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I thought New Mexico was being renamed to New America.

Are you trying to make a joke about New England/New York/New Jersey?

I’m trying to understand and I just don’t get it.

The joke is renaming/annexing England so that the name New England now properly becomes New America

It isn't funny, it's just dark

I think Toronto would do just fine as New Buffalo.

Calling England America would be ambiguous. Maybe West America?