Tuesday, May 3, 2005

Most heroin sold in Europe comes from Afghanistan’s poppies. This past week, the 2005 opium harvest was in full view and going full speed in Afghanistan. The cultivators gathering resin from the crop are operating even near the main road through Kandahar and the farmers are out gathering resin from opium poppies in full view.

Last year 80% of the world’s opium came from Afghanistan and production is up over 239% since 2003, according to U.S. government estimates. Afghanistan is the world’s largest producer of illegal drugs.

In 2002 Super Bowl ads, the White House sent out the message that “drugs fund terrorists”. Doug Wankel, a former U.S. Drug Enforcement Administration (DEA) official, says the opium industry is “financing terrorism. It’s financing subversive activities. It’s financing warlordism… And if it’s a threat to the government of Afghanistan, it’s a direct threat to the national security interests of the United States.”

“The Bush administration has decided not to destroy the opium crop in Afghanistan,” stated a U.S. intelligence official returning from Afghanistan in relation to the 60% smaller 2002 crop. The source, who requested that he not be identified, noted “U.S. forces could destroy the crops using aerial spraying techniques, but no such actions are planned.”

U.S. plans to spray the crops were canceled at the request of Afghan President Hamid Karzai, who has called for jihad or “holy war”, but is concerned that aerial spraying could be harmful to the health of Afghan villagers. The U.S. claims that the spraying would be safe, but is granting Karzai’s request.

Karzai has indicated that he may change his mind if other U.S. strategies fail to halt the opium. Congress budgeted $774 million for anti-drug operations in Afghanistan just this year.

The CIA reports in From Flowers to Heroin that it takes 10 kg of opium to make 1 kg of 90% pure heroin. The CIA states that impurities are introduced into the processed heroin before it hits the street, making the purity of the end consumer product about 40%. That implies that 10 kg of opium makes about 2.25 kg of 40% pure heroin.

The Guardian reports that the 2002 opium harvest was 3400 metric tons. Using the conversion supplied by the CIA, 2002’s 3400 opium harvest could be converted into 765 metric tons of heroin. According to the International Narcotics Control Board, the 2003 opium harvest was 3600 metric tons. Using the estimated 239% increase of the present harvast over 2003, it means that the 2005 harvest is about 8600 metric tons.

The 2002 street price of heroin in the UK was about 60 £ per GRAM, or (assuming the present 1.89 USD to 1 £ exchange) 113.40 USD per GRAM. As the supply goes up the price will come down some, so for this calculation only the 2002 figures will be used. If all the opium harvest is converted into heroin and all of it is sold at the UK street price, the total street value of the harvest is 86.7 billion USD. (765 metric tons x 1000 kg/metric ton x 1000 grams/kg x 113.4 USD/gram = about 86.7 billion USD.) To the extent the 2002 numbers are valid today, the street value of the 2005 harvest should be roughly twice the street value of the 2002 harvest, about 173 billion USD.

To put these numbers in perspective, the total market capitalization of Ford, General Motors and Daimler Chrysler combined is about 76 billion USD. The total market capitalization of Toyota and Honda combined is about 167 billion USD.

The Financial Action Task Force (FATF) was formed to promote harmonization of international antimoney laundering (AML) laws. Despite the fact that tens of billions of USDs are generated from the Afgan opium harvest alone, the FATF has not added Afghanistan to its blacklist of uncooperative nations. One has to wonder, therefore, what the poppy farmers are doing with their share of the money that escapes the notice of the banking system and the FATF.

Wednesday, May 17, 2006

Former world champion boxer Anthony Mundine has beaten long-time rival Danny Green on a unanimous points decision in a non-title World Boxing Association (WBA) super middleweight bout. Mundine, an ex-rugby league star promoted the much-anticipated fight that attracted around 40,000 spectators and a national record for a pay-per-view television event.

“Who’s the man, who’s the man?” Mundine asked the crowd after the fight. Western Australia’s Danny Green (the “Machine”) was defeated after 12 rounds at the Sydney Football Stadium by “the Man” Mundine. Mundine has improved his overall record to 26 wins and three losses. His victory sets up a world title bout against Denmark’s Mikkel Kessler.

After the bout Mundine praised his opponent’s tenacity: “I just wanna’ thank Danny for a great fight… I was starting to get loose man, Danny was starting to put a lot of pressure on me, he’s got a good long jab, I had to evade that,” said Mundine. “I utilized my speed to catch him and it paid dividends. I was looking for the knockout, I caught him with a few great shots, [and] he can take a great punch. He put up a good performance. He come around, he come prepared – I was the better man tonight Dan, thank you very much. We can do it again maybe, soon.”

Green agreed that Mundine fought the better fight. “He just beat me fair and square. I have no excuses at all, I trained unbelievable, my preparation was great… Anthony was the better man tonight,” said Green.

The WBA fight consolidated six years of taunts and hyperbole to settle a long-running feud between the men and their supporters. According to media reports the battle was personal from the outset with Mundine’s mother Lyn yelling at her son from ringside to “Knock him out Choc, shut him up my baby”.

Sports media commentators reported that the pace remained hectic in the first four rounds as Mundine stood firm and used his jab as Green mixed his trademark “power punches.” As the fight wore on, Mundine appeared in greater control and in better condition. However, Mundine did end up on the canvas in the seventh round, after being pushed through the ropes by Green.

Throughout the fight, Green’s power punches “missed, missed and missed again”. In the final “ferocious” round, Mundine rocked Green with a combination to the head, taunting Green to “Come on.” Green attempted plenty of combinations, but Mundine’s speed caused problems. After 12 rounds, Judge Pinit Prayadsab from Thailand gave the fight to Mundine 118-11, South Korean Michael Lee scored it 116-113 and Australian Derek Milham had it 118-112.

Australian newspapers report that the appreciative crowd included corporate CEOs, former world heavyweight champion Joe Frazier, bikie gangs, peroxide blondes and rugby league players. Referee Terry O’Connor described the event as a fight Australia can be proud of. “They both gave their all, it was a great fight.” He described the atmosphere at Aussie Stadium as “fantastic” “It was the greatest fight I have refereed, it was brilliant,” O’Connor said.

The “Man v Machine” event fight, promoted by Mundine’s Boxa International and the “Green Machine” promoters is believed to have beeen the “biggest boxing match in Australian history”, grossing an estimated $20 million. Each boxer is reported to be earning a seven-figure sum, while spectators have paid up to A$1000 for a seat at the bout. Foxtel reported record sales for their exclusive pay-per-view event, claiming that subscriptions outsold the Lennox Lewis v Mike Tyson heavyweight bout. Heavy betting ensued with one punter laying a $500,000 bet on Mundine to take the honours.

Of his upcoming bout with Denmark’s Mikkel Kessler, Mundine said: “It was a close fight last time. I think he’s the best fighter out there, but I’ve shown I can match it with him. I’m ready.”

Monday, March 27, 2006

Thirty-three people were injured during a test of the Airbus A380, a double decker superjumbo jet, in Hamburg, Germany. Injuries include friction burns from sliding down the escape ramps and one broken leg. 853 volunteer “passengers” and 20 crew members took about 80 seconds to evacuate the aircraft, beating the test’s requirements by 10 seconds and over 200 people “rescued”. Only eight of the plane’s sixteen exits were used, as required by the test; the crew members were not told in advance which doors would open. The test was carried out in a dark hangar and the plane’s aisles were littered with debris to simulate actual emergency conditions.

The A380 will be the world’s largest passenger airliner, almost twice as large as the current largest airliner, the Boeing 747. Airbus has had 159 planes on order by 16 customers, and the first A380s will go to Singapore Airlines towards the end of the year.

This test was important to Airbus, as in August 2005 an Airbus A340 overshot the runway and 300 people escaped before the plane burst into flames. Infrared camera recordings of the test will be analyzed by authorities such as the European Aviation Safety Agency, while the US Federal Aviation Administration was present during the test. The European Aviation Safety Agency will confirm the test results this week; Airbus intends to repeat the test on Saturday if the aviation agency fails this attempt.

The volunteers, who were paid 60 euros (about US$72) and a meal, were from Airbus staff, sports clubs, and dancing clubs in the Hamburg area where the test took place. Airbus recruited people from clubs in order to get volunteers in good physical shape.

Two days later, the American and European aviation authorities (the FAA and EASA, respectively) officially certified the A380 to carry 853 passengers. This certification demonstrated that the test procedures use by Airbus met their respective standards.

Monday, March 19, 2007

A 34 year old obstetrician from Forestville on Sydney’s Northern Beaches has escaped after he was robbed, car-jacked and locked in the boot (trunk) of his BMW, which was set alight. Police say the doctor was locked in the boot while his car was set alight, but was allowed to escape before flames engulfed the vehicle.

The Doctor was believed to have been heading to The Mater Hospital in North Sydney when he was waiting at the intersection of West and Falcon Streets in Chatswood around 3:15AM AEDT when a small red sedan with two men claiming to be police officers signalled him to stop. After crossing the intersection, the doctor stopped his car at the side of the road.

The doctor was then approached by the two men and when he asked to see identification, one man grabbed the keys from his car’s ignition before they both pulled the doctor out of his vehicle, hit him in the stomach with a hammer and stole his mobile phone and wallet. The robbers also demanded his key and credit cards along with their access codes before locking him in the boot.

Police allege that the men drove to several locations to withdraw cash and buy things before driving to Carisbook Street in Linley Point at around 4 a.m. local time where they set the car alight with the doctor still in the boot.

Crime Manager of the Harbourside Local Area Command, Detective Inspector Houlahan said that the doctor then “heard a click in the boot area and he heard someone call out: ‘Get out of the car'”

“When he pushed the boot up he found his car engulfed in flames.”

Det. Insp. Houlahan said the doctor told police he did not unlock the boot himself, and it appeared the man’s captors unlocked it before fleeing.

Det Insp Houlahan said that the doctor appeared to be “very distraught” and tired after the ordeal, and wanted to get home and see his wife and two young daughters.

He could only provide police with a vague description of his captors, but said the men were both Caucasian males aged in their 20s, and that one of them was about six feet tall (183cm) with short blond hair and medium build said Det. Insp. Houlahan.

Friday, March 3, 2006

Australian swimmer Ian Thorpe is reported to be feeling much better after suffering from chest pain for some time.

The Olympic gold medalist was due to swim in the 100m and 200m freestyle and in three relays at the Commonwealth Games, but due to his complaints his fitness has been in doubt. He has been unable to take the drugs needed to overcome his pain as they are banned from the Games.

Thorpe told the media Thursday “It’s actually the best I’ve felt in a while; the antibiotics are starting to work.”

Tuesday, October 14, 2008

The San Diego, California suburb of Chula Vista has responded to the recent housing crisis with an aggressive blight control ordinance that compels lenders to maintain the appearance of vacant homes. As foreclosures increase both locally and throughout the United States, the one year old ordinance has become a model for other cities overwhelmed by the problem of abandoned homes that decay into neighborhood eyesores.

Chula Vista city code enforcement manager Doug Leeper told the San Diego Union Tribune that over 300 jurisdictions have contacted his office during the past year with inquiries about the city’s tough local ordinance. Coral Springs, Florida, and California towns Stockton, Santee, Riverside County, and Murietta have all modeled recently enacted anti-blight measures after Chula Vista’s. On Wednesday, 8 October, the Escondido City Council also voted to tighten local measures making lenders more accountable for maintenance of empty homes.

Under the Chula Vista ordinance lenders become legally responsible for upkeep as soon as a notice of mortgage default gets filed on a vacant dwelling, before actual ownership of the dwelling returns to the lender. Leeper regards that as “the cutting-edge part of our ordinance”. Chula Vista also requires prompt registration of vacant homes and applies stiff fines as high as US$1000 per day for failure to maintain a property. Since foreclosed properties are subject to frequent resale between mortgage brokers, city officials enforce the fines by sending notices to every name on title documents and placing a lien on the property, which prevents further resale until outstanding fines have been paid. In the year since the ordinance went into effect the city has applied $850,000 in fines and penalties, of which it has collected $200,000 to date. The city has collected an additional $77,000 in registration fees on vacant homes.

Jolie Houston, an attorney in San Jose, believes “Lenders will respond when it costs them less to maintain the property than to ignore local agency requirements.” Traditionally, local governments have resorted to addressing blight problems on abandoned properties with public funds, mowing overgrown lawns and performing other vital functions, then seeking repayment afterward. Chula Vista has moved that responsibility to an upfront obligation upon lenders.

As one of the fastest growing cities in the United States during recent years, Chula Vista saw 22.6% growth between 2000 and 2006, which brought the city’s population from 173,556 in the 2000 census to an estimated 212,756, according to the U.S. Census Bureau. Chula Vista placed among the nation’s 20 fastest growing cities in 2004. A large proportion of local homes were purchased during the recent housing boom using creative financing options that purchasers did not understand were beyond their means. Average home prices in San Diego County declined by 25% in the last year, which is the steepest drop on record. Many homeowners in the region currently owe more than their homes are worth and confront rising balloon payment mortgages that they had expected to afford by refinancing new equity that either vanished or never materialized. In August 2008, Chula Vista’s eastern 91913 zip code had the highest home mortgage default rate in the county with 154 filings and 94 foreclosures, an increase of 154% over one year previously. Regionally, the county saw 1,979 foreclosures in August.

Professionals from the real estate and mortgage industries object to Chula Vista’s response to the crisis for the additional burdens it places on their struggling finances. Said San Diego real estate agent Marc Carpenter, “that kind of measure will add additional costs to banks that have been hit really hard already and ultimately the cost will be transferred down to consumers and investors.” Yet city councils in many communities have been under pressure to do something about increasing numbers of vacant properties. Concentrations of abandoned and neglected homes can attract vandals who hasten the decline of struggling neighborhoods. Jolie Houston explained that city officials “can’t fix the lending problem, but they can try to prevent neighborhoods from becoming blighted.”

CEO Robert Klein of Safeguard, a property management firm, told the Union Tribune that his industry is having difficulty adapting to the rapidly changing local ordinances. “Every day we discover a new ordinance coming out of somewhere”, he complained. Dustin Hobbs, a spokesman from the California Association of Mortgage Bankers agreed that uneven local ordinances are likely to increase the costs of lending. Hobbs advised that local legislation is unnecessary due to California State Senate Bill 1137, which was recently approved to address blight. Yet according to Houston, the statewide measure falls short because it fails to address upkeep needs during the months between the time when foreclosure begins and when the lender takes title.