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September 30, 1986 CONGRESSIONAL RECORD – SENATE S 14289
Mr. BIDEN:… On the supply side, this package provides for stronger new penalties for most drug-related crimes, including mandatory minimum penalties for the kingpins of the drug syndicates and for those who sell their poisons to our children. In addition, this package contains provisions aimed at striking at the financial underpinnings of organized crime and drug trafficking syndicates, through the use of forfeiture of substitute assets provisions and a new crime against money laundering, both of which will assist law enforcement agencies in seizing the proceeds of drug traffickers.
Finally, in regards to domestic law enforcement, $115 million is provided to directly assist State and local law enforcement agencies for drug law enforcement. Most of the fight against drug traffickers is waged, not by the federal government, but by State and local agencies who are all-to-often out manned and out gunned by the drug dealers and smugglers. These moneys will provide desperately needed funds to such agencies to assist in their efforts.
In addition to combating drug trafficking in the streets of our cities and communities, we must also stem the flow of drugs across our borders. This bill increases by one-third the current level of funding for interdiction at the border, including additional personnel and equipment for the Coast Guard and the Customs Service. Moreover, this bill assigns Coast Guard law enforcement teams to Navy ships to bring the Department of Defense more actively into the fight against drug trafficking.
This legislation also provides for supply reduction efforts on the international side of the drug control equation. Almost $75 million is provided for additional crop eradication and substitution programs, including funds for operations like that conducted recently in Bolivia, where the cocaine processing networks have been significantly disrupted.
In addition, this legislation revamps present law governing foreign assistance, favorable U.S. votes and multilateral development banks, and generalized system of preferences tariff benefits to narcotic producing and narcotic transit countries. Under these provisions, benefits will be denied all major illicit drug producing countries, unless the President certifies each year that the country is cooperating fully with the United States in combating narcotics production, trafficking, and narcotics money laundering. This combination of increased assistance and narcotics-related sanctions will provide important new incentives for drug producing countries to cooperate fully with the United States and clearly focus our foreign-policy efforts to decrease the supply and distribution of drugs and the international community. /Biden
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This law became effective 90 days (one quarter) after it was passed. Federal financial bureaucracies define a recession as a decline in GNP over the space of two successive quarters. So this prohibitionist drug law passed and was signed by Reagan October 27, 1986 and only after another three quarters, on August 27, 1987, would any federal notice be taken of its prompt economic effect.
The Federal Reserve Board met August 18, 1987 and on August 22 Dow Jones Industrials stood at 2700 (up 40%, with commercial real estate a froth–according to Greenspan). On September 10, 1987, came Reagan’s White House Conference for a Drug-Free America, and the following day all VA employees had to take drug tests or be fired. Less than two weeks later, NYT headlines blared: BIDEN BLAMES FAULTY MEMORY FOR STATEMENTS.
On Friday, October 16, 1987, the Dow Jones average dropped 108 points. On October 19, 1987, Black Monday, in 6 hours the Dow Jones Industrial Average of 30 Blue Chip Stocks fell 508 points (23%). This, 33 years ago, was a larger loss than on Black Friday in 1929.
Hearings were held October 27, 1987 on Federal Anti-Drug Abuse Policies featuring Audits and Coast Guard personnel. The previous day the DJIA fell another 8%. These events are similar to what happened in 1929 when beer, not cocaine, was the addictive narcotic. The George Waffen Bush crash in 2008 also occurred in a frenzy of prohibitionist asset forfeiture. Buy my book, Prohibition and The Crash and get the inside story on how confiscation weakens a fractional reserve banking system.
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Brazilian Sci-fi from 1926 featuring the usual beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)
Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.
Brazilian blog…
The Looter Kleptocracy has evidently pressured media companies such as WordPress to make blogging as difficult as possible before the election. Twelve million libertarian votes would go a long way toward removing new impediments to blogging and restoring the usual formatting tools.
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