Six arrested after 'Dutch torture chambers' found
bbc.com
bbc.com
https://www.erasmusmagazine.nl/en/2019/11/14/why-there-are-r...
The largest bust this year iirc is 2000 KG in a single container from Latin America, street value well over 100 million, decoy was a load of bananas.
You get the impression that they like showing off big numbers, but it's difficult to be convinced that it ultimately makes a big difference, or even a positive one.
That is, if we completely ignore that most of that $400 comes from $400 worth of labour that needs to be put into that sand, to turn it into something people can pay money for.
In that same vein, the drugs aren't (yet) worth $100,000,000, because you still need to put in millions and tens of millions of dollars of labour into them, to turn them into something people can pay money for.
This is closer to entire wafers of chips being seized, which require some work to turn into a commodity for public consumption i.e single CPUs, but that is a lot less work, and less technical too, than creating the wafers in the first place.
There is labor involved in processing the bulk powder: any cutting the seller wants to perform, partitioning into street sale sizes, and of course the actual sales, which is risky and time consuming.
I think you are probably right that the ratio of labor and other costs favors Intel in this comparison, but I think arguing about the specific analogy here is an unhelpful tangent.
The point is: published prices that ignore all of the costs involved in making the sales is a fiction.
Cutting is mostly done by edge dealers rather than drug lords.
Layers and layers and layers of distribution adding huge markups to the next in line, with lots of overhead in idle time, transportation, legal, losses, territory defense, recruiting, etc. etc.
The real value of the labor is what is actually getting paid, and most of that value comes up in distribution.
So yes there is labour and distribution to account for but there are not too many layers of it and actually the main bulk of the work in distribution has been done by the time it is in the Netherlands, at which point, in the Schengen zone, the danger/difficulty with transport over country borders is significantly reduced.
I think this example, which has nothing to do with illegal drugs, demonstrates the problem with how law enforcement calculates the value of seized illegal drugs (at least in their media releases).
Look, a metric ton of sugar wholesale costs about $250. When you buy it in 1kg bags in supermarkets, with an extremely streamlined and risk free distribution chain, it already costs about four times that price. Imagine how much would the markup be if it were sold by the gram (typical purchase a few grams), by random people on the streets, with a huge personal risk and maybe even cut with other substances to add mass, after having passed through three or four intermediaries. The retail price is probably x1000 the price of the shipping container.
> The retail price is probably x1000 the price of the shipping container.
You're off by a factor of about 100.
> The street value is the only value they could possibly quote with some accuracy
and
> But I think if you discount by 50% or so you'll be pretty close
When simple sugar is already sold by the kg with a 400% markup.
> You're off by a factor of about 100.
Sounds like you know what you're talking about :) But in which direction?
Suppose you are a reporter writing about a drug seizure. Would you quote the total street price of the drugs, or --- how could you possibly be that familiar with the supply chain to quote any other price? If the transaction between the party doing transport and the party doing distribution has already taken place, the "real value" of the product has changed dramatically despite the fact that the container with the drugs is still the same thing in the same place. How can you tell what the "real value" is if you, the reporter, don't know whether or not it has been transacted?
Even in the case of a supply chain where intermediate prices are defined in written contracts enforceable by law, it would be silly for a reporter to try to dig into what the "actual price" (finger quotes) of the product is instead of just using the street value.
> And, conversely, if you were uninsured, what loss do you book in your accounting? The first loss, not the second.
That's a tax writeoff. Accountants who book the first loss get fired and replaced by accountants who book the second.
You'd look for an answer in a press release. If there is no press release, you'd ask the question at a press conference or interview, and then you'd cite the figure you were told without caring about how it was actually calculated. You'd likely only question the value if it sounded obviously wrong.
> Suppose you are a reporter writing about a drug seizure. Would you quote the total street price of the drugs, or --- how could you possibly be that familiar with the supply chain to quote any other price?
Does your average reporter actually know what the average street price of various illegal drugs currently is? Especially given the price varies from drug to drug, time to time, and place to place. I think usually reporters just quote the street value given in the law enforcement press release or news conference, rather than attempting to work out a figure for themselves.
> That's a tax writeoff. Accountants who book the first loss get fired and replaced by accountants who book the second.
Until someone gets charged with tax evasion.
Is the “real” value of a field of corn ready to harvest the cost of the seed? the market price per bushel? the retail price of the tens of thousands of boxes of corn flakes?
The value of anything accumulates with every action that is done to it and every piece of capital involved. A wholesale good at port is in the middle of that process and has not had all of its end value added yet.
And yes, you can distort reality by telling the truth when you choose irrelevant facts for your main message. Lies, damn lies, and statistics.
The whole problem with drugs and law enforcement is that it has been driven now and in the past by emotional manipulation. Much of it was originally done by stoking racist fears, "reefer madness" and all that.
If we were talking with reason instead of emotion, about causes and effects, about mitigating and minimizing negative outcomes, about giving people choices and recovery and ways out and in some cases ways to do things safely... a lot of real actual progress would be made.
But that doesn't make sensational headlines, it's not simple or something that people can turn into a succinct cheer.
Sensational stories start to be the goal of the government's "war", success measured in how much the story can impress the population. DISTORTING REALITY.
For example, a kilo of cocaine in Los Angeles is around $17K. It's around double that in many other cities. Call it $25K as an average "street" price in major US cities (higher in those further from major trafficing routes). That gives a value around half of the amount quoted.
To me, it seems like the police break everything up into half-gram prices and then add all those up. This would be like investigating the theft of 1000 gallons of water from a tap and then adding up how much the cost of that water would be if it was all converted to 250ml Evian bottles at retail.
The big question is how much of it gets through.
But you sure can bet if those drugs were bought and consumed, around 100 million would change hands ( total ), 10 million more 10 million less.. it's an estimation.
This only increases the cost of the suppliers. Which will be passed on to the consumer.
As others have said, the war on drugs can only increase the price, and temporarily disrupt supply. I think it has been conclusively proven they are not capable of increasing the price above what the customer is willing to pay.
It’s not like people would suddenly start consuming more cocaine if police would stop seizing it.
No one wants the streets to be flooded with cocaine, and I mean - no one - There's a reason why cartels are called cartels.
It is doubtful that a bust of that size is anything more than a regularly expected inconvenience.
And honestly, reductions in supply means you can raise you prices and quite believably come out ahead.
The war on drugs definitely makes the drug business more profitable.
https://local.theonion.com/corrupt-policeman-worried-about-w...
I wonder if another aspect may be because there are so many drugs transiting through, and while it's relatively easy for two people to be crooked together, it gets fairly difficult for five.
Citation?
https://www.youtube.com/watch?v=EVfiWfoDsrM shows pairs on patrol, but working closely enough they reinforce quickly for arrests. kijk 4 min 5 s
(bereden politie can screen more effectively than fietspolitie, but I guess one goes with what one has on hand)
Looks like your border patrol is much less relaxed than ours: https://www.youtube.com/watch?v=jy-dHaIuKdw
> The RNLM performs the following duties:
> <stuff>
> - guarding the national borders
(https://en.wikipedia.org/wiki/Royal_Marechaussee#Present_KMa...)
the sentiment I've heard a lot is people see the drugs as a business and the violent, ruthless sides of it are something that mostly happens in Latin America like you see on "Narcos".
https://www.nu.nl/binnenland/6056224/politie-ontdekt-drugsla...
More and more Latin American criminals directly involved here as well. If anybody is still surprised about this they haven't been paying much attention the last decade or two.
</soapbox>
That's ignoring the modern refinement of drugs into far more powerful substances than they were even 50 years ago.
I wouldn't want to be one of the EncroChat employees/distributors right now. Their client base seems pretty dangerous, and probably pretty pissed off right now.
https://arstechnica.com/tech-policy/2020/07/police-infiltrat...
This doesn’t happen in the coffee or sugar business.
Uhhh, are you joking? Slavery is still found in these industries to this very day.
Organized crime too- for example, cartels in Mexico have moved to extort Avocados from farmers because it has better margins than drugs...
> Avocados [...] has better margins than drugs...
They don’t. If you steal/extort $anything though, the margins get really good. If you switch from drugs to extortion, it’s because you got cut out of the cartel or law enforcement got too distracted by drugs making other crime more attractive.
Criminalization of coffee or sugar would only worsen the poor treatment of labourers in their cultivation areas. The crop might change though.
I do not believe your implied claim that decriminalizing drugs would prevent this sort of behavior is correct.
> In Brazil, slavery is defined as forced labor but also covers debt bondage, degrading work conditions, long hours that pose a risk to health, and any work that violates human dignity.
https://www.reuters.com/article/us-brazil-coffee-slavery/pic...
Their “slaves” are generally people with poor alternatives with a side of government corruption/ineptness.
But this kind of brutal violence like a torture chamber and the stuff that you see in Mexican drug cartels (ISIS type of debauched executions) is on way another level.
It is actually bad for their business you would think.
No, this is a way to establish a reputation so that people don't even try to screw you. It's good old terror, not very subtle but effective.
When you deal with 'bad' guys and have no legal recourse for anything it is rational to use violence as a way to make others 'play straight', and being very harsh actually minimises the instances where violence is needed at all.
One thing he told me after living here in the US for a while was that Americans tend to believe violent crime in Europe is lower than violent crime in the US because they can easily compare the homicide rates. Whereas people like him know that you don't compare murder for murder, you compare murders in the US, to "missing" people in Europe. His sense was that there was actually far more violent crime in Europe at the time, just far fewer living witnesses.
The discovery of this "shipping container" kind of "jibes" with that long ago street-level assessment.
When the former USSR collapsed and the war in former Yugoslavia happened cheap arms flooded the market here and that caused an immediate rise in gun related crime. The fact that in the EU countries that neighbor each other can have very different gun laws is another reason why since the Schengen area opened up in some countries there are now substantially more guns than before. They are still illegal, but criminals don't actually care since they are already on the other side of the line and their competition has them too.
There have been shootouts between gangs with fully automatic weapons on the streets of Amsterdam (fortunately not many), and the police has also come under fire from gangs with machine guns during getaway attempts or murder attempts.
I am not sure if they will be able to put this genie back into the bottle. The gangs here are a lot harder this decade than they were 20 or 30 years ago, there are more of them and they are far more ruthless. Some samples: heads left in front of businesses to warn others about territory violations, murders of people who looked alike some criminal or drove the same car in broad daylight, parents slaughtered in front of their kids or in the schoolyard. It's not what it used to be, that's for sure.
As long as we're talking theories, was it the guns coming in or the people coming in that cause the rise in crime?
There are more guns than humans in the United States. You'll find ownership of a gun and likelihood of committing homicide to correlate quite poorly; while ownership of a kilo of cocaine correlates quite strongly.
As you're indicating, in Europe, ownership of a kilo, a gun, and propensity to murder, all track quite closely.
This suggests a different set of policy-level decisions than the myopic focus on the tool of murder would.
Ownership of a gun and homicide correlate poorer than having a kilo of coke and homicide but still correlates a lot better than no gun and no coke.
Some agency creates a service marketed specifically for criminals, waits a bit for users to sign up and start using it, then "oops we had a design flaw" and all of the criminals who bought the service are scooped up in the aftermath.
No, it's just stating that both options are a possibility.
So many traders with phantom product and other bullshit, a huge useless blacklist of LLCs that people can just spin up anywhere in the world at any time.
And a torture chamber in the port because the "encrypted chat" everyone was using was not encrypted anymore?
The containers were located in a rural area. Read the article.
The methods of torture devices centuries and millennia ago are just as horrifying as what you see here. Crucifixion for starters. Brazen bull. Breaking on the wheel. Etc.
No, this isn't new. What is new is that this is more rare than it used to be. (At least, I think/hope it is. I might be wrong). We just need to continue on that path.
https://en.m.wikipedia.org/wiki/Abu_Ghraib_torture_and_priso...
I am not sure why you think that this sort of behaviour is new?
Normal mix of media and police increasing the busts importance.
I would guess the 'sound proofing' is to hide drugs.
The scapel and shears were for gardening.
And the dentist chair, both a scary real life tool and common movie prop was about just that, being scary. Or they were bored and had a dentists chair.
This quote isn't even tied to this gangs bust, but they included it just to mislead you.
"Threats detailed on the site included acid attacks and chopping off limbs"
One possibility is that they're props, good to give a good scare to those who might think of scamming the criminals.