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"Canadians" becoming code word for "niggers" in US

Via Language Log: No Dogs or Canadians? 

This is rather bizarre, but apparently in the US, the term "Canadian" is apparently increasingly being used as a replacement derogatory term for "black people".  It's ideal for cryptoracists because it doesn't sound racist.  "Damn Canadians" doesn't sound like a racial slur, after all.

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