How The Deep State Won the War on Drugs: A Complete Timeline

The war on drugs operates as a pipeline to feed big banks, CIA covert wars and black budget programs, cartels, and mass incarceration while maintaining rather than disrupting the drug trade.

As chaos in Latin America unfolds, driven by the US and its “war” on drug traffickers, it’s worth revisiting what the war on drugs has always been—and how rarely its deeper realities are examined by the media or by political leaders across the political spectrum.

The purpose of the war was never to stop drug addiction. After more than a trillion dollars spent, addiction is as popular as ever. Global drug markets continue to thrive. More than one million people have died from drug overdoses in the United States since 1999 — a scale of loss that has tragically touched millions of lives. Cartel and organized-crime violence has left a staggering human toll of hundreds of thousands of lives lost.

It’s well known that the war on drugs is considered a trillion dollar failure. A deeper view reveals something more troubling: the war on drugs was intentionally designed to target politically unfavorable groups while protecting the activities of the rich and powerful. This war has operated as a pipeline to feed big banks, CIA covert wars and black budget programs, cartels, and mass incarceration while maintaining rather than disrupting the drug trade itself.

Below, we present undeniable evidence that drug trafficking is an essential tool used by the US government and authoritarian regimes around the world to maintain their preferred balance of power. In fact, the US has supported drug lords, terrorists, and extremist groups in at least 35 countries. We’re here to shine a light into the darkest corners of the drug world, exposing the powerful forces within our own government benefiting from the illicit drug trade.

Setting Context: The War on Drugs Targets Everyday People Through Mass Incarceration

Award-winning photographer and geographer Trevor Paglen’s work offers a rare glimpse into the systems shaping society from behind the scenes.

Paglen began his work as a geographer by using US Geological Survey archives to map and study aerial images of California’s growing prison system. What he discovered was that these prisons were not merely sites of punishment. They were infrastructure that removed people from public life without allowing the public to see the egregious human rights abuses that came along with the incarceration industry.

That insight led Paglen to a realization that would define his work: power operates through physical and digital infrastructures that most people never see.

With the onset of the “war on drugs” in the early 1980s, California had embarked on the largest prison-building project in the history of the world. The state had built 33 prisons in just a few decades. Over the previous 132 years, California had built just twelve. Unlike earlier penitentiaries like Alcatraz, located prominently in the public view as a haunting visual reminder not to break the law, California’s new industrial prisons were built far away from urban centers in the poorest and remotest regions of the state, out of sight and … out of mind. From time to time, stories of torture and extreme violence [within California prisons] make their way into the news.
— Blank Spots on the Map, Trevor Paglan

Paglen eventually recognized that the techniques used to obscure prisons mirrored those used to conceal US military and intelligence operations. This discovery led to his groundbreaking book, Blank Spots on the Map, a comprehensive documentation of secret US military bases, CIA black sites around the world that kidnapped, disappeared and tortured people, and classified facilities deliberately kept beyond democratic oversight.

State secrecy is a form of executive power. It is the power to unilaterally and legitimately conceal events, actions, budgets, programs, and plans from the legislature and public at large — the people who are paying for it. We are living in a world where about 50 or 60 billion dollars is spent in secret every year. We have secret laws, secret interpretations of laws, and secret courts.
— Trevor Paglan

Seen through this lens, mass incarceration begins to look less like a policy failure and more like a system functioning as designed. You cannot build a prison empire without a policy framework capable of continuously producing prisoners, generating millions of arrests and long sentences, and spreading public narratives that make the resulting suffering appear necessary, effective, or justified.

Such a system can’t maintain itself without the many billions of dollars in public spending and private contracts that have turned incarceration into a lucrative industry—from architecture companies, private equity firms, surveillance and telecommunications companies, healthcare contractors, food and agribusiness corporations, to other industries that profit from prison labor and expansion.

How The Deep State Won the War on Drugs

The war on drugs made the prison population explosion possible, providing exactly the right mechanisms to produce huge numbers of prisoners, in part by redefining addiction and low-level drug activity as criminal threats. Violent overpolicing and mass incarceration resulted in fractured social networks and families, damaging trust in government and destroying economic opportunities in communities across the country. Meanwhile, even Richard Nixon, who declared substance use the nation’s “public enemy No. 1,” privately admitted that marijuana was “not particularly dangerous.”

“Look. The Nixon campaign in ‘68 and the Nixon White House had two enemies: Black people and the antiwar left. [V]ilify them night after night on the evening news, and we thought if we can associate heroin with Black people in the public mind and marijuana with the hippies this would be perfect. Did we know we were lying about the drugs? Of course we did.”
— Nixon aide John Ehrlichman, “Aide says Nixon’s war on drugs targeted blacks, hippies, CNN

Drug-related deaths rose even as incarceration expanded. The United States maintains one of the highest incarceration rates per capita in the world, incarcerating more people and more children overall than any other country in the world. Federal Bureau of Prisons statistics show that drug offenses are the most common offense type in federal prisons. Approximately 43% of people in federal prison are incarcerated for a drug offense, making it the largest single offense category at the federal level (higher than violent crimes, property crimes, etc). Yet despite this tragic reality, mass incarceration has had no measurable impact on reducing drug crime.

In other words, what the war on drugs accomplished instead was the systematic destruction of the social conditions that make healthy communities possible while doing very little to stop the flow of drugs.

Where are the drugs really coming from? How are they being distributed? Many assume today’s drug crises are driven solely by criminals within cartel networks, yet history shows that some of the most devastating drug epidemics were supported at the highest levels of the US government, which protected traffickers while profiting from the trade.

This isn’t just a historical problem. Today, the MS-13 gang and Trump are endorsing the same Honduran presidential candidate. In Venezuela, a country with very low importance in the international drug trade, a leader who resisted US interests was kidnapped and charged with drug crimes.

These developments are just the tip of the iceberg. When it comes to corruption related to the war on drugs, the deeper you dig, the more you find.

Timeline of the Stark Reality of the War on Drugs

1860s—Present | Big Banks and Drug Money Laundering

Drug money is generated in cash, but real power requires access to the banking system. That reality places major banks at the center of the drug economy.

HSBC, one of the largest banks in the world, was founded in 1865 to process opium money for the British Empire after the second Opium War. When China had outlawed opium, British European powers slaughtered tens of thousands of Chinese people until they agreed to legalize the dope trade.

Starting in the early 2000s, HSBC would begin laundering money for drug lords, terrorists and rogue states. A US Senate investigation would eventually reveal that HSBC’s Mexican unit moved a total of $7 billion into the bank’s US operations until 2010, with investigators concluding that a significant portion of the money was tied to drug traffickers. HSBC had even changed the size of their bank teller windows to accommodate the size of the cash bags preferred by cartels when making deposits.

[The US Justice Department] issued a fine of $1.9 billion, or about five weeks’ profit but they didn’t extract so much as one dollar or one day in jail from any individual. “Had the U.S. authorities decided to press criminal charges,” said Assistant Attorney General Lanny Breuer, “HSBC would almost certainly have lost its banking license in the U.S., the future of the institution would have been under threat and the entire banking system would have been destabilized.”
—”Gangster Bankers: Too Big to Jail” Rolling Stone

While officially on US probation and under the supervision of a court-appointed monitor, leaked government records show that from 2013 to 2017, HSBC processed at least $4.4 billion in transactions it itself flagged as suspicious, often without even knowing who owned the accounts. The FinCEN Files investigation of 2020 revealed how HSBC continued to move large amounts of suspicious money including for shell companies and networks tied to drug trafficking.

HSBC was not an outlier but a case study of the corruption common in the US financial system. At Wachovia (now part of Wells Fargo), executives admitted the bank failed to monitor or report suspicious transactions while handling $378 billion for Mexican currency exchange houses, the hidden junction where drug profits leave the street and enter the global banking system. Prosecutors linked this money to planes that moved 22 tons of cocaine and fueled mass deaths from cartel violence across Mexico.

More than a decade later, history repeated again at TD Bank, where investigators uncovered laundering tied to fentanyl trafficking, Colombian drug networks, and human trafficking rings through at least 2023.

During the 2008 financial crisis, UN Office on Drugs and Crime head Antonio Maria Costa stated he had evidence that drug money was the only liquid capital keeping major banks afloat. Costa said desperate banks relaxed due-diligence controls, allowing organized crime money to flow into the financial system with signs that interbank lending relied on funds originating from drug trafficking and other illicit activities.

1950s—1960s | MKULTRA and CIA Drug Experimentation

The CIA’s MKULTRA program involved secret experiments on unwitting human subjects using psychoactive drugs in an effort to explore mind control and psychological warfare. Ordinary people became super spies programmed to carry out assassinations, terrorist acts, sexual favors, and more without conscious knowledge of what they were doing. Aerosol tests of LSD were sprayed inside the New York City subway system. More than 80 universities, prisons, pharma companies and hospitals participated in MKUltra, including renowned psychiatrist Donald Ewen Cameron, who served as the first president of the American Psychiatric Association and the World Psychiatric Association.

Cameron would carry out techniques used by Nazi scientists to wipe out the existing personalities of people in his care. At the Allan Memorial Institute in Canada, countless individuals were reduced to childlike states and unable to recognize their own family members. The CIA’s top chemist Sidney Gottlieb hired director of the Nazi Biological Warfare program and former SS officer Kurt Blome to work on chemical warfare research for the CIA and US Army. Gottlieb would then test out “an astonishing variety of drug combinations” on innocent people all over the world to control their consciousness. He would develop a poison handkerchief to kill an Iraqi colonel, a creative variety of poisonous weapons to kill Fidel Castro, and even a poison dart to kill a leftist leader in the Congo.

During this period, Gottlieb also enlisted a former federal narcotics agent named George White to run Operation Midnight Climax, which involved prostitutes on the CIA payroll who would lure clients, including US and foreign diplomats, back to CIA-run safehouses in New York and San Francisco. They were slipped LSD and monitored by White through a two-way mirror while he sat on a portable toilet swilling martinis. This program ran for 10 years, with a purpose to research the power of sexual blackmail, surveillance technology, and the use of mind-altering drugs in field operations. CIA agents would later blackmail diplomats into becoming informants.

In a letter to his former employer reflecting on his career, White is quoted as saying, “It was fun, fun, fun. Where else could a red-blooded American boy lie, kill and cheat, steal, deceive, rape and pillage with the sanction and blessing of the all highest.”

They do not give a damn about the law or the Constitution or the Congress or the Oversight committees except as something to be subverted and manipulated and lied to. They ruin their detractors and they fear the truth. If they can, they will blackmail you. Sex, drugs, deals, whatever it takes.“
— Former CIA officer and Iran-Contra whistleblower Bruce Hemmings

1950s—1980s | CIA’s Secret Drug War in Southeast Asia and the Golden Triangle

The roots of Southeast Asia’s billion-dollar drug trade were concentrated in the Golden Triangle, spanning northern Thailand, Myanmar (Burma), and Laos. In the 1950s, the CIA sought to prevent the spread of Maoist communism into Burma and mainland Southeast Asia. To achieve this, the CIA supported exiled Chinese Nationalist (Kuomintang) troops, providing American military weapons, logistical support, and transportation assistance through a CIA-owned airline later known as Air America.

A declassified CIA cable stated that the Kuomintang troops who settled in Mae Salong, Thailand became the “dominant opium traffickers in the region,” and that their relocation proved a “boon” to their trafficking operations by enabling cross-border networks in Thailand. Throughout the Vietnam War and the CIA’s secret war in Laos, Air America flew arms and supplies into the region, including flying opium for Laotian drug lords up to 1971.

25-year DEA veteran Michael Levine headed a unit investigating major drug operations beginning in the 70s. He discovered that the CIA and State Department were sabotaging cases getting to the bottom of the massive amounts of drugs flowing into the US. He alleges that the CIA obstructed his efforts to destroy a heroin factory in Thailand responsible for smuggling massive amounts of heroin into the US within the bodies and body bags of soldiers killed in Vietnam.

In the 80s, highly decorated Army Special Forces officer James “Bo” Gritz was sent on missions in Southeast Asia to search for American POWs left behind after the Vietnam War. What he discovered was that the CIA and State Department were operating a large scale drug trafficking network in Southeast Asia and all over the world. He would conduct an interview with Burmese drug warlord Kuhn Sa, who told Gritz that his biggest and best customers were high-level US government officials. He documents all of his revelations in his book, Called To Serve.

“In my 30­ year history in the Drug Enforcement Administration and related agencies, the major targets of my investigations almost invariably turned out to be working for the CIA.
— Dennis Dayle, former chief of an elite DEA enforcement unit

1980s | Iran-Contra and the Flood of Crack Cocaine in the US

Journalist Gary Webb’s ‘Dark Alliance’ series in 1996 linked the tragic crack cocaine epidemic ravaging California’s black communities to the Contras, a Latin American guerrilla army supported by the CIA. The Contras were armed and funded by the US in an attempt to overthrow Nicaragua’s left-wing Sandinista government, which was seen as a threat to American capitalism.

Mainstream newspapers largely ignored the 1989 Senate Subcommittee on Terrorism, Narcotics, and International Operations findings that revealed how the State Department authorized funds to companies owned by narcotics traffickers under the guise of “humanitarian aid to the Contras,” even when some of these companies were already facing indictments for cocaine smuggling and money laundering (pg. 36).

At best, covert elements within the US military-intelligence complex turned a blind eye to the massive amounts of crack cocaine supplied by the Contras that flooded American streets. At worst, they directly conspired to destabilize low-income communities in the US. After all, Ronald Reagan and Bill Clinton both took Nixon’s drug war and turned it into a sprawling system of mass incarceration that wreaked havoc on communities of color, while also profiting immensely from the drug trade.

1980s—2000s | Afghanistan: Operation Cyclone and The War on Terror

In the 1980s, the U.S. allied with opium traffickers in Afghanistan during Operation Cyclone, providing the mujahideen with training and missiles to fight the Soviet Union. By the end of Operation Cyclone, Afghanistan’s opium production had surged twenty-fold.

Despite a successful ban on opium cultivation by the Taliban in 2000, which drastically reduced production, Afghanistan again became the world’s largest source of heroin after the U.S. invasion in 2001. By the end of the war, opium production, drug addiction, and the flow of drug money had reached unprecedented levels, despite costly and ineffective anti-drug efforts. In fact, an interview with one official estimated that 40% of US aid to Afghanistan during the War on Terror had been pocketed by officials, gangsters, warlords, drug lords and insurgents.

1980s—1990s | Bolivia’s CIA-Backed “Cocaine Coup”

Levine also traced the origins of the crack epidemic in the US to the 1980 CIA-backed coup in Bolivia, where Bolivia’s democratically elected president, Lydia Taheda, was overthrown by mercenaries and military officials tied to the country’s largest cocaine trafficker.

Klaus Barbie, a former Nazi war criminal recruited and protected by the US Army’s Counter Intelligence Corps after WWII, became a lieutenant colonel in the Bolivian army who organized paramilitary death squads responsible for torture and disappearances. He also became the chief security adviser to drug lord Roberto Suárez and later to dictator Luis García Meza who seized power in Bolivia’s 1980 “Cocaine Coup.” When Barbie was finally captured, the US formally apologized to France for helping him flee. In other words, the US acknowledged that its own actions of protecting Barbie helped enable the conditions under which Bolivia’s narco-state emerged.

In 2008, Bolivia expelled the DEA from the country, leading to a significant drop in the production of cocaine.

1980s - Present | How the US Helped Destabilize Haiti

Born in 1804 from a successful slave revolt that terrified Western elites, Haiti has faced relentless external punishment and control ever since—first through France’s extortionary “independence debt,” then through repeated US interventions that has left Haiti completely destabilized by gangs and facing a perpetual humanitarian crisis.

Haiti’s first democratically elected president, Jean-Bertrand Aristide, was twice removed from office—first in a 1991 military coup that involved the CIA and again in 2004, when US forces physically placed him on a plane and sent him into exile. In the years surrounding the 1991 coup, the CIA helped create and fund a Haitian intelligence unit that later became implicated in political terror and cocaine drug trafficking. According to an Al Jazeera article, Haitian military and police officials with ties to the CIA allegedly worked with Colombian cartels, using Haiti as a transit hub for cocaine bound for the United States. A 2023 UN Office on Drugs and Crime report confirms that Haiti’s location is a major cocaine trans-shipment route, with large quantities moving through Haiti or the Dominican Republic before reaching Puerto Rico and the US.

After Aristide’s removal, the US backed a succession of unelected or weakly legitimized governments, culminating in the rise of the Haitian Bald Headed Party (PHTK), a US-supported political project that has ruled Haiti since 2011 amid widespread corruption, repression, and allegations of ties to armed groups. These groups included heavily armed paramilitary gangs led by former police and military figures, many of which were financed by political and economic elites and operated with impunity amid the collapse of state authority.

Following the 2021 assassination of President Jovenel Moïse, the US supported the installation of Ariel Henry as prime minister without an election. Paramilitary groups expanded in Haiti alongside drug trafficking networks, fueled in part by the massive flow of US weapons. Reporting by The Intercept shows how US drug war and counterterrorism programs in Colombia gave rise to the assassination of Haiti’s president assassination of President Jovenel Moïse. In 2021, Colombian mercenaries with documented US training were implicated in the assassination of Haiti’s president.

Under the war on drugs, the US poured billions of dollars into Colombia to control the flow of drugs. In reality, this money:

• Armed and trained security forces accused by the UN and human rights groups of extrajudicial killings, torture, disappearances, brutal suppression of political activists, and collusion with traffickers

• Did not reduce drug production; Colombia remains the world’s top cocaine producer and even set a record for cocaine production in 2023.

2000—2012 | US Helped Rise of Sinaloa Cartel in Mexico

Since 2018, the Council on Foreign Relations estimates that over thirty thousand people have died each year due to violence from drug cartels and human rights violations committed by Mexico in its war against organized crime.

While the US pumped billions into Mexican law enforcement and military to fight organized crime, US agencies allowed the Sinaloa drug cartel to carry out its operations from 2000 to 2012 in exchange for intel on rival cartels without Mexican oversight. Court documents reveal that DEA agents, Immigration and Customs Enforcement (ICE) officers, and Department of Justice prosecutors were authorized by the US to meet with drug traffickers in Mexico, offering to have charges against cartel members dropped in the US. During this period, the Sinaloa cartel’s power surged. Violence, human trafficking, and drug smuggling rose to unprecedented levels in Mexico. As the original Mexican investigation stated, the US implemented a strategy “with little concern for the loss of lives in both Mexico and the U.S., or for the ongoing drug trafficking into the U.S. or its consumption.”

The US Central Intelligence Agency and other international security forces “don’t fight drug traffickers”, a spokesman for the Chihuahua state government in northern Mexico has told Al Jazeera, instead “they try to manage the drug trade”. “It’s like pest control companies,” Guillermo Terrazas Villanueva, the Chihuahua spokesman [said]. “If you finish off the pests, you are out of a job.”
— “Mexican official: CIA ‘manages’ drug trade,” Al Jazeera

2016—2022 | Philippines Brutal War on Drugs Fueled by US Support

From 2016 to 2022, former Philippine president Rodrigo Duterte oversaw a brutal “war on drugs” that resulted in an estimated 27,000 extrajudicial killings, largely targeting poor and marginalized communities. Police and vigilantes routinely executed suspected drug users without arrest or trial, often planting drugs or weapons at crime scenes to justify the killings; children were frequently killed as collateral victims and, in some cases, deliberately targeted. Detainees were also tortured and extorted for bribes. Through the creation of the National Task Force to End Local Communist Armed Conflict (NTF-ELCAC), political dissidents and activists were arrested, disappeared, tortured and executed.

Within weeks of Duterte taking office in 2016, the US announced new weapons and training support for the Philippine National Police, including a $32 million package. Later that year, Obama’s administration authorized $90 million in military aid to the country and roughly $1 billion during the 8 years he was in office. Assistance continued under Trump and Biden.

In 2018 and 2024, international people’s tribunals in Brussels concluded that US funding and political support made Washington complicit in the violence. In 2026, Duterte was arrested and transferred to the International Criminal Court in The Hague to face crimes against humanity charges.

2009—Present | US Ties to Honduras’ Narco-State

In 2024, Honduras’s former president Juan Orlando Hernández was sentenced to 45 years in prison for drug trafficking. US Attorney General Merrick Garland made it clear that Hernández abused his power to run the country as a narco-state, giving drug traffickers free rein and leaving both Honduras and the US to suffer the consequences. Yet what wasn’t made clear to the public was Washington’s long-running complicity in his crimes. Beginning with the backing of an illegal and brutal military coup that egregiously violated human rights in 2009, the US government—under both Democratic and Republican administrations—supported Hernández for years, funneling aid to his military and police forces while turning a blind eye to his deep involvement in drug trafficking, election fraud, and human rights abuses.

The U.S. poured millions into counternarcotics aid that trained and equipped police and military forces that brutally suppressed the population. As chief of the Honduran National Police, convicted drug trafficker Juan Carlos Bonilla (“El Tigre”) oversaw TIGRES, a special unit within the National Police trained by US special forces and operating alongside Honduran officials trained at Fort Moore, Georgia (formerly known as The School of Americas) which graduated more than 500 individuals later implicated in widespread human rights abuses across Latin America including the killing, torture, and suppression of political activists. Testimony at Hernández’s trial revealed that members of MS-13 were subcontracted as early as 2004 through Juan Carlos Bonilla to provide security for caravans of cocaine alongside soldiers.

Hernández protected US interests in the region and the US propped him up as a “warrior against drugs” for years. Under Hernández’s reign, Honduras was plagued by widespread violence and instability, forcing many citizens to flee towards the US. It was only after Hernández lost power, and his ability to safeguard U.S. interests waned, that he was extradited to the U.S. and sentenced for his crimes against humanity.

Recently, the Trump administration inexplicably pardoned Hernández while at the same time using its commitment to the fight against drugs as a pretense for military action against Venezuela.

When It Comes to The War on Drugs, Who Are The Real Criminals?

“The CIA and the Department of State were protecting more and more politically powerful drug traffickers around the world. Media’s duties, as I experienced firsthand, were twofold: first, to keep quiet about the gush of drugs that was allowed to flow unimpeded into the US; second, to divert the public’s attention by shilling them into believing the drug war was legitimate by falsely presenting the few trickles we were permitted to indict as though they were major “victories,” when in fact we were doing nothing more than getting rid of the inefficient competitors of CIA assets.
— Michael Levine, 25-year veteran of the DEA, best-selling author and journalist

When it comes to the War on Drugs, who are the real criminals? Where is the real justice?

If you’re laundering billions of dollars for a drug cartel, or you’re a giant pharmaceutical company responsible for countless deaths and suffering—like when Congress and the DEA turned a blind eye to the powerful corporations operating like a drug cartel and profiting from countless opioid deaths—isn’t that a more serious crime than someone on the streets possessing cocaine?

The war on drugs is a racket that will likely create serious blowback in the coming years as the deadly drug addiction epidemic marches on, impacting millions of lives across the country.

More importantly, these issues aren’t just political. They take a toll on our humanity. Let’s work together across our differences to end this corrupt war on drugs and heal our broken communities. As long as we choose complacency over awareness, these dysfunctions in the system will continue.

We can’t shift the chaos we’re in until we name it clearly. When we can recognize what’s really pushing us—in our personal lives and as a society—we already have a degree of freedom from it. Disturbing information like this can paradoxically remind us of the greater good. It is the courage of the people and the love for the common good that bring these injustices to light—fueling uncensored dialogue and constructive action.

More Important Resources

• Explore our War on Drugs news category of all of our news summaries from reliable media sources about the real story behind the war on drugs.

• Our comprehensive database of over 13+ news articles has been used by thousands of journalists, researchers, and everyday truth seekers since our founding. We’ve documented countless inspiring stories and solutions that help us move beyond fear about the addiction crisis and the war on drugs: healing our bodies, repairing our criminal justice system, and transforming the war machine.

• The Wisdom of Trauma is a powerful film that travels alongside Dr. Gabor Maté in his quest to discover the connection between illness, addiction, trauma, and society. Deeply touching and captivating in its diverse portrayal of real human stories, the film also provides a new vision of a trauma-informed society that seeks to “understand the sources from which troubling behaviors and diseases spring in the wounded human soul.” Anyone can watch this donation-optional film at the above link.

With faith in a transforming world,
Amber Yang for PEERS and WantToKnow.info

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WantToKnow.info is a nonprofit news information service founded by White House whistleblower Fred Burks in 2003, after he testified in a high-profile terrorism trial about how U.S. government officials repeatedly lied to the international press during his time as a language interpreter for presidents and top government officials around the world.

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