Roundup: Beating the GDP expectations

The Bank of Canada increased the overnight rate another 75 basis points, to 3.25 percent, which is now about the neutral range and into territory where it is meant to dampen growth—and they say it will likely continue to go up in future decisions. This being said, we should also recognise how strong the Canadian economy is running right now, which is having an effect on things like deficit and debt, which conversely makes the Conservatives’ insistence that government spending is driving this inflation (it’s not), and what they think austerity would accomplish here (nothing good). Anyway, here’s economist Kevin Milligan to break it down:

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Ukraine Dispatch, Day 197:

Shelling near the Zaporizhzhia nuclear power plant has damaged the last remaining backup power line to the plant, which means that the coolant systems are now fully on back-up generators, and the ongoing shelling makes doing repairs an unlikely possibility. Elsewhere, heavy fighting has been reported in the north near Kharkiv; in the east, in the Donbas region; and in the south, near Kherson, where Ukrainian soldiers are pushing Russian forces in their counter-offensive.

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Roundup: Trying to dispel yet another conspiracy theory

It was Environment Canada’s turn to take to Twitter in a series of plain-language tweets in order to dispel the conspiracy theories that Justin Trudeau is creating “climate cops” that are going to arrest people for…reasons. They’re not climate cops, they’re Environment Canada enforcement officers, they’ve been in existence since 2008 (you know, when Stephen Harper was prime minister), and they enforce environmental regulations. The theory, which seems to have originated from a far-right former Rebel fabulist, has been broadcast by UCP leadership hopeful Danielle Smith and several sitting Conservative MPs, and it’s utterly bonkers. It’s even more concerning that MPs are willingly spreading conspiracy theories in order to keep up the rage-farming that they think will get them votes, and that they have absolutely zero self-awareness that this is utterly corroding democracy. None.

Meanwhile, Conservative has-been and ongoing shitposter Andrew Scheer is trying to discredit the Bank of Canada’s correction about the false narrative of “printing money,” using the same kind of faux-logic that Flat-Earthers use. So yeah, the discourse is going great. They’re really respecting democracy. (We’re doomed).

Ukraine Dispatch, Day 190:

The International Atomic Energy Agency inspectors arrived at the Zaporizhzhia nuclear plant for real this time, and conducted their initial inspection of the facility, with the intention to remain on the site, and yes, they avoided shelling and gunfire to get there. President Volodymyr Zelenskyy noted that independent journalists were prevented from covering the visit, which allows Russia to present a one-sided picture.

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Roundup: Ford omitting the accountability part

Justin Trudeau met with Doug Ford at Queen’s Park yesterday, and Ford says that they are on the same page about the urgent need for healthcare reform, and that the status quo isn’t working. But what I find interesting is that Ford didn’t go into any details, the prime minister did put out a readout of the meeting later in the evening, and yes, healthcare was mentioned, but in a somewhat different context than what Ford told reporters after the meeting”

“They also spoke about pressures on the healthcare system and the importance of funding and accountability to deliver for Canadians. The prime minister emphasised that the Government of Canada is committed to continue working with provinces and territories to support public health systems that deliver quality healthcare for all Canadians.”

The use of accountability stood out for me, because this is what the federal government is pushing—ensuring that any future health transfers go to the healthcare system, and not a tax cut or to pad a province’s surplus like they did with the billions of dollars in pandemic aid that provinces were given. The premiers continue to balk at this, but we’re not all blind and dumb, and we can see them rolling around in money (Alberta and BC both announced higher-than-anticipated surpluses), so them not investing in their own healthcare systems when they obviously have the money to do so is not going to endear them to the federal government as these talks continue.

https://twitter.com/EmmMacfarlane/status/1564736954234814466

Ukraine Dispatch, Day 188:

The supposed counter-attack around Kherson has seen explosions of ammo dumps and bridges, but it remains difficult to see what is going on there. Russia claims they repelled the attack and caused hundreds of casualties, but they have lied about absolutely everything in this whole invasion thus far, so they are unlikely to be reliable sources. Russian forces elsewhere continued shelling the port of Kykolaiv, as well as Kharkiv in the north. Meanwhile, the International Atomic Energy Agency inspectors will need to cross an active battlefield to reach the Zaporizhzhia nuclear plant.

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Roundup: Salivating over magical LNG terminals

With the visit of German chancellor Olaf Scholz to Canada, there has been no shortage of media salivating at the narrative of Canada somehow sending liquified natural gas (LNG) to Europe to displace Russian supply, and they keep going on about it. Power & Politics had an interview with Scholz, and the first third of it was spent with Vassy Kapelos hectoring Scholz about whether he wanted Canadian LNG, and if he told the Quebec government to stop opposing pipelines, and I’m being serious that she actually asked him this, as though he wasn’t going to diplomatically tell her that it wasn’t his place to tell them that (which he did). And while he said sure, Canadian LNG would be great, there is no way that’s going to happen. There is no infrastructure to do so. Building it takes three to five years, and even then, if there is a steady supply (good luck with that, because it’ll drive up costs for product domestically), it’ll take 25 to 30 years to make those investments in that infrastructure pay off, and we’d be well past 2050 then. (I wrote a column on this recently). It would quite literally be investing in a stranded asset. But that won’t stop Canadian media outlets from pounding on this narrative drum, over and over again. You would think that reporters and TV hosts might have done some homework to realize that there is no business case, so you look foolish by pursuing this dead-end line of questioning, but apparently not.

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Ukraine Dispatch, Day 181:

President Volodymyr Zelenskyy is vowing of a “powerful response” if Russia attacks the country on its Independence Day, which also will mark six months since the illegal invasion began. And American intelligence is also warning that something may happen, which is why they are urging their nationals leave the country. Russians did conduct air strikes in the Zaporizhzhia region, not far from the nuclear plant, and they have been shelling near Kharkiv in the northeast. Meanwhile, Ukraine’s ambassador to Canada says that they are investigating 28,000 war crimes, including child deaths.

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Roundup: Premiers pleading poverty while demonstrating largesse

Ontario premier Doug Ford met with Maritime premiers in New Brunswick yesterday, and wouldn’t you just know it, they demanded more federal healthcare dollars while simultaneously saying that throwing money at the problem wouldn’t fix things, so they want to go to more private delivery. The problem, of course, is that Ford didn’t even bother to spend his full healthcare budget last year as he continues to underpay nurses and doctors, and both he and Blaine Higgs in particular put pandemic healthcare dollars onto their bottom lines, and Higgs boasted a healthy surplus last year thanks to federal transfers. It’s hard to take premiers’ demands for cash seriously if they don’t actually spend the dollars they’re given, and that they keep boasting about their balance sheets while still steadfastly refusing to increase pay, or to reform billing systems. While François Legault wasn’t at the table today, he’s also promising a tax cut if he gets elected again, while crying poor and insisting the federal government needs to spend more. Erm, you know that the federal government can see you, right?

On that note, Saskatchewan premier Scott Moe announced that his province is so flush with money thanks to high oil and gas revenues that they’re going to give out vote-buying cheques to the whole province. But he too is going cap-in-hand to Ottawa for more health transfers, and he’s sending patients in his province to private clinics in Alberta and won’t pay for their transportation to get there either. (Oh, and giving cheques to everyone is going fuel inflation, but you knew that, right?

Ukraine Dispatch, Day 180:

President Volodymyr Zelenskyy is banning public celebrations in advance of Ukraine’s independence day, citing fears that Russia will likely plan more severe attacks in line with the occasion, particularly around civilian infrastructure. Russians struck near Kharkiv and areas near Bakhmut in the Donbas, while the Ukrainan counter-attack continued to advance on Kherson in the south. There were also new claims of Russian shelling near the Zaporizhzhia nuclear plant, as international pleas to ensure a ceasefire around the area continue to go unheeded. Russians are also, not surprisingly, blaming the car bomb that killed the daughter of one of Putin’s advisors, on Ukraine.

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Roundup: Hussen nets yet another self-inflicted wound

This government continues its habit of own-goals and an inability to communicate their way out of a wet paper bag, and in this week’s episode, we find Ahmed Hussen not properly addressing the fact that the government apparently didn’t properly vet a supposed “anti-racism training” contractor, and lo, he turned out to have a history of making antisemitic comments over social media. But in his statement, Hussen a) doesn’t name the individual, and b) doesn’t say what “working to rectify the matter” means. Have they terminated the contract? Are they going to report on why due diligence was not done? Is there going to be some kind of accountability to be had for this colossal cock-up? Because from this kind of bland statement, I’m not seeing responsibility, accountability, or a recognition that this wasn’t being taken seriously enough in the first place.

To pour gasoline on this self-inflicted fire is the fact that this just gives ammunition to Pierre Poilievre and other Conservatives, who while consorting with far-right extremists, insist that it’s the Liberals who are the real racists because Justin Trudeau did Blackface. In fact, Poilievre did just that over the weekend. And the Liberals keep giving him the ammunition to do so, because they don’t seem to have enough adult supervision in what they’re doing. This is a problem that they can’t seem to get a handle on, seven years later. I’m not saying any of the other parties will be any better, but wow. It’s not really an encouraging sign about government capacity in this country.

https://twitter.com/davidakin/status/1561126969097555969

Ukraine Dispatch, Day 179:

More Ukrainian drones have been in the airspace over Russian-occupied Crimea, which some analysts stay is showing the weakness of Russia’s position there. Ukraine also made airstrikes over the Russian-occupied city of Melitopol, near the Zaporizhzhia nuclear plant. Russia forces have been shelling the southern city of Voznesensk, while intensifying combat around Bakhmut in the country’s east. In related news, a suspected car bomb killed the daughter of one of Putin’s closest advisors, but nobody has claimed responsibility, though this will likely ratchet up tensions in the conflict.

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Roundup: Meet Canada’s newest Supreme Court justice

Prime minister Justin Trudeau announced yesterday that he will be appointing Justice Michelle O’Bonsawin to the Supreme Court of Canada, making her the first Indigenous justice on the top court. She will be replacing Justice Michael Moldaver, who retires on September 1st, a few months ahead of his mandatory date, and this is for one of the Court’s three Ontario seats. While it was a given that this appointment would be a woman in order to restore gender balance on the court, there has been pressure for an Indigenous justice for a while. This government has also mandated that official bilingualism should also be a requirement for appointment, which shrinks the pool of available Indigenous candidates a whole lot. And it’s not without controversy—it is true that, as many Indigenous activists point out, that kind of linguistic requirement is colonial, but it also has been pointed out that relaxing those kinds of requirements is generally done at the expense of French, which is also a very fraught notion with the insistence that French is “in decline” in the country (which is debatable, because use of French has been up in Quebec, but they are paranoid about the “mother tongue” statistics, which is generally about immigrants for whom French is not their first language).

While you can read O’Bonsawin’s application questionnaire here, it’s worthwhile noting that she comes to the Supreme Court directly from the Superior Court rather than the Court of Appeal. This isn’t a big deal, but it does speak to the pool of available candidates, because there are exceedingly few Indigenous judges at the appeal court level. This being said, it’s perfectly permissible to appoint people to the Supreme Court if they’re law professors, or even lawyers working in a firm—Justice Suzanne Côté was appointed directly from practice. This being said, O’Bonsawin has academic chops to add to her experience, with a PhD in the Gladue sentencing principles, which are about taking proper life circumstances into account during sentencing for Indigenous people. She also has done a lot of work around mental health, which is also important in the current legal environment, so it does look like she will bring a wealth of experience to the bench. The only thing I would say is that with Moldaver’s retirement, there is no longer a criminal justice specialist on the Supreme Court, which may be an issue in the longer-term, but there are enough bright minds on the court that I wouldn’t be too worried about it.

Meanwhile, here is some reaction from the president of the Canadian Bar Association, and several Indigenous leaders.

Ukraine Dispatch, Day 177:

Ukraine has been making several drone attacks in the areas of Nova Kakhovka, near the occupied city of Kherson, as well as possibly the Crimean port of Yevpatoriya, which seems to be about Ukrainians showing their capabilities to Russian aggressors. Ukraine is also warning that Russia is planning a “large scale provocation” around the Zaporizhzhia nuclear plant in an attempt to decouple it from the Ukrainian grid and attach it to the Russian grid, which is apparently a complex operation that could cause a disaster. Meanwhile, doctors talk about why they are staying in place in war-hit towns in Ukraine.

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Roundup: Mystified about our “clean” gas

There has been a pervasive talking point of late, which asserts that Canadian oil and gas is “cleaner” than elsewhere—somehow—and that should be justification enough for us to increase production. There is also a pervasive myth that emission have come down in the oil sands, which is blatantly untrue—in some projects emissions intensity has decreased, meaning there are fewer emission per barrel produced, except that they increased the number of barrels produced, so emissions haven’t actually gone down. And yet Conservatives in particular pat themselves on the back about this, and keep repeating how “clean” our energy products are (when they aren’t making the risible “ethical oil” canard). So imagine my surprise when Toronto Star columnist Heather Scoffield uncritically repeated this assertion that Canadian natural gas is “cleaner” than other countries’ product, which is news to me. I grew up in Alberta—I have seen the literal mountains of sulphur that has been removed from the extracted hydrocarbons. Alberta is replete with sour gas wells, which are dangerous, and I’ve also seen the evacuation plans for areas if such a sour gas well blows. I’m not sure how this is “clean” gas. So, I reached out to an expert about the assertion. He’s mystified too. Perhaps our national columnists shouldn’t just take Conservative and industry talking points at face value.

Ukraine Dispatch, Day 177:

President Volodymyr Zelenskyy met with UN secretary general Antonio Guterres and Turkish president Recep Tayyip Erdogan in Lviv, and they discussed the fighting around the Zaporizhzhia nuclear plant, and the deal around grain shipments. Meanwhile, Russians struck at Kharkiv again, while more explosions were reported at a Russian military airport in Russian-occupied Crimea, with reports that Russian air forces fired at targets near the city of Kerch in Crimea.

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Roundup: Inflation starts to cool

The CPI figures were released yesterday morning, and the headline number has cooled from its peak, and in July was running at an annualized rate of 7.6 percent, the decrease largely being driven by lower gasoline prices. Of course, there are still plenty of other drivers that are keeping it high, some of which are things like food (largely being driven by factors like climate change), hotel stays, and airline charges. But rather than exploring what these drivers are, most of the coverage of the day was focused on the usual wailing and gnashing of teeth that prices are high and demands for the government to do something about it, which, short of wage and price controls—which don’t really work—they can’t do much about. And no, “just give everyone money” is not a solution because that drives demand further. Same as tax cuts or breaks, and in fact, increasing taxes is generally a good way to dampen inflation. Regardless, there is a real incurious narrative to this in the media, which is not surprising, unfortunately.

Meanwhile, here is Kevin Carmichael’s hot take on the figures, while Bank of Canada governor Tiff Macklem took to the pages of the National Post to offer some reassurance that the Bank is on the case. Economist Stephen Gordon explains the data here on video. Heather Scoffield warns that even if inflation peaked there are too many factors keeping it high for some time to come. And here is a look at the StatsCan analysts who compile the inflation data.

Ukraine Dispatch, Day 175:

There was another explosion at an ammunition depot at a military base in Russian-occupied Crimea, and the Ukrainian government will neither confirm nor deny involvement, though they are mockingly calling it “demilitarization,” as a play on Putin’s justification for invading Ukraine.

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Roundup: UCP contest finds new lows

As the UCP leadership race in Alberta meanders through clown town, outgoing leader Jason Kenney took a slightly bold step, and called Danielle Smith’s “Sovereignty Act” proposal “nuts,” which is an interesting enough intrusion in the race. But, because this is Kenney, he then took it a step too far and spouted a bunch of nonsense about the lieutenant governor not signing it, and no, that’s not how this works. There is pretty much no ability for an LG to refuse to sign legislation post-Statute of Westminster, because they aren’t reporting to the foreign desk of the Imperial government in Britain. Federal powers of disallowance may still be on the books, but have for all intents and purposes gone extinct because we have courts that have the power to strike down laws, and yes, that does matter. So you can bet that if Smith were to win said contest, and did manage to somehow pass said bill without a full-on caucus revolt (because it’s sheer, unconstitutional lunacy), you can rest assured that said bill would be immediately challenged in the courts, if not outright referred to the Supreme Court of Canada by the federal government, where it would summarily be struck down, likely in a ruling from the bench because it is so blatantly unconstitutional on its very face. So we have both Smith and Kenney in the wrong here, and this contest just keeps finding new lows.

Ukraine Dispatch, Day 173:

Russian troops spent the weekend shelling the cities of Nikopol and Kramatorsk, as well as claimed the village of Pisky on the outskirts of Donetsk province. This as Ukrainian forces were continuing their counter-offensive in the south, striking the last working bridge over the Dnieper River, cutting off Russian supply lines. Ukrainians also say that they are targeting Russians that are firing near or from the Zaporizhzhia nuclear facility, and are accusing Russians of using it as a shield. As well, here is a look at Ukrainian drone pilot training, where video game skills are a welcome addition.

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