The Federal Reserve's War on Drugs

Alt-M reports:

That's right: the Federal Reserve is now in the business of enforcing the U.S. government's drug laws, even if that means making a mockery of both state governments' right to set their own drug policies and the Fed's own governing statutes.

The Fed's involvement in drug prohibition became official last month, when the Federal Reserve Bank of Kansas City informed Denver's Fourth Corner Credit Union — a non-profit cooperative formed by Colorado's state-licensed cannabis manufacturers — of its decision to deny its application for a master account. Since asking any sort of depository institution to operate without such an account, and hence without access to the Fed's payment facilities, including its check clearing, wire transfer, and ACH facilities, is like asking a commercial airline to make do with propeller-driven biplanes, and established banks don't want the extra hassle that comes with dealing with pot growers, the Kansas City Fed's action forces Colorado's marijuana industry to do business on a cash-only basis, with all the extra risk and inconvenience that entails.

The Fourth Corner Credit Union isn't taking this sitting down. On the contrary: it is suing the Federal Reserve Bank of Kansas City. Your typical civil action isn't exactly a page turner. But this one reads like a chiller, largely because that's exactly what it is. If you like a good horror story, I suggest you read the whole thing.

Is there anything the Federal Reserve can't do?