Latest / The Bill Handel Show / Is U.S Running Low on Weapons? | Smuggling Gasoline Into Mexico

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Is U.S Running Low on Weapons? | Smuggling Gasoline Into Mexico · The Bill Handel Show

• 0:01
  Speaker 1: You're listening to Bill Handle on demand from KFI A
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  Speaker 1: M six forty.
• 0:07
  Speaker 2: Big guns. I got big gun. Say oh hey, k.
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  Speaker 3: KFI handle here on a Tuesday morning, August fourth, A
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  Speaker 3: lot going on this morning.
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  Speaker 2: Uh the uh.
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  Speaker 4: Psycho uh psyclose spoiosis outbreak bad let us from Taco
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  Speaker 4: bell YEP.
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  Speaker 3: Thousands and thousands of people have already gotten this thing.
• 0:36
  Speaker 3: Two people already died now underlying conditions. Granted, because it
• 0:41
  Speaker 3: usually isn't a very serious issue, but it's gotten very serious.
• 0:45
  Speaker 3: And the President is in southern California today, which is
• 0:49
  Speaker 3: if I hate it when Trump comes to town or
• 0:52
  Speaker 3: any president. This is not a Trump issue. It is
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  Speaker 3: a presidential issue. It is the biggest pain in the
• 0:59
  Speaker 3: rear end president comes to town. Oh good luck, traffic
• 1:03
  Speaker 3: jammed up, streets closed off, no fund at all. Okay,
• 1:09
  Speaker 3: the war in Iran, and I want to take a
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  Speaker 3: different tact. The general consensus among everybody or the experts
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  Speaker 3: other than the US military is that we are running
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  Speaker 3: out of munitions, and it is being argued that the
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  Speaker 3: US cannot fight a regional power like Iran for more
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  Speaker 3: than just a few months more before experiencing the armament's crisis.
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  Speaker 3: February twentieth, the US has hacked I Run and now again.
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  Speaker 3: According to sources, the US has used up to two
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  Speaker 3: thirds of Patriot missile interceptors, more than a third of
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  Speaker 3: terminal high Altitude Area Defense THAD interceptors, a third or
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  Speaker 3: more of Tamahawk cruise missiles. And there's a shaky ceasefire
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  Speaker 3: going on right now. And this is not good based
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  Speaker 3: on recent production patterns. If you look at those to replenish,
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  Speaker 3: to replace those armaments, those programs would take years to
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  Speaker 3: go back to pre war standards. And there's been a
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  Speaker 3: major shift in fighting in the war fighting technology that
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  Speaker 3: the United States has not done a good job in
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  Speaker 3: keeping up with. And those are drones. They are cheap.
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  Speaker 3: It cost about thirty thousand dollars a piece can be
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  Speaker 3: assembled really quickly. And that's the United States is well
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  Speaker 3: up against the wall because it takes millions of dollars,
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  Speaker 3: for example, in a Tomahawk missile one of these interceptor missiles,
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  Speaker 3: and millions of dollars to shoot down a drone. So
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  Speaker 3: how do you think that math works works out millions
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  Speaker 3: to shoot down a thirty thousand dollars drone? Yep, that
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  Speaker 3: doesn't bode well. And so what ends up is end
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  Speaker 3: up happening is there are concerns about these diminished weapon
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  Speaker 3: stocks and they are limiting Washington's strategic options. Now keep
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  Speaker 3: in mind the official statement, the official position of the
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  Speaker 3: military is we have plenty, we are in fine shape. Nope,
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  Speaker 3: and according to sources. Now keep in mind, when I
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  Speaker 3: say sources, this is from the Atlantic. That's usually the
• 3:42
  Speaker 3: case unnamed sources, because if someone is not allowed to
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  Speaker 3: talk publicly, even within the agency or the organization, it's
• 3:50
  Speaker 3: always unnamed sources. So take that with a grain of
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  Speaker 3: salt as opposed to official statements. And so a couple
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  Speaker 3: of other things. One of the reasons Trump has reportedly
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  Speaker 3: been hesitant to escalate the war. I mean, there's a
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  Speaker 3: lot of bluster, I'm going to attack tonight, I'm going
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  Speaker 3: to attack next week, exchange his mind. I know seven, eight,
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  Speaker 3: ten times already in the last couple of weeks about
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  Speaker 3: escalating the.
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  Speaker 2: War is because of this issue.
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  Speaker 3: For example, if they're going to open the United States
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  Speaker 3: is going to open the Strait of horr moves back
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  Speaker 3: to where it was a free international waterway, and the
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  Speaker 3: Iranians are not happy with it.
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  Speaker 2: And they will fight.
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  Speaker 3: Now you're talking about the remaining stocks of advanced air
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  Speaker 3: defense systems would just be exhausted, which means that American
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  Speaker 3: troops are going to have to be involved boots on
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  Speaker 3: the ground, and that is an ethma to the American
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  Speaker 3: people that just will not fly. The last thing that
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  Speaker 3: Americans want is another war, even though we're in when
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  Speaker 3: right now.
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  Speaker 2: It's still a modified war.
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  Speaker 3: No boots on the ground have been attacked from the
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  Speaker 3: air with these missiles, defense from the air from the
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  Speaker 3: ground as opposed to the drones coming in. Again, the
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  Speaker 3: cost of the missile interceptors are ridiculous compared to the
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  Speaker 3: cost of drones coming in.
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  Speaker 2: So what are the problems.
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  Speaker 3: Well, there's been a neglect of America's military industrial productive
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  Speaker 3: base over the past thirty years. That's inclusive of Biden
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  Speaker 3: presidents before Biden Trump's first term, although the president is
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  Speaker 3: adamant about building up the navy. For example, we're on
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  Speaker 3: our way to creating a new class of destroyers, a
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  Speaker 3: new class of warships interestingly enough, surprisingly enough, called the
• 5:57
  Speaker 3: Trump class of warship. You know, we have the Nimitz class,
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  Speaker 3: we have the other classes, and they don't come to
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  Speaker 3: mind right now, and so shipbuilding has really withered. And
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  Speaker 3: keep in mind that the wars since the post eleven
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  Speaker 3: period wars in Iran and Afghanistan involved very brief invasions
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  Speaker 3: followed by years of relatively low intensity counterinsurgency warfare, not
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  Speaker 3: massive attacks using well again, massive amounts of war material
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  Speaker 3: meaning the Tomahawk missiles, meaning all the other missiles. And
• 6:45
  Speaker 3: before we jump into finishing our topic, Neil, why don't
• 6:51
  Speaker 3: we talk about the Brooklyn Dodgers.
• 6:53
  Speaker 2: Well, sure, well.
• 6:55
  Speaker 3: At least at least until nineteen fifty five, seventy years ago,
• 6:58
  Speaker 3: but that's okay, they're now the Los Angeles Dodgers.
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• 8:05
  Speaker 3: All right, Back we go to what's going on in
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  Speaker 3: Iran and the United States. That is, we are being
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  Speaker 3: told that the United States is well, basically, we're losing
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  Speaker 3: our ability to fight because since February twenty eighth, we've
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  Speaker 3: reported you used up to two thirds of the Patriot missiles,
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  Speaker 3: more than a third of the THAD Interceptor's terminal high
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  Speaker 3: altitude area defense and frankly, we just don't have enough
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  Speaker 3: of them.
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  Speaker 2: And why is that?
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  Speaker 3: Because every time a drone takes off from Iran, how
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  Speaker 3: do we shoot it down? Well, we use one of
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  Speaker 3: these missiles, and it costs millions of dollars per missile
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  Speaker 3: because we're shooting down a thirty thousand dollars drone. YEAHA boy,
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  Speaker 3: does that math?
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  Speaker 2: Work out.
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  Speaker 3: And the problem is, let me get give you some
• 9:01
  Speaker 3: of the issues here. Military planners are under assumption that
• 9:06
  Speaker 3: future wars would be short and would be containable. But
• 9:10
  Speaker 3: if China attacks Taiwan, which is only a question of time,
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  Speaker 3: the bottom line is the Pentagon will not be prepared
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  Speaker 3: for a protracted war. And Taiwan relies on the United States,
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  Speaker 3: as does Europe, relying on the United States not only
• 9:27
  Speaker 3: for weaponry but also coming in and helping to fight. Well,
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  Speaker 3: not quite. Those days are over. The President has said, Nope,
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  Speaker 3: not going to happen. And I agree with the President
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  Speaker 3: in that it is time for Europe to defend itself.
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  Speaker 3: You've been relying on the US for way too long
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  Speaker 3: and put your big point, big boy pants on. We're
• 9:52
  Speaker 3: not going to be there every moment, and so there
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  Speaker 3: has to be a plan B. Also, when you look
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  Speaker 3: at our European allies, when Trump criticizes NATO and says,
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  Speaker 3: you know, you're on your own, they're going to need
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  Speaker 3: to rely on.
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  Speaker 2: More of their own resources.
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  Speaker 3: Of course, because the material the defense, the defense, the
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  Speaker 3: arms that we defense, arms that we send to our
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  Speaker 3: allies to fight incoming missiles, primarily well they're going to
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  Speaker 3: run out of them and they wear out, and the
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  Speaker 3: ones they have now they're not going to be replaced,
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  Speaker 3: so they're really going to be on their own. And
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  Speaker 3: the United States has not kept up with the drone technology.
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  Speaker 3: You know who has the Ukraine? Ukraine, not the Ukraine
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  Speaker 3: used to be the Ukraine as part of Russia. But
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  Speaker 3: Ukraine is now basically the world leader in drone technology.
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  Speaker 3: And not only are they are doing a magnificent job
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  Speaker 3: and shutting down a lot of what the Russians are
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  Speaker 3: doing militarily against Ukraine, but it's also become an entire
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  Speaker 3: industry on its own. One of the things about Ukraine
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  Speaker 3: are the technology coming from Ukraine. I'm talking about software,
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  Speaker 3: and people who developed the software to deal with all
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  Speaker 3: this are incredibly talented. A matter of fact, when you
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  Speaker 3: buy overseas technology, and I have done that in my business,
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  Speaker 3: Ukraine was one of the first places you go because
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  Speaker 3: they are superb at what they do and when it
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  Speaker 3: comes to technology, they beat the crap out of the Russians.
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  Speaker 3: Now the Russians are getting a lot from Iran, they're
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  Speaker 3: getting certainly from North Korea, so Ukraine is holding on
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  Speaker 3: with his fingertips all this, but you know it's costing
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  Speaker 3: Russia a whole lot. I mean, Russia's economy has really
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  Speaker 3: suffered because of the word, because Ukraine has been so
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  Speaker 3: successful in defending Do you remember when the war first
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  Speaker 3: broke out and the invasion of the Russians, This was
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  Speaker 3: going to go down in three days, Kiev was going
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  Speaker 3: to be taken over by the Russians three days. Now
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  Speaker 3: we're talking what five years and it's still going on. Okay,
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  Speaker 3: we usually talk about the United States and smuggling with Mexico,
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  Speaker 3: smuggling in goods to the United States. Well, how about
• 12:38
  Speaker 3: the US smuggling to Mexico by the cartels and why Well,
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  Speaker 3: taxes and high import fees make gasoline and diesel very
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  Speaker 3: expensive in Mexico, to the point where it's fifty eight
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  Speaker 3: percent more expensive in Mexico than here. So let's say
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  Speaker 3: gas here is four dawns, it's well over six dollars
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  Speaker 3: for that same gallon of gas and so here, and
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  Speaker 3: by the way, the second largest source of revenue for
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  Speaker 3: cartels that are doing this after drug trafficking.
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  Speaker 2: That's how big this is.
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  Speaker 3: It is estimated that one third to one quarter of
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  Speaker 3: all the fuels sold in Mexico may be illicid and
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  Speaker 3: smuggled in. Now, Mexico has been a major oil producer
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  Speaker 3: for more than a century. There's lots of oil, but
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  Speaker 3: it has not maintained the refineries, the distribution. So I
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  Speaker 3: think eighty ninety percent of his capacity has fallen apart.
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  Speaker 3: So the cartels have infiltrated. Both US and Mexican authorities
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  Speaker 3: say that. And there is a now black market bonanza
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  Speaker 3: in smuggled fuel. And the same rules go with any
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  Speaker 3: cartel institute. You've got a trail of murder victims and
• 14:04
  Speaker 3: so much corruption. The crime is known as huachicul viska.
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  Speaker 2: If I get that right.
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  Speaker 3: And it's just a huge tax evasion scheme which sells
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  Speaker 3: this fuel, and it's centered on falsified paperwork and corrupt individuals,
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  Speaker 3: corrupt officials actually, And let me give you a story
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  Speaker 3: about how corrupt Mexico was. There was a client of
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  Speaker 3: mine in the world of surrogacy who happened to be
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  Speaker 3: a very high end broker of fuel and he would
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  Speaker 3: buy fuel and sell it. I'm talking about government to
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  Speaker 3: government or fuel producer to governments. And he tells me
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  Speaker 3: the story of he was sitting in effectively a cabinet
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  Speaker 3: meeting between the oil minister of Mexico and my client
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  Speaker 3: who was brokering I mean just huge amounts of oil.
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  Speaker 3: And he told me that in the room, in front
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  Speaker 3: of everybody. The oil minister said, or one of his officials,
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  Speaker 3: his accolytes there said, handed a piece of paper to
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  Speaker 3: him and said, for every barrel of oil you sell,
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  Speaker 3: I want a dollar fifty into this account. And it
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  Speaker 3: was an unnumbered Swiss account. That's the kind of corruption
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  Speaker 3: we're talking about in Mexico. And so last year Mexico
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  Speaker 3: sees millions of gallons in contraband fuel railroad cars and trucks,
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  Speaker 3: and that's just on the border with Texas. And even
• 15:40
  Speaker 3: the investigation it led to the arrest of one of
• 15:46
  Speaker 3: the most celebrated political figures, Ronesso Ruffel Apel, the former
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  Speaker 3: governor of Baja California. I mean, that's how high up
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  Speaker 3: this went. And so what ends up happening is is
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  Speaker 3: this isn't just smuggled on trucks. It comes in at seaports, ships, trains, trucks,
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  Speaker 3: and the products are masked manifests. So incomes, for example,
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  Speaker 3: a train car full of fuel and it's labeled waste material, lubricants, residues.
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  Speaker 3: These are items that are not subject to tacks in
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  Speaker 3: Mexico and or the other side of it.
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  Speaker 2: Importers register arriving tankers.
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  Speaker 3: Can you imagine how much oil is in a tanker
• 16:31
  Speaker 3: or how much gas lien can be delivered in a tanker,
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  Speaker 3: And so they register these tankers as empty or near
• 16:37
  Speaker 3: empty when they're jammed full, which means custom x customs inspectors,
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  Speaker 3: tax agents, military commanders all have to be part of this.
• 16:47
  Speaker 3: And organized crime nets billions of dollars, as I said,
• 16:55
  Speaker 3: second largest source of revenue for the cartels after drug smugly.
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  Speaker 3: Washington and Mexico have launched crackdowns against these functionaries, particularly
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  Speaker 3: in government, and in the case of Ernesto rufo Apel,
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  Speaker 3: former governor of Baja, he says, of course he is
• 17:19
  Speaker 3: the victim of a political vendetta by Mexico's left wing government.
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  Speaker 2: The radical left wing.
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  Speaker 3: Government is going after him for political purposes.
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  Speaker 2: Wow, so the boy.
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  Speaker 3: This all extends to freight, logistics, fuel companies in the
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  Speaker 3: US that are part of this. It's all basically just
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  Speaker 3: a miserable state of affairs. The amount of corruption, by
• 17:45
  Speaker 3: the way that goes on in Mexico is extraordinary. And
• 17:50
  Speaker 3: I once had I had a client who was a Mexican,
• 17:54
  Speaker 3: very wealthy man, and he says something that was kind
• 17:57
  Speaker 3: of interesting when he talked about corruption in Mexico. There
• 18:02
  Speaker 3: is no difference between the cop who stops you for
• 18:06
  Speaker 3: a violation, a traffic violation and the president of Mexico.
• 18:13
  Speaker 3: The only difference is money, nothing more. When you had governor,
• 18:18
  Speaker 3: when you had presidents and not up to this point.
• 18:20
  Speaker 3: I think Claudia Shinbaum is in this category, but it
• 18:26
  Speaker 3: used to be that presidence. When it's a six year
• 18:30
  Speaker 3: term in Mexico, it's one six year term, which makes
• 18:34
  Speaker 3: more sense than two eight year terms because the president
• 18:37
  Speaker 3: is hustling to get reelected for two years or a
• 18:40
  Speaker 3: year and a half out in this first term. And
• 18:46
  Speaker 3: the amount of corruption. To give you an idea, again,
• 18:49
  Speaker 3: I was told by this, but I want to know,
• 18:51
  Speaker 3: we know this as a matter of fact, that president's
• 18:54
  Speaker 3: and I think the average the salary of a Mexican
• 18:58
  Speaker 3: president is sixty thousand dollars a year or it's not
• 19:00
  Speaker 3: very high. So they come in as politicians who are
• 19:05
  Speaker 3: not particularly wealthy because Mexico doesn't pay and they come
• 19:09
  Speaker 3: out billionaires, not centy millionaires, billionaires. That's the level of corruption.
• 19:17
  Speaker 3: So now we're getting well, we're getting information on the
• 19:21
  Speaker 3: car tel No surprise, no surprise, because there's such a
• 19:24
  Speaker 3: disparity between what fuel costs here and what fuel costs
• 19:28
  Speaker 3: in Mexico basically because of taxes, and that's where the
• 19:33
  Speaker 3: biggest amount of money comes in to any country that
• 19:37
  Speaker 3: imports fuel. Okay, car insurance, I mean we all have
• 19:40
  Speaker 3: car insurance. I'm assuming otherwise you can't register the car.
• 19:45
  Speaker 3: And car insurance is going up like crazy, like all
• 19:49
  Speaker 3: other insurance. But here is something that you may have
• 19:52
  Speaker 3: not known is that if you are married and or
• 19:58
  Speaker 3: not married and you have car insurance in California, you
• 20:01
  Speaker 3: can get dinged for that. In other words, you can
• 20:03
  Speaker 3: be charged more as an unmarried person than a married person.
• 20:10
  Speaker 3: So let's say you're single, divorce, widowed, and you are
• 20:15
  Speaker 3: buying coverage, you may pay more than your married neighbor.
• 20:21
  Speaker 3: And this is sanctioned by the way, by the state
• 20:24
  Speaker 3: and the judiciary. Last month, the Californiappeals Court upheld a
• 20:29
  Speaker 3: lower court ruling that rejected a lawsuit against insurance companies
• 20:34
  Speaker 3: to abolish the right of theirs to charge the unwed
• 20:39
  Speaker 3: more because and here is their argument is that if
• 20:44
  Speaker 3: you are not married, there is a higher statistical chance
• 20:48
  Speaker 3: of getting into crashes. And here lies a very interesting dilemma,
• 20:55
  Speaker 3: is that the insurance companies discriminate all the time. If you're,
• 21:00
  Speaker 3: if you're, if you're a teenager under twenty six, you're
• 21:02
  Speaker 3: going to get nailed. If you live in an area
• 21:06
  Speaker 3: that has a tremendous number of accidents, you can they
• 21:13
  Speaker 3: say we're going to charge you more money because we
• 21:16
  Speaker 3: can prove.
• 21:17
  Speaker 2: We can prove that.
• 21:18
  Speaker 3: Now, there's also a lot says you can't discriminate. Right,
• 21:22
  Speaker 3: So let's say you and I'm throwing some statistics out
• 21:26
  Speaker 3: and I don't know this at all.
• 21:27
  Speaker 2: This is I'm just throwing it out as a hypothetical.
• 21:31
  Speaker 3: Let's say, uh, you live in an African American area
• 21:35
  Speaker 3: and you are African American, and statistically, as a minority,
• 21:39
  Speaker 3: you get into more accidents. Nicely done, Neil, he's blowing
• 21:46
  Speaker 3: his no, oh no, that is a Promoh yeah, cono, cono,
• 21:52
  Speaker 3: that is a promo.
• 21:53
  Speaker 2: All right, Neil blowing.
• 21:55
  Speaker 1: Is not listening, which is why my mic was, oh.
• 21:57
  Speaker 3: No, it's still oh trust me, that's going to be
• 21:59
  Speaker 3: a promo, no question about it.
• 22:02
  Speaker 2: So the point is they can't discriminate.
• 22:04
  Speaker 3: The insurance companies cannot discriminate based on race, or creed
• 22:10
  Speaker 3: or disability. Particularly so if you happen to be a
• 22:15
  Speaker 3: driver and you're a quadruple amputee and it's basically you're
• 22:19
  Speaker 3: a torso with a head on your torso and somehow
• 22:23
  Speaker 3: you're able to drive, you cannot be discriminated against in
• 22:26
  Speaker 3: terms of insurance. However, where you live you might be
• 22:31
  Speaker 3: and probably are. And here's the argument. The discrimination flows
• 22:36
  Speaker 3: to people that are unmarried, that is part of a
• 22:39
  Speaker 3: protected class.
• 22:40
  Speaker 2: That's the lawsuit.
• 22:43
  Speaker 3: The court said, Nope, the insurance company can discriminate on
• 22:48
  Speaker 3: the basis of your state of marriage or your state
• 22:53
  Speaker 3: of unmarriage, even if you're widowed. And so the demographic well,
• 22:59
  Speaker 3: drivers are more likely to get into crashes.
• 23:03
  Speaker 2: That if you are unmarried.
• 23:05
  Speaker 3: Certainly mail drivers, they discriminate against that, particularly if you're
• 23:08
  Speaker 3: under twenty six. Girls just get better insurance than boys,
• 23:13
  Speaker 3: I think. And this happened to be because of Proposition
• 23:16
  Speaker 3: one three nineteen eighty eight, and it governs the state's
• 23:20
  Speaker 3: property and casualty insurance industry because where you live, certainly,
• 23:25
  Speaker 3: there's all kinds of discrimination. You could be in a
• 23:27
  Speaker 3: fire area and you can't get insurance, or you're going
• 23:30
  Speaker 3: to pay buckets of money.
• 23:33
  Speaker 2: You can't.
• 23:33
  Speaker 3: They can do it based on the value of your car. Well,
• 23:37
  Speaker 3: that makes sense, because it costs a lot more to
• 23:39
  Speaker 3: repair a high end car or an expensive car, or
• 23:42
  Speaker 3: even the model of the car. I mean, I just
• 23:44
  Speaker 3: gave up my BMW and I ain't gonna drive a
• 23:47
  Speaker 3: BMW anymore because they're so damn expensive.
• 23:49
  Speaker 2: So I got a Toyota.
• 23:52
  Speaker 3: I just got a Toyota, which is far cheaper to repair,
• 23:57
  Speaker 3: and I'm going to pay less in insurance.
• 24:00
  Speaker 2: Did you get a hybrid, No, you.
• 24:03
  Speaker 3: Can't get hybrids. I wanted gray and gray. I mean
• 24:07
  Speaker 3: that was a make or break for me. I wanted
• 24:08
  Speaker 3: a gray car. You cannot get a gray hybrid. They
• 24:13
  Speaker 3: weren't available. I went to the dealer and he said
• 24:16
  Speaker 3: I can get one maybe in two months, and I
• 24:22
  Speaker 3: was not about to wait. So I got a regular
• 24:24
  Speaker 3: gas powered car, going from all electric to all normal
• 24:30
  Speaker 3: gas powered car. Internal colors and color, Yeah, that was
• 24:34
  Speaker 3: one of the big ones because of the color.
• 24:36
  Speaker 2: I wanted a gray car. I wanted a gray car.
• 24:40
  Speaker 2: I love gray cars. So now I'm not lying.
• 24:44
  Speaker 1: Gas guzzler because you wanted a color and your wife
• 24:47
  Speaker 1: has a massive car because she doesn't like small cars,
• 24:51
  Speaker 1: and you're complaining about the change in No, I just.
• 24:57
  Speaker 2: I just happened.
• 24:58
  Speaker 3: No, I'm not complaining about changing temperatures complaining. I just
• 25:01
  Speaker 3: like gray cars. Oh I could have gotten a pimp
• 25:05
  Speaker 3: pursal purple car. I could have done that. I could
• 25:10
  Speaker 3: have gotten my screaming red car. Right, so the police
• 25:14
  Speaker 3: grab me.
• 25:15
  Speaker 2: Immediately, change your big hypocrite.
• 25:17
  Speaker 1: I am not.
• 25:18
  Speaker 2: I got a gray car.
• 25:19
  Speaker 3: They offered me a black car, and I said, no,
• 25:25
  Speaker 3: I want gray.
• 25:27
  Speaker 2: I'm very gray and I want to very planet. I. No,
• 25:30
  Speaker 2: there's nothing to do with that. I just like gray.
• 25:32
  Speaker 3: I'm very understated in my colors of cars, very understated.
• 25:37
  Speaker 3: The rest of me may not be understated, but certainly
• 25:40
  Speaker 3: my cars are. Okay, we're done, coming up, Rich Demurrow
• 25:45
  Speaker 3: Rich on Tech KFI A M sixty.
• 25:50
  Speaker 2: You've been listening to the Bill Handle Show.
• 25:52
  Speaker 3: Catch my show Monday through Friday six am to nine am,
• 25:55
  Speaker 3: and anytime on demand on the iHeartRadio app