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These "valuations" are important because they put a number on the whole "chain of value". Of course nobody would paid 100 million for that shipment, just like t
by PedroBatista 6y ago
These "valuations" are important because they put a number on the whole "chain of value". Of course nobody would paid 100 million for that shipment, just like they didn't paid 80 million for the drugs.
But you sure can bet if those drugs were bought and consumed, around 100 million would change hands ( total ), 10 million more 10 million less.. it's an estimation.
- oillio 6y agoThe bust doesn't change the demand at the market. The producers will provide as much as the market demands, taking into account the expected losses along the supply chain (losses such as confiscation). This only increases the cost of the suppliers. Which will be passed on to the consumer. As others have said, the war on drugs can only increase the price, and temporarily disrupt supply. I think it has been conclusively proven they are not capable of increasing the price above what the customer is willing to pay.
- heavenlyblue 6y agoIf they catch 5% of the market cocaine, then those 100 million would not have changed hands because if they didn’t catch those 100million worth of cocaine that cocaine overhead would never have been shipped. It’s not like people would suddenly start consuming more cocaine if police would stop seizing it.
- PedroBatista 6y agoThey would, just like they'll consume less if prices go way up. It's a relatively common occurrence these "shortages", but all of this to a point, people wouldn't consume triple the amount if there was 3x cocaine available. No one wants the streets to be flooded with cocaine, and I mean - no one - There's a reason why cartels are called cartels.