Cannabis / Marijuana, STAFF NEWS & ANALYSIS
Reuters Shock: Fedgov Legalizes Cannabis Next Year?
By Staff News & Analysis - December 26, 2014

Uncle Sam stoked to hash out marijuana in 2015 … It's high time for Uncle Sam to hash out America's marijuana situation. Now that four states and the District of Columbia have legalized recreational cannabis better regulation is warranted for commerce and safety reasons alone. Without the federal government tweaking laws to consent to the will of the states, the fledgling industry will remain in the shadows of professionalization. – Reuters BreakingViews

Dominant Social Theme: Marijuana policy is fractious and not likely to be resolved anytime soon on the federal level.

Free-Market Analysis: This editorial informs us that people may be surprised what happens regarding cannabis next year … legalization at a federal level.

Are you surprised? Certainly, the Republican takeover of Congress may be widely seen as an impediment to further drug legalization. And yet … as it is often with conservative regimes, progress can be made regarding various kinds of important social reconfigurations.

President Richard Nixon created détente with China in the early 1970s via "ping pong" diplomacy. Nixon was not worried on this particular issue that he would seem weak or confused. As Nixon was a Republican, he was perceived as pro-military, and thus moves palliating China could be perceived as strategic rather than credulous or even traitorous.

So it may be with cannabis. Republicans carrying ample credibility with the anti-drug crowd may be better positioned to make concessions than Democrats already perceived as "soft on drugs."

Here's more:

When just Colorado and Washington state began to experiment with legalized pot, the White House could merely look the other way. But in November's election, Oregon, Alaska and Washington, D.C. also approved recreational weed. With four states plus the nation's capital on board, nearly half of the states approving weed for medical purposes, and others likely to follow, national lawmakers can't ignore the movement's smoke signals.

Without federal attention, the market for marijuana may be dangerous and dysfunctional. Colorado's struggles with the market for comestible products made with the drug's active ingredient, THC, demonstrate the problem. Edibles can contain concentrated doses or very little of the drug, leaving consumers dazed and confused on how much to eat safely.

The Food and Drug Administration, usually responsible for labeling and standards, is a federal agency and therefore takes a pass on weed. Universities in states that have legalized the drug could be in a position to research the effects of cannabis use to help local regulators. But they're forced to abstain for fear of seeing their federal funding revoked.

Commerce remains impaired too, as lenders aren't keen to back loans tied to the industry, fearing government retaliation. The federal Farm Credit System also refuses to back marijuana growers. Such problems prompt Congress to either prohibit these states' pot experimentation or to permit, and regulate, at the federal level, but let states determine whether or not to partake.

While a heavy lift, Washington lawmakers now have an excuse to weigh in sooner rather than later: weed was just legalized in their backyard, and they ended federal enforcement for medical marijuana in the year-end spending bill. There are good reasons for Republicans, who will soon control Congress, to embrace pot.

The graf above points out that there are good reasons for Republicans to "embrace pot." And, in fact, these include far more than logistics. They include political calculations as well.

Republicans have to contend with a larger libertarian-leaning faction organized around libertarian presidential contender Rand Paul. Legalizing cannabis might be one way to offer an olive branch in the midst of a larger contentious fight between Paul-ite classical liberals and the dominant "conservative" GOP mainstream.

There are other political considerations including the GOP's determination to attract younger voters and other groups not ordinarily considered part of the GOP constituency. "It's probably not their first order of business," the article concludes, "but stoners may be surprised to see their pastime liberated in the coming year."

That last statement is surely a surprising one. The key word is "year," as in this upcoming year. Not "years." We'll grant that this columnist may know something we don't. But there's common sense behind it, when you think about it: Simple logic tells us that the current bifurcation between state tolerance of cannabis and fedgov intolerance is not a situation that can long abide.

We're surprised by such a potential timeline, but certainly not shocked. It's been our contention for a number of reasons – expressed in a number of articles – that the opposition to the drug war itself is fading rapidly in the US and abroad.

After Thoughts

The impending legalization of cannabis, whenever it finally arrives, is merely a harvesting of low-lying fruit. However, there are very important variables that will determine the winners from the also-rans in the global race to profit from this massively powerful financial trend. At High Alert, we've done our due diligence – and continue to – and we believe we have found the right formula and the right company to capture a significant portion of this wealth building opportunity. Click here to learn more.

Posted in Cannabis / Marijuana, STAFF NEWS & ANALYSIS
  • Speeding up the timetable on the legalization of drugs has frightening overtones because a cashless society is not likely to be forced into place until all drugs have been legalized. As I see it, when the legalization of drugs is accelerated, one hidden purpose behind that is to accelerate the installation of a cashless society with all of the additional control that gives to our Lords and Masters. I was intuiting that the schedule for cashless to arrive would be in the next 5 to 10 years, this makes me think it is more like 3 to 5 years.

  • Randy

    Yes Gregg, I see your point very clearly there, and it does appear at first to be a valid one, but let’s step back a few paces and put things in better perspective. Dollar-wise, there is a LOT of fiat paper currency going into the drug trade, but what about as a percentage? Do the druggies really support the rest of the economy that depends upon cash transactions, as taking this thought out to the ne plus ultra would suggest? I say not, because this segment of any society isn’t known for high productivity of ANY kind any way you may care to slice it. Just the legalization of all drugs couldn’t be what gives the banksters their final advantage in instituting a totally cashless society.
    Fiat paper currencies ALWAYS fail, it’s just that some are able to last a bit longer than others through better manipulations of facts, figures and perceptions. You can find over 600 of them that have failed before you even get out of the letter B of the alphabet, so that right there should be all of the proof you need to see how ephemeral they are.
    The USD is on the verge of collapse, and when it does, via hyper-inflation, you WILL see the collapse of the US electrical grid and that will mean no more computers that are filled up with ones and zeroes. Go to YouTube and watch some of the videos of what goes on in electrical substations and on power transmission lines for an hour or two. Then ask yourself who in their right mind will do those jobs for little or no pay! It is a job that is every bit as dangerous and unforgiving of mistakes as being an astronaut or a race car driver! You only get one error and it’s game over for you and maybe many others too. I know, because I worked for SoCalEdison for 15 years. When the men who climb those poles and towers and throw the switches in the yards refuse to risk life and limb, or just can’t afford to put gas in their gas tanks to come into work, or the power companies cannot afford to buy the fuels needed to run the plants, just how long do you expect the lines to keep on humming? No power lines will hum and no production lines in the factories either. But this will be a world wide phenomena, not just here, make no mistake about that!!
    Electrical utility workers in America work under contracts that are renegotiated every few years, and they are rigidly enforced. Wages and benefits are the core of those talks, and when they break down, who is going to put a gun in their face and make them work to keep the lights on? How will the rates which are set by bureaucrats go up enough to pay the wage increases?? WHO will be able to afford them? Not me, that’s for sure! Shut off all your circuit breakers for just one full day, I dare you!

    Randy

    • Drugs support the CIA, that alone is enough to assure that cashless will not happen before all drugs are legalized. I am thinking of moving my family to an area of Peru or Bolivia with subsistence farming and non-mechanical, non-electrical living because I can clearly see the likelihood of problems, as you describe above. A few places in the world will not change much in a collapse.

  • Michael

    I suspect the reason for this is that with a federal prohibition the banks are forbidden to provide services to the marijuana businesses. As of now they are mostly dealing in cash.

    P.S. Love the new site design. Can’t wait until links to the source articles are included.

  • Randy

    “Going
    Long” on Zeroes

    Having just
    read an article on the hyperinflation of Yugoslavia in the 1990s by
    Thayer Watkins, which was informative and enlightening in the
    extreme, this Author has now come up with a business plan that is as
    sound as just about any other which came before it. It is based upon
    knowledge of a little known (almost to the point of being criminal!)
    technology, it is called Statistical Analysis; Management by Trend.
    Seeing as how we are now experiencing high amounts of growth in
    zeroes everywhere we look, it just makes good business sense to make
    our investments there! Yes, the trend line is definitely moving in
    the direction of more and more zeroes every day now. Let’s just hope
    that it’s not too late to jump on that gravy train to prosperity for
    all.

    Yugoslavia
    experienced a 5 Quadrillion percent rate of inflation between October
    1, 1993 and January 24, 1995. That’s 15 zeroes worth of inflation
    right there alone. The inflation of Zimbabwe was one of historic
    note as well, further proof that investing in the manufacturing of
    zeroes is not just a good place to put your capital, but a great one.
    It’s totally insured growth by a factor which is usually only
    dreamed of by complete, absolute lunatics. Just imagine it, the
    growth of zeroes (green shoots) everywhere you care to look! The
    number of people without jobs, lots of zeroes. Number of companies
    that go belly up, lots of zeroes. Number of people starving to death
    and dying as a result of hyperinflation, even MORE zeroes to be seen!
    In fact, the amount of zeroes that we will see will stretch all the
    way to the horizon and come back around again to bite us in the rear!
    Won’t that be absolutely wonderful? Some of the other zeroes of
    note; number of planes, trains and automobiles being made or going
    anywhere. Number of buses and taxis taking people to their job,
    zero. The number of people who not will be able to afford going to a
    doctor and getting good care, yes, you guessed it, it will soon be
    lots of zeroes on the end there. Number of people with no job to go
    to, even more zeroes.

    Zero, what
    a fabulous concept to have bestowed upon us! It acts as a
    placeholder as well as an indicator of extreme good and bad at the
    same time. How could we ever do without the zero? Zero will be the
    new benchmark for measuring success or failure. How much breakfast
    did you have today? Zero? How many people will not have breakfast
    tomorrow? Certainly not just one zero, but many millions of them!!
    Zero will soon become the dominant theme of life, unfortunately.

    Just how
    many zeroes will we see as we move forward? It’s not possible to
    count all of the places to look for zeroes in society let alone count
    all of them, but rest assured that there will be more of them than
    you’d ever want to see, unless you’ve got a company making them of
    course! Imagine that, more zeroes than could ever be counted, boy,
    talk about a lot of zeroes!! But it all adds up to one BIG zero,
    which is exactly what listening to the wrong people has given us;
    zero. Nothing, nada, zip and zilch. It’s a lesson to NOT listen to
    people who don’t know anything about the subjects of which they may
    speak. We have let the makers of false promises and opinions lead us
    down a garden path to destruction. We let them debase our monetary
    systems with lots and lots of zeroes created out of thin air. And
    what did they give to themselves? Some numbers with lots and lots of
    zeroes after them while we got just the zero and nothing more than
    that. The irony of the situation is that the zeroes that they gave
    to themselves and us will all soon be worth ZERO!! Yes, all of those
    absolutely wonderful ones and zeroes in the computers will convert
    into nothing but zeroes. How does it get any better than that??

    Just like
    the concept of “Even better than the real thing”, we will
    soon have something so fantastic, so incredible that no one will be
    able to see it, it will be so far out of our reality and collective
    consciousness that no one will be able to comprehend it at all, and
    of course it will be another huge zero any way that you care to look
    at it! But then no one will be able to even know that it exists,
    right? A few might be able to suppose that it exists, but none will
    ever be able to prove it. That’s the wondrous part about the zero;
    is it there or isn’t it? Is it an indicator of good or bad? It will
    just depend upon whom you listen to, if you can’t see it for
    yourself.

    • Joelg

      Love your comments, Randy. World has seen all these zeros before. Come to think of it, as often as fiat currencies. Which means as often as hyperinflations. Politicians have a very simple way of dealing with it. Take the Old Weimar Republic in Germany (1919–1933), which BTW was a similar Police State to USA today (spying on everybody, like NSA; Hitler did not invent German police state, merely inherited it when he came to power and changed its name to Gestapo). They just stamped some more zeros onto the old postage stamps etc. so as not to have to pay for reprinting.

      More recent history is Argentina and South America. After a surprise “bank holiday,” people are told to turn in their old currencies for a new currency that lops off a few zeros. Overnight your old 100 dollar bill becomes worth a new 1 dollar bill. Zeros disappear fast, only to start over again. Would love to have a reader in Argentina show many times it has been done there every decade; I lost track of the Old Peso and New Peso lineages a long time ago. Even easier with electronic accounts. You wake up in the morning, and your savings are instantly devalued (not sure if you call it deflated or hyperinflated). Hence, USA needs the Police State as much as Argentina did. Lots of angry citizens when Mission Accomplished fully plays out and all the bills come due. Torture is cheap, but the welfare state, NSA Police State, High-Tech Weaponry, Murder by Drone and Aerial Bombing ala Libya and Legions of Troops Worldwide require lots of zeros. The Chosen and Exceptional People may in the end be like the kings of England who went from all-powerful arrogance to hitting the Biblical bottom.

      • William Scott

        Hmmm… Are you perhaps familiar with Adrian Salbuchi, at: https://www.youtube.com/user/arsalbuchi ? And I believe it’s technically “hyperinlation,” unless it’s presently more convenient to call it “deflation” at the capitol press office and their “expert” MSM media respin outlets? 🙂 Also see: http://www.asalbuchi.com.ar/ (in Spanish…)

        The “religious” OUTCOME (in NA / UK / EU / Russia, etc.) depends upon WHO WINS the next, WORLD WAR? And considering the new “world religion” PLAN… the ODDS may already be against Protestants and Orthodox Christians? (Especially when you consider that NONE of the main Political candidates, are ever WHAT they claim to BE…)

  • objektwerks

    The drug war is a cash cow for US banks and government agencies. I don’t see it ending until a government reset occurs or the government figures out how to regulate the drug trade, a challenging task given the enormity of the US drug market.

    Marijuana is an issue the US government has already lost. It’s just a matter of time, in terms of future state elections and/or legislation, before it becomes universally legal. If the government wants to both legalize and regulate marijuana, the time is now. But will doing so score points for the GOP?

    I seriously doubt it. The GOP has demonized its base over the past few years. And in just a few short months, the GOP has betrayed its constituents with the passing of the cromnibus bill — the very voters who gave them an historical majority. I submit the GOP is dead. It just won’t know it until 2016.

    As for Rand Paul, well, he’s no Ron Paul. Sadly, time and again, Rand has proven himself to be a political opportunist. His libertarian credibility is all but gone. The GOP might as well throw a political bone like marijuana to a dead man.

    Thanks for the thought-provoking article, DB.

    • William Scott

      The “Pauls” both blew it BIG TIME the last election cycle. And Rand is not nearly as stealth, or wise, as Ron… and stands for little, if anything, of substance? You have to ask yourself what sort of “person” is attracted to DC, etc. in the 21st Century? I don’t know if Ron was actually “controlled opposition,” or they got to him? And I don’t care to even think about them henceforth, frankly… He dropped the baton and didn’t even finish the damn race. (Which leads one to believe he was never really in it, to WIN?)

      • He was in it to educate. And he did that pretty well …

        • William Scott

          TRUE… I’ll give him that… but I now believe he was ultimately CONTROLLED OPPOSITION… I supported him for a time… but NO LONGER. I just BLOCKED his emails, asking for even MORE funding. I see them for what they ARE, now… after some more online research. There are no WORTHY candidates even ALLOWED into DC anymore, unfortunately. Nor were there forty years ago. As you’ all are always saying, it’s all PLANNED prior to unfoldment… and also so darn OBVIOUS, in retrospect. (Fooled me ONCE, Ron…)

    • Joelg

      “I submit the GOP is dead. It just won’t know it until 2016” -objektwerks

      Don’t underestimate the Zombies, objektwerks. The Night of the Living Dead must be upon us. Those Zombies just took over both houses of Congress.

      Ron Paul did his job well, as I was educated watching the debates. On a stage full of war-mongers in both Dem and GOP debates, Ron Paul was the only person against the foolish wars and the only politician that understood economics. Rest of GOP and Dems stood out as economic illiterates. The GOP was dumb running Ron Paul out of the convention, but perhaps did the country a favor by reducing the GOP vote; Romney and his running mate were too much Draghi-style technocrats to unleash on the USA. I wrote in Ron Paul on the Presidential ballot in California, and because Ron Paul was not a “state (of California) approved candidate” my vote was thrown out and my ballot not counted (I was disenfranchised by the state of California, but would do it again; some Democracy, that California Police State, when you can only vote for state-approved candidates).

  • It should never have been a Federal issue. It should always have been strictly a state issue.

  • William Scott

    You would think that a (corporate) government with pre PATENTED IP on “cannabinoids” would be more EAGER to begin “cashing in” on about their only other “cash crop” this side of poppies, petroleum and Eblola? Heck, they just LOST (in opportunity cost) how many $.billion in revenue, just in 2014!? (Potentially LEGAL drug revenues, that is…) But perhaps they have it “covered,” even if China ends up with most of the “action” globally, for a change? (With 500+ cannabis related patents pending.) That is to say, there’s always “import duties” and “price controls” to make sure they can play BOTH the newly legal, and the “covert funding” angles… until they “reposition” the drug gestapo to focus on something more PROFITABLE for DC, perhaps? And of course their (other) hidden goal (aside from cost cutting / tax revenues) is likely “spacing out the youthful opposition?” And there’s plenty of other “illicit” drugs to keep ILLEGAL in the mean crime.

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