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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I believe only Yvette Cooper has the breadth of support to beat Jeremy Corbyn

All the recent polling suggests Andy Burnham is losing more votes than anyone else to Jeremy Corbyn, says Diana Johnson MP.

Tom Blenkinsop MP on the New Statesman website today says he is giving his second preference to Andy Burnham as he thinks that Andy has the best chance of beating Jeremy.

This is on the basis that if Yvette goes out first all her second preferences will swing behind Andy, whereas if Andy goes out first then his second preferences, due to the broad alliance he has created behind his campaign, will all or largely switch to the other male candidate, Jeremy.

Let's take a deep breath and try and think through what will be the effect of preferential voting in the Labour leadership.

First of all, it is very difficult to know how second preferences will switch. From my telephone canvassing there is some rather interesting voting going on, but I don't accept that Tom’s analysis is correct. I have certainly picked up growing support for Yvette in recent weeks.

In fact you can argue the reverse of Tom’s analysis is true – Andy has moved further away from the centre and, as a result, his pitch to those like Tom who are supporting Liz first is now narrower. As a result, Yvette is more likely to pick up those second preferences.

Stats from the Yvette For Labour team show Yvette picking up the majority of second preferences from all candidates – from the Progress wing supporting Liz to the softer left fans of Jeremy – and Andy's supporters too. Their figures show many undecideds opting for Yvette as their first preference, as well as others choosing to switch their first preference to Yvette from one of the other candidates. It's for this reason I still believe only Yvette has the breadth of support to beat Jeremy and then to go on to win in 2020.

It's interesting that Andy has not been willing to make it clear that second preferences should go to Yvette or Liz. Yvette has been very clear that she would encourage second preferences to be for Andy or Liz.

Having watched Andy on Sky's Murnaghan show this morning, he categorically states that Labour will not get beyond first base with the electorate at a general election if we are not economically credible and that fundamentally Jeremy's economic plans do not add up. So, I am unsure why Andy is so unwilling to be clear on second preferences.

All the recent polling suggests Andy is losing more votes than anyone else to Jeremy. He trails fourth in London – where a huge proportion of our electorate is based.

So I would urge Tom to reflect more widely on who is best placed to provide the strongest opposition to the Tories, appeal to the widest group of voters and reach out to the communities we need to win back. I believe that this has to be Yvette.

The Newsnight focus group a few days ago showed that Yvette is best placed to win back those former Labour voters we will need in 2020.

Labour will pay a massive price if we ignore this.

Diana Johnson is the Labour MP for Hull North.