] Walters, the U.S. drug czar, says he has talked with his
] Canadian counterparts about the pitfalls of pot
] legalization and harboring of American drug fugitives.
] "If Canada wants to become the locus for that kind of
] activity," he says, "they're likely to pay a heavy
] price."

This is a really good article. I would not be suprised if Canada legalized pot. If they did, then this will segway with current conservative anger about the open border (thank you Bill "no spin (yeah, right)" O'Reilly). The result will be a very strange border situation, with major hassles involved in crossing one direction, but little trouble crossing the other direction... If this impacts the rate of trade, or if there are trade restrictions, then both sides will feel this in their wallets and their markets. The US may try to screw with the trade situation betting that it will hurt Canada more then the US. Of course, the US will have to contend with domestic pressures, both from the pot brigade, but also from corporate america and wall street...

So basically, this is worth paying attention to because it is certainly possible that there is a situation developing here that could have serious economic and policy implications. If this situation worsens rapidly this could prolong the recession.

The Drug War Refugees