What Do Cattle, Porn Starlets, Toyota and Hot Sauce Have in Common?

They're all getting out of Dodge California and heading for greener pastures- in some cases, literally.

Beset by higher taxes, above-average unemployment and among the highest cost of living in the USA, it's no secret that Californians have been moving out of state annually by the hundreds of thousands in recent years. This should come as no surprise with recent scandals and corruption involving California's political class coupled with onerous, intrusive and often absurd regulations for businesses passed on the state, county and municipal level.

Sensing discontent among Californians and business owners, Texas governor Rick Perry rolled out the welcome mat for Golden Staters with a PR blitz, offering lower taxes and a lower cost of living than California as well as business incentives for those companies who set up shop in the Lone Star state.

Although incumbent California governor Jerry Brown crassly dismissed Perry's efforts as 'barely a fart', it appears as though the Lone Star State's lobbying has been producing results. At the end of April, Japanese automaker Toyota announced that they would be moving their North American headquarters from the Los Angeles suburb of Torrance to Plano, TX starting in 2016. The move by Toyota [NYSE: TM] is expected to consolidate 4,000 employees from marketing, manufacturing and corporate operations to the suburban Dallas facility. In 2003, Toyota broke ground on a plant near San Antonio that produces the Tundra and Tacoma pickup trucks.

On a smaller scale, Irwindale, CA-based Huy Fong foods- maker of the Sriracha hot sauce- has been locked in a legal battle with the city council after the council threatened to declare Huy Fong a nuisance and threatening them with fines or closure after receiving complaints from four households regarding the fumes resulting from processing chili peppers. Although Huy Fong CEO David Tran stated publicly that he has no immediate plans to relocate the Irwindale facility, the company welcomed a delegation of Texas lawmakers in May. A company spokesman said that relocation wouldn't be as straightforward for Huy Fong because local producers of Sriracha ingredients such as chilis and vinegar couldn't pull up and move to Texas with them. However, botanists working on behalf of Tran have begun examining the soil in parts Texas to see if it's conducive to growing the variety of chilis used in Sriracha sauce. There's also concern over variables in the Texas weather such as flooding, hurricanes, drought and hail as well as competing bids from within California and other states.

However, not all the businesses exiting California have decided to head to the Lone Star state. Once considered the hub of the adult entertainment industry, California's San Fernando Valley has been hit hard by the advent of online pornography. The number of permits to film in the San Fernando Valley plummeted after a law requiring adult film stars to wear a condom while performing went into effect late last year. The measure was a Los Angeles county ballot initiative that was approved by voters in 2012. In response to the measure, studios and actors shipped themselves a few hours up Interstate 15 to Las Vegas where the cost of doing business was lower than in California and there were no regulations to mandate the wearing of condoms. Industry insiders say that its much cheaper to rent out warehouses for filming or mansions or hotel suites to accommodate talent for the duration of a shoot.

Nor are all the Californians leaving the state two-legged. Thanks to an ongoing drought and the closure of a massive slaughterhouse in the Imperial Valley town of Brawley, ranchers in California have been selling off cattle to Texas, Nevada and Nebraska. According to Reuters research, at least 100,000 head of cattle have left California in 2014- including breeding stock that's going to slaughter. Higher feed and transportation costs have also put pressure on California ranchers, although ranchers elsewhere are facing similar problems.

Although defenders of the current business climate in California often cite the entertainment industry and Silicon Valley as being the state's economic backbone as well as the primary source of fundraising for the state's democrat party, Hollywood has been shipping jobs out of state due to increased production and filming costs within the state. Special effects firm Sony Pictures Imageworks announced at the end of May that their headquarters will be moved from Los Angeles to Vancouver, Canada for post production work. Over the last 20 years, the area around Vancouver, BC has been dubbed 'Hollywood North' as British Columbia offered studios tax credits for filming on location. Although the exchange between the US and Canadian dollar isn't as favorable as it was in the 1990s, a number of studios are still drawn there for post-production work and location filming [the area around Vancouver can pass for a number of other settings depending on the type of film or scene- NANESB!].

The state's Democrat-controlled legislature also recently passed a bill that would raise the state's minimum wage to $13 an hour by 2017 and is expected to be signed into law by governor Brown. While the bill raises entry-level wages, many employers will likely end up cutting their workforce and retailers or restaurants will close down locations or increase prices to make up for any increased operating costs.

More damning, none of these jobs or businesses will be coming back or are unlikely to be replaced by new enterprise. Although California sits on considerable oil reserves in the Monterrey Shale, wealthy environmentalists with considerable backing from the entertainment industry are seeking to ban the hydraulic facture drilling process that has been so effective in recovering shale oil and gas in Texas, North Dakota and Pennsylvania. Meanwhile, state and local lawmakers continue to busy themselves with legislation concerning transgender bathrooms for schoolchildren or banning plastic bags and simply assume that they can get whatever revenue they need from the next Silicon valley startup such as Facebook.

Canada Actively Seeking American Workers Left Jobless by 'Obama Recovery'

Jeff McIntosh photo- Canadian Press

As the American economy continues to receive bad news amid Barack Obama's reelection and increasing concerns about the upcoming 'fiscal cliff', Canada has made it clear that it needs workers and is looking to the USA to help fill that gap [and I for one welcome our new Canadian overlords- NANESB!]

Much of western Canada is experiencing a shortage of skilled laborers- this is particularly true of the energy sector in oil-rich provinces like Alberta or Saskatchewan. Despite the fact that just under 30,000 Canadians made their way to Alberta from other provinces to find work in the last year, oil industry consultants believe they'll need more than 35,000 additional workers over the next decade for the oil sands alone. Moreover, companies will be losing a large number of worker due to attrition as statistics have shown much of the current workforce in the oil sands, exploration and refineries is middle-aged.

[...] the industry’s growth is far from certain.

“Labour shortage impacts could threaten investment, revenues and sustainability throughout the entire energy value chain,” said Peter Boag, president of the Canadian Petroleum Products Institute, which recently changed its name to Canadian Fuels Association.

The country’s energy sector industry directly employed 187,000 workers last year, and that’s set to grow exponentially.

“There will be no reprieve from current hiring challenges for oil and gas services as the sector will need to fill thousands of positions between now and 2015,” says HR Petroleum Council in a report. “Employee turnover is the sector’s greatest workforce concern as it escalates costs and exacerbates sector-wide labour and skill shortages.”

The oil sands are different in that they have to be extracted in a manner more reminiscent of mining for ore than drilling for oil. Although environmentalists opposed development of Alberta's oil sands, the oil has been naturally seeping into nearby bodies of water such as the Athabasca River for centuries. Although much less straightforward to extract, the mixture of sand, clay, water and bitumen locked in the ground are said to rival the conventional petroleum reserves of Saudi Arabia and Venezuela. Much of the oil sands activity is centered northeast of Edmonton around Fort McMurray, Alberta- a latter-day boomtown dubbed by some as 'Fort McMoney'.

As Canada continues to tap the vast energy reserves out west, employers and recruiters are looking beyond their own borders to help offset the shortfall of skilled workers- including the USA.

Since 2010, about 35,000 U.S. workers a year have been issued work permits, according to Canadian immigration statistics. That's up 13% from earlier in the decade. And that figure is expected to grow as provinces continue to loosen requirements for temporary foreign workers.

Rudolf Kischer, a Vancouver-based immigration attorney, said his firm can hardly keep up with the processing of work permits for employers hiring U.S. help.

"We're the busiest we've ever been," he said.

Many of those workers are heading to where the labor market is hottest: Edmonton.

Edmonton has become a staging ground for oil companies that include Canada's Suncor Energy Inc., Shell Canada Ltd. and Chevron Canada Ltd. The energy sector has in turn boosted industries such as manufacturing, home building and retailing.

With a population of about 812,000, Edmonton looks a lot like many American cities. There are large strip malls anchored by U.S. retailers such as Costco and Home Depot, and ubiquitous coffee shops — except here Tim Horton's doughnut shops outnumber Starbucks 3 to 1.

The biggest difference: The unemployment rate here is 4.5%, and "We're Hiring" signs are posted in almost every window.

Jobs near Fort McMurray, a remote town six hours north, are the best-paid; a welder can make up $37 an hour. (At present Canadian and U.S. dollars are almost equivalent in value.) But laborers must stay in barracks-style camps, which energy companies have upgraded to woo them. The best ones offer private rooms with flat-screen TVs, gyms, prime dining and wireless Internet access.

Workers spend as long as a couple of months at a stretch laboring before returning to Edmonton "moneyed up," as the expression goes around here. Workers then pump those dollars into the local economy.

The province of Alberta boasts a median household income of $83,000 compared with $50,000 in the U.S.

Andrew Hoggard, a 35-year-old auto mechanic who moved to Edmonton from Michigan in March, can hardly keep up with his workload. He puts in 12-hour days at a local Chrysler dealership, including some Saturday shifts.

Still, he's not complaining. In eight months, he's made $70,000. Back in Holland, MI, where he worked on commission at Nissan dealership, he relied on his parents to help him pay rent when the work slowed.

In British Columbia, an unprecedented construction boom has left the province short on workers. However, in southern California, even before the current recession there have been thousands of skilled tradesmen who remain unemployed, underemployed or are working outside their field altogether. This led to officials in Riverside County, CA to coordinate with Canadian delegations and organizations like the British Columbia Construction Association to hold a job fair slated for early December in Indio, CA.

“Some have not found work for the past four years in their trade,” said Tom Freeman, commissioner with the Riverside County Economic Development Agency’s office of foreign trade, which has helped set up a Dec. 4 job fair in Indio to recruit workers willing to move north.

Economic development specialists and others in the Coachella Valley have been very involved in what is called the “workforce mobility program,” with initial meetings taking place in Palm Springs and Desert Hot Springs, Freeman said.

The British Columbia Construction Association, which represents some 2,000 companies, will have a delegation at the job fair, as it has at similar job fairs held in Ireland and Scotland, said Abigail Fulton, vice president and an attorney with the association based in Victoria, British Columbia.

“We actually do the immigration work at no charge,” said Fulton, who noted the association is not looking for laborers but rather skilled tradesmen familiar with large commercial and industrial-type projects.

Along with competitive or even higher wages than companies are paying in the U.S., Canadian recruiters are touting steady work, retention bonuses, free universal health care and quality schools.

A flier sent out by Riverside County, the British Columbia Construction Association and the Canada California Business Council lists heavy equipment operators, iron workers, pipe fitters, mechanics, and mechanical and electrical engineers as among trades that are needed.

Of course, Canadian companies and recruiters aren't just limiting their search to the USA. Similar trade shows like the one set to take place in Indio have already been set up in Ireland and Scotland. Canadian officials have also been courting Polish immigrants in the United Kingdom, attempting to coax them into making the move to Canada. While this may sound like an unusual or way-too-specific niche, as of 2001 there are an estimated 980,000 Canadians of Polish ancestry [including Wayne Gretzky, Geddy Lee and William Shatner- NANESB!] and the UK's Office for National Statistics estimated there were an estimated 515,000 Poles either temporarily or permanently residing in the United Kingdom as of 2010.

UK Federation of Poles chairman Włodek Mier-Jedrzejowicz said he had been contacted by Canadian officials who said they were particularly keen on Poles able to fluently speak English.

While there are no doubt some drawbacks for Americans working in Canada [ie- you'd be taxed four times- US federal taxes, Canadian federal taxes, the provincial tax of wherever you live and the state tax of the last state you resided in before leaving- NANESB!] the Canadian dollar and the US dollar are roughly on par, interest rates for savings is slightly higher in Canada and provinces like Saskatchewan and Alberta enjoy more economic freedom than all but a handful of US states according to a Canadian think tank. A recent report from the Fraser institute also stated that Canada is among the top five nations in the world for economic freedom while the USA has plummeted from second place to 18th.

I find it interesting that when I was growing up, I remember that American liberals wanted the nation to follow Canada's lead as far as healthcare, military spending and gun control went. However, now that Canada is drilling for oil, sending troops to Afghanistan and rolling back gun control laws the liberals here in the USA aren't as keen to have the country be more like Canada.

Obama Nixes KeystoneXL Pipeline As Department of Energy Loans to Solyndra, 11 Other Troubled 'Green Energy' Companies Probed

The Obama Administration formally dismissed a bid by a Canadian company to construct a pipeline that would bring in oil from northern Alberta's tar sands to Texas for refining. Although the State Department and Obama Administration has left the door open for TransCanada [NYSE: TRP] to re-apply for a permit to build the KeystoneXL pipeline or alter the planned route, it's considered unlikely that the company will do so until after the 2012 Presidential election.

President Obama had until Feb 21st to make a decision regarding the proposed KeystoneXL pipeline, but [brace yourself- NANESB!] blamed Republicans for his decision claiming that the 'arbitrary' deadline made approving the project impossible, despite the fact that the project has been under review for environmental impact on both sides of the border since 2007. Initially, approval of the product was left up to the State Department owing to the fact that it crossed an international boundary into the USA. President Obama initially announced that he would punt the final decision on KeystoneXL until after the 2012 election [i.e. when either somebody else was in the White House or he didn't have to worry about re-election- NANESB!] but House Republicans included a stipulation in the payroll tax cut debate in December that Obama had to make a decision within 60 days on the pipeline.

At least one union, the Laborers International Union of North America (LiUNA), was furious with the Obama Administration's decision, citing that the project has already underwent more than 1100 days of environmental review and that the Presidents dismissal of TransCanada's project disproportionately hurt the construction industry, which has been experiencing persistently high unemployment for the last 3 years.

Instead of waiting around for Presidential approval that is less likely to be granted, Canada is looking to market the oil from the Abathasca Oil Sands in China. To that end, TransCanada's competitor Enbridge Energy [NYSE: ENB, EEP, EEQ], backed by China's quasi state-run Sinopec [NYSE- SHI] are working on building a pipeline dubbed the Western Gateway Pipeline that would link Alberta with the Pacific Coast where the oil would be shipped to Asia from there. Curiously, this route raises even more environmental concerns as the proposed western terminus of the Northern Gateway pipeline is Kitmat, BC. From the Pacific ocean, Kitmat is only accessible by a relatively narrow inlet that poses a number of weather and navigation hazards, and the province of British Columbia imposed an informal moratorium on tanker traffic off shipping lanes north of Vancouver Island.

Obama's KeystoneXL decision barely two days after a CBS report highlighted a number of struggling 'green energy' firms that had gotten generous loans from the Department of Energy besides Solyndra.


Massachusetts-based Beacon Power filed for bankruptcy in Late October nearly a year after it had received $43 million in loan guarantees from the Department of Energy.

Roughly a month before Beacon's bankruptcy, Solar firms Solyndra, SpectraWatt and Evergreen had also filed for bankruptcy. The San Francisco Bay-area based Solyndra got the most attention out of the bankrupt firms since Obama campaign bundler George Kaiser was heavily invested in the venture and reportedly lobbied the White House directly for even more funds as the firm continued to struggle.

Along with Beacon, Evergreen solar was de-listed from the NASDAQ recently. While Beacon Power still maintains a Tyngsboro, MA address, in a cost-cutting measure, Evergreen left the Commonwealth of Massachusetts for facilities in China despite Massachusetts awarding the company nearly $60 million in grants and tax incentives to set up shop in Devens, MA.

On the other end of the country, a geothermal plant championed by Senate Majority Leader Harry Reid (D-NV) continues to struggle despite being awarded loan guarantees of $79 million as well as another $66 million in grants. Nevada Geothermal [TSX.V: NGP.V] reportedly still owes $88 million for construction costs on top of their operating costs as well.

Keep in mind that the American taxpayer is more than $500 million in the hole for Solyndra alone, but with 11 other failing 'green energy' companies who were recipients of DOE loans and various government grants, that number can only go up.

Back in December, President Obama had the unmitigated chutzpah to claim that extended jobless benefits would create more jobs than the KeystoneXL project he was set to vote on. Through his stewardship of the economy, he has ensured that both the American 'Green collar jobs' he so desperately wants to tout as well as the Canadian oil the rest of the country could use are on their way to China

China Eyes Alberta's Oil Sands As State Department Delays Keystone XL Pipeline Decision

While interests in both the USA and Canada are awaiting a State Department decision on a proposed pipeline linking northern Alberta's oil sands with Texas, Chinese companies are proposing a pipeline of their own linking the vast reserves with the Pacific Ocean.

The oil sands of this Canadian province are so big that they will be able to serve both of the world's largest economies as production expands in the coming years. But that will mean building at least two pipelines, one south to the Texas Gulf Coast and another west toward the Pacific, and that in turn means fresh environmental battles on top of those already raging over the costly and energy-intensive method of extracting oil from sand.

Most believe that both will eventually be built. But if the U.S. doesn't approve its pipeline promptly, Canada might increasingly look to China, thinking America doesn't want a big stake share in what environmentalists call "dirty oil," which they say increases greenhouse gas emissions.

Alberta has the world's third largest oil reserves, more than 170 billion barrels. Daily production of 1.5 million barrels from the oil sands is expected to nearly triple to 3.7 million in 2025. Overall, Alberta has more oil than Russia or Iran. Only Saudi Arabia and Venezuela have more.

Alberta is one of the few places where oil companies can invest, as the majority of the world's oil reserves are controlled by national governments. Only 22 percent of the total world reserves are accessible to private sector investment, 52 percent of which is in Alberta's oil sands, according to the Canadian Association of Petroleum Producers.

At issue are environmental concerns over two proposed pipeline projects. The Northern Gateway Pipeline would pump oil from Edmonton, AB over the Rockies to a new maritime terminal in Kitimat, BC for export to China. China's state oil company, Sinopec [NYSE: SHI] reportedly has a stake in excess of US$ 5 billion in the plans drawn up by Alberta-based Enbridge [NYSE: ENB/TSX: ENB].

Map detailing already existing pipelines and proposed expansion

Meanwhile, running to the south is the Keystone XL project, much of which is already in place, but Phase 1 takes a circuitous zig-zag route through Manitoba before stretching south across the border to Steele City, NE. From there, the pipelines diverge with one heading east to Patoka, IL and the other heading south to Cushing, OK (See map above). The proposed extension (Phase 4) by pipeline owner TransCanada [NYSE: TRP/TSX: TRP] would bypass Phase 1 and take a more direct route from Alberta by cutting through eastern Montana, then western South Dakota and Nebraska. Phase three of the project would involve expanding the pipeline south from Oklahoma to the Houston area.

Natural oil sands seepage into Alberta's Athabaca River

So right off the bat, this KeystoneXL pipeline expansion would be providing Americans with jobs and an important energy source from a politically stable ally in the region. Sounds like a win-win- doesn't it?

Well- not to the usual suspects. Interesting how last year, Cap & Trade co-author Rep Henry Waxman (D- CA30) was concerned about the possible environmental impact of the Keystone XL project but now the House Democrat is worried that the eeeeeeevil Koch Brothers- the de-facto progressive boogeyman since late 2010- might financially benefit from the pipeline's construction- because apparently we cannot have abundant oil from Canada if a single Republican donor stands to benefit from it [curious how they aren't quite as dilligent on legislative or policy decisions that would affect....say...Jeffery Immelt- NANESB!].

'Green' energy advocates often (and rightly) cite our growing dependence on an energy source that primarily originates from a decreasingly stable parts of the world. Yet whether it's hydrofracking in the Marcellus Shale, offshore oil drilling in the Gulf of Mexico or ANWAR, the same 'Green' energy advocates suddenly deem those energy sources off-limits.

Since the proposed KeystoneXL pipeline expansion crosses the US/Canada border, the final say in the matter is ultimately left up to the State Department, which is expected to make its final decision after a multi-agency review later on this year [A word of caution- leaving the matter up to the State Department could be a means for the White House to avoid making an unpopular political decision ahead of 2012- NANESB!]

Here's the thing that really bothers me- should they successfully derail the KeystoneXL project, it's not as though the oil sands will continue to sit there untapped. There is still the matter of growing demand from China. From the American perspective, one of the few things we have in our favor at the moment is that there's perhaps even more local opposition to the Northern Gateway pipeline project then there is the KeystoneXL. There is also concerns about tankers navigating the 55-mile inlet known as the Douglas Channel in order to get between Kitimat and the Pacific Ocean.

Highway of Heroes- A Canada Day Tale From Not Another New England Sports Blog

Photo- Military Mom At Home

In honor of Canada Day today, I thought it would be appropriate to look into the Highway of Heroes phenomenon in the province of Ontario.

For the Canadian military, it is standard practice to have an autopsy performed on any serviceman or woman killed in the line of duty. The bodies of Canadian soldiers killed in Afghanistan are flown to the CFB Trenton Air Force Base and then driven about 100 miles to the west where the autopsy is performed at the Centre for Forensic Sciences in Toronto.

The procession has been taking place since 2002 and is always given a police escort the entire way. Much of this journey includes Ontario Highway 401, a freeway sometimes known as the Kingsway.

With the very first of the casualties being repatriated one final time, Pete Fischer- a photographer for Northumberland Today- noticed a crowd of about 30 onlookers, including a pair of policemen, gathered on an overpass and saluting as the hearses made their way down the 401. From there, the crowds from the townships and counties the procession passed through would steadily grow. Canadian flags, handmade signs and ribbons would adorn some overpasses while police officers or firefighters in uniform would park their vehicles alongside the 401 or an overpass and salute the procession.

In his bid to have the province officially recognize the Trenton-Toronto stretch of the 401 as the Highway of Heroes, Fischer recounted:

Every person who stands on a bridge will tell you it’s a feeling like no other. As you wait, you talk with people who have been there before, who you’ve come to know. People smile, share feelings, talk about how many times they’ve stood on various bridges. It’s a mix of pride and sadness.

When the convoy of vehicles is seen approaching, murmurs in the crowd can be heard: “Here they come.” There’s silence as people get ready. Then, there’s a sudden sea of arms waving Canadian flags, wanting to let family members in the procession know we are there for them, that we share their pain and are proud to be Canadian.

It’s not unusual to see a soldier’s hand waving a beret from a hearse, or a family member waving from a limousine, to acknowledge the people on the bridge. Those waves are simple gestures, but more than enough for everyone on a bridge to know in that split second that everyone has made a connection to the people in those vehicles.

Rain or shine, an impromptu, grassroots honor guard is present along ramps and overpasses of the 401 to pay their respects for the fallen one final time.

In August 2007, those advocating for official recognition got their wish as the province unveiled new signs along the 401 designating the 100-mile stretch the Highway of Heroes.

More recently, a stretch of the Trans-Canada highway through British Columbia was also re-named the Highway of Heroes at the urging of the Royal Canadian Legion, veterans and family members of the more than dozen BC natives killed in Afghanistan.

Keep in mind that aside from the Winter Olympics or Don Cherry, Canadians by and large tend to shy away from wearing their patriotism on their sleeves. I have nothing else to add other than I thought that was a very moving and sincere gesture by the folks living in some of these towns along the 401 to pay their last respects to Canada's fallen soldiers.

Borderline Psychosis- The Often Overlooked Northern Border Edition: GAO- Only 32 miles of Canadian Border 'Secure'; Smugglers Pipeline in Northern NY

Looking north from the Whitetail, MT border crossing- Mike Stebelton/ Daniels County Leader

A study released in February indicates that just over 32 miles of the nearly 4,000 mile US/Canadian border is considered 'secure' according to the Government Accountability Office (GAO).

The Department of Homeland Security (DHS) states the threat of terrorism from the northern border is higher than from the southern Mexico border, given the large expanse of area with limited law enforcement coverage. DHS reports networks of illicit criminal activity and smuggling of drugs, currency, people, and weapons across the northern border.

The report focuses on whether federal agencies are working together to secure the vast stretches of the border owned by the federal government.

The study points out critical gaps in security along the U.S.-Canadian border that limit the ability of Customs and Border Protection to fully secure the border—gaps including a lack of interoperable communications systems and limited sharing of intelligence and information between local and federal officials.

U.S. Customs head Alan Bersin told a US Senate Subcommittee earlier this month that even though the Canadian border sees far fewer arrests than the US/Mexican border, the Canadian border is considered a 'more significant threat' by Customs and DHS.

Although certainly not marred by the bloody narco-violence like Mexico, there are concerns that radical Islamists would attempt to enter the USA through Canada to carry out attacks. In December 1999, an Algerian national was arrested at Port Angeles, WA after entering the country from Victoria, BC when a search of his vehicle turned up plastic bags filled with explosives and some homemade timing devices.

MICHIGAN: Drug traffickers flying in private aircraft have taken to making their drops at small, rural and sometimes unstaffed airports along some border states.

The bust by federal agents didn't happen on the southwestern border. It was in Michigan's rural Thumb region next to a soybean field. The remote airport here in Sandusky offers a smooth runway at any hour to anyone who needs it, a perfect landing spot for brazen drug smugglers who can cross the Great Lakes from Canada in minutes.

Beefed-up enforcement along the Mexican border has made smuggling more challenging for criminal cartels using the major southern routes, but drugs continue to flow across the porous northern border through airstrips like this one as officials look for new ways to fight back.

Tracking rogue planes at low altitude with their transponders off is “like trying to pick a needle out of a haystack,” said John Beutlich of U.S. Customs and Border Protection, who oversees air and marine operations from Washington state to Maine.

“Shoot, we're just a big cherry to pick and didn't realize it,” said Joe Allen, manager of the Sandusky airport, 145 kilometres northeast of Detroit.

He installed a fence to keep cars from meeting planes at the runway, but the property is not staffed at night. Border agents could offer just two signs asking people to call an 800 number if they see something unusual.

Canada is a significant source of high-quality marijuana and the amphetamine Ecstasy. More than 2 million doses of Ecstasy were seized on the northern border in 2009 compared to just 312,000 in 2004, the Drug Enforcement Administration said, offering a snapshot of what's popular and what gets confiscated.

Most shipments come by road. But the 2009 flight from Ontario to Michigan, the subject of a recent federal trial, provided insight into drug operations that use small planes. Officials don't know how frequent such flights are but consider the vulnerability alarming.

Matthew Moody and nephew Jesse Rusenstrom, both from Amherstburg, Ontario, were the couriers captured that night in Sandusky. Their job was to enter the country through Detroit, meet the Canadian plane and deliver the drugs to others in the U.S. They also put 27 kilograms of cocaine worth more than $500,000 on the return flight to Guelph, Ontario.

Matthew Moody and nephew Jesse Rusenstrom, both from Amherstburg, Ontario, were the couriers captured that night in Sandusky. Their job was to enter the country through Detroit, meet the Canadian plane and deliver the drugs to others in the U.S. [In addition to the 79kg of pot and 400,000 ecstacy pills they had flown in and were apprehended with] they also put 27 kilograms of cocaine worth more than $500,000 on the return flight to Guelph, Ontario.

It was just one in a series of shipments. Mr. Rusenstrom said he met the drug plane at least 10 times at other tiny airports in the Thumb region — Marlette, Ray, Lapeer — as well as in Greenville in western Michigan and an airport in Pennsylvania. The pilot activated runway lights from the cockpit, a standard practice in aviation.

Mr. Rusenstrom, testifying at the trial of an accomplice, Robert “Romeo” D'Leone, said hundreds of airports were studied on Google Maps.

“We would go around looking for airports, seeing if there was fences or cameras,” the 21-year-old told jurors.

Mr. D'Leone, who lives in the Toronto area, stopped his trial and pleaded guilty on April 14. Mr. Rusenstrom and Mr. Moody co-operated, pleaded guilty and were recently sentenced to time served in custody. The U.S. still wants to extradite four others in Ontario who are accused of major roles, including the pilot.

Some jurors were alarmed by the revelations during the D'Leone trial.

“You always hear Homeland Security has an eye on everything. It's surprising that airfields aren't manned 24 hours,” Robert Simpson, 47, told The Associated Press.

The Sandusky airport has spent $2,000 on cameras and hopes to install more.
“We're outside radar,” Mr. Allen, the manager, said, running his finger over a map of Michigan's Thumb. “You can come and go as you please. You don't even have to file a flight plan.”

The minimal help he received from border authorities — warning signs — had to be fixed before he posted them: They referred to suspicious boats, not planes.

[What is it with Homeland Security and thinking signs are the answer!?- NANESB!]

NEW YORK: Another locale popular with smugglers and organized crime on both sides of the border is the Akwesasne Indian Reservation just outside of , which straddles the borders between New York State, Quebec and Ontario along the St Lawrence River.

The area's unique geography and patchwork of jurisdictions on both sides of the border has had the attention of smugglers and bootleggers since Prohibition. In more recent years, local residents will either run contraband across the border themselves- either in snowmobiles during wintertime or motorboats when the St Lawrence is navigable- or charge landing fees to smugglers for using their property.

Illegal immigrants, hydroponic marijuana and Ecstasy are usually smuggled into the USA from the Canadian side while illegal firearms, cocaine and untaxed tobacco or alcohol make their way north. Some estimates say that 20% of Canadian grown marijuana smuggled into the USA moves through the Akwesasne/St Regis reservation.

While there are some cigarette factories on the US side of the reservation, the sale of tax free cigarettes on reservation stores has caught the attention of groups like the 'Ndrangheta, Hells Angels and Bulgarian Mafia who will often purchase cigarettes in bulk then turn around and sell the untaxed cigarettes in high tax municipalities like New York City, Montreal or Toronto.

Terrorist organizations such as Hezbollah and the Real IRA have also raised funds through trafficking untaxed cigarettes in the last decade.

Report: 81 Year Old Fugitive Whitey Bulger Dead, Cremated in Central America

Reports are circulating over the weekend that fugitive octigenarian extortionist, murderer and drug trafficker James J. 'Whitey' Bulger had recently died of a heart attack in Costa Rica and his girlfriend had the remains cremated.

A fugutive since December 1994 and on the FBI's 10 most wanted list since 1999, Bulger is wanted by the Justice Department and prosecutors in Boston for multiple counts of murder, drug trafficking, extortion and RICO viloations.

Throughout the 1980s, Bulger leveraged his relationship with FBI agent John Connolly and Massachusetts State Police Lt. Richard Schneiderhan as well as his own status as an informant to eliminate rivals or informants and consolidate power as his Providence, RI-based rivals in the Patriarca crime family were left reeling after a series of Federal indictments.

A year ago, FBI agents and police in British Columbia, Canada were canvassing bookstores around the city of Victoria on Vancouver Island in search of Bulger. So far, the FBI has remained skeptical regarding the latest rumor about Bulger's death and cremation in Central America.

Here is the official statement from the Boston FBI office, as delivered by Special Agent Gregory Comcowich:

“The FBI has no credible information to indicate that Bulger is deceased. Until the FBI receives credible verified information that he has died, the FBI will continue its fugitive investigation.”

As one of Whitey's victims put it: “If I were Whitey, this is exactly the story I’d want out there. Not only is he dead, but the body is gone.” But then again, considering that it was almost a year ago to the day that the Feds were looking for Bulger in Canada, this latest rumor could be a hoax pulled off by the remnants of the Winter Hill gang or Bulger himself.

[Hat Tip: Howie Carr; Friends of Ours]

RCMP: Anti-Tank Weapon With Live Ammunition Discovered Abandoned Next to BC Highway

Crews contracted by BC Hydro to clear brush from underneath power lines discovered a loaded anti-tank weapon not 20 feet from the Trans Canada Highway on Friday.

The Royal Canadian Mounted Police and a Canadian Forces ordinance disposal unit were called to secure the area about 25km north of Victoria BC and take custody of the device.

The weapon was identified as an M72 Light Anti-tank Weapon (a predecessor to the US Army's AT-4). RCMP Sgt. Rob Webb said that the weapon appeared to be at that location for a few weeks before being discovered.

I'm not sure why a loaded anti-tank weapon would be abandoned by the side of the road in Canada, but it does seem pretty disturbing in light of today's other events. Police elsewhere in British Columbia have said they seized a similar weapon in a raid on a marijuana growing operation in a rural area outside of Kamloops earlier this year. So there may be nothing more to it than that, but it seems extremely foolish to dismiss this report with a mere "Oh come on now, that could be anybody's loaded rocket launcher abandoned by the side of the road."

Also keep in mind that for the failed 1999 Millennium Bombing plot, one of the perpetrators was discovered attempting to enter the USA through Port Angeles, WA with explosives after taking a car ferry from Victoria, BC.

Georgian Economy Minister Rips Russian Media, Canadian Newspaper Over Racy Photo and Doctored Resume Accusations

(Photo- Georgia Ministry of Economic and Sustainable Development)

The former Soviet Republic of Georgia's newly appointed Economic minister has found herself in the spotlight after a racy picture of her surfaced on Facebook and Canada's Vancouver Sun discovered what they said were discrepancies in her resume.

Georgia-born and Canadian raised Vera Kobalia was appointed to the Economic Ministry earlier this month by Georgian President Saakashvili. Her official bio lists her as being a producer for Global TV between 2004 and 2006, but The Vancouver Sun reports that Global TV's Human Resources department can't find any record of her being on the payroll.

The above photo with Vera Kobalia in the middle was reportedly taken on Spring Break in Florida nearly 10 years ago, while others are claiming it was taken more recently in a Canadian strip club. Vera's sister Nina also reportedly appears in the photo and The Russian media apparently has been having a field day with this, accusing Georgian president and Kremlin nemesis Mikheil Saakashvili of appointing 'strippers' to his cabinet.

Kobilia's father, who currently runs a bakery in Vancouver BC, saw nothing wrong with the photos. According to Vera Kobalia's spokesperson "She said she could only be happy that this is the only 'compromising material' against her that could be found. She continues working without paying attention to such garbage.". Kobalia herself went as far as calling the Vancouver Sun a propaganda outlet of the Kremlin and denies doctoring her resume.

Today's Train of Thought- O Canada; July 1 2010

Today's Train of Thought comes to us from north of the border in honor of Canada Day. While CP is best known for it's scenic and legendary transcontinental line through the Rockies, it also operates a second line winding through the Canadian Rockies in Southern British Columbia that crosses the rockies at Crowsnest pass.

This also happens to be where the headwaters of the Columbia River are located, with CP Rail SD40-2 #5736 leading a trio of red six-axle motors along the banks of the Columbia with a string of cars carrying aggregates in tow at Castlegar, BC. Railpictures.net contributor Matthew Hicks caught Train 564 treading through this majestic scenery on a seemingly perfect August 11, 2009 on its way to Trail, BC.

Those Red & White CP SD40s sure do get around, don't they?

Happy Canada Day from Not Another New England Sports Blog!

While our independence day is right around the corner, today marks Canada Day (formerly Confederation Day) for our neighbors up north. Sure- we may think of Canada as a safe haven for draft-dodging hippies back during the Vietnam era, but there's more to the Great White North than geriatric hippies and lengthy wait times to see a doctor under their healthcare system.

[Nose Art on WWII-era RCAF Lancaster]

Don't let the decades of Trudeau-esque nanny statism fool you, either- Canada's rugged individualism has been out there for all to see over the last few years [I could even make the case that it was there all along, just not noticed until fairly recently- NANESB!].

You want badass? How about driving 18 wheelers over frozen lakes? You want even more badass? Try being the first one to drive heavy vehicles across the frozen waters in the wilderness: that sounds like ex-soldier, ex-Mountie John Denison ,who began supplying remote mining camps in the Northwest Territories at first with 'Cat trains'- a bulldozer pulling several sleds loaded down with supplies and lashed together- and then with a secondhand Army truck in the 1950s. Today there is a fairly well co-ordinated system overseeing operations of the seasonal ice roads in the Northwest Territories; that's not to say it's no longer dangerous, but imagine heading out into the wilderness in not much more than a secondhand two and a half ton truck. Denison was considered the original architect of the ice roads and was awarded the Order of Canada in 1998. John Denison passed away in Kelowna, BC in 2001 at the age of 84.

Not badass enough? Try one of the longest confirmed sniper kills on record! Then-Master corporal Rob Furlong of Princess Pat's Light Infantry set a world record in 2002 with the longest confirmed kill during Operation Anaconda in Afghanistan's Shah-i-Kot valley, when he dropped a machine gun toting Al Qaeda fighter from a distance of more than 2600 yards (or just over a mile and a half). Having said that, Furlong's record was recently surpassed by a British sniper- also in Afghanistan.

Keep in mind that Canada entered WWII two years ahead of the USA. James Doohan- the actor who played Scotty on Star Trek- was with the Canadian Army when they stormed Juno beach on D-Day. He was hit by gunfire and lost his finger that day but would survive. Later on in his acting career, cameramen would ty and avoid filming his hand that was missing the finger.

Let's not forget ice-hockey, hardly a pursuit for the faint of heart. Sure, it's been awhile since a Canadian team brought home the Stanley Cup, but Canada provides a good deal of the manpower for those championship teams.

One possible upside of the 'Fairness Doctrine' being imposed on American broadcaster is that USA viewers could be treated to a 76 year old Don Cherry reducing Keith Olberman to a snivelling, incoherent shell of a human being with just one glance...well....I guess an even more incoherent snivelling shell of a human being during NBC's Football Night in America (a name NBC 'borrowed' from CBC's long-running Hockey Night in Canada). Hell, Cherry would probably make Olberman's awkward, gangly stepson Rachel Maddow hold his technicolor dream coat while he effortlessly sapped the MSNBC 'personality' of his will to live.
And let us not forget the First Canadians (an Anglo Canadian neolingism for 'Native Americans')such as the Baker Twins- Shannon and Shauna- from the Stellat'en First Nations Reservation in Northwestern British Columbia. OK....to be honest, since I don't watch Smallville, I only found out about them like 20 minutes ago. Apparently Shannon's appearance on Smallville was supposed to be a one-time deal that got extended when the producers found out she had a real-life identical twin.

[Image: CMT]

There's also a good number of country musicians that hail from Canada. In the interest of full disclosure, I hardly ever listen to country music but have to acknowledge that a disproportionate number of attractive women seem to gravitate towards that medium as performers. Montreal-born and Medicine Hat, Alberta-raised Terri Clark (shown above) has been in the business for the last 15 years.

Image: Rocky Mountain Rail Society

Let us not forget the iron horses that- just as in our history- played a pivotal role in the development and expansion of Canada. One could make the argument that Canada as a nation would not have survived were it not for the completion of the Canadian Pacific line between Ontario and the then-obscure pacific coast port of Vancouver. In fact, completion of the line was a condition for British Columbia's 1871 entry into the Confederation of Canada. Canadian Pacific's line was completed in November 1885, followed by Canadian Northern's transcontinental line (which would become Canadian National). Like their American counterparts, Canadians have also taken steps to preserve equipment and structures from that era- such as former Canadian National streamlined U-1-f 4-8-2 Mountain class built by the Montreal Locomotive works. #6060 (shown above) is such an example and is maintained by the Rocky Mountain Rail Society and frequently operated over the Alberta Prairie railroad in Stettler, AB (the Alberta Prairie has a smaller ex-US Army Steam engine of its own it will operate on a more regular basis).

This video from TLC also gives viewers an idea of what it's like to operate a train over the Canadian Rockies in more modern times (it starts about 40 seconds in):


So Happy Canada Day, our neighbors to the north! I'm not sure if you traditionally set off fireworks like we do on independence day, but raise a frosty pint of Alexander Keith's or Okanagan Spring to your underrated nation on this first of July!

Fugitive Irish Mobster Whitey Bulger In British Columbia?

Police and FBI agents visited the two largest bookstores in Victoria, British Columbia to circulate posters with a picture of #4 on the FBI's Ten Most Wanted List, former Winter Hill Gang leader, current fugitive Southie and octogenarian James 'Whitey' Bulger. There are warrants out for Bulger's arrest on charges of money laundering, extortion, racketeering, drug trafficking and at least 19 counts of murder between the early 1970s to mid 1980s. Law enforcement is focusing on bookstores in the area because the fugitive Bulger is reportedly a history buff.

Bulger continued his criminal activities while being recruited as an FBI informant in the early 1970s. Agents in the Boston office of the FBI willingly overlooked Bulger's ongoing criminal activites with the Winter Hill gang- up to and including murder- in exchange for information from Bulger about the rival Providence, RI-based Patriarca crime family's operations.

Tipped off by then-FBI agent John Connolly about sealed indictments from the Justice Department prior to Christmas 1994, Bulger went on the run. In 1999, he was placed on the FBI's 10 Most Wanted List and subject to an Interpol 'Red Notice' (immediate extradition requested) in 2007. The last credible sighting of Bulger was in 2002 in London, England by a British businessman who recognized him after meeting Bulger at a hotel gym in the early 1990s.

Bulger's younger brother William would go on to be a Massachusetts state senator and University of Massachusetts President, although he would resign from the latter position after testifying that, while president of the Massachusetts State Senate, he went to a pre-arranged location to avoid electroinic survaillence and wiretapping while taking a phone call from his fugitive brother.

[Hat tip: Friends of Ours]