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On today’s edition of Coffee and Markets, Brad Jackson is joined by Josh Treviño to the violent struggle between the drug cartels and the Mexican government, how Mexico’s economy has reduce immigrants to the US, and how the GOP can appeal to Hispanic voters.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

Attorney General Eric Holder Set to Take Hot Seat at Fast and Furious Hearing
Mexican drug cartel crackdown has cost 47,000 lives in 5 years
Guillermo Martinez: Jeb, Rubio seek to soften GOP stance on immigration
Democrats Face Decades in the Wilderness
Joshua Treviño at TPPF

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With Operation Fast and Furious headlining the news, there is no doubt civilian arms have been trafficked into Mexico. However, many of the arms used by Mexican cartels are NOT supplied by civilian gun outlets in the United States. Based upon the statistics I have compiled, our State and Defense Departments may be the premier suppliers of weaponry to Mexican drug cartels — not the US civilian.

From 2003-2009, over 150,000 Mexican soldiers deserted from their ranks. Drug cartels became so confident in their recruitment of military personnel that they posted help wanted ads for hit men, traffickers, and guards. When these soldiers desert, their US-supplied weapons (grenades, sniper rifles, assault weapons, etc.) often accompany them over to the cartels. In 2008 and 2009, 13,792 and 20,530 small arms were exported to Mexico from the US. Over 92% of these arms were civilian legal semi-automatic or non-automatic firearms, a number eerily similar to the debunked 90% number echoed by the ATF. A 2008 State Department memo to then-Speaker Nancy Pelosi shows a $1,000,000 shipment of select fire M4A2 assault rifles to the Mexican Federal Police Force, (AKA Federales) one of the most corrupt Mexican government agencies.

The most recent numbers from 2010 show the Directorate of Defense Trade Controls (DDTC) — the State Department agency responsible for overseeing the exportation of military goods — authorized the transfer of 2.5 million units of small arms, weapon optics, silencers, and related components. In that same year, over 11 million units of ammunition and 127,000 units of explosive ordnance were cleared for exportation to Mexico. This amounted to $25 million worth of small arms, ammunition, and explosives shipped to Mexico authorized by our State Department.

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From the House Committee on Government Reform and Oversight:

ATF_10-04-11_Holder_memo_docs

Senator Chuck Grassley and Congressman Darrell Issa today said that Attorney General Eric Holder received at least five weekly memos beginning in July 2010, including four weeks in a row, describing the ill-advised strategy known as Operation Fast and Furious. The memos were to Holder from Michael Walther, the director of the National Drug Intelligence Center.

The Attorney General told Issa during a House Judiciary Committee in May 2011 that he had just learned of Fast and Furious a few weeks before. Yet, on January 31, in a previously scheduled meeting, Grassley personally handed him two letters about Fast and Furious. Grassley and Issa said they find it very troubling that Holder actually knew of Operation Fast and Furious much earlier, and in greater detail than he ever let on.

The memos specifically said that the straw buyers were “responsible for the purchase of 1500 firearms that were then supplied to Mexican drug trafficking cartels.”

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In a Dec. 3, 2009, article about the announced resignation of Deputy Attorney General David Ogden, the Wall Street Journal’s Evan Perez wrote that Ogden hasn’t been identified with any major Justice Department policy initiatives. Now that this C-SPAN video from March 24, 2009, is making the rounds anew, it appears Ogden’s name — and that of President Barack Obama — is going to be associated with one now.

That initiative — which could go down in the annals of presidential history as “Obama’s Watergate“ — goes by the name, “Operation Fast and Furious,” and it’s an offshoot of “Project Gunrunner.”

Ogden is shown in the video that resurfaced Friday as he addresses reporters at a Department of Justice briefing.

“The president has directed us to take action to fight these cartels,” Ogden begins, “and Attorney General Holder and I are taking several new and aggressive steps as part of the Administration’s comprehensive plan.”

He goes on to outline that plan, using the exact words below:

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Over the July Fourth weekend, there was a major development in the Fast and Furious investigation when BATF head Ken Melson made a surprise July 4th appearance before Darrel Issa and Chuck Grassley’s congressional committee put together to investigate Fast and Furious.

That operation involved BATF (Bureau of Alcohol, Tobacco and Firearms) agents allowing straw purchasers to buy over two thousand automatic weapons and then smuggle them illegally across the border to Mexican Drug cartels. The operation led to a spike in violence in Mexico, the killing in Arizona of a U.S. Border Patrol agent last December and a possible attempted cover up by the BATF and the US Department of Justice.

BATF head Melson was placed in a particularly bad light by the earlier testimony of agents, some of whom depicted him watching the illegal gun deals go down on closed circuit TV and literally rubbing his hands with glee. Melson, a temporary appointee, was set up to fall on his sword for Fast and Furious and was apparently under a great deal of pressure from the Obama Administration to ‘resign’. Instead, he resisted and said he wanted to testify before the investigative committee, but in order to do that, he needed clearance from the Department of Justice.

In a particularly revolting display of partisan horse trading and disregard for justice, the ranking Senate Democrat on the committee, Patrick Leahy made a deal with Republican Senator Chuck Grassley to allow access to certain documents and allow Melson and other witnesses to testify – in exchange for releasing holds on three Obama Administration DOJ nominees.

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By way of law and order and in an effort to protect its citizenry, the state of Georgia has enacted an anti-illegal immigration law similar to SB 1070 proposed by the state of Arizona.

Georgia’s measure seeks to “empower police to investigate the immigration status of certain suspects… punishes people who transport or harbor illegal immigrants in Georgia or use fake identification to get a job.”  The law also “requires many businesses to use the federal E-Verify program to ensure their newly hired workers are eligible to work in the United States.”

It wasn’t long ago that Barack Obama complained about the state of Arizona passing a similar illegal immigration law.  At the time, the President claimed that Arizona’s effort to control illegal immigration abused individuals by unfairly asking for identification even from parents taking children out for an ice cream cone. The president warned:

“If you [don’t] have your papers and you [take] your kids out for ice cream, you could be harassed.”

Despite the deaths of innocent citizens at the hands of marauding interlopers toting guns, not double-scoop ice cream cones, and in an effort to protect aficionados of frozen creamery from undue persecution, the Obama Justice Department filed a federal lawsuit against the Arizona immigration law.

Therefore, it was not surprising when the “Anti-Defamation League” together with “Mexico and the governments of several Central and South American countries filed court papers…in support of efforts to halt Georgia’s tough new immigration enforcement law.”

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In the 1990s, it seemed as if individual rights, deregulation, free trade, and sound currency were taking hold in Latin America, a region finally on the rise after decades of coups, repression, and violence.

But in the 21st century, left-wing strongmen have made a comeback: Venezuela’s Hugo Chavez, Bolivia’s Evo Morales, Nicaragua’s Daniel Ortega, Ecuador’s Rafael Correa. Other countries in the region are headed in the wrong direction. Authoritarianism has been on the rise in Argentina ever since the economy collapsed (yet again) in 2002. Mexico’s violent drug war is escalating. In Cuba, the transfer of power from one Castro brother to the other hasn’t helped the economy or stopped human rights abuses.

What went wrong?

Reason.tv’s Nick Gillespie sat down with Mary Anastasia O’Grady, a member of the Wall Street Journal’s Editorial Board and a Journal columnist specializing in Latin America, to talk about the outlook for the region – and how free trade and drug legalization would go a long way to solving Latin America’s problems.

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President Obama seems to think that every global policy problem is a result of misunderstanding, miscommunication, or mixed signals perpetuated through the Bush presidency.  If we could just get the world to like the United States, Obama argues, these problems will solve themselves.  Multiple unenforced ultimatums for Iran and Obama’s inflated faith in personal diplomacy fail to instill much confidence for the future.

Uncommon Knowledge all-star, Victor Davis Hanson, is back in our latest episode to take a tour of the world with Peter Robinson, discussing current major foreign policy concerns.  The topics discussed range from Europe and the irrelevancy of the EU to Mexico and immigration to Asia and its nuclear future.

Regarding Mexico, VDH sees little hope for the future.  Mexico’s statist, nontransparent economy and class-bound, racist culture naturally breeds unrest.  As for the immigration debate, VDH provides his proposed solution (involving both assimilation and deportation), but recognizes that it is unlikely to come about.  Who’s at fault?  The Chicano elite here in the US.

When it comes to Iran there are no good choices, only bad and worse.  Iran will have the bomb within 18 months.  What can/should we do about it?

To hear more on a dying Europe, a nuclear Asia, the Chicano elite and immigration, our future with Russia and dealing with Iran, watch the full episode, embedded below.

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I remember using the Jeep Cherokee’s door for cover, moving fast, hunched over, running zig-zag from tree to boulder to tree for cover, instinctively, as if I was still in the sniper hell of Ramadi. This was the very first time I had dismounted on a recon mission near the border in southern Arizona. Given that we were scouting an extremely rough, remote dirt road that we had been told was only used at night by Mexican cash mules heading south to Mexico, and given that it was surrounded by perfect hilltop sniper hides, this made sense. As disorienting as it was to be doing this mere miles form my home, it just made sense.

Sign on the other side of American Rancher X’s fence

The day ended without incident, and the next day began the same. We were heading to another key trafficking area, and were going to go right up to the border. Two of our team, non-journalist, non-militia civilians, wanted to engage in a little for-the-camera horseplay, and piss on Mexico. Despite knowing better, I told them it was okay, and that I’d take the shot. I had begun to think that I was taking things too seriously the day before, and should lighten up.

Getting closer to the border, we continued our regular task of finding, tracking, mapping, and decoding what we were discovering to be a vast network of illegal immigrant trails. Many of the trails were strewn with every type of human debris imaginable, some of it layered so thick it was clear that the layers were years in the making. (more…)

Tell Chuck Norris to stand down. Invasion USA never happened.

I contacted both the Laredo Police Department and the Webb County Sheriff yesterday and debunked claims that Los Zetas gunmen from the Gulf Cartel has crossed the border from Mexico and took over two ranches in Texas. The Laredo Morning News also refuted the claim. Pro 8 News, the NBC affiliate, didn’t think enough of the absurdity to even comment on it… they found the installation of a new traffic light more newsworthy.

Absurdly, the same trio of sites that cried wolf are still sticking by their story, utter lack of credible evidence aside.

Cypress News publisher John G. Winder is sticking with the story, not because any additional evidence has been produced, but because the two sources for his version of the story, blog Digger’s Realm and Examiner.com’s San Diego (CA) County Political Buzz Examiner blogger Kimberly Dvorak are standing by their militiamen and anonymous police sources.

The original Cypress Times story? A re-publication of the original Digger’s Realm story.

The Digger’s Realm story? Two anonymous Laredo police sources and a San Diego California Minuteman named Jeff Schwilk who claims he got his information from… an anonymous Laredo PD officer.

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In an amusing coincidence, Secretary of State Hillary Clinton and I were both in Latin America this week offering fiscal policy advice. But it won’t surprise you to know that Mrs. Clinton’s suggestions are radically different than the advice I provided. She spoke in Ecuador and, according to an AFP report, said it was time for “the wealthy across the Americas to pay their ‘fair share’ of taxes in order to eliminate poverty and promote economic opportunity for all.” She also claimed that “her appeal to overhaul tax systems did not amount to ‘class warfare’ and was instead a recognition that the ‘winner-take-all-approach’ was a drag on progress.” The AFP story concludes with Mrs. Clinton asserting, “We can’t mince words about this. Levels of tax evasion are unacceptably high,”

By contrast, in my remarks to the Fundacion Libertad in Panama and in my speech to the Chamber of Commerce in El Salvador, I explained that academic research shows that better tax compliance is best achieved by lowering tax rates and eliminating inefficient and corrupt spending programs so that taxpayers have more confidence that their money is not being wasted. But let’s touch on something even more important than economics. I also made a moral argument about the danger of giving national tax authorities too much power and information – especially in a region where governments oftentimes are the source of oppression, expropriation, and tyranny. Simply stated, there are some things that are more important than obeying tax laws. This Center for Freedom and Prosperity video explains that so-called tax havens are an extremely important refuge for people who are subject to persecution and other forms of government malfeasance.

Let’s consider some Latin American examples. Imagine a political dissident in Venezuela. Hugo Chavez has turned that country into a thugocracy and opponents of his sinister regime are vulnerable to having their assets expropriated (and worse). Thankfully, many Venezuelans are able to protect themselves from socialist tyranny by putting their money in Cayman, Panama, or Miami (the U.S. is a tax haven for non-U.S. people). But if Mrs. Clinton got to make the rules, tax havens would no longer exist and Chavez would be empowered.

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Congressman Steve King (R-IA) released the following video statement, complementing Mexican President Felipe Calderon for his efforts to combat corruption and condemning his remarks on reinstating the assault weapons ban and his stance against the Arizona immigration law .

Imagine tons of explosives being stolen in Mexico and then transported by truck across the border into the United States. Could it happen? Over the weekend, it did. Almost.

On Friday, according to an article in the Latin American Herald Tribune, 18 tons of industrial explosives were stolen from a cargo container during a robbery along the Monterrey-Saltillo Highway in the northern Mexico state of Nuevo Leon. According to subsequent reports, Mexican officials located and recovered the stolen explosives within hours. The thieves, however, remain at large.

But should Americans rest easy now? Not after this near-miss event.

According to officials with the Mexican industry association, Canacar, thefts from cargo trucks on Mexico’s highways increased 40 percent last year.

North of the border, officials with the Owner-Operator Independent Drivers Association are calling upon the Office of the U.S. Trade Representative to immediately challenge the legality of the tariffs implemented one year ago by Mexico so that the debate regarding cross-border trucking with Mexico can be shifted from economics to highway safety and security.

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