The capture of Mexico’s greatest drug kingpin since the 1993 killing of Colombian capo Pablo Escobar will only remain symbolic IF Mexican monetary authorities fail in their monetarist revolution.
Let me explain.
The Mexican Central Bank has decided to employ Milton Friedman’s work on illicit drug cartels, black markets as proxies operating outside the confines of fungible inflationary fiat money. Meaning, once you drained the appeal to secure an illicit livelihood chiefly through strengthening domestic currencies purchasing power, you in effect collapse the pool from which illicit black markets operate.
Capturing Joaquin El Chapo Guzman only strengthens the social, political and institutional edifice underwriting the Central Banks monetarist agenda.
The capture has all the hallmarks of interagency cooperation between U.S. & Mexican officials. Clearly the Mexican Navy and its Commando Units remain uncorrupted.
How does this end?
No government policy can fix the social, political impact of geography. The northern Mexican mountainous plateau will always possess the romantic interplay of rustic cowboy freedom; open, inviting, uninstitutionalized. The culture it secures can only be supplanted by stronger legal culture. Something capital inflows and regional infrastructure can secure. IF the Mexican parliament can fiscally dovetail its operations with the Mexican Central Bank, something it has accomplished only partially.
The future of Mexico is here: an export led, capital intensive regime, linking the entire Gulf of Mexico, southern North America, Central America to the entire southern hemisphere with the Caribbean.
“Stay thirsty my friend”.