The chemical that sets Absinthe apart from other alcoholic drinks is called Thujone. It's related to THC like Chef said, but has a bit more of a hallucinogenic effect. The sugar is used because of the auful, awful taste. Imagine anise, 140 proof liquor, and the devil's ass.
A friend once brought 2 bottles back from Spain, I don't really remember much about what happened when three of us finished them off in a night, but I guess you could say that it's pretty powerful stuff.
You can order some online from countries in Europe that still allow it to be sold, but it can cost a pretty penny and from what I've heard not all of it has Wormwood in it, which is the main ingredient in real Absinthe. I've never ordered any myself, so if you were interested, I'd do some research.
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