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Notorious drug lord Joaquin “El Chapo” Guzman convicted

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NEW YORK — Mexico’s most notorious drug lord, Joaquin “El Chapo” Guzman, was convicted Tuesday of running an industrial-scale smuggling operation after a three-month trial packed with Hollywood-style tales of grisly killings, political payoffs, cocaine hidden in jalapeno cans, jewel-encrusted guns and a naked escape with his mistress through a tunnel.

Guzman faced a drumbeat of drug-trafficking and conspiracy convictions that could put the 61-year-old escape artist behind bars for decades in a maximum-security U.S. prison selected to thwart another one of the breakouts that embarrassed his native country.

New York jurors whose identities were kept secret reached a verdict after deliberating six days in the expansive case, sorting through what authorities called an “avalanche” of evidence gathered since the late 1980s that Guzman and his murderous Sinaloa drug cartel made billions in profits by smuggling tons of cocaine, heroin, meth and marijuana into the U.S.

Evidence showed drugs poured into the U.S. through secret tunnels or hidden in tanker trucks, concealed in the undercarriage of passenger cars and packed in rail cars passing through legitimate points of entry — suggesting that a border wall wouldn’t be much of a worry.

The prosecution’s case against Guzman, a roughly 5 1/2-foot figure whose nickname translates to “Shorty,” included the testimony of several turncoats and other witnesses. Among them were Guzman’s former Sinaloa lieutenants, a computer encryption expert and a Colombian cocaine supplier who underwent extreme plastic surgery to disguise his appearance.

One Sinaloa insider described Mexican workers getting contact highs while packing cocaine into thousands of jalapeno cans — shipments that totalled 25 to 30 tons of cocaine worth $500 million each year. Another testified how Guzman sometimes acted as his own sicario, or hitman, punishing a Sinaloan who dared to work for another cartel by kidnapping him, beating and shooting him and having his men bury the victim while he was still alive, gasping for air.

The defence case lasted just half an hour. Guzman’s lawyers did not deny his crimes as much as argue he was a fall guy for government witnesses who were more evil than he was.

Defence attorney Jeffrey Lichtman urged the jury in closing arguments not to believe government witnesses who “lie, steal, cheat, deal drugs and kill people.”

Deliberations were complicated by the trial’s vast scope. Jurors were tasked with making 53 decisions about whether prosecutors have proven different elements of the case.

The trial cast a harsh glare on the corruption that allowed the cartel to flourish. Colombian trafficker Alex Cifuentes caused a stir by testifying that former Mexican President Enrique Peña Nieto took a $100 million bribe from Guzman. Peña Nieto denied it, but the allegation fit a theme: politicians, army commanders, police and prosecutors, all on the take.

The tension at times was cut by some of the trial’s sideshows, such as the sight of Guzman and his wife, Emma Coronel Aispuro, showing up in matching burgundy velvet blazers in a gesture of solidarity. Another day, a Chapo-size actor who played the kingpin in the TV series “Narcos: Mexico” came to watch, telling reporters that seeing the defendant flash him a smile was “surreal.”

While the trial was dominated by Guzman’s persona as a near-mythical outlaw who carried a diamond-encrusted handgun and stayed one step ahead of the law, the jury never heard from Guzman himself, except when he told the judge he wouldn’t testify.

But his sing-songy voice filled the courtroom, thanks to recordings of intercepted phone calls. “Amigo!” he said to a cartel distributor in Chicago. “Here at your service.”

One of the trial’s most memorable tales came from girlfriend Lucero Guadalupe Sanchez Lopez, who testified she was in bed in a safe house with an on-the-run Guzman in 2014 when Mexican marines started breaking down his door. She said Guzman led her to a trap door beneath a bathtub that opened up to a tunnel that allowed them to escape.

Asked what he was wearing, she replied: “He was naked. He took off running. He left us behind.”

The defendant had previously escaped from jail by hiding in a laundry bin in 2001. He then got an escort from crooked police officers into Mexico City before retreating to one of his many mountainside hideaways. In 2014, he pulled off another jail break, escaping through a mile-long lighted tunnel on a motorcycle on rails.

Even when Guzman was recaptured in 2016 before his extradition to the United States, he was plotting another escape, prosecutor Andrea Goldbarg said in closing arguments.

“Why? Because he is guilty and he never wanted to be in a position where he would have to answer for his crimes,” she told the jury. “He wanted to avoid sitting right there. In front of you.”

The Associated Press

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Mortgaging Canada’s energy future — the hidden costs of the Carney-Smith pipeline deal

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By Dan McTeague

Much of the commentary on the Carney-Smith pipeline Memorandum of Understanding (MOU) has focused on the question of whether or not the proposed pipeline will ever get built.

That’s an important topic, and one that deserves to be examined — whether, as John Robson, of the indispensable Climate Discussion Nexus, predicted, “opposition from the government of British Columbia and aboriginal groups, and the skittishness of the oil industry about investing in a major project in Canada, will kill [the pipeline] dead.”

But I’m going to ask a different question: Would it even be worth building this pipeline on the terms Ottawa is forcing on Alberta? If you squint, the MOU might look like a victory on paper. Ottawa suspends the oil and gas emissions cap, proposes an exemption from the West Coast tanker ban, and lays the groundwork for the construction of one (though only one) million barrels per day pipeline to tidewater.

But in return, Alberta must agree to jack its industrial carbon tax up from $95 to $130 per tonne at a minimum, while committing to tens of billions in carbon capture, utilization, and storage (CCUS) spending, including the $16.5 billion Pathways Alliance megaproject.

Here’s the part none of the project’s boosters seem to want to mention: those concessions will make the production of Canadian hydrocarbon energy significantly more expensive.

As economist Jack Mintz has explained, the industrial carbon tax hike alone adds more than $5 USD per barrel of Canadian crude to marginal production costs — the costs that matter when companies decide whether to invest in new production. Layer on the CCUS requirements and you get another $1.20–$3 per barrel for mining projects and $3.60–$4.80 for steam-assisted operations.

While roughly 62% of the capital cost of carbon capture is to be covered by taxpayers — another problem with the agreement, I might add — the remainder is covered by the industry, and thus, eventually, consumers.

Total damage: somewhere between $6.40 and $10 US per barrel. Perhaps more.

“Ultimately,” the Fraser Institute explains, “this will widen the competitiveness gap between Alberta and many other jurisdictions, such as the United States,” that don’t hamstring their energy producers in this way. Producers in Texas and Oklahoma, not to mention Saudi Arabia, Venezuela, or Russia, aren’t paying a dime in equivalent carbon taxes or mandatory CCUS bills. They’re not so masochistic.

American refiners won’t pay a “low-carbon premium” for Canadian crude. They’ll just buy cheaper oil or ramp up their own production.

In short, a shiny new pipe is worthless if the extra cost makes barrels of our oil so expensive that no one will want them.

And that doesn’t even touch on the problem for the domestic market, where the higher production cost will be passed onto Canadian consumers in the form of higher gas and diesel prices, home heating costs, and an elevated cost of everyday goods, like groceries.

Either way, Canadians lose.

So, concludes Mintz, “The big problem for a new oil pipeline isn’t getting BC or First Nation acceptance. Rather, it’s smothering the industry’s competitiveness by layering on carbon pricing and decarbonization costs that most competing countries don’t charge.” Meanwhile, lurking underneath this whole discussion is the MOU’s ultimate Achilles’ heel: net-zero.

The MOU proudly declares that “Canada and Alberta remain committed to achieving Net-Zero greenhouse gas emissions by 2050.” As Vaclav Smil documented in a recent study of Net-Zero, global fossil-fuel use has risen 55% since the 1997 Kyoto agreement, despite trillions spent on subsidies and regulations. Fossil fuels still supply 82% of the world’s energy.

With these numbers in mind, the idea that Canada can unilaterally decarbonize its largest export industry in 25 years is delusional.

This deal doesn’t secure Canada’s energy future. It mortgages it. We are trading market access for self-inflicted costs that will shrink production, scare off capital, and cut into the profitability of any potential pipeline. Affordable energy, good jobs, and national prosperity shouldn’t require surrendering to net-zero fantasy.If Ottawa were serious about making Canada an energy superpower, it would scrap the anti-resource laws outright, kill the carbon taxes, and let our world-class oil and gas compete on merit. Instead, we’ve been handed a backroom MOU which, for the cost of one pipeline — if that! — guarantees higher costs today and smothers the industry that is the backbone of the Canadian economy.

This MOU isn’t salvation. It’s a prescription for Canadian decline.

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Cost of bureaucracy balloons 80 per cent in 10 years: Public Accounts

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By Franco Terrazzano 

The cost of the bureaucracy increased by $6 billion last year, according to newly released numbers in Public Accounts disclosures. The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to immediately shrink the bureaucracy.

“The Public Accounts show the cost of the federal bureaucracy is out of control,” said Franco Terrazzano, CTF Federal Director. “Tinkering around the edges won’t cut it, Carney needs to take urgent action to shrink the bloated federal bureaucracy.”

The federal bureaucracy cost taxpayers $71.4 billion in 2024-25, according to the Public Accounts. The cost of the federal bureaucracy increased by $6 billion, or more than nine per cent, over the last year.

The federal bureaucracy cost taxpayers $39.6 billion in 2015-16, according to the Public Accounts. That means the cost of the federal bureaucracy increased 80 per cent over the last 10 years. The government added 99,000 extra bureaucrats between 2015-16 and 2024-25.

Half of Canadians say federal services have gotten worse since 2016, despite the massive increase in the federal bureaucracy, according to a Leger poll.

Not only has the size of the bureaucracy increased, the cost of consultants, contractors and outsourcing has increased as well. The government spent $23.1 billion on “professional and special services” last year, according to the Public Accounts. That’s an 11 per cent increase over the previous year. The government’s spending on professional and special services more than doubled since 2015-16.

“Taxpayers should not be paying way more for in-house government bureaucrats and way more for outside help,” Terrazzano said. “Mere promises to find minor savings in the federal bureaucracy won’t fix Canada’s finances.

“Taxpayers need Carney to take urgent action and significantly cut the number of bureaucrats now.”

Table: Cost of bureaucracy and professional and special services, Public Accounts

Year Bureaucracy Professional and special services

2024-25

$71,369,677,000

$23,145,218,000

2023-24

$65,326,643,000

$20,771,477,000

2022-23

$56,467,851,000

$18,591,373,000

2021-22

$60,676,243,000

$17,511,078,000

2020-21

$52,984,272,000

$14,720,455,000

2019-20

$46,349,166,000

$13,334,341,000

2018-19

$46,131,628,000

$12,940,395,000

2017-18

$45,262,821,000

$12,950,619,000

2016-17

$38,909,594,000

$11,910,257,000

2015-16

$39,616,656,000

$11,082,974,000

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