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Allegations of Cartel Ties to Allies of Mexico’s President Under U.S. Examination

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Allegations of ties between allies of Mexico’s president, Andrés Manuel López Obrador, and drug cartels have been examined by American law enforcement officials. This investigation, previously undisclosed, revealed potential connections between powerful cartel operatives and Mexican advisors and officials close to President López Obrador. However, no formal investigation was opened into the president, and the inquiry was eventually shelved due to a lack of appetite within the U.S. government to pursue allegations against one of its top allies.

When questioned about the allegations, President López Obrador called them “completely false” and stated that they would not affect Mexico’s relationship with the United States. However, he expressed a desire for a response from the U.S. government and emphasized that time would ultimately reveal the impact of these allegations on the two countries’ trust in each other.

It’s well-documented that drug cartels have deeply infiltrated the Mexican state, extending from the lower levels of government to the upper echelons. These criminal organizations exert influence through bribery, manipulation, and coercion, dominating vast regions of the country. While U.S. officials uncovered potential ties between cartels and the president’s associates, they found no direct connections between the president himself and criminal organizations.

The information collected by U.S. officials largely came from informants, whose accounts are sometimes difficult to corroborate. The validity of the information obtained remains somewhat uncertain, as it was gathered during an investigation into the activities of drug cartels, and independent confirmation of the informants’ claims was not always possible.

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For example, one informant told investigators that a close confidant of President López Obrador had met with a top leader of the Sinaloa drug cartel before the 2018 presidential election. Another source claimed that a founder of the Zetas cartel paid $4 million to two of the president’s allies with the hope of being released from prison after López Obrador’s election. Additionally, a third source suggested that drug cartels possessed videos of the president’s sons picking up drug money.

While the U.S. law enforcement officers also tracked payments from individuals believed to be cartel operatives to intermediaries for President López Obrador, no direct evidence linking the president to criminal organizations was found.

The investigation surrounding these allegations has since been shelved, and the U.S. has not pursued any criminal charges against President López Obrador. This decision was likely influenced by a separate, highly contentious corruption case involving Gen. Salvador Cienfuegos Zepeda, Mexico’s former defense secretary. The case, referred to as “Operation Padrino,” accused Cienfuegos of using his office to aid a violent criminal group involved in drug trafficking. However, these charges were later dismissed under pressure from the Mexican government, leading to a breakdown in the relationship between U.S. law enforcement agencies and their Mexican counterparts.

As the Biden administration navigates its relationship with President López Obrador, they face the challenge of managing migration issues and drug enforcement in collaboration with Mexico. The U.S. has a significant stake in maintaining a positive relationship with Mexico, given its role as a top trading partner and a crucial ally in combating drug trafficking.

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While the recent investigation into President López Obrador’s allies is no longer active, the revelation that U.S. law enforcement officials were examining corruption allegations against them could impact the relationship between the two countries. President López Obrador has publicly denounced reports about the investigation, suggesting that they are intended to interfere with Mexico’s upcoming presidential election. He has also expressed concern about the potential impact of these allegations on discussions related to migration and drug enforcement with the U.S. government.

Although the U.S. has refrained from publicly criticizing President López Obrador, opting instead to engage in private diplomatic discussions with Mexican officials, tensions persist as both countries navigate the complexities of their relationship. The handling of this delicate situation will continue to be a focal point in U.S.-Mexico relations.

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Is now the right time to invest in gold as prices have cooled?

Now may be the time to buy gold following a recent lull in its price.

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The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.

This lull in gold’s price may represent an investment opportunity.

In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?

Compare your gold investment options among leading brokers now.

Gold prices have cooled. Should you buy in now?

With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:

Prices may rise again

If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.

But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.

Add gold to your portfolio now before prices have a chance to rise.

You may be able to make a quick profit

Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.

Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.

There are other benefits of investing in gold

There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:

Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.

The bottom line

Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.