The Form of Money

The Market

mammon — Wed, 04 Nov 2009 20:49:29 -0900

Market (Random House Dictionary)

A meeting of people for selling and buying.

Trading allows one specialty to be exchanged for another specialty. Each specialty has its own nuances and learning curve to overcome. Nobody can cover all the required specialties of life, hence the need for trade. Specialties develop economic efficiencies, which saves work, time, and resources.

The intrinsic value of each form of money is comparative to the intrinsic values of all other forms of money. All factors affecting the valuation of each and all forms of money are inclusive in the Market. The Market checks and balances the valuation of each form of money in relation to everything that is valued. The valuation process is comparative, variable, corrective, and ongoing in the Market.

The relational complexity of the Market is analogous to the complexity of the weather system. Modern weather forecasting is still limited in accuracy to less than a few days. In fact, the weather itself can significantly alter Market valuations by drought, flood, etc. and is therefore a significant component of the Market. The complexity of the Market is all inclusive.

Barter is the process by which valuations are mutually achieved. Whether one takes the price as is or haggles over it, it is still part of the barter process, with or without money. Money merely facilitates the barter process.

Transactions of categorical sizes, large to small, use different forms of money, with overlapping of all categories, which allows the Market to make comparative valuations among the various forms of money. All forms of money cannot be perfectly proportioned throughout a society, which creates societal distinctions based on the proportional use of each form of money. Historically, metals had been established forms of money long before written history. Large transactions used gold, small transactions used copper, and transactions in between used silver, all overlapping in use. The metals are still represented in today’s coinage, though not in substance.

Money Defined

mammon — Tue, 03 Nov 2009 20:11:02 -0900

Form of Money Series

Money (World Book Encyclopedia)

Money is anything that is generally accepted by people in exchange for the things they sell or the work they do. Any object or substance that serves as a medium of exchange, a unit of account, and a store of wealth is money. To be convenient, however, money should have several qualities. It should come in pieces of standard value so that it does not have to be weighed or measured every time it is used. It should be easy to carry so that people can carry enough money to buy what they need. Finally, it should divide into units so that people can make small purchases and receive change.

A unit of money is the lowest common denominator for comparative valuation among many persons. Money allows the exchange of goods and services to be conducted in interregnum transactions. Something of value is exchanged for an amount of money, and that money is later exchanged for something else of equivalent value with someone else completely unrelated to the first exchange. That is the simplicity and beauty of money.

A History of Interest Rates by Sidney Homer, Rutgers, 1963

A study of primitive money catalogues some 173 objects and materials which in ancient and modern times have had monetary attributes in one or more places and at one or more times. Those most frequently mentioned include beads, cattle, cloth, copper, gold, grain, iron, rice, salt, shells, silver, skins, slaves and tobacco.

Commodities, some more than others, have an intrinsic value that is uniform, storable, divisible, and transportable. Cattle sufficed as money for large transactions, but obviously not smaller transactions since cattle are not divisible. However, cattle sufficed so well for larger transactions that the term pecuniary, which means 'related to money,' is derived from the Latin pecuniarius, meaning 'wealth in cattle.' What does and does not qualify to be called ‘money’ is not cut and dry.

For discussion purposes, all persons who use the same form(s) of money comprise a ‘society’. The valuation process increases in complexity as the number of different forms of money in coexistence increases, to such a degree that no more than a handful would most likely coexist at the same time within the same society. Which commodity transforms into or out of the category of ‘money’ is a Darwinian selection process determined by the Market.

The mere logistics of gathering, manufacturing and handling each form of money significantly shapes the culture of a society, impacting the way and manner a society interacts. All those who use the same form, or forms, of money have something in common with each other. Any change in the form of money will impact societal interaction as a whole and individually. When a society changes or alters its form of money, societal changes occur in proportion to the magnitude of the change or alteration.

Money has evolved into a complex system that defies definition. Money originated long before written history; however, the modern form of money has its origins in 600 B.C. Lydia, then a part of the Greek empire located in Western Turkey. The Form of Money explores the essence of money and its evolution to the present - rich with intrigue, drama, conflict, fear, and hope of civilizations past and present - and then speculates on future forms of money.

Zimbabwe and Hyper-Inflation

mammon — Mon, 02 Nov 2009 19:45:28 -0900

I started tracking articles on Zimbabwe's currency crisis starting in August 2006 when their old banknotes ceased to be legal tender. Inflation reached the million percent, a 100 billion note bought a loaf of bread, and cholera became epidemic. The collapsing Zimbabwe economy plodded along over the last several years in this hyper-inflation mode. As Zimbabwe money became completely useless, an underground economy emerged using commodities and other competing currencies and loans – namely China and the USA. In March 2009, Zimbabwe agreed to peg to the dollar and recently the IMF has supplied funds. Zimbabwe no longer controls its own currency. Now they’re fighting for control over the diamond mines

This is not the first time a country has experienced hyper-inflation. White describes the French Revolution experience of hyper-inflation. There's the more recent experience of hyper-inflation in 1930s Germany. Whether through incompetence or deliberate interference, the outcome of hyper-inflation is the same - severe societal disruption. Beware of billion dollar bailouts and stimulants. And now, in America, trillion is the new billion.

America's trillion dollar question

http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/7914572.stm

28 Feb 2009

In the world of American government, the trillion is the new billion. There was a time when only astral-physicists and accountants practicing in Zimbabwe had any use for a word which means a million millions. The speed of that verbal inflation is staggering. Most of us still use the word millionaire to describe someone of enormous wealth, but it has actually been around since the mid-19th century in its current form and once conjured an image of someone with limitless spending power.

Zimbabwe diamond sales ban urged

http://news.bbc.co.uk/2/hi/africa/8337385.stm

02 Nov 2009

Zimbabwe is facing calls to be suspended from the international diamond trade following allegations of brutality by its soldiers. Rights groups are lobbying members of the Kimberley Process, the body which regulates the trade in rough diamonds, to halt exports from Zimbabwe. Activists say soldiers killed about 200 people at a diamond field. Human Rights Watch said the police and army have turned what was a peaceful area into a "nightmare of lawlessness and horrific violence". Activists say local people are now being forced to search for diamonds, with all the profit being taken by Zanu-PF. The government denies the claims.

Zimbabwe to get $500m IMF loans

http://news.bbc.co.uk/2/hi/business/8238111.stm

04 Sep 2009

The International Monetary Fund is making loans available to Zimbabwe for the first time in a decade, the BBC has learnt. The $500m (£305m) will be used to replenish Zimbabwe's dwindling foreign currency reserves. The loans send a clear signal the US dollar will remain the official currency.

IMF refuses new aid for Zimbabwe

http://news.bbc.co.uk/2/hi/business/8131707.stm

02 Jul 2009

The International Monetary Fund has told Zimbabwe that it will not provide the country with more funds until its existing $1bn debts are settled. Zimbabwe's government estimates it will need $10bn (£6bn) of foreign aid to help rebuild its battered economy. The IMF said that Zimbabwe would need to clear its debts and show a sustained record of sound policies before it could give financing. China recently agreed to give Zimbabwe a loan of $950m. China is one of the few countries to retain economic support for Zimbabwe in recent years.

China 'agrees huge Zimbabwe loan'

http://news.bbc.co.uk/2/hi/africa/8126555.stm

30 June 2009

China has agreed to give Zimbabwe a loan of $950m (£573m) to help it revive its battered economy, Prime Minister Morgan Tsvangirai has said. "We will encourage and facilitate more Chinese companies to seek development in Zimbabwe," Chinese official Zhou Yongkang told state news agency Xinhua.

Zimbabwe army 'runs diamond mine'

http://news.bbc.co.uk/2/hi/africa/8120931.stm

26 Jun 2009

Lobby group Human Rights Watch has accused Zimbabwe's army of using forced labour, including children, to mine diamonds in the east of the country. On the face of it, the military takeover was an attempt to seize control from unlicensed miners, the lobby group says. But in reality it was a systematic attempt to enable key army units, whose support President Mugabe needed following June's elections, to have access to riches, Human Rights Watch says.

Zimbabwe prices 'begin to fall'

http://news.bbc.co.uk/2/hi/africa/7962998.stm

25 March 2009

Prices in Zimbabwe have begun to fall after years of galloping inflation, according to figures from the state Central Statistical Office (CSO). Prices of goods bought in US dollars, Zimbabwe's new official currency, fell by up to 3% in January and February. They were the first official figures since the country's recent adoption of the US dollar. The US dollar was adopted by Zimbabwe's government following the inauguration of the unity government between the MDC and President Mugabe's Zanu-PF.

Zimbabwe rolls out Z$100tr note

http://news.bbc.co.uk/2/hi/africa/7832601.stm

16 Jan 2009

Zimbabwe is introducing a Z$100 trillion note, currently worth about US$30. There is more than 80% unemployment in the country and those with jobs find their salary is worthless unless they are paid in foreign currency.

Soldiers rampage at Harare bank

http://news.bbc.co.uk/2/hi/africa/7759060.stm

01 Dec 2008

Dozens of troops have run amok in the Zimbabwean capital Harare after losing their temper while queuing up to withdraw cash at a bank. Because of a national cash shortage, Zimbabweans can only withdraw small amounts of money every day - often barely enough to buy a loaf of bread. The country's economic freefall has been accelerating and the latest annual inflation rate was 231,000,000%. Just one adult in five is estimated to have a regular job. Earlier, the state-owned Herald newspaper reported that water in the capital had been cut because of a shortage of purification chemicals, as authorities try to contain a cholera outbreak.

Cholera outbreak strikes Zimbabwe

http://news.bbc.co.uk/2/hi/africa/7742762.stm

21 Nov 2008

Nearly 300 people have died in Zimbabwe in recent weeks in a cholera outbreak which has hit about 6,000 people, the World Health Organization reports. The UN body predicted the water-borne disease would continue to spread because of poor sanitation in the impoverished country's urban areas.

Analysis: Zimbabwe's dire forecast

http://english.aljazeera.net/focus/2008/09/2008914221220559820.html

15 Sep 2008

Zimbabwe's economy has passed "tipping point". Inflation escalated from 7,500 percent a year ago to 100,000 percent in January and 11.2 million per cent in June. Current estimates put the annual rate at around 30 million per cent for September. Production in agriculture, mining and manufacturing has more than halved since the political crisis started in 2000, and a recent industrial survey shows that manufacturing industry is operating at less than 20 per cent of capacity. The middle class, once the bedrock of this economy has diminished – doctors, teachers, nurses, engineers, artisans and lawyers have left the country.

Zimbabwe inflation rockets higher

http://news.bbc.co.uk/2/hi/business/7569894.stm

19 Aug 2008

The rate of inflation in Zimbabwe jumped to just over 11,250,000% in June, official figures show. Zimbabwe is in the midst of a dire economic crisis with unemployment at almost 80%, most manufacturing at a halt and basic foods in short supply.

Zimbabwe introduces Z$100bn note

http://news.bbc.co.uk/2/hi/africa/7515823.stm

19 Jul 2008

Zimbabwe is to introduce a bank-note worth Z$100bn in response to rampant inflation - but the note will barely cover the cost of a loaf of bread.

Zimbabwe inflation at 2,200,000%

http://news.bbc.co.uk/2/hi/business/7509715.stm

16 Jul 2008

Zimbabwe's annual rate of inflation has surged to 2,200,000%, official figures have shown. The figure is the first official assessment of prices in the troubled African nation since February, when the rate of inflation stood at 165,000%. Rising costs are forcing retailers to increase prices a number of times a day for goods purchased with billion dollar bank notes and the number of people falling into poverty is on the rise. Mr Mugabe denies that he is ruining the economy, laying the blame on international sanctions he says have been imposed against Zimbabwe. The US and the EU have imposed targeted sanctions, such as a travel ban and an assets freeze, on Mr. Mugabe and his close allies.

Mugabe threat to expel US envoy

http://news.bbc.co.uk/2/hi/africa/7419389.stm

25 May 2008

Zimbabwean President Robert Mugabe has threatened to expel the US ambassador, accusing him of meddling in the country's political process.Earlier this month ambassador James McGee warned post-election violence in Zimbabwe was "spinning out of control". "As long as he carries on doing that, I will kick him out of the country," Mugabe said of Mr McGee, a Vietnam War veteran. "I don't care if he fought in Vietnam. This is Zimbabwe, not an extension of America," he said.

Zimbabwe bank issues $500m note

http://news.bbc.co.uk/2/hi/africa/7402943.stm

15 May 2008

The central bank has issued a 500m Zimbabwe dollar banknote, worth US$2, to try to ease cash shortages amid the world's highest rate of inflation. The previous highest denomination note was for Z$250m, issued 10 days ago. Zimbabwe's annual inflation rate is 165,000% and one economist said prices now double every week. At independence in 1980, one Zimbabwe dollar was worth more than US$1.

Zimbabwe inflation hits 165,000%

http://news.bbc.co.uk/2/hi/business/7351086.stm

16 Apr 2008

Zimbabwe's soaring inflation hit an annual rate of almost 165,000% in February, official figures show. Continuing shortages of food and fuel helped to push up inflation from January's rate of 100,000%.The central bank has introduced new banknotes to cope with the spiraling prices. Last month it issued a 10 million Zimbabwe dollar note. The leadership of Zimbabwe is in doubt following elections last month.

Zimbabwe bank to issue $10m bill

http://news.bbc.co.uk/2/hi/africa/7195569.stm

18 Jan 2008

Zimbabwe's central bank is to introduce new higher-denomination banknotes in an effort to ease the critical shortage of cash in the country. Zimbabwe has been in economic decline for the past eight years, with annual inflation widely thought to be in excess of 50,000%. The highest value note that will go into circulation on Friday is worth 10m Zimbabwean dollars.

PM to boycott talks over Mugabe

http://news.bbc.co.uk/2/hi/uk_news/politics/7115205.stm

27 Nov 2007

Prime Minister Gordon Brown has said he will not attend an EU-Africa summit after Zimbabwe's leader Robert Mugabe confirmed he would be there. “Given the circumstances of the last 10 years and our attempts to give assistance in Zimbabwe, which have been thwarted and resisted, it is not possible for us to attend this summit and sit down with President Mugabe." The collapse of the Zimbabwean economy and society therefore was something for which President Mugabe and his policies have got to take full responsibility, he added.

New moves to ease Zimbabwe crisis

http://news.bbc.co.uk/2/hi/business/7023714.stm

2 Oct 2007

Zimbabwe's central bank governor has unveiled a series of measures aimed at easing the country's economic crisis. A new currency will be introduced - striking more zeros off bank notes - in an attempt to curb the black market in currency, Gideon Gono said. Mr Gono has also urged parliamentarians to consult widely before going ahead with the controversial bill that allows black Zimbabweans to take a majority shareholding in foreign owned companies. President Robert Mugabe's government has proposed the new law in a bid to give Zimbabweans more control over the economy, despite fears it could further drive investors from the country.

Zimbabwe Inflation Hits New High

http://news.bbc.co.uk/2/hi/business/6959164.stm

22 Aug 2007

Zimbabwe's annual rate of inflation jumped to 7,638% in July according to the first official figures to be published for three months. Last month, the International Monetary Fund warned annual inflation could reach 100,000% by the end of the year. The Consumer Council of Zimbabwe has said the real year-on-year inflation is far higher than the official rate - claiming it was nearer 13,000% in June. Zimbabwe's economic crisis has led to an estimated three million people fleeing the country for South Africa. Unemployment stands at about 80% and there are mass shortages of fuel and foodstuffs.

Plans Needed for Zimbabwe Exodus

http://news.bbc.co.uk/2/hi/africa/6956383.stm

21 Aug 2007

The head of the UN refugee agency has told the BBC that contingency plans are needed in case the exodus of refugees from Zimbabwe increases. More and more people are fleeing the worsening economic and political situation in Zimbabwe. Zimbabweans are struggling to find even the most basic goods on shop shelves, as an economic crisis pushes inflation above 4,500% and unemployment is estimated at more than 80%. Refugees come into neighboring countries "because they need to survive to a certain extent, to find food security, to try to find some kind of economic activity that they cannot find in their own country."

Zimbabwe Sugar Stampede Kills Two

http://news.bbc.co.uk/2/hi/africa/6950619.stm

16 Aug 2007

Two people have been crushed to death in Zimbabwe when desperate shoppers scrambled to buy sugar. Pressure from the crowd, in Zimbabwe's second city Bulawayo, caused a pillar to fall on top of a security guard and a 15-year-old boy, killing them both. Zimbabweans are struggling to find even the most basic goods, as an economic crisis pushes inflation above 4,500%.

Zimbabwe launches $200,000 note

http://news.bbc.co.uk/2/hi/business/6924062.stm

31 Jul 2007

Zimbabwe is to start circulating a new 200,000 Zimbabwe dollar note, in a bid to tackle the country's inflation, the highest in the world.The new note, issued by the Reserve Bank of Zimbabwe from Wednesday, can buy 1kg (2.2lb) of sugar. The official annual rate of inflation in Zimbabwe is nearing 5,000%. The new note is worth US$13 at the official exchange rate or $1 on the black market.

Mugabe Vows to Save Sick Economy

http://news.bbc.co.uk/2/hi/africa/6913148.stm

24 Jul 2007

President Robert Mugabe has said at the opening of parliament that strict price controls will continue as Zimbabwe tries to turn around an ailing economy. The country, once the bread-basket of the region, is suffering crippling food shortages and rampant inflation. Economic refugees are arriving in neighboring states like South Africa at a rate of around 3,000 a day.

Zimbabwe Crisis 'Threatens Lives'

http://news.bbc.co.uk/2/hi/africa/6288038.stm

10 Jul 2007

Roman Catholic Archbishop of Bulawayo Pius Ncube says the political and economic situation in Zimbabwe has reached "life-threatening proportions". He says there is almost no fuel in the country, and every day, people are reduced to hunting for a loaf of bread. The archbishop said it had reached a point where regional political intervention was now needed. Mr Mugabe blames the worsening economic crisis on a Western plot to remove him from power.

Mass Zimbabwe Arrests Over Prices

http://news.bbc.co.uk/2/hi/africa/6283990.stm

9 Jul 2007

A total of 1,328 Zimbabwean businessmen and women have been arrested and fined for breaking official price controls in the past two weeks, police say. The government ordered that the prices of many goods be cut in half, in order to tackle the world's highest rate of inflation - more than 3,700%. But businesses say the new prices are below cost, so some firms have closed.

Zimbabwe to Cut Prices by Half

http://news.bbc.co.uk/2/hi/business/6240636.stm

26 Jun 2007

Zimbabwe has ordered factories and firms to cut the price of basic goods and services by up to half, in a bid to tackle rampant inflation. The price of basic commodities such as oil and bread must be reduced with "immediate effect" said the government. Economists warn that the measures are likely to lead to shortages, as companies either stop producing because they cannot afford to, or sell their goods on the black market. "Government is aware that these price increases are a political ploy engineered by our detractors to effect an illegal regime change against the ruling party and the government following the failure of illegal economic sanctions." The US and European Union have imposed a travel ban and an assets freeze on President Robert Mugabe and scores of other top officials.

Zimbabwe 'collapse in six months'

http://news.bbc.co.uk/2/hi/africa/6751671.stm

14 Jun 2007

Zimbabwe will collapse within six months, possibly leading to a state of emergency, says a leaked briefing report for aid workers in the country. Rampant inflation will mean shops and services can no longer function and people would resort to barter, it said. Zimbabwe's inflation is already 3,714% - the highest rate in the world. It said power and water suppliers were already near collapse. Electricity was last month rationed to just four hours a day to save power for farmers. Just one adult in five is believed to have a regular job. Mr Mugabe denies responsibility for Zimbabwe's economic problems, blaming a western plot to bring down his government because of his policy of seizing white-owned land.

Huge Rise in Zimbabwe Inflation

http://news.bbc.co.uk/2/hi/business/6665749.stm

17 May 2007

Zimbabwe's rate of inflation surged to 3,731.9%, driven by higher energy and food costs, and amplified by a drop in its currency, official figures show. Zimbabwe will be forced to import maize, a basic food staple, to make up for a lack of home-grown produce. The government has also recently warned of shortages of bread and flour, which may cause even more hardship. Critics have blamed President Robert Mugabe's policies, particularly the seizure of white-owned farms, for damaging the once self-sufficient country - in the past described as the bread basket of Africa. President Mugabe, meanwhile, has accused foreign governments of trying to sabotage Zimbabwe's economy and topple him.

Electricity Rationed in Zimbabwe

http://news.bbc.co.uk/2/hi/business/6638993.stm

May 9, 2007

Households in Zimbabwe are to be limited to four hours power supply a day in the latest setback to hit the country's struggling economy. Rampant inflation has led to widespread shortages of fuel and food. The monthly rate of inflation rose to 2,200% in March, the highest in the world.

Zimbabwe Inflation Reaches 2,200%

http://news.bbc.co.uk/2/hi/business/6597993.stm

07 May 2007

Inflation in Zimbabwe reached a record 2,200% in March amid a deepening economic and political crisis. This is the highest rate in the world. The figures had been due for release earlier this month but were delayed. Zimbabweans spend any money they have as soon as they can, before prices rise even higher.Exporters claim their businesses have been devastated by this skewed exchange rate. Mr Gono earlier that month said Zimbabwe was suffering from "economic HIV". President Robert Mugabe's critics accuse him of destroying what was one of Africa's most developed economies. He blames the economic problems on western countries trying to topple him.

Bread, Net Disasters Hit Zimbabwe

http://news.bbc.co.uk/2/hi/africa/5359504.stm

19 Sep 2006

Shops in the Zimbabwe capital Harare are running short of bread after three top food-makers were arrested for over-charging for their products. Prices of bread and other staple foods are controlled by the government and bakers say the official price does not even meet production costs. The bakers said last week that their costs had risen by up to 289% in the month of June alone. Zimbabwe's annual inflation is running at 1,200% - the highest rate in the world. Earlier this year, Zimbabwe knocked three zeros off the denomination of its banknotes in an effort to contain inflation. The opposition says President Robert Mugabe has destroyed one of Africa's most developed economies through his policies. He blames the problems on a western plot to remove him from power.

Rush to Spend Old Zimbabwe Money

http://news.bbc.co.uk/2/hi/africa/5271154.stm

21 Aug 2006

People in Zimbabwe have been rushing to shops to spend their old banknotes before they cease to be legal tender at midnight on Monday. Three weeks ago Zimbabwe adjusted its currency, removing three zeros from the values after years of high inflation. The central bank has indicated that it may allow extensions to the deadline in exceptional circumstances. But the authorities insisted that the roll-out of the new currency, meant to tackle hyper-inflation, would go ahead.The new currency is intended to end the necessity of carrying bags of cash for even small purchases, and eliminate the multiple zeros that Zimbabweans have become used to seeing on price tags. A loaf of bread, for example, will now cost 220 Zimbabwe dollars, as opposed to 220,000 old Zimbabwe dollars. Critics say the measure does not tackle the underlying causes of Zimbabwe's inflation. They accuse President Robert Mugabe of ignoring economic principles and trying to bribe voters by seizing productive white-owned farms to give to poor black families. He maintains that Zimbabwe's economic woes are the result of a western plot intended to bring down his government.

Helmand Province: World’s Leading Opium Producer

mammon — Sun, 01 Nov 2009 20:40:24 -0900

Opium Series

Seeds of Terror by Gretchen Peters, 2009, Excerpts

Helmand Province is about the size of West Virginia. If it were a separate country, it would the world’s leading opium producer, with the rest of Afghanistan in second place. It’s also where links between the Taliban and the opium trade are strongest.

Poppy cultivation has been increasingly concentrated in southern provinces where the insurgency holds sway, but command and control of the southern Afghanistan drug trade is mainly located in Pakistan. Opium is processed into morphine base or heroin in unstable border areas. Profits from the southern drug trade are laundered between Quetta and Dubai, often ending up in western banking institutions.

Major campaigns to wean Helmand’s farmers off of poppy have been expensive failures. Helmand receives more U.S. aid than any other Afghan province. Much of the money is being spent on large infrastructure projects. More that $200 million in U.S. and British funding was designated for Helmand in 2008, a year when poppy output there still increased by 45 percent.

In 2008, Afghanistan produced about twice the amount of opium that the world’s addicts smoke, eat, or shoot for several years now. So where is all that extra dope? UN official s estimate the Taliban and the smugglers they work with have stockpiled as much as 8,000 tons of opium – enough to supply the world’s heroin addicts for two years.

World failing to dent heroin trade, U.N. warns

http://www.cnn.com/2009/WORLD/asiapcf/10/21/un.heroin.trade/index.html

21 Oct 2009

About 15 million people around the world use heroin, opium or morphine, fueling a $65 billion market, warned Antonio Maria Costa, head of the U.N. Office on Drugs and Crime. The trade is fueling terrorism and insurgencies: The Taliban raised between $450 million and $600 million in the past four years by "taxing" opium farmers and traffickers, he says in a new report. Not all the money is going into the pockets of rebels or full-time drug dealers -- some Afghan officials are making money off the trade as well. "The Afghan drug economy generates several hundred million dollars per year into evil hands -- some with black turbans, some with white collars," Costa says. Authorities are seizing too little heroin -- intercepting only about 20 percent of opiate traffic around the world, according to the U.N. report, titled "Addiction, Crime and Insurgency." It comes on the heels of a U.N. warning last month that two years' worth of opium is effectively "missing," probably stockpiled by the Taliban and criminal gangs.

Cheap Heroin

http://www.thebostonchannel.com/cnn-news/21068822/detail.html

22 Sep 2009

A lethal combination of rock bottom prices combined with a spike in the potency and availability of heroin on Massachusetts streets has led to a startling increase in the number of heroin-related deaths in recent years.

Afghan insurgents are 'weakened'

http://news.bbc.co.uk/2/hi/uk_news/8181970.stm

03 Aug 2009

Armed Forces Minister Bill Rammell has said insurgents in Afghanistan have had their "command and control" weakened by Operation Panther's Claw. Mr Rammell said the recent Operation Panther's Claw mission had succeeded in its aim of clearing the Taliban from strategically important parts of Helmand province.

He said this operation was now being followed up by civil reconstruction projects to provide new schools, clinics, roads, electricity and water. "This is the new push in the cleared area, this is hold and build. Without that follow-up - that civic-political follow-up - we would not be able sustainably to rid Afghanistan of the Taliban," he said. "It brings faith in the Afghan government and provides the opportunity for insurgents to lay down their arms and take up a peaceful life."

US opens 'major Afghan offensive'

http://news.bbc.co.uk/2/hi/south_asia/8129789.stm

02 Jul 2009

The US army says it has launched a major offensive against the Taliban in south Afghanistan's Helmand province. The US military says about 4,000 marines as well as 650 Afghan troops are involved, supported by Nato planes. It is the first such large-scale operation since US President Barack Obama authorized the deployment of 17,000 extra US troops to Afghanistan, as part of a new strategy for winning the conflict. Many of them are being redeployed from operations in Iraq, to help with training Afghan security forces and to tackle the insurgency.

The operation - codenamed Khanjar or Strike of the Sword - began when units moved into theHelmand river valley in the early hours of Thursday. Helicopters and heavy transport vehicles carried out the advance, with Nato planes providing air cover. UK-led forces in Helmand launched their own operation to combat the Taliban insurgency last week, in what the Ministry of Defense described as one of the largest air operations in modern times. Thousands of British forces under Nato command have been fighting the Taliban in Helmand since 2006.

Afghanistan Opium at Record High

http://news.bbc.co.uk/2/hi/south_asia/6965115.stm

27 Aug 2007

The UN says opium production in Afghanistan has soared to record levels, with an increase on last year of more than a third. The UN Office on Drugs and Crime report says the amount of opium produced there has doubled in the last two years. Afghanistan now accounts for more than 93% of the world's opiates.Kyrgyz MP:

Grow Opium to Beat Debt

http://english.aljazeera.net/NR/exeres/0C671C55-1A9F-4031-AA25-DD01A991ABE2.htm

09 Mar 2007

A Kyrgyz opposition leader has suggested the country cultivate opium in order to prompt foreign creditor nations to provide debt relief. The plan was put forward on Wednesday by Azimbek Beknazarov, leader of the Asaba National Renewal Party, who pointed to Afghanistan as an example of how the trade could be used to win concessions from the West.

"This year Afghanistan announced almost officially that it will increase opium crops. We have to do the same and permit our people to plant opium for a year or two. After that, all the international organizations will be alarmed and will offer to cover our country's debts," Beknazarov said. "To solve this problem [of foreign debt] we need unordinary steps. I know that my suggestion will stir a heated debate," he said.

Warning over Afghan Drug Economy

http://news.bbc.co.uk/2/hi/south_asia/6190922.stm

28 Nov 2006

Afghanistan's soaring opium production threatens to wreck efforts to rebuild the country after years of war, the UN and the World Bank have warned. Afghanistan supplies more than 90% of world opium. The drug trade accounts for a third of the economy and permeates the "higher levels of government", the report said. It says 2006 saw opium cultivation rise by 60% and production by 50%. The UN-World Bank report also called for a "smart and effective" strategy to curb demand in consuming countries, mainly in the West.

Afghan Drug Crop to Flood Europe

http://news.bbc.co.uk/2/hi/south_asia/6174854.stm

28 Nov 2006

European cities risk higher numbers of heroin overdoses as Afghanistan's record opium poppy crop floods cities with the drug, the UN has warned. Europe has traditionally been the biggest market for Afghan opiates and opium cultivation in Afghanistan increased by 59% this year.

Quandary of Afghan Opium Industry

http://news.bbc.co.uk/1/hi/world/south_asia/4312557.stm

02 March, 2005

Yet again, an alarming study on the rise in opium production in Afghanistan - source for most of the world's supplies of heroin.

U.S Installs Afghan Opium Government

mammon — Sat, 31 Oct 2009 08:00:00 -0800

Opium Series

Seeds of Terror by Gretchen Peters, 2009, Excerpts

The Northern Alliance swept into Kabul, installing its people in key security posts. The U.S.-appointed leader Hamid Karzai began handing out important positions like they were trophies. U.S. officials privately acknowledged the unsavory behavior of various individuals who joined the new government, including allegations that some were tied to drug trafficking.

A year before the U.S.-led invasion, Afghan farmers harvested just 8,000 hectares – mostly in areas outside the Taliban’s control. In 2002, 74,000 hectares of poppies were planted. Overnight, Afghanistan had again become the world’s leading opium producer. It is clear that senior officials in the Karzai administration are involved.

In June 2004, counter-narcotics agents raided the offices of the Helmand governor, Akhundzada, where they found nine metric tons of opium. He was removed as governor soon after, but Karzai swiftly appointed him as a member of parliament.

The Afghan president raised eyebrows in 2007 when he appointed Wasifi as his anticorruption tsar. Wasifi was convicted two decades ago for trying to sell $2 million worth of heroin to an undercover officer in Caesar’s Palace, Las Vegas. Wasifi called the bust a youthful indiscretion.

Perhaps most troubling of all, in the light of President Karzai’s notorious reluctance to take on the drug trade, are persistent reports that his immediate family members are taking an active role in coordinating it, and that members of his Popalzai tribe, his half brother and other cronies, have been posted to positions along trafficking routes around Afghanistan.

Karzai vows to battle corruption

http://news.bbc.co.uk/2/hi/south_asia/8339369.stm

03 Nov 2009-11-03

Afghan President Hamid Karzai has vowed to remove the "stigma" of corruption, a day after winning a new five-year term. In his first remarks since being declared winner on Monday of August's fraud-marred poll, he also pledged to lead an inclusive government. And he called on "Taliban brothers" who have been fighting an insurgency against him to "embrace their land". The Taliban said in a statement it would continue its fight and called Mr Karzai "a puppet".

Brother of Afghan Leader Said to Be Paid by C.I.A.

http://www.nytimes.com/2009/10/28/world/asia/28intel.html?_r=1&hp

27 Oct 2009

Ahmed Wali Karzai, the brother of the Afghan president and a suspected player in the country’s booming illegal opium trade, gets regular payments from the Central Intelligence Agency, and has for much of the past eight years, according to current and former American officials.

Senior Afghan investigators say they know plenty about Mr. Karzai’s involvement in the drug business. In an interview in Kabul this year, a top former Afghan Interior Ministry official familiar with Afghan counternarcotics operations said that a major source of Mr. Karzai’s influence over the drug trade was his control over key bridges crossing the Helmand River on the route between the opium growing regions of Helmand Province and Kandahar.