Friday, January 2, 2015

How to succeed in business: the Sinaloa Cartel



Borderland Beat by DD republished from mexfiles.net


 As a multi-national company (with sales and marketing outlets in 54 counties (compared to Cemex, which only operates in 17) with a 35 percent world-wide market share in its core product (marijuana), and with more employees than McDonalds, perhaps it might be profitable to other entrepreneurs to study the factors leading to the Sinaloan’s success.

Peréz acknowledges the Sinaloan’s geographical advantage — production facilities close to transportation.  Besides the port of Mazatlán and excellent roads — incidentally vastly improved under the Calderón Administration thanks to the new Mazatlán-Durango highway — Sinaloa has airfields (recognized and otherwise) offering easy access to their single most important outlet, the United States.  Having acquired facilities in a number of other seaports  (Manzanillo, Lazaro Cárdenas, Acapulco and Salina Cruz) within a comfortable proximity, vastly simplified the ability of the Sinaloans to dominate the export market.
  While there has been some drop in sales lately, due to moves to legalize marijuana in the United States, the Sinaloans, opiates remain steady, with some growth in sales, and with it’s already existing transportation facilities in place, has been able to adjust to changing consumer demand.  Ports are not only for export.  China and Mongolia provide the ingredients needed for methamphetamine production, and with the Sinaloan’s sales force already in place, there seems to be an unlimited growth ahead.

More than geography and product delivery though, what has been essential to the success of the Sinaloans has been their management structure and successful branding.  Mixing the best of both worlds, the Sinaloan mangement strategy has been to adopt both the common Asian business model, with key executive positions held by people related by blood or marriage, with the model used by successful U.S. and European firms of hiring outside experts for specific tasks (accounting, software design, money laundering, murder) as needed.  


Having avoided expanding beyond what is necessary to preserve the core business of peripheral trades like extortion, kidnapping, truck highjacking, and murder for hire, has given the Sinaloans a reputation as the “best” in their trade… evidenced perhaps by the reluctance of the government to pursue high level leaders of the Cartel, as opposed to the “low hanging fruit” of groups like the Beltran-Leyva Family, the Zetas.  The Sinaloans have been masters of “soft” media manipulation:  when they slaughter their rivals or potential threats to their own interests, they are very good at how they present their side of the story.  Their “narco-mantas” (the poorly spelled banners they hang up at the scene of the crime)  give a rationale for their acts are less a taunt of their would-be rivals or those seeking to close down their industry, as it is a “sorry we had to do this” note… that they know will be reported, bad spelling and all.  The bad spelling probably isn’t intentional, but it does help, in creating the popular image of the Sinaloans as “hillbillies” simply trying to make a living, and not the sophisticated international luxury goods supplier that it is.  One suspects the attention the Cartel pays to popular culture… commissioning corridos and other “low-brow” entertainment… is part of the same branding strategy.

Certainly, they have been a successful business, and with their funds, are able — as with other multinationals — to underwrite political campaigns and to steer public policy towards their own interests.  One wonders why business professors are endlessly gabbing on about Bill Gates or Warren Buffet, or holding up UPS or McDonalds as models of successful businesses other than they just can’t imagine a bunch of yahoos from back of beyond Mexico are just as capable of forming successful international firms as any gringo.
Well, there is that whole “criminal” thing… but still…

87 comments:

  1. "Low hanging fruit" yet those sinaloa putos cant finish them off Lol! Who writes this zhit?

    ATTE: Warlord English Zeita

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    1. Don't make us laugh want to be narco!!!.... English zeita please you will shit in your pants if you see what they do!!!!

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    2. ^ another wicked?.. lived in the US then got deported?.. then back in mexico continued his criminal life forming his own criminal zeta cell?... what a piece of shit.

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  2. Looks like the poor countries are sending the money to the countries that make more income per ca-pita. Makes sense. You would also send the most high end items like big screen TVs and the majority of even legal imports to these counties. You follow the money. They of course have their own market in the countries that produce it, but the profit margin is less so they sell for less. I live in Mexico and I see drugs used here a lot also. Sold all over the place. Much easier to find here then in the USA, because this is where they produce it. It just costs a lot less. I read the better high end marijuana is even bought in Colorado, and shipped to the more affluent people here Mexico, that are willing to pay more for better quality. The cartel will follow the money even if it means bringing back into Mexico.

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    1. Where in mexico do you live? I've lived in Mexico and here and there drugs are bought but come on, no where near the amount of drugs are consumed by mexicans as are by Americans. So yes you're correct, follow the money, which is why their target is to sell to Americans, not mexicans.

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    2. Most Mexicans rather buy tortillas than drugs. You don't make no . Money working in Mexico

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    3. 1:13 You don't make no money working in mx?... Pfff... Is that why they decide to become kidnappers, extortionist, sicarios, narcos? Why don't they get a better education instead of just going for the easy way.? Maybe that way they would have better paying opportunities. Is just that some like making lots of money pero no les gusta joderse eso es lo ke pasa.

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    4. 558 y joderse en que? si el gobierno (biggest cartel) no produce trabajos

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    5. En trabajar duro! En buscar los trabajos! En buscar una educacion buena. En estudiar para una carrera digna!! eso ke mas! con una buena educacion cualkiera cae parado en cualkier lugar!

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    6. 5:58 its an endless cycle of poverty, if your parents didnt go to school and are barely working to provide a roof and food for your family they are certainly not going to afford the 150 dollars a month to send you to middle school, 250 a month to high school, and forget about college, so your only option is to work and keep being poor all your life, same for your kids, or you can live the fast life, eat well, and just be going in and out of prison or death, but to them its better than some days going without eating

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    7. 5:58 even if you become a doctor or engineer you don't make that much money compared to the USA or any other developed countries. Try living on $100 a week which is most minimum wage across mexico which is almost the same USA prices such as cars, clothes and housing.

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  3. Murdering & in general working outside the parameters of established laws will bring you ill gotten gains. But look at the results of these illicit gains…misery & more misery for so many…

    DD Stop trying to be clever, it doesn't suit you...

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    1. why must you resort to personal attacks? We came close to losing a new reporter this week because of rude inappropriate comments like yours.

      grow up, or move along

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    2. Mexico is trying to come from under this unholy mess caused by corruption, drugs, and rampant criminality and you think we want to read some foolishness (yes foolishness) as this article?!?. The entire article is “inane” to compare legitimate businesses with drug cartels…and the last line of the article lets you know the writer was intentionally trying to be “clever” or "amusing" as well as the blogger who posted it (dd).

      But don’t worry…many thoughtful readers and commentators have already left this site and more leaving everyday, because of the stories BB staff is posting. Some of the articles posted are written or designed to illicit only rage and anger or so poorly written you can’t understand them. I am reading far too many of the following:

      1. Can’t write a simple statement without cursing or telling someone to STFU (now this is rude)
      2. Comments such as "Kill them All"!
      3. Its all gringo's fault.
      4. Leave God out of it (as if the Creator should be left out of any parts of this madness).

      Pretty soon these are the only type of comments BB will get. If the current BB staff wants to consider themselves journalists then start the New Year by thinking, writing and behaving like journalists. Don’t post sloppily written articles, have integrity in your work and photos you post (which only a few have). Post these comments if you dare…

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    3. DD didn't write this.He posted it.It says at the top if you read.

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    4. Blame the CIA

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  4. Chapo snitched on all his rivals. This cartel is overrated! There all peaces of shit! Extorting and killing thousands of Mexicans. They are no better than zetas or golfos!

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    1. It's all about making money playa they ain't on that plaza bs

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    2. It doesn't matter who they are cds cdg zeta blo cdj they are all the cia's puppets they don't have any real authority.

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    3. Snitching is definitely a American thing... The police/authorities in US dont beat torture and extort like they do in Mex... All these guys saying this or that person snitched would be snitching in their own puddle of piss if they were being "interrogated" by Mexican authorities.

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    4. Not necessarily 10:49. The CDS was well known for snitching off their adversaries to the DEA to gain favor. It's a fact and not hearsay. As of today they don't have the same power to persuade the DEA. All bets are off. It's sink or swim for CDS.

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    5. 10:15 Thats true they been doing that a long time ago. Since the late 80's I believe. Snitching off their adversaries to gain "favors".

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    6. 3:20 real sick and tired of "chapo snitched" comment. EVERYONE snitches..EVERYONE!

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  5. I have been impressed with their operation. Doing in this envroment must be tough, especially with other small gang idots who just want to kill.

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  6. this article sucks. nothing new that hasn't been said in various news outlets. no new insight. this is your post-doctoral thesis? No wonder Universities churn out nothing but socially awkward losers that can't even hold a job at Wendy's. That's why my best hires were always people off the street. You can't teach SMART. But you sure can reinforce STUPID....

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    1. what business u have dumbass? you hiring cooks, or some other low education job? no distespect to cooks or anything, but u are a piece of work... stop hating on those that are more intellectual than you, just because you feel awkward amongst them that doesnt mean others do, u are a hater that never went to college, u hate successful ppl, u are dark and awkward asshole! dont hate bitch.

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    2. Try creating your own website and post your own articles. Until then, keep your negative comments to yourself.

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    3. That's a good 1.Thats telling him.

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  7. Great write up! The author is right on

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  8. Drugs is a business and if you take away the business the cartels will go away to 90%. Hence, the only solution is to LEGALIZE all the drugs.

    Once the business model is broken (through legalization) the intense marketing done by the drug pushers which lures kids/youth to start consuming (and get hooked) will disappear by itself since they have no reason to push products on which they earn no money.

    A business problem which is what drugs really is can only be solved with a business solution.

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  9. Love em or hate em they are successful.

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    1. They are very successful and smart. Anyone saying otherwise should read some of the ways these guys smuggle drugs into USA and obviously all the cars and mansions they can afford.

      That said I wish that the smart ones would use their minds for legal businesses instead of the drug trade. Some of these guys you could argue are geniuses. They could easily have chosen a different path and been just as successful.

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    2. @12:36 When you have the base already established. It does not take a "genius" to do the stuff they do. They been doing that crap for decades. It took them decades to get where they are so most of them are not really that bright. They just have been copying the other narcos before them and learning from their mistakes. That is how they got there. Plus with the impunity the past corrupt mexican presidents gave them the "chance" to get that big. Plus the Colombian Cartels got diminished by the coolombian DRUG TASK FORCE. If it wasn't for that they would be nothing at this moment. Get it narco sheerleaders.?


      Now Amado carrillo was a bit more like a "genius" he did it all himself he created he didn't copy NO OTHER NARCO DOG.

      You are clearly not a "genius" buddy.

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    3. 6:27 Carrillo still was not diferent from the rest. Ruthless killer

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    4. 10:57 the killing was all business and not for his amusement like most of the new generation narcos.

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  10. If it really is this big , the Sinaloa cartel isn't in charge . Maybe Joaquin Guzman isn't the lead man . There are many pieces missing to the story. I believe these missing pieces paint a picture other than "shorty" rules the drug world . I think with all the pieces in place it would be a picture we wouldn't even recognize based on the picture we see now .
    Come on now , sure he may be the top in the Sinaloa hills , but inn the world ?
    Get real . I will be he is only one of many masterlinks . in a big chain.
    We will never know the whole story.

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    1. It's all the sinaloa politicians who run that cartel.

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    2. Lol big time theories on where the dope the junkie is smoking came from

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    3. @5:36 You got a good point there. It can't be just one doing it "all" there ARE definetly some other top dogs "working" with a cartel that big. I WOULD bet that there aren't just mexican capos working with the sinaloa cartel, but there is also international capos in their side "contributing". From South Ame., Europe, Asia, and North Ame. USA & Canada. Maybe that is how those bastards got humongous.

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  11. I just wonder who is really in charge now? Where is Mr. CARO QUINTERO? Is he running the cartel now? So many questions come to mind. Don't they?

    ATTE: THE LION

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    1. With how bad the DEA wants Caro Quintero, I seriously doubt he is in charge...

      Just bad business, any cartel that'd put Quintero in charge would be #1 on DEAs target list...

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  12. ... The Federation Is Made Up Of Many Factions And "They" All Pay Up To The Top^^^... It Is A Large Pyramid... Nothing Has Changed, But Some Keys Have Been Handed Over In Some Regions, For The Time Being... With That Said, Confusion Or MindFu Is What Will Be Forth Coming As To Information About The Federation... Speculate As You May mr att: world of warcraft... (Not Worth Capitalizing)... Lol... Keep On Thinking And Assuming Because That Is Just What Was Wanted... MindFu= Mess With You Mentally... Thanks DD For Hitting Us Up With Decent Articles...

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  13. Reports from the UN say drugs costs is only aout 2% for the producers, and up to maybe 8% fo the middlemen, the rest goes to money laundering outfts and banks, 90% usually, to be split among the real owners of the drug trade, not amerikkkan and not latinos, not asian either...
    --people like pablo escobar, carlos lehder, the castro brothers, amado carrillo fuentes, the arellanos,, el chapo, and others, can not get away with stealing and dealing on their own and becoming rich drug lords, rafael caro quintero, migue angel felix gallardo, don neto, stole business and kept money, like manuel noriega, and were soon put out of business...
    --one guy with a briefcase can steal more than one hundred men with machine guns, some big maffia leaders used to say, and if you see george soros, bill gates, warren buffet and carlos slin helu, you wll see men who earned all of it the old way, they stole all of it, and they inspire me, i'd like for my PhD doctoral disertation to be about how these high paragons of industriousness got "theirs", i'm sure it would take a lot of epidurals to pass such a big turkey size turd...
    --hey bent over warlord eingleis zeita long time no see, took you too long picking up the powdered soap...

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  14. In my personal opinion they mayo , chapo, etc from sinaloa are just a the middle men and a smog screan for the real bosses and owners of the drug trade . Who are the real deal kingpins i dont know and i knew i would not say . Buy my guess is that whoever they are they must be the chosen ones.

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    1. Is not just one is a group of bosses that do drug traficking in cds. That is why they got that big.

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    2. The M exican government.

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  15. Lol. That's ridiculous. Bigger than McDonalds . Lol I heard some exagerated shit in corridos but this is funny. Lol im not a hatter but lets be realistic, when the colombians stop supplying these clowns they're done!!

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    1. Most of the coke the CDS moves now is mainly from peru the Colombians dont produce the amount of coke they used too

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    2. Ok. So the smart ones are the people from Peru. You never hear nobody bragging or putting themselves out there like the cds. I saw the president from peru about 3 years back with an ex president from u.s. saying that they were going to grow more coke. It's not the average guys running the coke game it's the government. Plain anf simple.

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  16. Dumb stuff. Most of this isnt even half true.

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  17. This post doctoral student in London communicates well and is in the "know". It's refreshing to read accurate facts vs Mexican media propoganda or even worse; the stuff I read in some of these posts. Comparing CDS to Los Zetas, Golfos, or any other mafia in Mexico is like comparing a seasoned crew on a yacht with a helipad to a panga with two drunk fishermen. Los Sinaloenses may hire out and partner the drunks in the panga for transportation, protection, logistics in moving money north, etc - but in the end CDS is in a league of its own.

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  18. Sadly we've all seen how inivative these cartels can be..take drugs away ..they kidnap people to sell their organs on black market..it happens now but not as rampant as it could be..the key is a better economy and a healthy clean autodefensas lead by el mero mero Dr. Meireles.

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    1. Yeah right. The old cowboy of Dr. Mireles can not defend all mexico. He was only capable of doing towns not entire states nor the entire country. He is old he is done. Better look for some body else

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  19. You CAN NOT compare a LEGAL business with an ILEGAL 'business'. In a legal business you have rules to follow. While in a ilegal business they do what want if they gotta kill entire families to get what they want they do it. So the sinaloa cartel are nothing but cheating rats, that cheated their way to the "top" by destroying others.

    They are nothing but rats with money and "power".

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    1. Plus illegal businesses don't pay taxes. Taxes to help fund education, housing, hospitals etc.

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    2. Well said;cheating their way to the top.

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    3. I agree. The article was good until the last two sentences. Bill Gates sold a product that helps people and businesses. Selling cocaine and meth and heroin does not help people. Kids should aspire to be like Bill Gates , Bill is sitting in his 100 million dollar mansion right now and chapo and the rest are in jail cells.

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    4. Are they really in jail cells?

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    5. Even if chapo has a girl, money and drugs in jail it's not like having millions or billions of legitimate dollars outside of jail

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    6. Yeah Mr. Bill Gates is laughing at his life while the others are scared of getting killed or snatched by the marines!

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    7. You missed the point loretta

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  20. Ran by sinaloa politicians that's what the federation is actually.

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  21. All of the most famous narcos put together and all of their money, do not compare to all the money andthe men that put it together to be dirty money launderers and vulture investing capitalistas that export american jobs and whole american industries to china and other countries full of communist slave labor...
    On the map there are missimg opiates production areas in china And asian opiates/meth precursors routes to latin america, and:
    --money routes to the money laundering operations, that would be priceless!
    --only little girls and prima donnas quit, when personally attacked, make sure if there is a basis for attacks, irregardless of personal or not, talk to your conscience, and keep up the operation, running home to mommy does not help anybody grow, the process is crash, dust yourself up, and get back on the avion...
    --not that kind of dustin' up smartarses, YOU can't stay away from any excuse!!!
    YOU People!!!

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  22. "Low Hanging Fruit" lol the Sinaloa cartel wouldn't be what it is without the name Beltran-Leyva!

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    1. Bs beltrAn worked for the federation they branched off u got it backwards if it wasn't for sinaloa cartel we wouldn't know a Beltran leyva fuck outta here

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    2. Hmmm believe it or not 5:55 am is right Beltran Lryva werent just workers of the federation they were bosses along with chapo and Mayo the only difference is that Arturo had the balls to expand wherever he went. Most of the CDS expansion is do to beltran leyvas opening plazas on behalf of the federation.When they split Arturo kept mexico city airport,Acapulco,Mazatlan ,Cd Juarez, nogales, Queretaro,Zacatecas,Monterey, Guasave,Mexicali,Puebla, Oaxaca,Nayarit,veracruz. BL is not a splinter cell of CDS how the goverment puts them. They were their own cartel even in the federation. The only difference is that instead of being allied to the zetas they were allied with CDS. BLO is going nowhere.

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    3. I agree with some of what uve said 1:59pm but BLO would never be on CDS level not sayin arturo didn't have pull he had much pull as chapo but far as cartel noooooooo CDS way heavyyyy

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    4. @5:55 & 1:59 That is very true!

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    5. Pinche BLO couldn't even handle beefs they had with nacho coronel or los torres lmao. Love how much you guys pump them up. Nacho showed them what it is to handle business like a man and showed them how easy he could get to them by using hectors wife but he wasnt a lady killer like blo who would kill your 3 year old daughter to try and prove a point. Fuck blo.

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    6. Pinche BLO couldn't even handle beefs they had with nacho coronel or los torres lmao. Love how much you guys pump them up. Nacho showed them what it is to handle business like a man and showed them how easy he could get to them by using hectors wife but he was a lady killer like blo who eould kill your 3 year old daughter to try and prove a point. Fuck blo.

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    7. Lol gsxr you're an idiot just shut up! Haha Arturo had no pull? Lol he's the one that helped chapo get out of jail and chapo also begged Arturo to help him fight when he was at war with the AFO in the 90's so yeah ;) , oh and I might add that Arturo was the one that had the Colombian connects having worked alongside Amado Carrillo, so its safe to say he had pull 💯

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    8. 2:16 you are 100% right nacho did kidnap hectors wife and let her go like I said CDS as n organization is way heavy than BLO only thing I agree with is arturo did have major pull n tbh if wasn't for arturo having balls wouldn't be no BLO

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    9. My friend you cant compare BLO to all of CDS like that. No single family is bigger than cds not zambadas or guzmanes cds is made of alot of crews. But blo has always been a huge part of cds. And Beltranes are the reason nacho coronel is dead, el chapo took him out for killing mochomos son that was also related to el chapo! Guzman didnt even care of the aftermath in jalisco nacho crossed the line and he had to go. And los torres are nothing they never had any capos or did any harm to Beltranes they are not 10% of what BLO is. All they control is some of culiacan. And they only survived because of mayo. Toe to toe BLO would eat torres alive. Even chapo would back most of them up. M1 wanted to kill some Beltranes and chapo said he better not or he will kill him why do you think chapo never liked m1 for threatening those beltranes that are also his family. Beltranes are a dynasty of capos. Coroneles only had one and torres zero. There is no comparison. The three biggest families in the Sinaloa Cartel in the past 20 years are Beltran, Guzman and Zambada nuff said.

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  23. Julian slim helu, DFS commander controlled airports for his broher carlos slim helu, drug trafficking is a side business there...billy gates, george soros and warren buffet are as rich as corrupt manipulators of law, currency and people, all you have to do is google the controversies about each of them and their enterprises, that will paint naked for you your humanitarian captains of enterprise in the US

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  24. @2:36 IF DD were to stop trying to be clever, he would be even further away from becoming clever, because, practice makes perfect, TRY IT...
    --also as you can see, yes, even you, DD can chose what to post, while all you must pray for god's help to get yer lousy rants on...
    --chivaaa! Personal attacks help us mature, don't be affraid

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    1. Millie the blaberin' Baboon with his crazy tricks... lol

      Ehy Baboon when are you going to start atacking England and others instead of just atacking just the USA with your crazy conspiracy theories? If the ppl of BB tought that Bb is the only place where millie exist they are totally wrong. Crazy arse millie is every where he can go. Hahha

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    2. Millie you crazy chimp. lol

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  25. The real profit is on USA and the rest of world. The italian criminal association for example ( ndrangheta), what buy direct from Mexico, Colombia, and rest of Latino America, have a profit of 400% on cocaine market. He buy 1 kg 1000-2000$ and sell for 30000-40000$. The USA are most florid market. The american dream, includ the streets full of cocaine. Saluti.

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  26. Of all the blogs I've been on the comments on bb are the most negative and argumentative. To the tools that keep complaining about the reporters on bb how about YOU contribute a 1000 word report insteadof a handful of crappy insults and see how hard it actually is. The reporters here do a sterling job and should be congratulated for at least trying to open peoples eyes to the horror that is Mexico in the 21st century n not disrespected for typos or whatever. You should be ashamed ...

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  27. When you bring up the subject of drug trafficking the image that comes to mind for a lot of people is a shady character wearing a hoody standing on a street corner. Or a image of "illegals" wearing backpacks full of drugs.wading across the Rio Grand river.
    While those images may not be wrong, they are kind of like if you were sitting a RR crossing and snapped a photo of the 3 mile long train passing in front of you. The photo would not give you an accurate picture of the train, only a snapshot of a very small piece of the whole train.
    The story I posted was intended to cause readers to think about the scope of drug trafficking in the world today. It was not intended to glorify the Sinaloa cartel or Chapo. Sinaloa was used to show that scope simply because it probably has the best organized business model. Because of business structure, Chapo is really irrelevant. Ford Motor Co. has done relatively well without Henry Ford. Apple has done pretty well without Steve Jobs. Same for the Sinaloa, it will do will without Chapo. All because they all have a business structure in place.

    11:04PM was right that I do get to choose what I post. There are many serious papers and reports 20 or 30 pages long that show the same thing, but I don't think they are why readers come to BB I chose this somewhat whimsical story to cause readers to think about the scope of drug trafficking precisely because it was light- hearted easy to read..
    For those wanting a serious treatment of the economic and socio/political impact of drug trafficking, I would recommend a paper entitled "Mexican Cartels and Their Integration into Mexican Socio-Political Culture" (link below). The paper was written 15 years ago but in it the author talked about what he saw developing and made some predictions that are relative to what is happening today and are related to this story. I consider a "must read" for the serious student of the cartels.
    An excerpt from that paper should give you something to think about:
    "There has been, I would argue, five stages of sovereignty in the western world over the past millennium. The church was the near omnipotent sovereign at the dawn of the present millennium, and ruled and reigned with virtually unchallenged power for several hundred years. The kings, armed with their self-ascribed divine right, functioned as the sovereign in the next evolutionary period. In turn, parliaments, then the people, and today, I would suggest, multi-national corporations have taken their turn as the sovereigns of primary power. The next phase will see transnational organized crime entities emerge as the de-facto sovereign of significance in the world. Organized transnational crime possess a political as well as a socio-economic threat to Mexico, and to the entire world. It is in the process of integrating itself into the socio-economic political fabric of both developing and developed nations, is becoming a major force in international finance, and is destined to dominate until the collective political will of "we, the people" is galvanized in opposition".

    http://www.customscorruption.com/mexican_cartels_integr.htm

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    1. Most BB readers are middle class cholos with a heald college education. Lol don't feel bad....most Americans don't care about what happens to mexico. Sad but true...

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  28. The Mexicans are pawns in a bigger ploy to undermine the social fabric of the United States with China as the lead. Get drugs into the US market and indirectly undermine their democratic government. The US has something going for themselves...they fight.

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