Cocaine - world drug market in recession

It appears that the current Global crisis is affecting everything.

Even drugs.

The reality for all drug markets, is that governments all around the world are constantly combating illegal substances.

In America, President Obama has recently stated that Mexico has the United States full support on the war on drugs and the guns utilised to protect the traffic routes. America remains the hungriest market in the world for illegal drugs, and over 6,000 people had been killed in the last year in the war on drugs in their neighbouring country.

When a highly exposed head of state says such remarks, that means huge amounts of resources being directed towards fighting the drug trade.

And as rich as the cartels may be, the stark fact is that governments - even in recession - are richer.

In Australia, similar themes are occurring.

Recently, a huge ad campaign against major drugs, including ice, marijuana and other readily available products was released, and can be seen everywhere via TV, radio and public posters.

Equally, recent high level violence by biker gangs has seen huge amounts of law enforcement resources directed toward the gangs, but also toughening the laws regarding such groups.

The penalty for recruiting for bike gangs now comes with a 5 year jail sentence. As a consequence, the drug market in Australia is noticeably dwindling.

Forcing supplies down and prices up.

In the UK, the Serious Organised Crime Agency claims that the key drug market there, Cocaine, is in serious trouble.

Work by undercover units there are driving the product and it's market into a "recession".

Prices per kilo have risen from close to 40,000 pounds to nearly 50,000 pounds in the last year.

It is estimated over 10 tonnes were directly caught close to Christmas last year, and hundred of millions of dollars worth of Cocaine was burnt last year.

Street prices however remain stable, but this is due a massive fall in quality.

Recent police figures released by the BBC indicate that most seizures now are less than 9% pure, the lowest ever recorded level.

This is due to the increasing release and circulation of drug cutting agents, including the cancer-causing drug phenacetin, cockroach insecticide and pet worming powder.

Ironically, this will cause the efforts by law enforcement to increase, because while the product is less pure and it's classification as a drug is diminishing, the introduction of such chemicals is making the products far more dangerous.

Some argue that trying to cut the drug off at their source is unsustainable, and that no matter how successful the war on drugs is, there will always be abundant product in the market, irrespective of its quality.

But, SOCA have clearly decided that, like in America and Australia, that such wars are waged with far more success when there is high public awareness.

Unlike the clandestine operations previously so popular with drug busting rings.