Roundup: Graphing some drivers of inflation

Just how much are the price of raw materials contributing to headline inflation? Well, the raw materials price index was released yesterday, and economist Stephen Gordon was curious, so he made some graphs.

Things I noticed: While gasoline is a big driver of headline inflation, the prices of wheat and beef are worth taking a look at because of the price spikes. What caused those spikes? Drought. Drought killed 40 percent of the wheat crop in 2021, and also meant a shortage of feed crop for livestock, which meant that ranchers had to cull herds to be able to afford to feed the remaining animals (because importing feed is expensive). This year we also saw more drought, which is having the same effect (and that drought has been persistent in southern Saskatchewan, which has to be in danger of turning into a dustbowl soon). And yes, there is a direct correlation to these more frequent droughts with climate change.

Also worth pointing out is the price of chicken also spiking, which was because of avian flu that meant culling flocks to prevent transmission. Again, that drives up prices. This is just more data to show that it’s not the carbon price driving up food prices—it’s climate change and its knock-on effects.

Ukraine Dispatch:

Ukraine’s largest private energy company says that they need more missile defences to protect power plants in advance of more Russian attacks over the winter. Ukrainian forces have confirmed that they have established several beachheads on the eastern banks of the Dnipro river, which is an important step in the counter-offensive. In Kharkiv region, the government is now building fortified underground schools because of the constant attacks. A Yale study says that more than 2400 Ukrainian children from four occupied regions have been taken to Belarus.

https://twitter.com/zelenskyyua/status/1725490287160529137

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Roundup: Saskatchewan wants to play constitutional chicken

The government of Saskatchewan tabled their bill to “protect” SaskEnergy from repercussions if they go ahead with their threat to not collect or remit the federal carbon price on natural gas, and well, it is hilariously ineffective. Why? Because the federal legislation makes it very clear who is responsible for the collection and remittance of those funds, and this bill is trying to use provincial legislation to change a federal definition. You can’t do that. Provinces do not have that ability. This is just setting up SaskEnergy and its directors to face these penalties, because the provincial government can’t say that they’ll accept the responsibility instead. Again, it doesn’t work that way.

The minister, Dustin Duncan, then went on Power & Politics and was pressed on this issue, and he flailed for a bit before trying to make this a game of chicken—they’re going to essentially dare the federal government to follow federal law, and hold the persons responsible for collecting and remitting those funds to account. Because this is the level of maturity we’re dealing with. At this point, I wouldn’t be surprised if the CEO and the board of SaskEnergy all walked off the job in protest of being put in this kind of legal jeopardy because Scott Moe is a child.

Ukraine Dispatch:

The death toll from the Russian strike on Selydove in eastern Ukraine doubled as more bodies were found in the rubble. President Volodymyr Zelenskyy says that Ukraine has seized the initiative in the Black Sea thanks to their fleet of naval drones which has pushed back the Russians toward the eastern coasts. New UK foreign minister David Cameron visited Ukraine as his first trip on the job.

https://twitter.com/zelenskyyua/status/1725054494969373168

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Roundup: A conspicuous lack of self-reflection

It has not gone unnoticed that while Conservatives have been decrying the rise in antisemitism, there has been absolutely zero introspection about the kinds of deeply antisemitic conspiracy theories that they have been promulgating in an attempt to win the far-right fringe votes that they think will push them over the edge to electoral victories.

 

It wasn’t that long ago that there was a song and dance about how Kerry-Lynne Findlay’s tweets about how “shocking” it was that Chrystia Freeland interviewed George Soros when she was a journalist, were supposed to result in some kind of apology to Jewish groups, but nothing really came of it. Findlay is now the caucus whip, and the party is still sending out mailers about the dangers of the World Economic Forum, which Poilievre himself has denounced for incredibly stupid reasons. And yet, there is absolutely zero self-awareness that their pushing conspiracy theories is helping to feed this. And while there is a tonne of equivocating about how it’s really the “left” that is antisemitic and dangerous, they refuse to look at themselves in the mirror. This all remains so deeply stupid.

Ukraine Dispatch:

A Russian missile struck an apartment block in the eastern town of Selydove, killing two and wounding three. Ukrainian forces have confirmed that they have established a beachhead on the eastern banks of the Dnipro River, which is a milestone in the ongoing counter-offensive. Civil society groups in Ukraine estimate that the death toll on their side is around 30,000 troops.

https://twitter.com/ukraine_world/status/1724784115210428863

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Roundup: Law and order for thee but not for me

Because everything is stupid, it would seem that Pierre Poilievre is endorsing Scott Moe’s plan to break federal law and not collect the federal carbon price on natural gas. Or, well, instruct his Crown corporation to break the law and not collect or remit it, which puts them in legal jeopardy, which they’re frankly not going to do. But this is what happens when politics has been reduced to performative nonsense and doing stupid things to “own the Libs.” If only we still had grown-ups involved…

Oh, and for those of you asking, the “pause” on the carbon price on home heating oil doesn’t invalidate the whole scheme, as there were already carve-outs when it came into existence. Try again.

Ukraine Dispatch:

Ukrainian intelligence says that three Russian officers were killed in a blast by local resistance groups in occupied Melitopol. Russians targeted Kyiv overnight on Saturday, and killed four people in strikes on Kherson, Dnipropetrovsk, and Zaporizhzhia, while pro-Ukrainian saboteurs derailed a train in Russia with an improvised explosive device.

https://twitter.com/ukraine_world/status/1723688303789048195

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QP: A fictional second coalition

The prime minister and his deputy were both present today, which has become somewhat unusual of late, and all other leaders were present as well. Pierre Poilievre led off in French, and he called out the Bloc for voting with the government on yesterday’s Conservative Supply Day motion, and that La Presse says that the Bloc wants to keep the Liberals in power for another two years, and that there was allegedly a call between the Bloc leader and the PM, and demanded to know the terms of this agreement. Justin Trudeau said that he was always willing to work with anyone to fight climate change, and that he was happy that the Bloc recognized the best way to fight it was with a carbon price and to help families, which is what they were doing. He added that he hasn’t had a recent call with the Bloc leader about anything other than the Middle East. Poilievre switched to English to claim that Trudeau found a “new coalition partner” in the Bloc to save him from a “confidence vote” (which was not a coincidence vote), and wondered what they were promised. Trudeau recited the lines about phasing out heating oil, and thanked the Bloc for believing in climate change. Poilievre was outraged that Trudeau thanked the separatists, decried his being divisive, and demanded to know again what he promised them. Trudeau said that he exchanges regularly with all leaders, but hadn’t with Blanchet recently except on the Middle East issue. Poilievre then raised that all of the premiers were against the carbon price and that they demanded he remove the carbon price on home heating. Trudeau spoke about Canadians being united in the fight against climate change. Poilievre then tried to question about the NDP’s supposed flip-flopping positions. The Speaker noted that he didn’t sound like a question on the administrative responsibility of the government, but Trudeau rose anyway to denounce the Conservatives for not believing in climate change.

Yves-François Blanchet led for the Bloc, noted that there was no call and the only true thing Poilievre said was that they are separatists, before he pointed out that the Liberals and the Conservatives are still advertising on Facebook in spite of their attempts to intimidate Canada. Trudeau gave another round of praise for being united on the climate, before saying that they were trying to find a way to get web giants to pay for journalism. Blanchet raised the 500 layoffs at TVA, and demanded the government do something, and Trudeau insisted that they are defending media against the web giants, which the Conservatives will stand up for.

Jagmeet Singh rose for the NDP, and gave pro forma denunciations of both the Liberals and Conservatives before demanding support for their Supply Day motion on taking the GST off of home heating. Trudeau said that he was surprised that the NDP don’t seem to be that interested in phasing out heating oil. Singh reiterated his same demand for support in French, and Trudeau responses with his paean about phasing out heating oil and replacing it with heat pumps.

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Roundup: Paying too much attention to one senator’s opinion

Sometimes the way the media cycle operates in weird ways in this city, and yesterday was no exception. On Wednesday, Senator Percy Downe wrote an op-ed that said that the Liberal Party should be having discussions as to whether they think Justin Trudeau should lead them into the next election, and a few people started frothing about it, but a day later, it got particular traction because Pierre Poilievre was using it in Question Period to attack Trudeau, as though Downe was a big name or had a network that was significant.

And that’s the part that mystifies me. Once upon a time, Downe was a chief of staff to Jean Chrétien, but senators haven’t been part of the Liberal caucus since 2014, when Trudeau famously expelled them as pre-emptive damage control in advance of the Auditor General’s (massively flawed) report on the Senate’s expenses, and claimed it was to give them more independence. Furthermore, Downe jumped ship to the fledgeling Canadian Senators Group right after he helped the Senate Liberals transform their caucus into the Progressives, which alienated him from the remaining Liberals in the Senate (who no longer call themselves such in the current environment). I fail to see how he has any kind of sway or influence at all. And when Trudeau was asked about Downe’s comments on his way into Question Period yesterday, he gave a classic “I wish him well” response and laughed it off.

Meanwhile, the attempt to make Mark Carney happen aren’t stopping either, as the Globe and Mail cornered him a climate summit in town this week to demand to know his leadership ambitions and *gasp!* he didn’t say no! Let’s gossip about this more! Never mind that Carney would likely mean the second coming of Michael Ignatieff for the party, if you ignore that he has no political machinery around him that could even support a bid (which he should avoid at all costs because it damages the Bank of Canada and its current governor, whether he likes to believe it or not). But seriously, this whole thing is ridiculous, and I cannot believe how much air time and digital space has been used up on it.

Ukraine Dispatch:

Russian drones have hit civilian targets in Kharkiv region, but no reports of casualties as of when I’m writing this. Ukrainian forces repelled a new Russian assault on Vuhledar in the east.

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Roundup: A primer on inflation calculation

Bank of Canada governor Tiff Macklem testified at the Commons finance committee earlier in the week, and a whole lot of people, including a certain “Food Professor” charlatan and numerous Conservative MPs, demonstrated that they don’t understand math or inflation as they all misconstrued the numbers that Macklem gave. And they’re the same number he has given before—that the carbon price has had a 0.15% effect on inflation, and if you removed it, going from $65/tonne to 0, it would have a temporary effect of reducing inflation by 0.6%.

A whole bunch of people–said charlatan, those MPs—insisted that because 0.6% is 16 percent of the 3.8% of headline inflation, that it means that the carbon price is responsible for 16% of inflation, which is wrong and not how inflation is calculated. Removing it wouldn’t actually mean inflation would go from 3.8% to 3.2% because the carbon price is not driving it. Energy and food prices are doing a lot of the driving there (and food prices are being hugely affected by climate change), and even if it did move to 3.2%, the Bank isn’t going to start lowering interest rates until it reaches the two percent target. Essentially, you’d be killing the carbon price and undoing the work it’s doing to lower emissions on the basis of a bad lie that it has made life unaffordable.

Meanwhile, here’s economist Stephen Gordon breaking down how inflation is calculated, with the inevitable conclusion that the carbon price is just noise—it’s not driving inflation, and it’s better to focus on the things that are.

A threat to democracy

A bunch of people got the vapours yesterday when Mark Miller called Pierre Poilievre a threat to democracy. Apparently these same people have convenient amnesia, or wishful thinking that he’s only kidding in what he’s doing and saying, because nobody learned a gods damned lesson from the Trump years.

Ukraine Dispatch:

While rallying Ukrainian troops, president Volodymyr Zelenskyy counselled patience and not to expect instant success (the latter comment directed primarily toward Western allies). A UN report says that 40 percent of Ukrainians need humanitarian support as a result of the conditions brought about by Russia’s invasion.

https://twitter.com/ukraine_world/status/1719348496640200777

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Roundup: A “pause” on carbon prices that hands Poilievre a victory

Prime minister Justin Trudeau announced yesterday afternoon that the federal government would be implementing a “pause” for three years on the carbon price on home heating oil, predominantly used in Atlantic Canada, because he’s in some serious electoral trouble in the region. He also said that enriched carbon price rebates for rural dwellers would be on the way, as well as more incentives for people to switch to heat pumps. The problem? This undermines the whole carbon price scheme, ensures that it no longer is in compliance with the rules that they established, and it hands a propaganda victory to the Conservatives who are crowing that this “proves” that the price is making life unaffordable, and that they’ll kill it outright.

This also handed ammunition to Danielle Smith and Scott Moe, who will now be demanding that natural gas for heating be exempted, because now the programme is explicitly unfair. They’re not wrong, even if they’re acting entirely in bad faith over it. The NDP have joined in, also insisting that all home heating should be exempt from the price, which further undermines it. And you’d better believe that there are problems around the implementation of the heat pump programme, particularly how it rolls out to low-income households who need it the most.

The most galling thing of all, however, is that this is a victory for Irving Oil (and enabled by the provincial price regulators). They deceptively increased prices on their home heating oil and said this was for the “clean fuel standard,” which is bullshit. That standard is not a price—it’s an emissions standard that comes into place gradually, and any increased costs would be what the refineries need to do to meet those standards. This, however, wasn’t well communicated by the government, and of course the narrative got swallowed by the Conservatives calling it “Carbon Tax 2” and a poorly done report from the Parliamentary Budget Officer who framed this like it was a price, and so Irving was able to act in the way it did. And because it’s Irving, and they are more powerful than any of the provincial governments in Atlantic Canada (which is an enormous problem in a democracy), nobody challenged them on this deceptive price increase, and they successfully jammed the federal government into undermining the carbon price, so now it can be picked away at until it’s well and truly dead. Well done, everyone. You’ve just screwed yourselves, your credibility, and ultimately the planet. Slow clap.

Ukraine Dispatch:

President Volodymyr Zelenskyy says that Wednesday’s drone attack near the nuclear power plant in Khmelnitskyi region was likely targeted. Ukrainian officials say the Black Sea corridor is working, particularly now that they’ve chased away the Russian Black Sea Fleet from occupied Crimea. Ukrainian businesses are preparing for the possibility of another winter of attacks on the power grid.

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QP: The worst kind of reading of scripts

The prime minister and all other leaders were present today, and if anything, it promised to be a sour note all around. Pierre Poilievre led off in French, and he cited a “devastating” report about food bank use, blaming carbon prices. Justin Trudeau took the opportunity to mark the passing for Senator Ian Shugart, the former Clerk of the Privy Council. Poilievre said that Shuguart was his deputy minister and was a great public servant. He then returned to French to quote from the same report on food bank use. Trudeau cited the assistance they have delivered to Canadians, such as the Canada Child Benefit, child care and dental care, while the Conservatives would only those supports. Poilievre switched to English to reiterate his first question about the carbon price. Trudeau praised his government’s record in reducing poverty and reiterated the threat that the Conservatives would only cut supports. Poilievre cited a Nova Scotia quoted in the report and again blamed the carbon price, and Trudeau noted that Poilievre was part of a government that raised the age of retirement, and that it was about time he finally defended the CPP. Poilievre again quoted from the report on housing pressures and demanded more homes. Trudeau said that Poilievre has put forward no plan on housing and he lacks credibility on the file, while the housing minster was currently in BC signing new agreements. 

Yves-François Blanchet led off for the Bloc, and wanted the prime minster to acknowledge that Quebec would be financially viable on their own. Trudeau dismissed this as trying to reopen old fights that have long been settled, and listed off investments the federal government has made in the province. Blanchet again tried to get Trudeau to “admit” the province’s fiscal viability, and Trudeau again talked around the issue about growing the economy in the province together. 

Jagmeet Singh rose for the NDP, and blamed food prices on greedy CEOs, and Trudeau listed more programmes they have rolled out to help Canadians. Singh repeated the question in French, to which Trudeau listed off those programmes en français. 

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Roundup: Bad behaviour on committees for clips

The Commons Access to Information, Ethics and Privacy committee released their report on foreign interference yesterday, and much of it was marked by recommendations to do things like finally implement a foreign agent registry (which the government is working on and has been undertaking consultations), and to fix issues that were the subject of leaks from national security agencies. The Conservatives, however, were not on board with the recommendation for web giants like Google and Meta to be held accountable for the spread of disinformation on their platforms, much in the way that the European Union has been doing. The Conservatives claim they are concerned about free speech and journalistic independence, but I have my doubts about that, because cynically, I suspect it’s in their self-interest to be able to continue spreading their own disinformation over these platforms and they don’t want to be accountable for that. Predictably, the Conservatives also used their dissenting report to demand forensic audits of the Pierre Elliott Trudeau Foundation, even though there is no avenue for the government do really do this as it’s an independent non-profit corporation, and the initial endowment from the government is not at issue in all of the various conspiracy theories that the Conservative shave been pursing.

As for their concern about journalistic independence, they told on themselves some more as their fight to try and haul CBC management to answer questions on their coverage of Hamas and the use of the word “terrorist” took over the Heritage committee with a heated exchange, and Conservative MP Rachael Thomas vowing to make it “hell” for the chair if she didn’t get her own way. Peter Julian kept trying to tell her that the president of CBC, Catherine Tait, is already scheduled to appear next week on other matters, but Thomas kept up this dog and pony show so that she could get clips of her being “shut down” by the committee. But seriously, it is not up to Parliament to make demands of CBC’s coverage, and for the party to claim they respect journalistic independence while pursuing this vendetta just shows how much they are invested in their bullshit, and how willing they are to erode democratic norms (like the independence of the public broadcaster) in order to score a few points.

This use of committees as clip-gathering for social media was also on full display at Status of Women, as MP Michelle Ferreri staged another such stunt, by demanding a study on violence against women on transit as an “emergency,” while Liberal MP Anita Vandenbeld objected because the study she had been trying to launch for months now on the mental health of women refugees who faced sexual violence would be pushed back yet again. Ferreri claimed that she wasn’t doing this for clips—and then put out a shitpost attacking Vandenbeld. It’s shameful that committees are being used like this.

 

Ukraine Dispatch:

Russian forces continue to pound Avdiivka in the east, while Ukrainians say their defensive line is holding. President Volodymyr Zelenskyy says that they will continue to put their own pressure on Russian-occupied Crimea, and that increasing strikes have force the Russians to pull out their fleet as they are no longer to safely operate it from there. Elsewhere, Ukraine’s justice minister says he’s willing to go after the country’s oligarchs for embezzlement, fraud, and money laundering.

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