Ok, this may not make the most sense... Move Border Patrol out from under the Federal LE umbrella and put them under a military umbrella (much like the coast guard) and make sure they are equipped with whatever gear and training it takes to meet the cartel threat head on
I'm with Miguel on this one. If we can find Osama, lets put the cartels in the terrorist category and open season on their asses! A few midnight raids, cruise missiles, or predator drones with hellfires would get their attention. We are just helping or allies on the war on drugs.