FROM THE OFFICE OF THE VICE PRESIDENT:

As a privately held company, Modern Evil is not required to publicly report on any of its operations or activities. This blog of the Investment Division is a faint reflection of our interests and opinions. Thank you.

~ Theo K. Mewley, V.P. Investments

"Behind every great fortune lies a great crime." - Balzac

2.2.09

Cocaine Stimulates the Economy

CATEGORY: Banks, Drug Money, Recession Strategy

DIVISION: Modern Evil Investments

NOTE:
As everyone scrambles to recession-proof ground, let's not forget that cash-flow positive stalwart of the global economy: drugs. When times are good the money flows, but when times are bad it's even better. So attention all international authorities - don't be too hard on the drug lords; their business could be the only thing keeping your financial institutions solvent.


U.N. Crime Chief Says Drug Money Flowed Into Banks


VIENNA: The United Nations' crime and drug watchdog has indications that money made in illicit drug trade has been used to keep banks afloat in the global financial crisis, its head was quoted as saying on Sunday.

Vienna-based UNODC Executive Director Antonio Maria Costa said in an interview released by Austrian weekly Profil that drug money often became the only available capital when the crisis spiralled out of control last year.

"In many instances, drug money is currently the only liquid investment capital," Costa was quoted as saying by Profil. "In the second half of 2008, liquidity was the banking system's main problem and hence liquid capital became an important factor."

The United Nations Office on Drugs and Crime had found evidence that "interbank loans were funded by money that originated from drug trade and other illegal activities," Costa was quoted as saying. There were "signs that some banks were rescued in that way."

Profil said Costa declined to identify countries or banks which may have received drug money and gave no indication how much cash might be involved. He only said Austria was not on top of his list, Profil said.