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Peter Zeihan || Cartels Part 3: The North American Drug War

The Peter Zeihan Podcast Series

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The North American Drug War - Part Three

The economics of drugs are obviously about the cocaine. And because it has a very high value to cost, it is very easy to smuggle. Once you get cocaine, you then are left with a big fistful of cash and you can't exactly put it in the local credit union. The cartels try to get into businesses where there's a fair amount of cash that flows through them. So agricultural harvesting or processing are relatively popular. As are things like real estate and rental properties, they're big fans of bars. What they do is they try to get a facility that has a lot of cash flow through and then they just feed some of their drug profits through it.

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