Roundup: The drivers of food price inflation

The September inflation numbers were released yesterday morning, and they are still cooling, but not quite by as much as anticipated, in part because food price inflation continues to stay high. While the temptation to conclude that this is entirely the fault of the grocery oligopoly engaged in price gouging, and boy howdy are the NDP trying to make this a Thing, we know from the economic data that it’s not actually the case. And it doesn’t take too much digging to know what some of the drivers of this food price inflation really are:

  • For cereal and bakery products, that’s because the drought on the Prairies destroyed 40 percent of crop yields last year
  • The blight known as “coffee rust” is affecting those crops, and is in large part because of monoculture
  • Drought has also taken out things like the chilis necessary for things like sriracha sauce, or the mustard crops used in condiments
  • Fresh fruit and vegetables are, again, susceptible to droughts in places like California, or the hurricanes that struck Florida
  • Fish and seafood are facing collapsing stocks, which again, drives up prices, and some harvesting seasons have been impacted by hurricanes
  • Dairy and meat has seen higher input costs (again, drought taking out feed crops) and avian flu ravaging poultry flocks is also driving up prices

As you can see, climate change is a big driver for most of these. Our food production is very vulnerable to it, and that is causing a lot of these price increases, and we need to be aware of that and stop couching it euphemisms about “inclement weather” or the like.

Meanwhile, Chrystia Freeland has told her Cabinet colleagues that they need to keep their spending priorities in check, and if they want higher spending, they need to be prepared to find savings in their departments to pay for them. While we have seen that the government’s fiscal stance is already pretty tight, Freeland needs to manage expectations right now—if we do go into a recession, the government can’t keep up the same supports they did during the pandemic, and broad spending programmes could wind up fuelling inflation and undoing the work the Bank of Canada is doing to tame it. It’s unlikely to really blunt any of the attacks from the opposition, and Poilievre in particular because he’ll just make up more nonsense that sounds like economics but is just bullshit, and certain people will spoon it up and legacy media will both-sides it, but regardless, Freeland looks to be steering the Liberals back on a course toward the brand of fiscal prudence and away from trying to capture more of the left, but perhaps that’s because they have put a mark in that territory with things like childcare and know that there are voters at the centre that the Conservatives are abandoning that they would rather pick up instead. Either way, it’s an interesting move.

Ukraine Dispatch, Day 238:

As Russians continue to bomb power stations around the country, Ukrainians are facing rolling blackouts. President Volodymyr Zelenskyy called out the Iranians for accepting “blood money” for these drone.  Meanwhile, Putin has declared martial law in the four occupied territories in Ukraine, giving his Russian regional governors emergency powers to enact new restrictions.

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QP: Politicising a tragedy because of course he did

For Wednesday, proto-PMQ day, the prime minister was indeed present, and had a binder full of prepared responses, not that he was going to need most of it given how utterly repetitive QP has become in the past number of weeks. Pierre Poilievre led off, and started with condolence for the murder of a police officer in Burnaby, BC, and wanted action on the “crime wave” gripping the country. Justin Trudeau agreed that they need to do more, and spoke about their plans to increase funding for mental health supports. Poilievre then moved to the inflation numbers, and food inflation in particular, accusing the government of raising taxes on food, which of course is not true, and the biggest driver of food price inflation is climate change. Trudeau disputed the characterisation, and raised their GST credit, and wanted support for their other measures. Poilievre cited the figure that average families will pay $3000 more in inflation and interest, and blamed inflation on deficits, which is not the driver. Trudeau repeated that the Conservatives are not supporting measures that will help the households that need it most. Poilievre repeated his questions in French, and Trudeau poked holes in Poilievre’s assertion that inflation is so high that they shouldn’t do anything to help people. Poilievre spouted a bunch of nonsense about food price inflation on things gown in Canada, ignoring that drought wiped out 40 percent of crops last year, and blamed the costs on carbon prices. Trudeau raised the climate rebates that people got on Friday, and that they need to take action on climate change.

Yves-François Blanchet led for the Bloc, and raised both the contracts for a lease near Roxham Road and wanted a better way to accept asylum seekers. Trudeau recited that there is no magic solution and that we need to work with the Americans to find a sustainable solution. Blanchet claimed that the government wanted to use Roxham Road to get cheap labour, and wanted African francophone students instead who are being discriminated against with their visas. Trudeau read a script about having no tolerance for racism and that the minister was looking into the issue.

Jagmeet Singh rose for the NDP, and first gave condolences for the slain officer, then switched to French to accuse the government of doing nothing about inflation. Trudeau listed their actions and the plans still waiting passage. Singh switched to English, and blamed food price inflation on “greed-flation” (which is not a thing), and took credit for “forcing” the government to study the issue. Trudeau repeated his response about the GST credit and demanding support for dental care and rental supports.

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Roundup: A potential recruiting ground

It was outgoing Ottawa mayor Jim Watson’s turn to present to the Emergencies Act public inquiry yesterday, and it sounds like he was also caught up in the thinking that the occupation would fizzle by the first Tuesday, as the previous protest convoy had done. The most interesting part was a transcript of a call between Watson and Justin Trudeau where Trudeau accused Doug Ford of hiding from his responsibilities, given that he checked out of this process early on, and that he was doing it for political reasons. There was also concern that the OPP and RCMP had not sent as many people as they promised. In response to the reported comments at the inquiry, Ontario’s current solicitor general sent a huffy missive to media outlets saying that they don’t interfere with police operations and ensured that they provided tools for Ottawa, which clearly, they did not. Of course, Watson also said that he feels the federal and provincial governments have “equal responsibility” for policing in the occupation context, which…is not how this works.

We also learned that CSIS didn’t believe the occupation had the involve of foreign actors, but they were concerned that this was going to be a recruiting ground for harder-edged, violent far-right groups (which is a pretty coherent concern that unfortunately seems to be growing).

Ukraine Dispatch, Day 237:

Approximately one-third of Ukrainian power stations have suffered damage from Russian attacks, either from missiles or kamikaze drones, as the regime tries to demoralise the Ukrainian people.

https://twitter.com/ZelenskyyUa/status/1582285715970613248

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Roundup: City officials detail police incompetence

The day at the Emergencies Act inquiry was spent with city officials, and in particular the city’s top bureaucrat and the mayor’s chief of staff. There was a lot of discussion about police believing it would be over in a few days in spite of the occupiers saying they intended to occupy the streets, and booking hotels for at least 30 days, but the police kept treating this like a non-issue until it was too late. They also insisted that the Ontario government rebuffed their calls for more police resources. At a press event in Ottawa that morning, Doug Ford professed that he supported the use of the Emergencies Act, but the testimony on display was that he was nowhere to be found in managing the crisis, having dropped out of tripartite calls, and his solicitor general shrugged and said that she can’t direct police. Out of desperation, those city officials turned to the offer from Ford’s former chief of staff, Dean French, to try and negotiate with the occupiers about moving trucks away from residential streets, and packing more of them on the Hill. Well, the Parliamentary Protective Service was outraged by that deal, particularly after they had done bomb assessments with regard to those trucks. The most hilarious revelation of the day was that city officials wanted the occupiers to park their trucks outside of downtown and to take the LRT into the city centre to protest. Laughable, and unfortunately not satire. Literally unbelievable.

Meanwhile, the CBC has a profile of Justice Rouleau, leading the commission. In pundit reaction, Matt Gurney notes that the Ontario government is not being summoned to the Emergencies Act public inquiry, in spite of their complete dereliction of duty. Susan Delacourt makes a similar observation, and in particular how Doug Ford is now presenting himself as being in lockstep with Trudeau on the invocation. Paul Wells gives his take on the day’s testimony, and what he reads into the responses.

Ukraine Dispatch, Day 236:

The Russians continue to launch suicide drones on Kyiv, some of which seem to be targeting the city’s heating infrastructure. Because those drones are Iranian in origin, there is pressure on Israel, who has expertise on tackling the Iranian drone programme, to join the US and EU in providing military technology to Ukraine to fight those attacks.

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Roundup: The first witnesses at the inquiry

The first day of witness testimony took place at the Emergencies Act Public Inquiry, hearing from citizen representatives about what they went through during the illegal occupation, as well as two of the city councillors whose wards were most affected, and representatives from affected BIAs. There was a common theme in there—people feeling afraid and terrorized by the collection of far-right extremists, grifters, conspiracy theories and grievance tourists who made up the occupation; and more to the point, they felt abandoned by the Ottawa City Police, who were the police of jurisdiction.

Which brings me to my other point—that the NDP, and MP Matthew Green in particular, are trying to return to this bullshit narrative that the federal government “abandoned” the city and didn’t show leadership during the occupation, which is completely false. There was no jurisdiction that they could exert—the Ottawa police, as established, were the police of jurisdiction, and there is no mechanism by which the federal government can bigfoot them or assert jurisdiction. Even the Emergencies Act allowed for the RCMP to be deployed under the command of the Ottawa police, with expedited swearing-in that enabled them to do their jobs. There is nothing that the federal government could have done to “show leadership” up until they invoked the Act. I know the NDP like to pretend that there’s a Green Lantern ring somewhere, and that all it takes is “political will” to do something, but there is no “political will” section of the Constitution. Real life doesn’t work like that, and the NDP need to grow up and start criticising the government for things that are actually their fault, not the things that aren’t, because it weakens their credibility when it comes to the real problems.

Ukraine Dispatch, Day 233:

Ukrainian forces continue to press their advantage in the Kharkiv region, as the Russians say they will have completed their mobilisation within two weeks. The first 200 Ukrainians have completed their training in the UK with British and Canadian trainers, which includes offensive tactics, not just defensive ones. Here is a look at the city of Lyman, and how much it suffered under four months of Russian occupation.

https://twitter.com/dim0kq/status/1580827171903635456

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Roundup: The fiscal stance is tight

The Parliamentary Budget Officer was doing his actual job of providing alternative fiscal forecasts for Parliamentarians, and his projection of the economic situation is that growth will slow over the second half of this year, which isn’t a bad thing because it will help to tackle inflation, particularly as the Bank of Canada continues to raise rates. The deficit continues to shrink, as does the federal debt-to-GDP ratio, which shows our fiscal stance is not too loose.

Here’s economist Kevin Milligan putting things into more context, but the bottom line is that the Conservatives’ assertion that government spending is fuelling inflation is not true, and they need to come up with some more credible talking points. (Yeah, yeah, good luck with that one, I know).

https://twitter.com/kevinmilligan/status/1580598737906597894

https://twitter.com/kevinmilligan/status/1580602979140632576

https://twitter.com/kevinmilligan/status/1580605473476476929

Ukraine Dispatch, Day 232:

It was another day of Russian strikes against civilian targets, including by Iranian-built kamikaze drones, while Volodymyr Zelenskyy continues to request more air defence systems to protect the country. Ukrainian forces boasted that they took down four Russian helicopters in the space of eighteen minutes.

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Roundup: Smith disqualifies herself on day one

Her first day on the job, and Danielle Smith is already proving to be unsuited for public office. Shortly after being sworn-in as premier by the Lieutenant Governor, Smith held a press conference where she said that she wants to protect the unvaccinated, because they are the “most discriminated-against” group in her lifetime.

*deep breath, clenches fists*

No. Not even close. And let me tell you, it was a choice to say that on Coming Out Day. They are not discriminated against. There is no “segregation.” The unvaccinated are people who get to live with the consequences of making a selfish choice based on a bunch of junk “science” and conspiracy theories that they’ve consumed, and their reckless disregard for the vulnerable and immune-compromised. Those consequences? Not eating in restaurants or not getting to travel. A few lost their jobs because of the choice they made. Contrast this to actual discrimination that people suffer because of race, gender, sexuality, or disability. Consequences that include employment, housing, hate crimes, and even mass slaughter, and yes, this has all happened in Smith’s lifetime. This is her answering the grievances of the privileged, the entitled, and the selfish, and not having actually suffered discrimination, she lacks the basic self-awareness to know the difference between the two. This should be disqualifying.

Meanwhile, in Saskatchewan, Scott Moe unveiled his “white paper” on pushing back against so-called federal encroachment on the province, and well, I’ve read far more vigorous undergraduate papers in my day. The premise of said paper is that all environmental rules and regulations are just a ruse for keeping the province down, and controlling them, which is risible on its face. And the notion that Saskatchewan should somehow be a “nation within a nation” belies the fact that they don’t have a distinct language, culture, legal tradition, or pre-Confederation history. Calling hoodies “bunny hugs” is not a distinct culture. Resource extraction without concern for environmental consequences is not a distinct culture. Moe is doing some bad Jason Kenney cosplay, and it’s just pathetic.

https://twitter.com/EmmMacfarlane/status/1579905716747661312

https://twitter.com/EmmMacfarlane/status/1579907251221172224

https://twitter.com/EmmMacfarlane/status/1579907677316345856

Ukraine Dispatch, Day 230:

President Volodymyr Zelenskyy met with G7 leaders and asked for more air defences (to fend off future missile attacks like they faced this week), a price cap on oil and gas exports from Russia to cut off their funding, and an international mission at the Ukraine-Belarus border, presumably to keep any Belarussian forces out of the country. Some German air defence systems did arrive in the country yesterday, so they are starting to arrive as this ask is being made. Meanwhile, bodies are being exhumed from the mass graves outside of the city of Lyman, which was liberated from Russian occupation.

https://twitter.com/OlenaHalushka/status/1579849665226629121

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Roundup: Backing away from the crazy now that the leadership is secured

Now that she has won the UCP leadership and is about to be sworn-in as premier of Alberta, Danielle Smith is suddenly backing down from some of the things she’s been saying about her “Sovereignty Act,” and is telling media outlets that she’ll respect the rule of law when courts inevitably rule against it because it’s going to be blatantly unconstitutional. Which isn’t what was promised, and the whole point of the Act, based on the brain trust that invented the idea, was to force a constitutional crisis by disobeying the Supreme Court. Now Smith is saying otherwise, which is starting to look mighty cynical—that she sold her base on a false promise in order to get them to buy memberships and vote for her, and now she’s going to tone it down. It’s just so cynical and crass that you have to wonder what she won’t say or do in order to get her way now that she’ll have access to real levers of power.

Ukraine Dispatch, Day 229:

The weekend began with an explosion on the bridge between Crimea and Russia, attributed to Ukraine, and on the day after Putin’s birthday, given how much of a vanity project this bridge was for Putin. By Monday morning, Russians shelled the city centres in Kyiv and nine other cities in Ukraine, all targeting civilian infrastructure, calling it retaliation for the Crimean bridge explosion, and trying to call it terrorism (while attacking civilian centres, which is actual terrorism). One of the cities hit was Zaporizhzhia, where apartment buildings were struck. As well, here are stories of survivors of Russians in liberated villages in the Kherson region, and a look at the looting Russians have undertaken of places like museums in captured regions.

https://twitter.com/ZelenskyyUa/status/1579530489802944512

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Roundup: Rage-farming for rural Alberta paranoia

In Alberta, Danielle Smith has finally unveiled more details for her proposed “Sovereignty Act,” and as you might expect, they’re a lot of bullshit, and most of it predicated on situations that will never, ever actually come to pass, like the federal government invoking the Emergencies Act to impose mask mandates. Of course, that’s not how the Emergencies Actworks, and she’s just rage-farming, ensuring that the rural Alberta party membership that she’s targeting, who are twitchy to begin with and who are consuming vast amounts of American media and conspiracy theories, are just being fed more materials to make them even more paranoid. It’s not surprising, but it’s also alarming that this has somehow become acceptable political discourse. Smith also insists she’s just doing “nation within a nation” assertion, like Quebec, which is not true, and I’m genuinely not sure if she is simply that clueless about how federalism and the constitution works, or if this is pure disinformation for the purposes of rage-farming and motiving the party base through anger and paranoia. Either way, it’s not good, and is a very real problem for the province and the country, because this kind of bullshit is also contagious.

 

Ukraine Dispatch, Day 196:

The Zaporizhzhia nuclear plant went off the grid yesterday after more Russian shelling in the region, until a fire could be put out. That means that they were relying on backup power to keep cooling systems operational, which gets us closer to a more dangerous place in terms of a potential meltdown that could have catastrophic consequences for that part of the world. The International Atomic Energy Agency continues to call for a demilitarized zone around the plant, but good luck getting Russia to play by the rules. As for the Ukrainian counterattack in the southern part of the country, officials have now confirmed that they have retaken at least two villages, though information remains largely locked down. Apparently, the counterattack is happening slowly in order to save on ammunition and casualties.

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Roundup: The allure of citizens assemblies

Yesterday in the mother parliament in Westminster, a group of Extinction Rebellion activists “super-glued” themselves around the Speaker’s chair in the House of Commons. Their demand—somewhat ironically, to “let the people decide” on climate change. Now, it would be ironic given that they are literally in the chamber where the people do decide, but no, what they are demanding is a citizen’s assembly, which is antithetical to democracy. There is a particular romance around these assemblies, which are composed of selected individuals from a perfect cross-section of society, and they are supposed to work by consensus to come up with some kind of solution, under the guidance of experts. Of course, therein lies the problem with this whole system—the people did not elect this assembly, and there is no way to hold them to account for the decisions that they make. As well, evidence suggests that they are fairly manipulable with the right “experts” guiding them, which is why groups like Extinction Rebellion or Fair Vote Canada are enamoured with them—because they are certain that with the “proper guidance,” these assemblies will come to the “correct” decisions, without the mess or compromises of democracy, or more to the point, going through the trouble of organizing that democracy requires to actually make change. This is no way to make big decisions, and politicians shouldn’t pander to groups whose aims are anti-democratic.

Ukraine Dispatch, Day 191:

Inspectors from the International Atomic Energy Agency remain at the Zaporizhzhia nuclear plant, and hope to have a full picture of the situation at the plant by early next week. Here is an explanation as to why this IAEA inspection is so important.

https://twitter.com/CFOperations/status/1565396106577690630

Programming Note: Because it’s a long weekend, posts will resume Wednesday.

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