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.

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Why it's far too early to declare Ukip dead

The party could yet thrive if Brexit disappoints those who voted Leave.

"Nothing except a battle lost can be half as melancholy as a battle won," wrote the Duke of Wellington after Waterloo. Ukip can testify to this. Since achieving its founding aim - a British vote to leave the EU - the party has descended into a rolling crisis.

Theresa May's vow to pursue Brexit, and to achieve control of immigration, robbed Ukip of its political distinctiveness. But the party's greatest enemy has been itself. Its leader Paul Nuttall did not merely lose the Stoke by-election (despite the city recording the highest Leave vote), he self-destructed in the process. Contrary to his assertions, Nuttall did not achieve a PhD, was never a professional footballer and did not lose "close personal friends" at Hillsborough. Ukip's deputy Peter Whittle pleaded last weekend that voters needed more time to get to know Nuttall. No, the problem was that they got to know him all too well. A mere three months after becoming leader, Nuttall has endured a level of mockery from which far stronger men would struggle to recover (and he may soon be relieved of the task).

Since then, Ukip's millionaire sugar daddy Arron Banks has threatened to leave the party unless he is made chairman and Nigel Farage is awarded a new role (seemingly that of de facto leader). For good measure, Farage (a man who has failed seven times to enter parliament) has demanded that Ukip's only MP Douglas Carswell is expelled for the crime of failing to aid his knighthood bid. Not wanting to be outdone, Banks has vowed to stand against Carswell at the next election if the dissenter is not purged. Any suggestion that the party's bloodlust was sated by the flooring of Steve Woolfe and Diane James's 18-day leadership has been entirely dispelled.

For all this, it is too early to pronounce Ukip's death (as many have). Despite May's ascension and its myriad woes, it has maintained an average poll rating of 12 per cent this year. This is far from its 2014 zenith, when it polled as high as 25 per cent, but also far from irrelevancy. Incapable of winning Labour seats itself, Ukip could yet gift them to the Conservatives by attracting anti-Tory, anti-Corbyn voters (in marginals, the margins matter).

Though Theresa May appears invulnerable, Brexit could provide fertile political territory for Ukip. Those who voted Leave in the hope of a radical reduction in immigration will likely be dismayed if only a moderate fall results. Cabinet ministers who boasted during the referendum of their desire to reduce immigration have already been forced to concede that newcomers will be required to fill vacancies for years to come. Ukip will be the natural vehicle for those aggrieved by Brexit "betrayal". Some Leave voters are already dismayed by the slowness of the process (questioning why withdrawal wasn't triggered immediately) and will revolt at the "transitional period" and budget contributions now regarded as inevitable.

The declarations of Ukip's death by both conservatives and liberals have all the hallmarks of wishful thinking. Even if the party collapses in its present form, something comparable to it would emerge. Indeed, the complacency of its opponents could provide the very conditions it needs to thrive.

George Eaton is political editor of the New Statesman.