Back in the middle of January, I wrote an article entitled, “Colorado and Marijuana – The Bubble Will Burst.” The article explained why Colorado’s experiment with legalizing marijuana will fail. Overtaxed. Black market competition. Huge overhead costs. That sort of stuff. But I forgot about the banks.
As many of you may have read, the Obama administration, in its infinite “wisdom” and through the Departments of Justice and Treasury, just gave banks a road map for conducting transactions with legal marijuana dealers so these businesses can deposit their earnings, make payroll, and pay taxes like any other business. It’s now pretty clear that Obama wants these businesses to succeed.
But there’s a glitch, and it’s a big one. This so-called road map was nothing more than trying to enlist banks in keeping an eye on legal marijuana dealers by issuing red flags to the banks. 20 red flags which amounted to “Please keep an eye out on these type of transactions, and if you miss one, well, good luck.”
In response to this so-called green light from our reformed pot-smoking Emperor Obama, the American Bankers Association has stated “guidance or regulation doesn’t alter the underlying challenge for banks. As it stands, possession or distribution of marijuana VIOLATES FEDERAL LAW (emphasis mine), and banks that provide support for those activities face the risk of prosecution and assorted sanctions.” The group says that banks will only be comfortable serving marijuana businesses if federal prohibitions on the drug are changed in law.
Heh. I wonder if His Majesty will request his injustice department to come up with an executive order waiving parts of the federal marijuana laws on the books. An illegal order that will not only violate federal law, but an international treaty the U.S. has signed. But that’s the big picture. Now let’s get down to where the rubber meets the road, the retail marijuana dealer.
“It’s not just the banks that are wary about handling our money, it’s everyone – security businesses, lawyers, you name it, no one wants to take the risk of taking our money,” said Caitlin McGuire, owner of the Breckenridge Cannabis Club in Breckenridge, Colorado. McGuire had an account with a credit union for years, which dropped him as a customer last year. He pays his bills with cash and money orders.
Memo to Caitlin: Where do you store your cash? At your home? Wife and kids? Have you gotten your body armor vest and concealed carry permit yet? Sleep well at night? And how’s your personal and business insurance premiums working out for you, pal?
I love being right.
popular narco-corrido says that he prefers to spend all his illicit money right away than keep it, it is dangerous to have so much money when he can get killed for it.
The fact of the matter is, that the current system will never be changed through the ballot box. That time has long since passed. The fact that there is a discussion about drugs being illegal is laughable considering the damage that alcohol and tobacco do, The federal government was limited in it’s ability to do anything for a reason.
The federal government has NO RIGHT to make any laws, that do not have to do with the defense of the country and trade/tariffs. The states have all the power, the federal government none. Our country has been lost because the leaders have been bought out and imported votes from far flung places on the earth.
These people get checks from the federal government and in essence, buy there vote. These people have little concept of liberty or freedom. Nor do they care. America is lost. In the way we remember it. It ain’t coming back.
The only way for people who embrace liberty and the concepts constitution is to move to a particular region of America. Take it over locally, then state wide. Form a group of states and secede. Not by asking permission. Do you really think they would ever do that? No by force.
Force is the only way things are done. It is nice to imagine that we can change the system from within, but in reality, that time has long since past. We need a leader, a vision and a plan. We are like 1000 coach-roaches running around waiting to be stomped.
It is time we stomped back!
So all those new businesses in the production and retail distribution of maryjane financed their operations from cash?
the conversation was about the sequester of federal funds when the beautiful blonde said that she thought it meant a jury was involved.
folks will soon become more familiar with the term ‘secuestro express’ when the Mexican mafia gets involved in extortion of these new enterprises.
This situation is the very definition of “moral hazard”. Let the banks think they can deal legally with drug money, and then drop the Fed net over them all and get all their hundreds of billions when it’s convenient. Anybody that would trust Holder or Obama to keep their word is a fucking idiot.
A business that is all cash……….. And we are to believe all the taxes get paid ????? Yeah, right.
good point Leo, when the going gets too wild for the public to bear, the corporations will move in.
This situation is the very definition of “moral hazard”. Let the banks think they can deal legally with drug money, and then drop the Fed net over them all and get all their hundreds of billions when it’s convenient. Anybody that would trust Holder or Obama to keep their word is a fucking idiot.- AWD
That is lunacy.
Fantasizing about a showdown between the Fed and G-men is like dreaming of two dykes on a bridge having a spat and one of them in a snit chucks their only double headed dildo over the rail.
banksters don’t mind laundering dirty drug money, they just don’t prefer to do it the dark,as is their scurrilous nature….and thus might expose their partners in crime…e.g. DEA , CIA..ect..
Big Banks Launder Hundreds of Billions of Illegal Drug Cartel Money … But Refuse to Provide Services for Legal Marijuana
Posted on January 14, 2014 by WashingtonsBlog
Stunning Hypocrisy
http://www.washingtonsblog.com/2014/01/u-s-banks-launder-hundreds-billions-illegal-drug-cartel-money-refuse-provide-services-legal-marijuana.html
Flash and Chen, good points. There’s not enough $$ in it, yet, for the banks to get excited. It would probably cost them as much as the make on them to provide services. On the other hand, if they had a huge mortgage with them, they’ll tolerate them. I forget how much $$ you have to have on deposit, or owe them for free banking at my bank.
I suspect they’re treating these guys pretty much like everyone else. On the other hand, there may be a revenue opportunity there for someone to open a shady business credit union. Not that I think they’re shady, but the feds don’t like competition in the corruption racket.
Recipe for the prosperity of urban America. Bars,gambling,dope and prostitution. If cities will adopt and legalize these activities, prosperity and happiness for all. The politicians will be especially happy. They will get their cut right off the top.
OP
Did you get a chance to read Micheal Snyders article posted above. You continually “cheer” for Fascism, the fact that the real drug problems in this country are a complete racket run managed and profited by a fascist combo of corporations(Banks, Big Pharma) and state agencies( LE, Regulatory, and Prison Industrial Complex) seems to be lost on you. The voters in Colorado are clearly bucking this trend, returning a micro speck of personal freedom/responsibility to the individual. Philosophically, what is your problem? You obviously frequent this site, a site promoting original patriotic American Libertarian values. Yet, Pot, triggers some Nero-psychological run to a pro- fascist responce, or you are a troll. I suspect the former. In this Forth Turning you are either part of the problem, or part of the solution, very little middle ground. To many of us here, a return to traditional, paid for in blood, American Values is the solution. By all means cheer for failure, it suits you and strengthens the resolve of conservative, freedom loving Americans throughout.
my best friends son got 8 months in prison for dealing heroin. that’s right heroin. 8 months. for heroin. dealing.
versus basically harmless marijuana.
head spinning. explosion imminent.
when theres enough money in the legal weed business, I am totally sure the banks will get in on it. they will either take the money or speculate on the weed and buy it all up and stash it in warehouses to jack the prices up.
Looks like the “legalize it (marijuana) and tax it” crowd here on TBP is completely out of ammo. The reality of legal marijuana in Colorado as an epic fail is unfolding even faster than I had imagined, but thus far everything I said about legal pot is happening. In spades.
Here’s a little stat. Since Colorado legalized MEDICAL marijuana in 2005, pot busts have jumped over 400% in the state. Gee, I wonder how much money is flying out of law enforcement and judicial budgets versus marijuana taxes flowing in? Anyone want to bet the same damn thing won’t happen now that pot for personal use is legal. Anyone?
Reality is a bitch, ain’t it, folks. Now shuffle on back into your little dream world.
Yeah it turns out reality is a bitch. You seem to confuse why many Coloradans support ending prohibition, and reduce us all to some low class drug dealers. Sad, really. Has it occurred to you that many of us could care less about the cost impact. In your cost benefit analyses do you consider all of the endless cost assosiated with a costly, spent, broken war on drugs? The broken families, the impacted professional lives, the lost production, the cost of courts, attorneys, prisons, guards, police, and on ad nauseum.
Its no picknik for us! Look at who is flooding here…a virtual army of 20 and 30 something stoners poring in from the east, the shear numbers have to eclipse the 1860 gold rush. Clearly the Cartels are here in force now too. There was a shooting at last years 420 rally. Tons literally is leaving the state, I am sure your neighbors are smoking it, not being taxed, not being regulated. Kind of messy really, the whole war is.
How long did it take for the impact of ending alcohol prohibition to take effect and give us the normalcy alcohol is now viewed with? There are clearly bumps ahead for us, quite possibly intense. Not roses and tax revenues for all. For us, as decided by many here, we are tired of the war on drugs and all of its antecedent costs.
Who should decide the most basic question of what we put in our bodies? Increasingly it appears to me that those whom have had the edict, have really done a piss poor job. Infiltrated at every level and every class with revolving door industry insiders. Big Ag, pharma, finance, health care all have more say what we put in our bodies than we do, with all of their attendant government lackeys to ensure compliance. Is that Conservative? How about we arm people with the best info possible and let them decide, is that radical?
@ottomatik, kisses and hugs. Thank you.
SSS, very quickly, things are becoming very costly. Look around, we are using up resources at an ever increasing rate, WDC, and your local assessor, is continuously chipping away at your income, while blowing out the costs of non-arbitrarily decided goods and services.
The banks were prosecuted for laundering BILLIONS of drug money from cartels. HOW many of those rich bastards – or the “regulators” – were forced to do time, or attend counseling, or lose ALL THEIR assets?
Sometimes you seriously tick me off. You suck the gubment tit, spew their propaganda and feel god-inspired to destroy the plebes that don’t toe your line.
Whatever, I’m done with this. Enjoy this bliss you feel. You are in the same boat as us all, maybe worse, because you are older and live in the middle of a desert.
Keep kicking the little guy while supporting the unjust enrichment of the few. I have no doubt you will sometime, someplace, come to understand the error of your ways. Or not. Like I said, enjoy.