Laundered money

A bright orange bottle of detergent has become the underworld equivalent of prison cigarettes.

The Daily has a story which would be unbelievable, were it not accompanied by pictures backing it up. Tide-brand laundry detergent has become a makeshift currency in the criminal underworld.

M.L. Nestel reports:

One Tide taker in West St. Paul, Minn., made off with $25,000 in the product over 15 months before he was busted last year...

Tide has become a form of currency on the streets. The retail price is steadily high — roughly $10 to $20 a bottle — and it’s a staple in households across socioeconomic classes.

Tide can go for $5 to $10 a bottle on the black market, authorities say. Enterprising laundry soap peddlers even resell bottles to stores.

"There’s no serial numbers and it’s impossible to track,” said Detective Larry Patterson of the Somerset, Ky., Police Department, where authorities have seen a huge spike in Tide theft. “It’s the item to steal"...

"We sent in an informant to buy drugs. The dealer said, 'I don’t have drugs, but I could sell you 15 bottles of Tide,' " [Detective Harrison] Sprague told The Daily. "Upstairs in the drug dealer’s bedroom was about 14 bottles of Tide laundry soap. We think [users] are trading it for drugs."

Police in Gresham, Ore., said most Tide theft is perpetrated by "users feeding their habit."

"They’ll do it right in front of a cop car — buying heroin or methamphetamine with Tide," said Detective Rick Blake of the Gresham Police Department. "We would see people walking down the road with six, seven bottles of Tide. They were so blatant about it."

Tide does appear to meet all the requirements for a heavily traded commodity. Crucially, one bottle of it is identical to any other, a quality economists call "fungibility", putting it in the same class as oil, precious metals, or currency itself. If someone lends me a bottle of Tide, I don't have to return the same one to them when my debt is called in – in fact, because there are no serial numbers, it would be impossible for them to tell even if I did.

Based on what Detectives Patterson and Sprague say, it sounds like Tide is also a highly liquid commodity, frequently traded, which will allow a natural, and relatively stable, value to emerge for it. If it is going to be used as a currency replacement, however, the price spread will need to narrow from the $5 it stands at now – although the fact that dealers are storing large quantities suggests that a healthy arbitrage market is growing up around the detergent, which should prevent too much price volatility and guard against supply shocks.

There will be some interesting effects of the unique situtation, however. If thieves are able to resell the detergent to stores, that suggests that a price floor has been put on the market (assuming these stores are buying believing they are part of legitimate trade, and not a black market). There is already a price ceiling as well, since if the black market price of Tide gets too high, it can just be bought legally at the recommended retail price.

There are downsides to using bottles of soap as an underworld currency, though. The price of an average dose of crystal meth is $20 in much of the US, about two to four bottles of Tide – or 14 kilos of the stuff. A credit card might be easier to track, but it's also considerably lighter.

Bottles of Tide on a store shelf, with a "street value" of $20-40. Credit: Getty

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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Like it or hate it, it doesn't matter: Brexit is happening, and we've got to make a success of it

It's time to stop complaining and start campaigning, says Stella Creasy.

A shortage of Marmite, arguments over exporting jam and angry Belgians. And that’s just this month.  As the Canadian trade deal stalls, and the government decides which cottage industry its will pick next as saviour for the nation, the British people are still no clearer getting an answer to what Brexit actually means. And they are also no clearer as to how they can have a say in how that question is answered.

To date there have been three stages to Brexit. The first was ideological: an ever-rising euroscepticism, rooted in a feeling that the costs the compromises working with others require were not comparable to the benefits. It oozed out, almost unnoticed, from its dormant home deep in the Labour left and the Tory right, stoked by Ukip to devastating effect.

The second stage was the campaign of that referendum itself: a focus on immigration over-riding a wider debate about free trade, and underpinned by the tempting and vague claim that, in an unstable, unfair world, control could be taken back. With any deal dependent on the agreement of twenty eight other countries, it has already proved a hollow victory.

For the last few months, these consequences of these two stages have dominated discussion, generating heat, but not light about what happens next. Neither has anything helped to bring back together those who feel their lives are increasingly at the mercy of a political and economic elite and those who fear Britain is retreating from being a world leader to a back water.

Little wonder the analogy most commonly and easily reached for by commentators has been that of a divorce. They speculate our coming separation from our EU partners is going to be messy, combative and rancorous. Trash talk from some - including those in charge of negotiating -  further feeds this perception. That’s why it is time for all sides to push onto Brexit part three: the practical stage. How and when is it actually going to happen?

A more constructive framework to use than marriage is one of a changing business, rather than a changing relationship. Whatever the solid economic benefits of EU membership, the British people decided the social and democratic costs had become too great. So now we must adapt.

Brexit should be as much about innovating in what we make and create as it is about seeking to renew our trading deals with the world. New products must be sought alongside new markets. This doesn’t have to mean cutting corners or cutting jobs, but it does mean being prepared to learn new skills and invest in helping those in industries that are struggling to make this leap to move on. The UK has an incredible and varied set of services and products to offer the world, but will need to focus on what we do well and uniquely here to thrive. This is easier said than done, but can also offer hope. Specialising and skilling up also means we can resist those who want us to jettison hard-won environmental and social protections as an alternative. 

Most accept such a transition will take time. But what is contested is that it will require openness. However, handing the public a done deal - however well mediated - will do little to address the division within our country. Ensuring the best deal in a way that can garner the public support it needs to work requires strong feedback channels. That is why transparency about the government's plans for Brexit is so important. Of course, a balance needs to be struck with the need to protect negotiating positions, but scrutiny by parliament- and by extension the public- will be vital. With so many differing factors at stake and choices to be made, MPs have to be able and willing to bring their constituents into the discussion not just about what Brexit actually entails, but also what kind of country Britain will be during and after the result - and their role in making it happen. 

Those who want to claim the engagement of parliament and the public undermines the referendum result are still in stages one and two of this debate, looking for someone to blame for past injustices, not building a better future for all. Our Marmite may be safe for the moment, but Brexit can’t remain a love it or hate it phenomenon. It’s time for everyone to get practical.