Full-Auto AK-47's for Sale

Cartel de Jalisco Nueva Generacion has been under a lot of pressure. Ruben Osegevera Cervabtes) (El Mencho) joined with Gonzalo Inzunza Insunza (Macho Prieto) to fight -- just about everyone else. Macho Prieto lost all of M1's crew to the new Arellano Felix Cartel (managed by Joaquin Guzman Loera's sons and Fernando Sanchez Arellano jointly) so he has lost control of his border plazas. 

Based on what I have heard, even though San Luis Río Colorado has fallen to the new Arellano Felix Organization, Macho Prieto still has the stroke to smuggle loads across to the US side of the fence (Yuma). That infrastructure usually involves complicit US Customs officials and sometimes ICE Agents to grease the skids. 

AK-47

While there is profit in narcotics, the shelves of gun stores in America are empty and Macho Prieto will be moving many of the excess firearms that El Mencho has amassed over the past three years. Even though Nicolas Balcazar Lopez (El Bronco) remains in the custody of the PGR, awaiting trial in Mexico City, some of the weapons that his network purchased from the US Government through straw buyers (BATFE-Operation Fast and Furious) may be headed back north. If you buy something for X and you can sell it for X times twenty, it's time to sell. They're American market firearms anyway. Almost all of them are semi-automatic and not of much use to the cartels, which practice spray-and-pray tactics.

In addition to selling the US their firearms back, they are also going to be moving full-automatic AK-47's (mostly NORINCO manufacture), and magazines. They bought them from the Chinese for $3.00 per magazine and Senator Dianne Feinstein, President Obama and Vice President Biden have been bidding them up on the marketplace to $75.00 per high capacity magazine. The NORINCO AK-47's, purchased by container load for under $300.00 each will sell on the street in the USA for $8,000.00 each. It's a good business for the cartels, which have been accused of taking arms from the USA. As one cynical narco told me --  it's time to give back. 

It's a whole new market. In the past, selling drugs meant that the narcos needed to deal with unreliable users. The thriving arms consumption in the US is driven by "Ma and Pa" on the farm who fear their government. Dealing with generally honest people with jobs is something that Cartel de Jalisco Nueva Generacion is trying to get accustomed to, but they expect the pressure from the newly re-innaugurated President Obama to be kept up, thus the demand will only increase for new - still in the packing grease AK-47's. Sadly, there are only about 1,200 firearms sold by BATF to sell back, but the profit is there, so why not sell?

With over 300 million firearms in private hands in the US, the cartel-smuggled weapons will amount to a mere drop in the bucket in terms of numbers, but US policy is helping to keep the cartels employed. For Cartel de Jalisco Nueva Generacion, it means a lot because they have fallen on hard times and need all the help that they can get to keep the operation funded.

Rumor only: The Russians and Palestinians are both dumping container loads of SKS style weapons on the cartels to be sold to US consumers. They're effective but dated. They'll sell like hotcakes in the US.

I'm not selling or offering to sell these illegal firearms. I'm just the blogger keeping you readers updated on current trends.

Cártel de Jalisco Nueva Generación

Cártel de Jalisco Nueva Generación (CJNG) is presently under attack in Colima State by the Mexican Army. At this point they have cleared Colima City, Tecoman of the Sinaloa Federation (CJNG) and Los Caballaros Templarios have moved in to fill the void. The Army also moved into Manzanillo, but not as hard and CJNG still retains a presence there.

Ruben Osegevera Cervantes (El Mencho) runs CJNG and his headquarters in the Autlan de Navarro and El Grullo area of southwestern Jalisco. It is also being heavily pressured by the Mexican Army (SEDENA). 

It's not really news to the people in Guadalajara where literally ALL of the narcos with any stroke at all left town about a month ago in anticipation of rough times. Some went to homes in San Antonio, Texas (where many of the Guadalajara narcos maintain residence), others with warrants for their arrest either went to Costa Rica or over the hills to Puerta Vallarta. They plan to return home after February when the Mexican Army will be discontinuing its offensive in that area.

There are two principal factions of the Sinaloa Federation in Guadalajara. CJNG is run by El Mencho. He's the one being hit. Ismael Zambada Garcia (El Mayo) is not being pressured. He is more closely allied with Joaquin Guzman Loera (El Chapo) than El Mencho is.

Washington DC Beltway Experts

I don't want to be sued, so let's make it clear that the following is only MY OPINION. I could be totally wrong about everything including what you'll read below. Make up your own mind.

There are a number of firms, mostly headquartered in the Washington D. C. Beltway, which are headed by professors and other pseudo professionals, who peddle their services to the equally unknowing USGOV bureaucracy. Some of them, like Southern Pulse --

"Southern Pulse is a decentralized, field-based investigations organization focused on security, politics, energy, and business in Latin America. Founded in 2004 by investigative journalist and author Samuel Logan, Southern Pulse presents clients with reports and training courses sourced from the ground up. This organization began as a private human intelligence network in the Americas. Southern Pulse is now based in Annapolis, Maryland, and runs its free online media monitoring service from Washington, DC. Senior investigators operate from hubs in Mexico, El Salvador, Colombia, Brazil, and Chile to leverage our network, unique access, and deep understanding of the region to mitigate risk for public and private sector clients with exposure to political, security, financial, or legal risk in Latin America."

-- feel that having somebody read on-line newspapers from Latin America, which they turn into their "educated opinion", lends some sort of twisted validity to what they put out. 

Here are some of their more recent opinions regarding Guadalajara (GMA)

• Los Zetas and rivals in the Sinaloa Federation are content with a non-confrontational coexistence in the GMA.
  Completely untrue. Los Zetas have NO significant presence in Jalisco and no infrastructure to support them if they arrived. 

• There are two, tier-two groups in the GMA; each has aligned itself with a rival tier-one group. 
Mostly untrue. They (like USGOV) separate CJNG from the Sinaloa Federation, and it's not. They assert that the Milineo Cartel is affiliated with Los Zetas and it's not. I am not going to source this thing out for you, dear reader.

• There are at least three, tier-three street gangs with specific areas of operation in the GMA. 
Partly true. But the "street gangs" are run COMPLETELY as wholly owned subsidiaries of (1) The Sinaloa Federation - two separate gangs and (2) La Resistencia, which doesn't call itself the Milenio Cartel anymore. 

• The GMA has seen a violence high-water mark that will likely not been seen under current conditions. 
Untrue. They put that out right before Guadalajara broke out in near civil war in September 2012 after SEDENA grabbed El Mencho (yes, they let him go and he's back).

• The relative low value of the GMA plaza has resulted in the increased importance of rural areas. Though this is true in other areas of Mexico, it is most salient in Jalisco among all areas of our study. 
Completely untrue. And this brings me back to the central point. These researchers with "people on the ground" would not seem to be on the ground in places such as Guadalajara. Or if they are, they lack significant access to the information that they report. Do they ever speak to Ruben Osegevera Cervantes personally? Did they ever have a sit down with Nacho Coronel (before SEDENA killed him at El Chapo's request) and pick his brain over the future of his mini-empire, centered in Jalisco and Guadalajara? Do they go to El Azul's rancho outside Guadalajara and speak to the great man, himself?  Of course not. What about the rift last spring between El Mayo and El Mencho and the impact that had on Guadalajara street gangs? You never hear these 'experts' discussing nuts and bolts because they don't understand how things work among the narcos. 

I'm sure that if somebody from Southern Pulse were to respond to this blog (and I'm not holding my breath), they would say that their information comes from 'reliable sources on the ground', which would mean that they read the newspapers. (then they sell that reading service to people as evaluated intelligence)

Who owns the Mexican newspapers and who tells the newspapers what to print (for the most part)? Sadly, the narco matas and related blogs seem to have better information than the newspapers do because they can publish with a degree of anonymity.

Don't bother going to the US Drug Enforcement Administration (DEA) for answers or to the US El Paso Intelligence Center (EPIC). HIDTA gets its information from USGOV so it's no more valid than DEA. Though they are right more often than they're wrong (maybe 60/40), they lack the real ground game in Mexico that one needs to understand what's going on and more importantly, why things happen the way that they do. Relying on the (now part of Gobernacion) SSP for reliable information is folly. I don't care how well USGOV asserts that its sources are vetted.

It's all ground game. My advice to private analysis groups: Go big or go home.

USGOV doesn't want my advice.

Ruben Osegevera Cervantes

In 2006, President Calderon started a crusade against organized crime without a clear strategy, political structure or a military force capable of fighting Mexican cartels. The objective was to reclaim the rule of law, but shortly after the end of his administration, the structures of narco remain intact. (Tag Line from a speech that will be delivered at LA HIDTA on Tuesday, November 27, 2012 - you can't attend unless you have credentials, but it will be a meaningless rehash.)

Why is Ruben Osegevera Cervantes (El Mencho) free and running his large and prosperous drug organization (sometimes referred to as the Cárteles de Jalisco e Colima Nueva Generación)? Who has an interest in keeping him in power? Why is the Mexican Army (SEDENA) and federal police (SSP) so ineffective against him personally? They took him into custody about a month ago. Why did they let him go?

Cartel roadblock in Jalisco from last month. Why were there roadblocks?

CJNG won't be shipping anymore cocaine to the United States until after the Christmas Holiday (roughly January 15, 2013) and the street price in Guadalajara has jumped $2K per kilo within the past two weeks. The price is also up in Los Angeles for those narcos who usually order enough to tide them over the month of December when the Cartels shut down for the holidays. Why is this? Any intel on this from the US side? Yes, I know the answer to all the questions that I posit, but do the intelligence professionals. And if not, why not?

CJNG will still ship methamphetemine products to the US during this period and precursor deliveries through the ports of Manzanillo and Lazlo Cardenas have picked up since the large seizures in summer weren't repeated. They will also ship heroin (grown in Gurrero, refined in Michoacan) through late December.

I really don't like the name, "CGNJ" because outside of a little posturing after El Mencho succeeded the late Ignacio (Nacho) Coronel Villarreal, it's not used in Mexico to any degree. It's all the Sinaloa Federation. It looks good on charts, but it's simply not used in Guadalajara or in El Mencho's headquarters in the twin cities of El Grullo and Autlan de Navarro. So if you're really tied to the name and if it means something to you personally, keep using it. But they don't. From here on, I'll simply refer to it as El Mencho's Organization or more appropriately, the Sinaloa Federation. They do use that term.

Does anyone think that the Mexican Government is so STUPID that they don't know what's going on in their own country? I for one do not. I've worked with them and will assure you that they have their fingers on the pulse of the drug business. Why? Because they get a cut. They always have and they always will. Why is El Mencho free and running his cartel? Because it's good for business. What happens when it's no longer good for business to have him in that job? Ask the late Nacho Coronel.