale hotel in Mexico City, and the Mexicans pounce on him, like, aboom, we got you, finally. He's like, what are you doing, man?
Starting point is 00:31:00 I'm here meeting with the gringos. Right. They're like, gringos, what gringos? Up in 304. Right. You're meeting with green goes, and then, you know, you've got DOJ guys, what the hell's going on here? If you look at it from their perspective, you guys are in bed with these people. Right.
Starting point is 00:31:18 That's not the president of Mexico's son meeting with cartel guys. It's American people meeting with the car. You know what I mean? So it was an enormous scandal in Mexico. So from the American perspective, it would be very difficult for us to enter into an agreement with any particular group to advantage them over the others because right now
Starting point is 00:31:39 that's the narrative of Mexico. Like we may not be privy to the United States. There is nobody in Mexico who doesn't believe that the United States government is responsible for the drug war. The drug crisis. Right.
Starting point is 00:31:50 Just like everybody believes the United States government is flooding Mexico with guns. You know, you had that massive scandal about 15 years ago with the Fast and Furious investigation where literally the ATF new individuals were making straw purchases,
Starting point is 00:32:06 buying weapons at gun stores in Texas, in Arizona, in New Mexico, and then turning around and selling those guns to cartel guys. They know they're doing it, and they let the guns go anyway. And these are some of the same firearms that ultimately
Starting point is 00:32:19 American law enforcement, God knows how many thousands of Mexican citizens. And so when this thing came to light, Mexicans were like, hold on a second, you didn't stop them. Right. You let them keep going. And so then finally,
Starting point is 00:32:31 when the Americans said, okay, well, we're going to prosecute the straw purchasers, They went and they arrested several of these guys. You know how much time they got? When you're probation. And so they're like, oh, okay, so you're flooding the country with guns and you're giving guys slaps on the wrist.
Starting point is 00:32:46 That's when they're like, okay, just send as many drugs of the gringos as they want. Right. Like it's a two-way street. You don't want to stop the guns. They're not going to stop the product. And so. Okay.
Starting point is 00:32:59 I was just going to say. So from a game theoretic perspective, that solution is essentially off the table. So now you're talking about you have a spectrum of suboptimal solutions. And so as we were talking before, we started filming, in that context, I believe that they're going to make a credible threat of designating these groups,
Starting point is 00:33:21 particularly a new generation is a terrorist organization. There's already been legislation in Congress submitted by Senator Cotton directing DOJ to eliminate their leader. not just DOJ, Department of Defense, to eliminate their leaders. They're just a clandestine military action. And so you see this ground... In a sovereign country.
Starting point is 00:33:42 In a sovereign country. Okay. You know, and so you're going to have, you have got a groundswell of recognition that this particular group is different than everybody else. So much so that senators want to sanction unauthorized, you know, unauthorized actions in a sovereign nation. They also want a sanction designated him a terrorist organization, which, you know, from the Mexican perspective,
Starting point is 00:34:10 it would be a debacle because Mexico doesn't want to be a country labeled as a harborer of terrorist organizations. Right. Now, from the organization's perspective itself, I'm sure Mitchell's not going to care. He's already looking at a life sentence if he gets caught. Right. Now, he's like Guzman, whether you call him a terrorist or drug dealer,
Starting point is 00:34:27 it's not going to change him. But what it does change, and where it gets interesting, is on the American side of the equation because there is an entire infrastructure, particularly in Los Angeles, which new generation operates, that's their principal base of operations. In Los Angeles,
Starting point is 00:34:43 there's an entire network of individuals who facilitate. These are the guys that manned the stash houses. These are the guys that count the money. These are the guys that, you know, pack up the cars or build the hidden compartments. Everybody along that chain now is providing material support to a terrorist organization.
Starting point is 00:34:57 Right. So the days of getting five or six years sentences, That's gone. It's a 30 piece. So it's going to give the government of the United States a tremendous hammer in which to induce a lot more cooperation. The big boys are always going to be the big boys. But they're the beneficiaries by getting them broke to profit. It's all these little fishes now that are going to be squeezed with the threat of a 30-year sentence
Starting point is 00:35:19 that are obviously going to predominantly cooperate. Right. And whoever ends up winning the election, I believe is going to make a credible push to say this is what we're going to do. Mexico is going to fold because they're not going to have nobody declared a terrorist organization you're going to see them essentially allowing American special forces
Starting point is 00:35:41 being embedded with Mexican special forces and serving like an advisor capacity but really they're just going to be hit they're going to be driving it's going to happen the same thing they did in Colombia like the Colombians didn't take down Pablo Escobar I was an American operation masked
Starting point is 00:35:58 with a little bit of Colombian women dressing. So how does, how do, so how did the new generation through this whole thing morph into more of like an organized crime, you know, organization where they branched, why, why did they start branching out? Well, the, the, the feature that we highlighted, the Unified Central Command allows it to direct more effectively. This isn't a hurt. cats. This is essentially an army. And so now you have an ability to say, this is the territory we control, extract as much money from this territory. And so, you know, besides the billions of dollars that the new generation made from drug trafficking, they have diversified into
Starting point is 00:36:56 essentially nearly every sector of the economy in Mexico. And so, you know, for, you know, for For 25 years now, 30 years now, we've had this NAFTA regime, which resulted in essentially the integration of the Mexican and American economy. You go south of the border, and you've got thousands of factories in Spanish, they're called Makisodas. And so literally, thousands of companies are manufacturing goods in Mexico on behalf of American businesses. Well, that territory is cartel territory. Right. Every factory has to pay a fee to operate.
Starting point is 00:37:41 It's a cost of doing business. It's like rent. It's like electricity. You have to pay. The goods that go to the warehouse. The warehouses have to pay. The trucking companies that transport it from Mexico into the United States, they have to pay.
Starting point is 00:38:00 So now you're thinking, well, how much? How much money can you be talking about? Well, let's say it's, or the leaked Mexican official report, like on their version of WikiLeaks. Okay. Where it revealed that the new generation is charging anywhere from $1,000 to $10,000 per truck. You're thinking, okay, it's $1,000. Well, look at the scope of the activity. The Tijuana Port of Entry alone gets somewhere in the neighborhood of 15,000.
Starting point is 00:38:31 trucks a day. So if it's $1,000 a truck, that's $15 million a day. And a higher value items, let's say it's computer parts or automobiles. We're charging $10,000 a truck. So it's anywhere from $15 million to $150 million per day just in storing trucks coming across Tijuana. Nueva Laredo is even bigger. That's 18 to 20,000 trucks a day. the new generation is literally generating as much money today through extorting trucks
Starting point is 00:39:10 as they were in all of their drug activity pre-feni you know like as of 2016 right and it's not simply and you have to understand that this is the crown jewel of the mexican economy and so we uh you know for them there's is at the point where they're like, look, do whatever the hell you're going to do, pass the fees on to the Americans. So whenever you're at Walmart buying something that was imported from Mexico, the new generation is getting their cut. Right. Okay. I can see that. You see something? No, but it's also broader. It's not simply extortion with respect to the trucking. It's this extortion with respect to, and this is more traditional organized crime, it's just a regular protection
Starting point is 00:39:56 racket. And so, for instance, one of the prime produce produced in Mexico are avocados. No, Mitrocon is ground zero for avocados. Well, every farm gets taxed for protection. You got to pay a fee per hectare to just grow avocados on your own land. They're extracting money at every instance along the value chain. So they're hitting the farmer for the land. Then at the farm gate, depending on the yield, they're taking a piece. Then the wholesale market, they take a piece from that. Then the company that does the packaging, they take a piece from that. Then the trucks, they bring it to the United States.
Starting point is 00:40:38 They take a piece from that. So every time you have guacamole, the new generation is getting paid. Aguave, lime, berries. You have a shot at tequila? They're getting their money. Chase it with the slice of lime. They're getting their money. Right.
Starting point is 00:40:54 There are literally tens of billions. of dollars going into their coffers without anything to do with drugs. And so now you're seeing the ability, one, you're seeing the power of concentration. They're able to marshal together their forces in a way that none of the other groups are able to do so. So all this stuff is happening, right, just south of the border? Well, the extortion operations are taking place on the border, but they're also happening throughout the country.
Starting point is 00:41:26 But as far as its principal base of operations, it's in the Mexican state of Halisco. For those of you're not familiar with the Mexican geography, it's about 1,500 miles south of San Diego. In fact, here's a map. The area highlighted in blue is territory controlled by the new generation. Well, that's black and white.
Starting point is 00:41:46 Sorry, go ahead. All right. And so, and that blue area consist of numerous organizations. Here is the network for the new generation. So you can see it's a number of organizations, but there's no sub-alliances. Everything is taking orders from Central Command.
Starting point is 00:42:09 Right. Which is a very different model. And as we indicated earlier, they've got a very powerful militarized wing. In fact, it's famous for making these kind of public pronouncements. and hyper-violent. And so... What's the name of it?
Starting point is 00:42:29 Matazetas. Matas. And what's Matta mean? The killer Zetas? No, I don't remember. You got to invert. Zeta killers. Zeta killers.
Starting point is 00:42:40 And who's with the... Who are the Zetas with? The Zetas, as of right now, they're essentially... Well, the technical term is disarticulated. They've been crumbled. Ah. Then can't they drop the killer part? Well, see, here's the problem.
Starting point is 00:42:53 And this is, again, a shortcoming into decapitation strategy. Right. Because the way the new generation has been able to expand is they just wait in the cut. And so, for instance, when the Zetas were effectively neutered, you had a number of organizations that were now orphaned. They got cobbled up into the new generation. The Gulf Cartel gets essentially neutered. They get gobbled up.
Starting point is 00:43:20 And that's how you have a group from Haleisco way down in Guadalajara, controlling the port of entry in Ravaleo on the border of Texas. Right. Because they have, they have, you know, essentially a franchise model. And so now they have franchisees scattered all over the country. They have a branding issue. Well, that's part of their operation. They need to rebrand. No, they, as part of the franchise model, they have to incorporate the term new generation in their title.
Starting point is 00:43:49 So it's the, you know, new generation Tijuana, new generation, you know, Nuevo Laredo or Vetta Cruz. Yeah. And so they are really strict on this branding issue. And so it's creating this fear. You know, when you see guys like this on the news every night in. Right. In Mexico, and this is, you know, they're holding rockets.
Starting point is 00:44:14 They're holding, you know, they've got other pictures where they got armored vehicles. like, you know, they're essentially they're like armed technicals. Right. 50 caliber machine guns on top. You know, these guys are just insane. And so they have struck a level of fear within the community to where these organizations,
Starting point is 00:44:34 legitimate businesses, have no alternative but to pay. You know, another big cash cow for them is the theft of petroleum. In 2022, the last year we got numbers for, the Mexican state oil company, Pemex, reported that they had over $900 million in losses. So you've got these guys going with their own engineers, identifying pipelines, they're drilling precisely into the pipelines, extracting the oil. They have fleets of modified tanker trucks.
Starting point is 00:45:05 They're just filling up the trucks with oil and then taking them to the black market. And so look at literally, every aspect of the Mexican economy at this point is being touched. Yeah. whether it's restaurants forced to buy poultry from this particular group, you know, inflated prices on fish, inflated, right across the board, entertainment, nightclubs, you know, residences, food, and of course, like I said, they're Crowell and Jules, which is trade with the United States. You remember, Mexico is our largest trading partner.
Starting point is 00:45:36 Yeah. And so that's just an enormous piggy bank for them to just slice. And if all you're taking is just a small amount In the aggregate it ends up being such an enormous amount of money Right That you see this concentration of wealth Concentration of Power Which is now prompting all of the other cartels
Starting point is 00:45:57 Even those who weren't previously involved in Fennie Having to get involved in Fennie having to get involved in it Just to try to keep up And so it really creates this dynamic where there's a race to the bottom That in the end is not going to end well because, you know, once you keep prodding that slumbering American giant, at some point, they're going to have to get up and they're going to have to do something because this is not
Starting point is 00:46:22 sustainable. Okay. So, what are, what are, I mean, you're talking about, you're talking about all that stuff. Some of this is all happening in Mexico. What was the real estate part? You talked about the timeshare. That just came out a couple of days ago. Okay.
Starting point is 00:46:40 Treasury Department. and the FBI issued a notice because there have been over 6,000 documented cases where it's essentially another aspect of the racketeering operation which deals with real estate fraud. And they've come up with this scheme, essentially, it's a scam, where, you know, the largest concentration of American expatriates is in Mexico, predominantly in and around Helisco. Portoviara's got an enormous population. There's an area of South of Guadalajada, very big retirement community. And there are areas that are beach property where Americans own timeshares.
Starting point is 00:47:18 So you'll notice in and around the Viata area, up in Nayadi, down in Cancun. That whole stretch, the Riviera and Maya, that's New Generation Territory. And so what they have access to is the personal information of the Americans that own the timeshares. and so now they're able to create what are essentially, you know, like telecenters. Yeah, I was going to say, what are they like phone rooms? Yeah, like huge other. They're like boiler rooms.
Starting point is 00:47:46 But they contact the individual and they're representing themselves as being a representative from the management company for your time share. Okay. You have $60,000 tied up. They're in a process of selling. They have an offer to buy it. Go buy back your share. Right.
Starting point is 00:48:01 For 90,000. You're thinking, wow, I just made a quick. 30 grand. 30% profit. I'm in. Well, you're going to have to pay this fee. $1,500 for this fee, $700 for this license. You know, they just hit them with fees.
Starting point is 00:48:14 They hit them with licenses. Then they're going to have to pay the Mexican attorney because you have to have a Mexican attorney handled the business on the Mexican side. So that's $7,500. Oh, then you've got to have all the documents translated from English and notarized into Spanish. That's another $1,800.
Starting point is 00:48:28 So by the time they're done, extracting money, they've got guys that they've hit people for tens of thousands of dollars. They've got one individual that they persuaded to send over $1 million. And so, you know, literally there are, and these are the $6,000 that have been reported. You know, the FBI indicates that they believe that there's, that's only 20% of cases. Most people don't want to come forward and admit that they got duped. You know, they're embarrassed.
Starting point is 00:48:56 Right. You know, and you got taken for $17,000, $18,000 on the scam. They just rather take the loss than go to their family even. Yeah, you're never getting the money. I'm not getting the money back anyway. You're not getting the money back anyway. So they're saying at least 6,000 documented cases. And this is the type of activity that's going to ensure you get a reaction because you're targeting
Starting point is 00:49:16 Americans. Honest Americans. Right. Not American criminals. Because these aren't even drug addicts. He's not drug dealers. Yeah. Or drug addicts or whatever.
Starting point is 00:49:25 Yeah. These are just some guy sitting at home. He's got a, you know, he's in Omaha, Nebraska. He's got his time share down in Cancun. He just gets clipped for 25 grand. And this is just happening. And, you know, and what's interesting is on several of the cases, they got them for tens of thousands of dollars. And when they contact the actual timeshare company, an attorney from Mexico contacts them and says, well, look, we can do this, this, this, this.
Starting point is 00:49:53 It's another scam. They double dip. Yeah, we can get your money back. We can get your money back. For another five grand. We're going to sue this. It's horrible. The operation that they're running out
Starting point is 00:50:03 is just shocking And they're doing all this From within Mexico So you've got Mexicans that are calling Like they are they saying they're I mean like I guess it doesn't matter That we are calling from Mexico I was going to say
Starting point is 00:50:16 You know Guadalajara is Los Angeles' sister city Yeah yeah And so there's a tremendous amount of personnel moving back and forth Right right And in that area Like I said it's the largest concentration
Starting point is 00:50:27 Of American expatriates in the world And so there are entire businesses that are geared towards Americans, you know, English-speaking Dennis, English-speaking tax accountants. God, I was going to go to, I was thinking about bringing Jess to, like, Cancun, you know. I mean, they're going to be, the new generation gets their peace. Well, are you going to be staying at their hotel, buying their drinks? Oh, my gosh, that's great.
Starting point is 00:50:50 All I need is a hotel made with a new generation investors. Sure, there's a lot of, a little bit too much sand in that concrete, you know what I'm saying? It'll be the next collapse like that place down in Miami. I mean. Remember, they don't build the institutions, the hotels and structures. Those are essentially legitimate companies that come in. They may be controlled, cartel controlled. Right.
Starting point is 00:51:11 Well. Yeah, but no, they, you know, they're, they're good guys. No, but they're designed for the purposes of surfacing capital. Right. And what they, they want to be able to market it to Americans. Okay. And so, and that's where the market is set up. So now you, you know, there's an enormous, I think there were, I forgot what the number was,
Starting point is 00:51:36 but there was tens of thousands of Americans with timeshares in Mexico, which is why now the FBI is trying to be proactive, but, you know, they got all these cases, but there's essentially nothing they can do. You know, the Mexican banks don't know that they get a wire from an American bank. Right. They don't know what the nature of the actual transaction is. So, like, so several of the victims on the Americans said want to sue Mexican banks and the banks like we're talking about.
Starting point is 00:52:02 You sent the money. Right. Like, you should have been more diligent. You didn't do your due diligence. How's it their responsibility? Mm-hmm. And so it's really a conundrum. And it just illustrates how they've managed to diversify to the point where something
Starting point is 00:52:19 that you would think would be the farthest from a highly built from a militarized drug cartel. Right, right. would now all of a sudden be running these type of sophisticated cons. Right. I was going to say, and in a way, you know, to me, it's, it's a different version of the decentralized hierarchy because, like, the Sinaloa, you're saying they're all kind of running themselves, right? Like whatever, you know, first of the equals or whatever, you know, but I'm saying in this way, it's like, okay, our operations were hindered or, you know, disrupted here, well, it's okay. We're still bringing money in from all these other operations.
Starting point is 00:53:01 You know what I'm saying? Okay, well, they, they really hammer us on the drugs. They're really shutting down the drugs. It doesn't matter. We've got, we've got, we've got, we're in, our fingers are in so many different things. They're not going to across the board be able to knock us out of it. Unless you really just have to knock out the leadership as quickly as possible. Which, which is why the, you know, the handwriting's on the wall.
Starting point is 00:53:21 Right. Which is why you're saying the Americans are trying to push to say, hey, this is. Designate them a terrorist organization. Mexico will say no, but so Mexicans will say, come on in and handle it, you got to do. Right. Because you just can't have innocent Americans getting ripped off. Plus, they're legitimately harming the Mexican state. Right.
Starting point is 00:53:38 I mean, they just cost them a billion in fuel last year. You know, then all these additional taxes, well, that's disrupting their business operations and their legitimate businessmen, the wealthy guys that own those macadores. Well, they don't want to be paying these taxes. Right. So they're going to their congressmen saying, hey, what are you going to do? So, you know, it's creating an untenable situation that I'm sure is going to come to a head fairly early in whatever the next administration is going to be. And so, you know, you and I before we were talking, you were like, well, you know, if Trump wins and he builds the wall, that'll put an end to it.
Starting point is 00:54:14 Right. And, you know, right before I left Coleman, we got a guy that showed up and he was a new generation. Okay. And his stories are just out of this world. Right. And he, you know, they built quite a bit of the wall. In fact, here you go, I mean, this is, and it shows, this, this map shows the wall that was built, along with the construction, pre-construction, and anticipated. Right.
Starting point is 00:54:49 And so you can see it's a significant stretch. Right. And although, you know, the lion's share of material is always going to come through to ports of entry. You got 15,000 trucks in T.J., 18,000 trucks in New Florida. You got 20,000 cars. Yeah, a lot of camouflage, a lot of, yeah. And so, but in order to disperse the Border Patrol, you don't want them all concentrated at their stations. You got to break it up.
Starting point is 00:55:15 Right. So the other methods that they smuggle are essentially decoys. But, you know, the American Border Patrol can't fail to respond. And so, like, you know, at the border between San Diego and Tijuana, you know, there's a beach. Well, that goes right to the ocean. So you're on this side of the hypothetical line. You're on the sand in Mexico over here. 10 feet over, you're on the sand in L.A. and in San Diego.
Starting point is 00:55:44 Right. And so, you know, we built like a little perimeter that goes out X number of yards. Well, what they'll do? they'll take those little jacousto boats. They'll just, yeah, come around. So they got to patrol the beaches. Right. You know, the migrants coming in from Central America.
Starting point is 00:55:59 Every once in a while, they'll give them a backpack. Right. Because that way, they had to go out there and they got to check every guy coming in, looking for drugs. Again, of course, you have the tunnels. Right. But the way the new generation individual was telling, he's like, you know, in order for them to essentially really with the Americans, he says they built an entire fleet of catapults. Right.
Starting point is 00:56:25 I know, and I'm just like, you know, and you stop and think about it like, you know, here we are in the 21st century, the walls that are being built, state-of-the-art technology, motion detectors, sensors, the height of American ingenuity. Right. And these guys are defeating that
Starting point is 00:56:42 with 1,200-year-old technology. Yeah. You know, like, and so I pulled up some full, photos like for your viewers, like, here's one of the catapults. So you have duffel bags full of parked in front of the catapult. And they'll just put it right like on an old boat trailer. And then just...
Starting point is 00:57:00 They just drive out. And see, and the thing about it is... You got one on the other side running around trying to catch it. The thing is that, you know, the catapults aren't illegal. Right. Yeah, what am I doing wrong? And so the Border Patrol sees them driving down the road, like they're driving along to Rio Grande.
Starting point is 00:57:17 Right. So they got to go out and watch them like... So they're just wasting their time. We're just wasting their time. We got this catapults going back and forth just to fuck with the Americans. Right. He said at nighttime data, they do break them out and know everyone's all those suit loads over the walls. He says, but now they're on, they're on to drones.
Starting point is 00:57:33 Because they've got an entire fleet of drones. It's like, you know, there's so many drones flying in this guy's like the, you know, the air pattern over L-AX. He says it's just drones just going back and forth, back and forth. And you know, and you're just thinking that... This is a massive, massive problem. How do you fix that? And it's the Unified Central Command because you got someone who's able to say, okay, you're going to do to the catapults, you're going to do the drones,
Starting point is 00:57:57 you're going to do the tunnels, you're going to do the little boats. Well, and if you have, if you have 80 organizations making their own decision, this one organization and it decides, hey, you know what, let's do some catapults. Okay, what can they, how many can they put together? Ten? But if you have the main guy say, you, out of all these 60, you 30 got, 30 organizations are going to make 15 apiece. Like now it's huge, now it's a massive amount.
Starting point is 00:58:24 So every time they make a decision to consolidate that, because of that consolidated power that goes, that's distributed that order is distributed amongst many, many nodes, then they can come up with a hell of a lot more of a disruption. So like I said, if you've got 15 organizations along the border and they can say, I want you to each put six catapults in the field.
Starting point is 00:58:45 So that's 90 catapults every evening, going out into the field, but only five of them are being used. Right. But even then if you're... But it requires... It requires at least two agents in a truck to try and follow them even then. Now you've got 180 agents driving around trying to keep track of catapults or, you know,
Starting point is 00:59:01 they'll just send over like tomatoes. Yeah. You know, like... You can shoot it. You could shoot with old clothes. You can shoot up dirt. You don't know which one of them is actually using contraband. Right. So if three of them start shooting them off and then the other guys, they call for backup. They, they're shooting these. They
Starting point is 00:59:17 call for backup, that just leaves how many, you know, 87, they open them up as duffel bags full of avocados. Right. Meanwhile, you got an entire strike force collapsing on the scene. I mean, it just, it's, it, you know, it's like when you're in prison, when, when duces go off, all the guards respond. But if deuses go off the fourth or fifth time that day, like now it's like, you know, it's probably just another false alarm.
Starting point is 00:59:43 Right. You know what I mean? They start conditioning them to, you know, every. time i go out there and chase these guys down i get duffel bags of tomatoes well the time you don't go maybe the time right the thing is yeah yeah i was gonna say plus they don't really you know it's like we were talking to um i'm gonna say his name uh in coleman like you know they were just the people like where they're sending eight cars across and they they know one's gonna get caught like this is the one like it's a decoy and then they let the rest go it's like oh but you will lost that load it's like
Starting point is 01:00:16 we can lose loss. Like, we're making so much money. We can lose half those loads. And we can lose 90% of the loads. And we're still, we'll only, we'll break even.
Starting point is 01:00:24 And then that's never going to happen. Yeah. Well, like I said, during the course of Guzman trial, the government established that the success rate was one percent. So out of 100 cars coming through the border, one gets stabbed.
Starting point is 01:00:37 Then they lose one. Hmm. And so it's, and that's not including, you know, the tractor trailers. That's not included. the trains, you know, all this commerce that, you know, when NAFTA was passed, every drug trafficker
Starting point is 01:00:56 in the United States celebrated because it increased the amount of commerce exponentially, which, of course, allowed for free-flowing, obviously product coming one way, money going back. Right. It may have been a disaster for the middle class. Right. But for the, you know, the underworld, it was. was a gift. And until someone makes a decision that, you know, we may have to reevaluate whether or not we're going to remain in these type of trade agreements, there's essentially
Starting point is 01:01:28 nothing that can be done. You can build, like I said, you build a 2,000-mile wall, they're going to bring out the catapults. They're going to break out the donalds. They're going to bring out the tunnels. You build a 20-foot wall. They build a 10-foot tunnel. Right. you know what I mean and so at some point you really need to start thinking about collaboration which is
Starting point is 01:01:51 from the game theoretic perspective the most optimal solution find one of the groups in Sinaloa someone is like in their 50s you know it can't be somebody he's in his 70s his time in the sun's coming to an end in his 70s or he's in the 80s he's really old
Starting point is 01:02:07 late 70s yeah so now uh but he's got a son he's 40 years old right see the heir apparent is in an American prison so you know Vizente Zimbada out of way
Starting point is 01:02:19 when Vizente Zimbada fell in 2009 the next son took over right so for the last 15 years myito's been being groomed right well today he's a 40 year old man
Starting point is 01:02:30 you can maybe approach someone like that and say hey look we're going to remove your enemies stop defending you know that kind of an arrangement can be made now they're going to obviously look we're going to try to knock off your loads we'll keep playing the game but we're going to go back to where it was in 2016 right at least the american citizen at least it's not a hundred thousand fatalities right it's not some
Starting point is 01:02:53 17 year old girl trying try and blow for the first time at a at a club yeah ends up over day noticing and dying yeah you have a question you know brandon i remember brandon do you remember exactly what happened with his i always i i've said it over and over again i just i i'm sure i i i i always get the story slightly wrong. Brandon was a doorman at a nightclub. I always say bouncer. Yeah. It's the same thing.
Starting point is 01:03:18 Yeah. He was a dormant at the nightclub. And look, if you're at the nightclubs, you know who's coming around. He knows who the local drug dealers are, of course. And so, you know, you got some girls coming to him. Hey, Brandon, you know, good looking guy. He's up front. He interacts with everybody because he's out front.
Starting point is 01:03:34 So he knows, everybody knows who he is. You know, they want to get a little bit of party supplies. He directs them to, hey, well, you know, You know, go talk to Jimmy. Hey, Jimmy, these girls want to talk to you. Right. Well, unfortunately, the local dealer is distributing a product that's been laced. Okay.
Starting point is 01:03:54 And so when, you know, these girls go and they make their purchase, one of them... Overdoses. Overdoses and passes away. So now the dealer gets busted. Yeah. He's getting prosecuted and he's facing, you know, a drug-related homicide and handspriced. enhancement. Right. But he says, he says, you know what? I'm going to, because of the code, I'm just going to take this on the chin like a champ. I'm not giving up anybody.
Starting point is 01:04:19 Yeah. No. So in order to get out from underneath that enhancement, he goes around and he lets him know, well, you know, Brandon hooked us up. Right. Well, all Brandon did was, hey, go talk to this guy over here if you're looking at a party. Right. Like he had no interest in the transaction. He didn't get a cut. He didn't make any money. Right. He essentially directed somebody in, but, you know, under the American concept of conspiracy. Right. He's a part of it. He put him.
Starting point is 01:04:47 He's in it. He's in it. And technically he distributed it. Right. You're saying he distributed it vicariously through the trafficker. Okay. And so he ends up getting, you know, he goes to trial, gets convicted and gets enhanced for the homicide.
Starting point is 01:05:01 Right. So, you know, and that's the, that's what's happened hundreds of thousands of times in the last five years um so when i tell a story i have a slightly different version you know obviously i'm off is my slight my slightly version is that like it was i never i didn't know it was a group of girls i just like it's one chick that comes up to him and says listen like you know like she's on oxies i i'm having problems i'm feeling sick do you know anybody he doesn't know anybody's like i do know a guy that sells oxy or maybe heroin or something and he says i can give you his number gives her the number, whatever.
Starting point is 01:05:39 She calls the guys like, I got heroin and gives her heroin, and she ends up from the heroin overdose. That's what I thought it was. Yeah, well, I understood it was someone that he knew from the nightclub. Right. Who just knew him as a dormant. Yeah, yeah. No, no, he was definitely not.
Starting point is 01:05:53 But he was not a dealer. Yeah, no, no, she wasn't dealing. He wasn't getting a cut. She just was like saying, like, in my version, I always thought, like, I was like, I'm sick. I do know anybody? He said, yeah, I do know somebody. That may very well have been to context.
Starting point is 01:06:05 I'm saying that he was approached by a woman. Okay, well, I'm good. That he knew from the nightclub, yeah, who indicated an interest in buying. You know, I remember these stories, but I'm always remember, you know, you hear it from four different people and you get kind of a, a mesh of what happened. And so I'm always like when I know somebody that knows that person, like, what was the story again? Because just to make sure that I'm close, I'm pretty close. You know, it's a group of girls. I'm saying, I thought it was one girl.
Starting point is 01:06:30 You know, so who knows, you know, whatever. I was thinking, Brandon, he's never going to come on here. Well, you know, Brandon's still at the halfway house. Oh, I know. He's, what, is he at the half? I thought he moved there. Did he go? Is he on the ankle monitor?
Starting point is 01:06:42 I know, I'm coming up on week after next. I will have been out of prison now for a year. Right. And so my interactions with the halfway house is now ending. Okay. And so, but when I was there. He was living there? No, I saw him every week.
Starting point is 01:07:01 Oh, okay. Well, that's not at the halfway house. He's on ankle monitor. He's considered a resident. Just, I'll cut him. custody. Oh, for God's sake. You with the, with the semantics. Listen, he's, he's living at home with an ankle monitor. He reports that a halfway house, at least once, if not twice a week. He said, he, he had told me that, yeah, he, yeah, he, I thought, I thought he was out. Yeah, I thought
Starting point is 01:07:25 he was out. He ended up, I think, moving back in with, like, his ex-girlfriend, who, he said, we were together the whole time I was locked up, but somehow she got pregnant. He's super funny. I mean, he's just the nicest, like the nicest guy, super tall, very nice. You just couldn't, I can't even imagine him being a doorman. Like, he just doesn't seem like the kind of guy that would, he wasn't, wasn't the bouncer. He was, yeah, yeah. Isn't that the same thing?
Starting point is 01:07:50 No, he's the guy that he's interact. He's got the owner's list. He's doing. Oh, yeah, yeah. So he's the guy that you can come in. Come on. Come on. Not dressed like that.
Starting point is 01:07:59 No, no. You know, so he's a little bit on the more polished side. Okay. You know, and like I said, good. guy, he was Amadale's principal typist. Yep. Yep. I always say that.
Starting point is 01:08:11 Almoday would be like, Brandon, type this up. Okay, Frank, what's this? Because Frank's handwriting was horrific. Yeah. Yeah. And then I always think of Brandon. He didn't type all my stuff, though.
Starting point is 01:08:21 He had a couple other typists, though. He had several typists. Well, no, he had his whole little group of typists that were in-house. He was the main guy. Brandon was the main. Brandon was the guy that did Frank's personal. Oh. You know, it was a higher degree of
Starting point is 01:08:36 responsibility. So you may have been farmed out to a chow. Yeah. Some chow type my shit. It's just icky. But, you know, and then Frank would get it. And then Frank would get the typed version. And then he would edit it. And it's like, the fuck are you do? Like, I just type that. Edit it before I type it. And Brandon would have to retype the thing. Well, because remember Brandon had the office and he had one of the electric typers with memory. Oh, that's right. Yeah. Oh, listen, when we say memory, it's not what you think. Yeah, it's 1995, IBM select mark or something like that. Yeah, it's like a cartridge that has a ribbon and somehow it has memory. Is it memory in the ribbon or was the, where was it the memory in the typewriter? Can you insert a photo right here? Yeah. And I'll pull up a picture.
Starting point is 01:09:23 Oh my God, if you saw these things, bro. Yeah. And so you want me to look it up? Yeah, just IBM select. Hold on. Keep in mind, those were the flagship. Right. Those are the privileged people. So So I had, like I had one in my office. Right. Amadeo had one, personal one in his office. Brandon had one out at the factory where he worked. Listen, these were coveted. Coveted. Yeah.
Starting point is 01:09:47 You get $500 easily for one of them type earners. I can't tell you how many people would try to buy mine. And I would just, you know, not going to sell my typewriter. Yeah. I'll never get in another one. Yes. And you know what I mean? Mine was brand new out of the box.
Starting point is 01:10:00 Did they? I have a question. Before you left, were they giving you guys tablets? They began with the tablets, yes, but they were, you know, they were essentially game playing. Right. So you could play video games on them? Yes. Like, but it was like rudimentary type games.
Starting point is 01:10:18 It was not like cool. Not like Halo. No, nothing like that. It's more like Pac-Man and shit. Well, it wasn't old stuff. It was games designed specifically for that platform. You could also rent movies. But it's, you know, like the PG-13s.
Starting point is 01:10:32 I don't care. Yeah. And so. ridiculous luxury yeah and then you you hadn't you know they were integrating being able to transfer your music to it listen when i got when they got the mp3 players and you could download mp3 whatever you could download the music listen that that was like they it was like they just knocked 20% off my time yeah i mean it was just like amazing because the little radios these little shitty radios you could buy on commissary were so we're out in the middle nowhere you
Starting point is 01:11:04 You could get like four channels. Like it was, and they were, and it depended on what kind of, what time of day if you could get them at all. And it was mostly like very faint and crackly. And then at night, you would get a better channel. If you, guys would try and get on the right side of the certain sides of the building so the mute, so it would come in loud or so you could come in more clear. Yeah. That's how bad it was. So when you got the MP3 player, you're like, oh, wow, I can download Chris Rock.
Starting point is 01:11:31 Chris Rock. The kid Rock. What am I saying? oh my god Chris Rock yeah no you couldn't do that because that would be like comedy they didn't have any comedy
Starting point is 01:11:39 but yeah you could download no they added comedy oh they did all the good stuff when I left but it's still it's all the profanities you can't listen to that's right the kid rock that we got
Starting point is 01:11:51 like they cut it out because there's it's they're all censored versions yeah you never let a or you never met a like me is you never met a white boy like no you never met
Starting point is 01:12:03 Whatever. They would have the clean versions. Yeah, that's what they called them. Yeah. And it was white boy like me. I think they said white. I don't know. I think they changed it somehow or another.
Starting point is 01:12:16 Yeah. And so they now they were getting ready to start adding books also, which would change a dynamic because now remember, like for those two years, you were running lockdowns. So you weren't, you were familiar with the pandemic lockdowns. Right. It was, you know, you couldn't go to the library. People could mail stuff in, though, right? Yes, but it was, you know, they were, they came in and remember how, like, spectacular that library was in A2?
Starting point is 01:12:42 Yeah. It's all gone. Because the guys in the other units were using the in-house libraries. They were cutting open spots and hiding the phones in them. Oh. And so instead of searching every book, they just took all the books. All right. Yeah.
Starting point is 01:12:59 And so having an ability to order the books yourself would obviously be a huge. huge game changer. All right. But they're going to make you pay for them. Yeah, of course. So I got to pay for the books. I can order it, but you've got to pay for it. Instead of having your family moving, oh, I guess your family just sends you the money.
Starting point is 01:13:17 You order to book yourself. They were already implementing a pilot program where you don't get your mail anymore. Oh, so you just read it. Yeah. They're going to scan it for you and they send it to you. And so the little pads are going to be incorporated into that. because the they were getting the amount of product coming into the prison is just
Starting point is 01:13:38 yeah because it's um it's um k2 it's it's a liquid right so they could just they were just like on page 31 of a book they just dip it and so you knew and you get a book tear out page 31 they could roll up and smoke it and then of course then they then they turned it to first then they turned to oh it has to come from the publisher from the publisher well i mean they don't There's so many publishers. You can, anybody can be a publisher. Yeah. You know, you just make an invoice, stick it in there, wrap it all, wrap it around it,
Starting point is 01:14:07 and send it with a label saying you're a publisher. And now, guess what? The prison lets in a book that they think came from a publisher, but it didn't. It came from inside true crime publishing. They don't know. So they implement these things, but people quickly find ways around them. Yeah, that's it. There's always a work around.
Starting point is 01:14:22 And, you know, they had a real bad problem with drone episodes. Really? Yeah. and so there was probably about i'd say probably a good 10 12 drones oh my god made it through over the course of a few months and then uh on one of them you know you had the two fences you had the outside perimeter fence and then the inside perimeter fence right the drone dropped the package in between the two so the guy try and get it well yeah they're out there with like the like broom handles oh my god like trying to fish it and uh they weren't able to
Starting point is 01:14:58 they weren't able to do it. And so at some point, one of the guards actually does a perimeter check. And he stumbles across and you've got, you know, a dozen phones, a bag of weed. And what kind of what an idiot drops it in the middle of like you can, what do you? I'm sure you want, I understand you want to drop it close to something, a fence or something. But that's where it would be good if you, the guy doing that working the drone had been in the prison. Yeah. And new.
Starting point is 01:15:23 Like this guy's probably thinking, oh, just drop it there. They'll grab it. Like, you're not getting in there. Yeah. And so then there was a second time where it got stuck in the, you know, the, the Constantine wire. Yeah, yeah. On the second fence. And so at that point, you know, the captain just went nuts.
Starting point is 01:15:44 You know, it'd be like every time there's a drone, everybody's locked down for a month. And then it's every time there's a drone, there's three months lockdown. And it's like, you know, you're at a low, you're running everything on lockdown. Yeah, what are you doing? It's like, you know, and so it's, it's, they, uh, they really lost control of that situation because, you know, it got there, it was funny because, like, one time they had, like, a sting. Like, they knew the bag was out there. And so they wait to go out and get the, you know, they're watching someone to grab the bag.
Starting point is 01:16:11 Right. Well, he grabs the bag. It gets distributed. And by the time they go, they just, you know, there's 700 guys coming off the yard. Who knows who has what? You can't search 700 guys. Yeah, it was just like, come. Or did they search them?
Starting point is 01:16:25 Try and search them. They didn't get it. Yeah. Some of these guys will suitcase a phone like that. You're like, wow, that's quite a talent you got there. And so, yeah, the drones were an enormous issue there. And like the new generation guy says, they've got an entire squadron at each one of these border crossings, just running drones. And so at some point, you appreciate the fact that we have.
Starting point is 01:16:54 lost control of the situation, which is part of the reason why you see so many people in the country losing faith in these type of institutions. Because if you stop and think about it from 1980, you know, 1981 when Reagan declared with war on drugs, till now, they've spent over a trillion dollars. It's worse today than it was. You know what I mean? It's like, what, what's the return? on that investment.
Starting point is 01:17:27 And, you know, it's, uh, did you read the book, the Holderman Diaries? You did? No. Who did? Who read it? What is that? In 1994, there was a book called the Holderman Diaries that came out. And in fact, I got a...
Starting point is 01:17:41 I didn't think I've written to read until I was probably in prison. Okay. Well, yeah, there was a book called the Hallderman Diaries. Alderman was one of the main guys. And I think he was actually like attorney general for Nixon. Okay. And, you know, they had a recording system at the White House. Yeah, I'm aware.
Starting point is 01:17:58 So it's not speculation or it's not secondhand accounts. They, you know, so like, Watergate happens, 72 is a break in. 74, he resigns. It was like 20 years later, the tapes are made available. Right. You know what I mean? And so, like, for the first time, we're actually able to hear what they were saying. Nixon saying, well, tell those guys to go in there and plant those bugs.
Starting point is 01:18:21 But the interesting part wasn't the discussion about Watergate. Quick, can I stop you for a second? Go ahead. Watch this. Do you know what Watergate is? No, it's something. History. History wasn't my interest.
Starting point is 01:18:44 Did he even know who Nixon was? He was a president. Yeah. Okay. I can tell you, I've heard. I've heard Watergate many times. But when people say it, I'm just like, oh, yeah, yeah. Well, you know what you also hear is that you'll hear, because it was such a big deal,
Starting point is 01:18:59 is that the media will tweak it now. So there's a big, like I said, there's a big, a big scandal. They'll call it, they'll throw a gate on the end of it. They'll say, oh, it's, it's, you know, the skating gate. You know what I'm saying? though, because maybe there's something that has something to do with the skating in the U.S. skating something. There was a big scandal in the order of fraud or something they'll say. So the Watergate, so back to Watergate. Watergate was a Watergate hotel.
Starting point is 01:19:32 And Nixon's staff, several of, some of Nixon's staff members hired someone that hired several professional burglars to, what do you, what? What do you mean? What am I getting it wrong? No. They broke into the professional burglars. It was an FBI agent named Gordon Liddy. Oh, okay. Here we go ahead. G. Gordon Liddy was the leader of a group called the plumbers.
Starting point is 01:19:59 Well, yeah, who were they hired by? They were hired by the Nixon campaign. Okay, okay. So not the administration. So the campaign hires them. The committee to reelect the president called Creep. And so the Nixon campaign hires his group of his FBI agent to organize a group of individuals to start doing break-ins.
Starting point is 01:20:19 They weren't professionals? No. If they're being paid? Well, yeah. I'm sure they're... What defines being professional? These guys were true believers, essentially. Okay.
Starting point is 01:20:30 And so they, remember, it was a different world. You had a very conservative administration that was at odds with the anti-war left. Right. And this is getting ready to the point that I'm about to make. Okay. You know, the Nixon campaign had... essentially two political opposition groups, anti-war left, and blacks. Okay.
Starting point is 01:20:56 And so they needed to come up with a way to demonize and neutralize these two groups. When the White House tapes got released, it resulted in a book getting published called the Haldeman Diaries. Well, we're still talking about Watergate. Yes. So here's the whole point. Okay. Okay. So once they got the actual tapes, they were able to go interview to people.
Starting point is 01:21:17 that were personally involved. Okay. Like, hey, by the way, you said this. Right. You said this, right? And so in connection with the drug activity, it came to light what the actual purpose of declaring drugs a problem was. Nixon didn't care about the drugs.
Starting point is 01:21:35 Republicans didn't care about the drugs. It was a pretext designed to attack their political opposition. And so when Ehrlichman gets confronted with, hey, this is the tapes and this is what you said, here's his quote, The Nixon campaign in 1968 and the Nixon White House after that had two enemies, the anti-war left and black people. You understand what I'm saying? We knew we couldn't make it illegal to be either against the war or black, but by getting the public to associate the hippies with marijuana and blacks with heroin and then criminalizing both heavy, we could disrupt those communities. We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on the evening news.
Starting point is 01:22:14 Did we know we were lying about the drugs? Of course we did. That's the genesis of the drug war. Okay. Had nothing to do with drugs. Just a way to neutralize your opponents. This is a way to cast aspersions behind your political opponents. Right.
Starting point is 01:22:30 And so this was the actual premise where the participants in the room. And this isn't the guy 30 years later saying, or 20 years later saying, yeah, this is what we did. You say, no, we were recorded saying that. Right. What can we do to neutralize these blacks? Right. And what can we do to neutralize these hippies? Yeah.
Starting point is 01:22:48 Why don't we do this? Okay. But now you contrast that with their actual public statements. They're acting like they care about the American people, the healthy American people. These drugs are really bad. How they pitch it. The narrative they produced was completely false. Okay.
Starting point is 01:23:05 Okay. That is the genesis, not just this is an example of where things went off the rails in this country. Okay, well, are we going to finish talking about Watergate? So now here you see, so this tells you, well, the Watergate aspect of the story is over with. No, it's not. He doesn't know what Watergate is. Neither does 9, 80% of the people watching this. So anyway, the FBI put together the burglars.
Starting point is 01:23:31 Gee Gordon, lady, puts together a team of guys. They go break into a man named Daniel Ellsberg's office. Right. And the, in the Democratic and the Democrats. No, initially, it was Ellsberg's office. He's the individual who procured material from the military that was released to the Washington Post and the New York Times that were dubbed the Pentagon Papers.
Starting point is 01:23:54 Oh, yeah, yeah, okay. And it demonstrates that the government of the United States knew before the escalation of Vietnam that they couldn't win. Right. Again, it's another instance of false narratives. Yeah. And so you start seeing this repeated pattern where you get... Was his office located in...
Starting point is 01:24:12 in the Watergate Hotel. No, so you did the Ellsberg break-in first. Then they said, you know what? Let's go and do the same thing for the Democratic office. So what they did is they broke into the Democratic campaign headquarters in the Watergate building
Starting point is 01:24:29 and they bugged it. So they put in listening devices. Well, what they didn't expect was later on to Supreme Court that same year declared listening devices illegal. So now they had to break back in to take out the bugs.
Starting point is 01:24:43 I did not know that. So you know what I thought happened was when they were in there planting the bugs, they got caught. No, they got to do it. It was when they went back in to get them. Well, they're just trying to do the right thing. That seems reasonable. Why do that at all?
Starting point is 01:24:57 Why not say, just let it go? What does it matter? Because the Democrats aren't stupid. You know, and they were being represented by an individual who was certainly the most powerful defense attorney in the entire country, man named Edward Bennett Williams
Starting point is 01:25:11 he actually made it out to Nixon's enemies list Okay And the He had like a little list He had a whole list Yeah Edward Bennett Williams Like one of the guys at the very top Okay
Starting point is 01:25:23 And so they didn't want to He almost came close The blown the lid off Watergate He just didn't know about the bugs Okay Because he's the one that was suing The Committee to Reelect the president And so you had all these moving parts going on
Starting point is 01:25:36 And so the point is is you had a fundamental change in our country where the power of that V started, you know, providing these false narratives, that people, segments of the population no longer believed. And Watergate was certainly one of them. The Vietnam War was certainly one of them.
Starting point is 01:26:03 You know, and so you had a change fundamentally in our country. Because up until the 1970s, our country has always been a story based on growth. You know, we're a very young country, and we were fortunate in that within, you know, 1776, declare independence, 1787, Constitution takes effect, 1789, Bill of Rights gets amended. And within 50 years, you got, you know, we're in the midst of Industrial Revolution. So we went from what was essentially an agrarian society to an industrial society relatively quickly. so we got all the benefits without a lot of
Starting point is 01:26:41 the bullshit and so the American story has always been one of growth your grandfather knew that if he worked hard his son's life's gonna be better and your father believed that if he worked hard
Starting point is 01:26:54 your sons you know 50 years ago a guy working at an auto plant could support his own fire family you know he's the primary breadwinner the wife's at home he's paying the mortgage two cars paying a kid to go to school well middle class
Starting point is 01:27:06 I can't do that today. Right. Blue-collar guy can't do that. His wife's got to work. He's probably working two jobs. He's got a side hustle. Well, something has fundamentally changed, which is what's caused this loss in trust in all of our institutions. And the drug war is an illustration of that.
Starting point is 01:27:24 It was premised on a completely fabricated basis that the Nixon White House wholly concocted. Right. Now... There's lots of things like that. That's very... Ten years later, it's a similar circumstance. Remember, you know, we had a difficult period. You had, you know, the Arab oil embargo.
Starting point is 01:27:44 We got our asses handed to us in Vietnam. Four years later, five years later, San Denaes take over. And so in Nicaragua. Yeah, yeah. And so you had, you know, the Western Hemisphere has always been our backyard. So you had a Cuban regime, a communist regime in Cuba. Now a communist regime in Nicaragua. We just lost to the communes in Vietnam.
Starting point is 01:28:05 Right. So they elect Reagan. They elect Reagan. And what he decided to do, he breaks out the Nixon Playbook. War on drugs. War on drugs. Because you had indigenous groups that were supporting revolutionary ideas in other Central American countries, whether it was Honduras, El Salvador, Guatemala.
Starting point is 01:28:23 God, I wonder, what do you think, Reagan, how much do you think he dumped into the military? You think he doubled the budget or what? A tremendous amount of money into the budget. But here's the thing. No, no, I don't mean the, I mean, I'm sorry, I meant like the military budget. Yeah, there was a significant. increase. Yeah. Because, you know, one of the things he was doing was saying he really pushed the narrative of the Soviets, the imminent Soviet invasion of the United States. Soviets were never
Starting point is 01:28:46 going to invade the United States. It was never even on, it was never even a discussion. Yeah. Like they don't have, they can't get their people here. They don't have the transports. And the U.S. the U.S. knows this 100%. We know we can see what you have. You don't have transports. You have no one. You can barely, your country is so massive. You can barely get around your country. railroads going everywhere. Like, you're not getting them on boats and shipping them over here. It's never going to happen. You can't transport them here. But he pushed that narrative. It scared the piss out of everybody. And so what do we need? We need more money in the military. Well, you know, the, we, he, you know, when he, Reagan wins office. And keep in mind, at this point, I was 10 years old, 11 years old.
Starting point is 01:29:28 I was diehard Ronnie fan. You know, I love, listen, I love Reagan. Okay. I love Reagan. I get it. You, you manipulated things, but that's just everybody does. And so what you had, though, is an effort on his part, you know, we had to have a basis to get munitions, arms, and, you know, material and advisors into these countries. Well, the reason why you get these communist insurgencies is because they're fighting against, quote, unquote, American imperialism. Right. And so we had to manufacture a basis to get advisors into Honduras, Guatemala, to make sure
Starting point is 01:30:02 that these other countries don't fall the way Nicaragua did. Right. So they break out the old playbook. They used the war on drugs. And if you stop and think about it for a moment, it was always BS because their premise was
Starting point is 01:30:18 we're going to disrupt the drug markets here by curtailing supply. Well, the proposition of curtailing supply provided them with the basis to say, we're going to... On July 18th, get excited. This is big!
Starting point is 01:30:34 For the summer's biggest adventure. I think I just smurf my pants. That's a little too excited. Sorry! Smurfs. Only date is July 18th. Put helicopters, rockets, missiles, and all these little countries, Panama, all the other ones, make sure that they don't get overthrown. Under the pretext of counter-narcotics operations.
Starting point is 01:30:55 Right. Well, what happened is we're now 40 years later. We're now two generations. later. Like, you don't even know who Ehrlichman or Haldeman were, much less read the book today or 30 years ago when it came out. Well, the 99% of the people in the country don't know that Nixon's on tape saying, okay, Jennifer phony bullshit drug war.
Starting point is 01:31:20 Right. And the Attorney General makes these kind of statements. Well, the problem is you got the people operating, you know, running the ship today who don't know that it was all a pretext four decades ago. Right. They never actually meant to do what you're trying to do. And so what you actually done as you create a circumstance where the consequences of your decisions are predictable. You start interrupting the Colombians coming to Florida.
Starting point is 01:31:46 What do they do? They go to California with Mexico. You intercept our lows. They increase production. They increase production. They had to find new markets. Now, here comes when we had that whole episode dealing with unintended consequences. Well, essentially, the geopolitical fight against communist and socials,
Starting point is 01:32:02 created the drug epidemic in the United States because there was never an attempt to disrupt the markets. You know, the historical precedent where it actually succeeded was in China. You know, the commies fought the war in China. They won the Civil War. Chiang Kai Shik and the nationalist flew to Taiwan.
Starting point is 01:32:23 Right. So the Republicans, the Democratic people that are Chinese are in Taiwan, the commies that are Chinese, are in China. And so one of the first things the Chinese did is say, okay, we're going to shut down the opium trade. No more British Empire opium.
Starting point is 01:32:41 Right. So they shut down the opium to shut down the heroin. Okay, now how are you going to curtail the drug use? They put two million people in reeducation camps. Right. They broke the market by curtailing demand. Not supplied. Now, if they catch a dealer, they just executed them.
Starting point is 01:32:59 Right. But they stopped the market by curtailing demand. You either were re-educated and stopped using, or if you relapse, you were executed. So that's why, like, today when you see, you know, the American government goes to the Chinese and saying, hey, stop the precursors. They're like, what are you doing for demand? Right. You wouldn't have a problem if you put these people in jail. But that's in a politically untenable proposition in the United States.
Starting point is 01:33:23 They're not going to arrest the consumers. Right. But they've created this narrative that the problem is because of the supply side. Right. But it doesn't mean, it's actually anti-capitalist. Capitalistic. Yeah, it's really stupid. That's why it's a fool's errand because as powerful as federal law enforcement agencies are, they're not as powerful as the market.
Starting point is 01:33:43 Right. And the market forces overcome it. And if you want an illustration? Sure. I love illustrations. Okay. Let's do it this way. We're here near Tampa.
Starting point is 01:33:55 You have a sewage treatment in Tampa, presumably. You don't dump everything into your beautiful day. Of course. Okay. So if we go to Tampa sewage treatment and say, hey, you know what? Fill up my cup with human feces. How much are you going to charge me? Right.
Starting point is 01:34:10 Better yet. Let's get a few 55-gallon drums full. We got a large supply of human feces. Now let's go to Costco and buy ice cream cones. You are going to corner the market. I'm selling what we're going to call shit cones. Okay. Take one scoop of shit.
Starting point is 01:34:28 You're not going to sell a lot of those. Well, according to the government, supply creates a market. Right. We've got an unlimited supply of shit. You've got an unlimited supply of shit cones. Right. Why aren't we selling them? Right.
Starting point is 01:34:41 There's no demand. It doesn't matter how much supply there is. It's always demand driven in a commodity space. I'm not talking about technology. Right. People are like, oh, what about the iPhone? No, no, no, no. I'm saying in the commodity space, markets are a function of demand.
Starting point is 01:34:58 And even if you take your shick cone from a dollar a cone to 50 cents a cone to a penny a cone, you're still not going to sell any. Horrible example, by the way. Also, can I point this out? Colby, so Nixon was implicated in the whole Watergate scam. He was implicated where he knew what was happening. And so that's why he ends up there in the process of impeaching him. And he resigns and makes Ford? What do you?
Starting point is 01:35:26 Okay. Okay. All right. Nixon was not involved in the break-in. No, I'm not saying he was in the ride driving the truck. He wasn't aware of the break-in at the time. No, he was aware of the cover-up. He did, yeah, he orchestrated the cover-up.
Starting point is 01:35:41 Yes, they came. When he found out that you guys did, you did what? Like, he's like on tape. That's like, that's like you and John Robb the bank, and you come to my house, and I help you count the money and launder it, or not launder it, but I help you count the money and hide it, even though it's after the fact, I'm still now an accessory to the bank robbery. I'm now a part
Starting point is 01:36:00 of the conspiracy. You're an accessory after the fact. Yeah, but I'm still part of the conspiracy. No, I mean, accessory after the fact. He was an accessory after the fact. Okay, so Nixon was still involved. Accessory asked him to tell you if you want to get technical, but he was still involved in the whole thing because afterwards, when they told him what happened,
Starting point is 01:36:17 he starts to try and, they kind of try and come up with, you know, like they're trying to pay the guys to shut up or whatever. They're trying to get everybody to be quiet and keep your mouth shut and we'll get you out of jail. or whatever it's going to do. So as a result of that, they started impeachment hearings. I thought they started impeachment, and then he... No, he had the payoffs.
Starting point is 01:36:38 They got lawyers for everybody. And then one of the deputy directors at the FBI took on the role of an individual named Deep Throat. Yes. And he leaked the fact that, hey, they're recording all the conversations. It doesn't matter. So now he gets in trouble because he starts editing the tape. Like, oh, get rid of that one.
Starting point is 01:36:56 Oh, get rid of that one. this one. Oh, we can't say that. You know what I mean? So now Nixon was dead to rights because they got him on tape after the break-ins, laughing about it. Right. That was a nice one there.
Starting point is 01:37:07 You know, so he was clearly complicit in the overall scheme. Did they not start impeachment? Yes, they initiated investigation. What did I say? That doesn't matter. That's all that's detail. It's the same thing. They start the impeachment process and then he decides he's going to resign and step down and he appoints,
Starting point is 01:37:24 well, obviously the vice president didn't appoint. the vice president become, who is it, Ford? Gerald Ford. Yeah. So Gerald Ford becomes president and Nixon says he didn't, that's what Nixon does, his famous speech, you know, I am not a criminal. Do you ever hear of, I'm not a criminal? I remember a history teacher doing that.
Starting point is 01:37:41 Right, right. Because he, we heard the whole face, his face was all, I'm not a criminal. But anyway, he steps down, Gerald Ford becomes president, and he, um, uh, pardons him. And of course, everybody assumes that. there was an agreement beforehand, although they said there was no agreement, but I have to can't allow, Gerald Ford said, I can't allow for an ex-president to be, you know, impeached or whatever charged or whatever, so I'm, you know, so, you know, for the presidency, that sort of thing. And so, yeah, that was, is that right too? Yeah, of course. Very good. My God, Pete,
Starting point is 01:38:16 listen, I'd like to say I was 90% on this and he's going in with fact, the specific facts that altered to undermine me and I feel I'm 90% sure I did I definitely did not know that they I did not know that they broke in to remove the the bugs like that's nuts yeah I'd have been like that
Starting point is 01:38:37 like even if they find the bugs I'll just I'll just deny it like what you're talking about we had nothing to do with that like going in back in but they may have been like FBI issued oh like could you imagine they had like serial numbers like you Johnny you sign these out like it's crazy Well, we just have to kill Johnny.
Starting point is 01:38:54 We have to stop that in its place. Johnny's going to have a tragic accident. That's what I think. I'm not going back in. Anyway, I'm sorry. So, the whole point, the false narrative has been utilized in numerous different contexts, one of which, of course, was the drug war, which ultimately results in the situation we're in today, where a solution to a specific problem is,
Starting point is 01:39:22 was, you know, the drug war was appropriated as that solution. And today, that context doesn't exist, but the machinery just keeps rolling on. And essentially what you have now is market forces dominating, which is why it's just, you know, had they spent a trillion dollars on demand, we wouldn't have a market. Right. But then we wouldn't have had the troops or the material or the weapons and munitions in Central America back in the 80s.
Starting point is 01:39:49 And so, and, you know, it was interesting because, you know, in prison, now it became well-accredited with the trafficking name Mario Villabona. And Mario at one point was the largest drug kingpin on the West Coast. He oversaw, he represented the Cali cartel in the United States. And, you know, he would, we'd talk a little bit. And he'd be like, you know, the problems that they made was doing business with people that the Americans perceived as. communist sympathizers. Because from the Colombians perspective, they just wanted to land their planes
Starting point is 01:40:23 to refuel their aircraft. Well, it turns out that the individuals that are clear-cutting the forest to land the planes are insurgents. And so now the Americans were able to say, hey, look, the Colombians are indirectly financing the commies.
Starting point is 01:40:37 So now they get bootstrapped in. So, like, they walk right into this trap. Like, they weren't discerning enough. Because the last thing, you know, these guys were a hyper-capitalist. They're not commies. They're just looking to land their aircraft. And so when I was,
Starting point is 01:40:49 would talk tomorrow, he's like, you know, that was one of the big things they did because they gave that issue to the Reagan administration. And that's essentially how they were able to say, now we're going to also go after the Colombians. And so you just had this massive escalation that served as a cover for what they were actually doing geopolitically. You know, and see, and the problem they had is when Reagan went to the Congress, because at the time, both houses of Congress were controlled by the Democrats. So when they went to the Congress to try to obtain funding to fight the Nicaraguan's, they said no. Like, you just lost in Vietnam. We're not getting involved in any more to silliness, which is what in turn prompts the Iran-Contra scandal,
Starting point is 01:41:26 because now they had to raise the money to support the Contras against the Sandinistas. And so it's just one huge false narrative that, unfortunately, four decades later, we're still stuck living with. Yeah, I would actually talk to Colby right now about the Iran-Contra. scandal, but I'm afraid I'd get half of it wrong. Does he hear him? Does he know about it? No, he doesn't know about it. He was educated down here in Florida with me.
Starting point is 01:41:59 I don't know anything. I know bits and piece. I've watched a movie, which apparently, I've watched several movies on these things, which were apparently completely botched. Well, it wasn't until one of the break-in participants released his memoirs. It was like in 1993 That he disclosed Like for the first time
Starting point is 01:42:19 Well we were actually going back to get him Oh so initially We thought that you thought they were actually putting them in Yeah How am I supposed to know that? How am I supposed to know that? But these are Big books that were popularized in the early 90s
Starting point is 01:42:34 Didn't you read it in 93? No, the general The general consensus is they were going into bug Yes, no, they were actually going into Removed bugs It's This is ridiculous Which is why to break it happened in June of 72
Starting point is 01:42:48 Because earlier that same month The Supreme Court held That wiretapping is illegal Because up until Like I would think like you didn't know that Maybe this was wrong Maybe wiretapping your competition Because remember
Starting point is 01:43:01 No no Because their pretext was That The Democrats were directing The leaking of confidential information To harm the war effort So they were saying What?
Starting point is 01:43:10 That this was This was part of Of an investigation. Yeah, that was their pretext. This is an investigation to determine whether or not the Democrats are colluding with Ellsberg, which is why they broke in his office to look for evidence. That sounds like it's all fabricated a reason to, to plug them. These are the guys that fabricated the drug war to smear blacks and anti-war lefties.
Starting point is 01:43:36 And so, yeah, of course, obviously it was a false narrative. But nevertheless, that false narrative, you know, The Supreme Court's decision caused them to be concerned that people were going to stumble upon something they couldn't find out. Which earlier we were talking about what happened with Zambata's kid in Mexico. That's exactly what happened. When the Mexicans arrested Vecente Zambata, they stumbled onto something that nobody was supposed to know about.
Starting point is 01:44:06 And so when Zambata's like, what are you doing? I'm working with you. What do you mean? You're not working with us. I'm up there meeting with the green dust. So there's a problem. It's always like the fly. It's the fly in the ointment, right?
Starting point is 01:44:14 It's that one thing you can't predict. Like, you could not predict this. This kid's gone, he's gone his whole life without being bothered by these people. And he happens to walk out of a meeting with, like, the DEA and like the Americans walks out, boom, they grab them. What's the going on? He's like, yeah, call your commander. He'll call his commander. Let him know.
Starting point is 01:44:32 Yeah, I'm here. I'm with the green go. Yeah. But, I mean, how the, like, the chances that they would have grabbed them at all is unlikely. It's such an unlikely low probability event that all of a sudden now it was a mad scorn. scramble because you've got high-ranking DOJ, high-ranking DEA officials operating clandestinely in Mexico. They're not even supposed to be in country.
Starting point is 01:44:49 They didn't notify to host country. So now the Mexicas are saying, hey, you're colluding with these guys. You're in bed with them. Which is true. Well, we don't know the full nature of a relationship, obviously. I thought he was taken over for the lawyer that they'd cut loose. Well, no, yeah. But, you know, from the cartel perspective, they're using the Americans to wipe out their enemies.
Starting point is 01:45:10 Well, they're still providing information. Well, sure, of course. To their benefit? Sure, to my benefits. That's how, you know. But from the American perspective, that's the last narrative they wanted. You know, this is where you see, you know, every once in a while, the curtain comes back. Right. And you see that there are events going on that were never designed to get out in public.
Starting point is 01:45:33 That all of a sudden there's a mad scramble to cover up. It happened when we went into war with them. Okay, what's up? Do you know where the term, like, you know, they pulled back the curtain? Do you know where that? I mean, I'm assuming a stage, you know. Wizard of Oz. The Wizard of Oz, right?
Starting point is 01:45:50 Am I right? Yeah, they pull the, and you see the little man behind the curtain who's really working the levers. And he even says, he's like, pay no attention to the man behind the curtain. But he's the guy who's really working the lead. The Great Oz is this huge thing in there. Ah! But it turns out that Toto pulls the curtain and it slides the curtain back. And you can see that it's really just this little old inventor,
Starting point is 01:46:12 working the things and talking into a mic and it's it's a great yeah yeah so if you know so hey you know you you know also it pulled back the curtain that's a great so these clandestine operations every once in a while he doesn't get stumbled upon you didn't care and uh that that's an interesting example and uh I think we're done right so what's so as what's the what's the solution how do we fix it how he doesn't have he doesn't have solutions Pete only points out problems. No, the solution was already, it's obviously, like I said, make a deal with one of these guys. I think that's a horrible solution.
Starting point is 01:46:50 I think you know what we did in Afghanistan. I think what the solution is that you legalize some form of drugs across the board, maybe not everything, but some type of, and then you have, you tax it, you make it purified, and then you have drug rehab center. So if you want to be on drugs, you can be on drugs. drugs. If you want to get off drugs, you've got a free drug rehab centers. That's a very optimal solution that's just politically untenable. Yeah, it's not that. There's the thing. I'll bet that would cost less money than the war on drugs. Which is why it's all a false narrative, because there is a
Starting point is 01:47:29 now 12,000 FBI agent force, 13,000 DEA agent force, an entire prison infrastructure, an ability to, you know, you don't want to go too far down. the rabbit hole because you start coming off like a conspiracy theorist. But when you know that there are operations like this, you understand that, you know, we live in a world where, you know, up is down, black is white. We need that wall. That's what we need. Well, like I said, you build the wall and how come the catapults? Then we'll have Tesla robots manning the wall. Every 45 feet of a Tesla robot up there with an AR-15. Yeah, an autonomous weapon system.
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