Colorado Is Both Killing And Supplying Mexico’s Marijuana Industry

COLORADO:  In a new report from National Public Radio, not only does it seem that the legal weed found in states like Colorado is hurting the business of Mexican cartels, but that the tide has reversed and Colorado marijuana is now being imported into Mexico.

First, reporter John Burnett talks to 24-year-old Sinaloense grower Nabór: “Two or three years ago, a kilogram of marijuana was worth $60 to $90. But now they’re paying us $30 to $40 a kilo. It’s a big difference. If the U.S. continues to legalize pot, they’ll run us into the ground.” (One kilogram is equivalent to roughly 2.2 pounds.)

It’s a threat the Sinaloa Cartel is surely aware of, according to a January story from FOX News.

“Cartels, especially the Juarez and Sinaloa, who have a strong presence in Colorado, could not have been happy with the estimated $1 million in sales Jan. 1, the first day of legalized retail sales. In 2012 the Mexican Competitiveness Institute issued a report saying that Mexico’s cartels would lose as much as $1.425 billion if Colorado legalized marijuana. The organization also predicted that drug trafficking revenues would fall 20 to 30 percent, and the Sinaloa cartel, which would be the most affected, would lose up to 50 percent.”

Weed Runners: Outlaw Capitalists Of America's Medical Marijuana Trade

CALIFORNIA: On Aug. 29, an Obama administration memo prompted intense speculation that the feds may be finally calling off the decades-long war on weed. While marijuana remains illegal under federal law, the memo stated, federal prosecutors won’t intervene if states such as Colorado and Washington that legalized it for recreational use ensure that organized crime doesn’t profit from these states’ laws. [Read more…]