Some financial type (attribution on request — maybe):
Ben, there is real food for thought in the article below. The submarine in the picture below looks pretty crude. Given the global cash flows generated by cocaine, traffickers should be able to afford much better equipment. And I think we, Tim Geithner, and congress should seriously consider helping traffickers to secure higher-grade weaponry. The cocaine industry is just as deserving of our support as banks and investment banks are. Cocaine cartels are far more efficient than banks, more tightly managed, and infinitely better at capital allocation and risk management. Unlike the banks, the cartels excel at adapting to a fast-changing regulatory environment. Cartels are also more meritocratic and more open to promoting entry-level employees. Also, unlike the banks, the cartels are ideologically aligned with us: they genuinely embrace no-holds-barred unregulated Milton-Friedmanesque free-market capitalism. No trafficking organization is too big to fail, and the very real penalties for failure keep them on their toes. Yes, they do occasionally torture people and kill them, but only for sound business reasons. And you have to balance that against the fact that they don’t suck money out of the pockets of innocent taxpayers. For all these reasons, we should consider a tighter working relationship with the cartels. A cocaine dealer arms race could have a major stimulative effect on the American economy. First we could have United Technologies build the dealers a bigger, fancier set of submarines, possibly armed with tactical nuclear weapons. Then we could have the Coast Guard give Raytheon a contract to build new narco-submarine detection and interdiction equipment. Voila — hyper-charged economic stimulus. Some of the technology that gets developed might even have civilian applications. Then we could have the Federal Reserve purchase five thousand tons of the white powder — it will hold its value a lot better than Maiden Lane II, let me tell you — and distribute it to investment banking prop desk traders and programmers, adding that little je ne sais quoi to the capital markets. Meanwhile, cocaine production has a much larger economic multiplier effect than most forms of stimulus: it increases the incomes of campesinos, narcotraficantes, policemen, judges, politicians and prostitutes, restauranteurs, and fine global corporations like LVMH, Ambev, BMW, Sturm Rueger, and Garmin. Moreover, cocaine also increases productivity, causing workers to zip around like foxes with their tails on fire and improving their ability to multitask. This initiative would play to our strengths. If there is one manufacturing industry where America still holds an edge, it is complex high-tech weaponry. Also, the cartels still have an inexplicable affection for the greenback. We should make every effort to encourage this quaint retro commitment to the dollar. We could start by introducing the cartels to the primary dealers and encouraging them to recycle their profits into treasury auctions. As you know, China is no longer pulling its weight in the treasury auctions, and the cartels are the perfect replacement. The cartels could also conceivably repo treasuries from the investment banks. Our shadow banking system may have had its little problems, but no one has ever questioned its complete opacity and imperviousness to regulatory oversight. Moreover, it would be a huge win to get the cartels to take some of that trillion dollars of mortgage-backed securities off our balance sheet. The cartels are better equipped than we are to straighten out the complex legal problems blocking liquidation of those assets. For example, the cartels have a particular expertise in foreclosure, collection of bad debts, and co-opting the judicial apparatus at the local level. My final point, strictly entre nous, is that we can’t all go to work for Goldman Sachs or J.P. Morgan when we leave the Fed (it would just look bad), and embracing the cartels would open up a whole new set of career paths for our people.
A day late and a dollar short.