Since WW2, European nations have been working on deeper integration and after the fall of socialist regimes, Europe looked like it has a real chance to establish probably the greatest union this continent has ever seen. There are a lot of cracks and flaws in the system however I strongly believe that each participants benefit from it – even the net contributors. And when the push will come to shove, every decision maker will act knowing that.

Insanity goes on…

I like drug market related articles because they show how market dynamics can’t be denied even in illegal, hostile environment:

“A peace deal between FARC rebels and the Colombian government would greatly help cut cocaine production in Colombia, but officials fear new crime gangs could fill the gap while anti-narcotics police fight a new scourge: synthetic drugs.”
Lesson #1: Supply and demand gaps will be filled.

“They are easy to produce in any place; you don’t need big laboratories. You can produce synthetic drugs from your home. Certainly they will attract a lot of world attention.”
Harder to track the production chain because it doesn’t require agricultural cultivation so more smaller cartels might emerge (win or lose?).

“A gram of cocaine costs about $10 in an upscale neighborhood of the capital [Bogota], while an ecstasy tablet can go for more than $90, according to police officials.”
It is the other way around in Europe which means cocaine production is a pretty cheap process and the shipping + risks multiplies the price while the product reaches the customer. If synthetics gain market share then the agencies might face a harder time to fight it since the ingredients are  accessible (I’m assuming) and with a handful of chemists the gangs can set up shop anywhere which will put a pressure on the price as well.


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