Cannabis Reform In Uruguay – Tragic Comedy of Government Monopoly

No shortage of tragic folly and shenanigans when government is involved.

This article is based on 3 sources.

1.  A Brookings Institution report on Cannabis “law” in Uruguay. 

2.  A news article from an online Spanish newspaper. 

3.  Personal contacts I have in Uruguay.  (I lived there for 3 years, fairly recently)

There has been much praise for Uruguay’s “progressive” stance on Cannabis.  Upon closer examination, however, anyone who has even the slightest idea of what true liberty is, will be appalled at the reality of the situation.    

The government of Uruguay has created a monopoly and a big brother data collection racket while posing as a beacon of freedom.

Let's first look at some basics on how the Cannabis “system” “works” in Uruguay.

A person has to register with the government with electronic fingerprints to be able to buy Cannabis. 

Cannabis can only be bought at pharmacies or “buyers clubs”. 

A person can grow up to six plants for personal use, but cannot sell what they grow, and must be registered with the government.    

All “buyers clubs” are registered with the government. 

Buyers Clubs have a membership cap.    

There is a limit to how much each person can buy per month.  (Also known as “rationing”) 

Foreigners are prohibited from buying Cannabis “legally”.

In summation:

The government gang has a monopoly, tracks everything, and rations out the limited supply.   

But that’s just the basics! Let’s look at some more details of the ongoing Cannabis reform folly in Uruguay.

The first Cannabis sold by the government in Uruguay only had a laughable 2 percent THC content.

If an “unregistered” buyer, seller, or grower is caught, they can be arrested (thrown into a cage)

Due to the inability of foreign visitors in Uruguay to buy Cannabis, and also the limit placed on how much each individual can buy or grow, the black market (free market that gets suppressed) still exists.    

There is sometimes a supply shortage. Also, there are not enough pharmacies participating, which causes long lines for buyers.

Why are pharmacies not participating?

Because some banks won’t take money from Cannabis sellers.

You might be wondering, why would banks do that?  I’ll give you a clue.  It has to do with a mafia that starts with the letter “G”.

But not the mini-mafia that is the Uruguayan government.  Nope, old Psycho Uncle Sam’s banking regulations, specifically one within the appallingly 1984-esque “Patriot Act” prohibits such financial transactions.    

To stop terrorism, ya know. (note dripping sarcasm and tooth grinding)

The following is from a Brookings Institution report on Uruguayan Cannabis “law”, specifically about the far financial reach of the criminal gang in DC called government.    

From pgs. 9-10 (source linked at bottom of this post)

Bank of America and CitiBank, notified the Uruguayan banks with whom they have relationships that they needed to discontinue serving pharmacies that sell cannabis. These large American banks, which have shied away from serving even U.S. domestic markets with recreational or medical cannabis, cited the USA PATRIOT Act as a basis for their claim and demand to shutter the accounts. Under Section 320 of the law, banks cannot serve accounts that commit an offense that “involves the manufacture, importation, sale, or distribution of a controlled substance…...

 …...Section 319 of the USA PATRIOT Act extends the reach of the law to foreign (non-U.S.) banks with “an interbank account in the United States with a covered financial institution.” Given that Uruguayan banks, even government-operated ones such as the Central Bank of Uruguay and the Bank of the Republic (BROU) fall under that definition, the U.S. banks’ threats were real. This situation left Uruguayan banks with a choice: shut down cannabis-selling pharmacies or risk the withdrawal of major American financial institutions from the country…...

……..For U.S. banks, this concern was real. The law which they cited in letters to Uruguayan banks allowed the federal government to seize bank assets and file criminal charges against bankers. Even though the purpose of the banking provisions under the USA PATRIOT Act was to stop banks from financing operations that facilitated international terrorism, the language is broad enough to encompass cannabis operations in Uruguay.  (end quote)

It’s also interesting to note that in this same Brooking's document, the solutions they recommend to fix the problems of Uruguay’s “Cannabis law” all focus on …..drumroll please…..making government bigger and creating more regulations! 

To sum up, the government mob in Uruguay, under the guise of freedom, has managed to:

1.  Increase the size of government 

2.  Create yet another big brother tracking mechanism 

3.  Create a violently controlled monopoly on a plant.

4.  Cause a supply shortage 

Links to source documents used in this post

https://www.brookings.edu/wp-content/uploads/2018/03/gs_032118_uruguaye28099s-cannabis-law_final.pdf

https://www.eldiario.es/theguardian/Uruguay-legalizado-fumado_0_717429244.html 

Thanks for your time and attention!

Just say "NO" to slavery!

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