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Since the Mexican government initiated a military offensive against its country’s powerful drug cartels in December 2006, some 50,000 people have perished and the drugs continue to flow. The growing violence has created concerns that Mexico could become a failed state, and U.S. political leaders also worry that the corruption and violence is seeping across the border into the United States.

In his compelling new book, Ted Galen Carpenter details the growing horror overtaking Mexico and explains how the current U.S.-backed strategies for trying to stem Mexico’s drug violence have been a disaster. Boldly conveyed in The Fire Next Door, the only effective strategy is to defund the Mexican drug cartels by abandoning the failed drug prohibition policy, thereby eliminating the lucrative black-market premium and greatly reducing the financial resources of the drug cartels.

Colin Twiggs

Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.

Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.

Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.

Alex Stevens writes on decriminalizing drug use:

International analysis, both by the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) and in my book Drugs, Crime and Public Health suggests there is little correlation between the level of punishment for drug offences and the rate of drug use or drug problems. The EMCDDA looked at levels of drug use in countries which had increased or decreased penalties for cannabis possession. It found no evidence that increasing penalties reduces use, or that reducing penalties increases it. I looked at the prevalence of drug use across a range of countries. I found no link between the enforcement of drug laws and levels of use.

I did find a suggestive correlation between one of the most harmful forms of drug use, by injection, and the generosity of the welfare state…… Countries with lower levels of pensions, sick pay and unemployment benefit tend to have higher rates of injecting drug use. The USA, for example, has a minimal welfare state and very tough punishments for drug offences. It still has the highest prison population in the world, with nearly half a million people imprisoned for drug offences. But it has internationally high levels of drug use, high rates of drug related deaths, and excessive rates of HIV among injecting drug users.

So to argue that criminal penalties (or their reduction) are the answer to drug problems is to miss the point.

Read his article here Portuguese drug policy shows that decriminalisation can work, but only with other policies. | EUROPP.

Colin Twiggs

Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.

Tag: decriminalization

The fire next door: Mexico's war on drugs

Portuguese drug policy shows that decriminalisation can work, but only with other policies. | EUROPP