Roundup: Inflation falling into the control range

The inflation numbers were out yesterday, and headline inflation dropped to 2.8 percent annualized, which is the lowest in the G7, and back within the Bank of Canada’s control range of 1 to 3 percent (though they have stated they are going to keep measures in place it reaches two percent). There are still hot spots—food price inflation is still fairly high, and shelter costs are also running high, but that’s not unexpected given where things are at right now.

Chrystia Freeland called this news a “milestone moment” that Canadians should feel some relief in, while the Conservatives repeated some of their usual talking points. The NDP, naturally, are keeping up with their attempt to blame high inflation on corporate greed, particularly food price inflation, even though the data doesn’t really bear that out, as I pointed out in this thread:

Ukraine Dispatch:

Russian forces struck the southern port city of Odessa, and while most of the missiles and drones were intercepted, there were hits and there was damage from debris. This was considered to be retaliation for the explosion on the bridge linking Russia to occupied Crimea. More strikes are aimed at Odessa in the early morning hours. Meanwhile, with the Black Sea grain deal ended by Russia, the EU is looking to transport more Ukrainian grain by rail and road, while the UN says they are floating “a number of ideas” around how to get that grain flowing again.

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Roundup: No sympathy over late night sittings

In today’s edition of my ongoing exasperation with MPs, I present to you NDP mental health critic Gord Johns, who wants changes made to the parliamentary calendar in order to ensure that there aren’t midnight sittings toward the end of the fall and spring sittings, and he cited Elizabeth May’s hospitalisation as proof about how these twelve-hour days are bad. But there are a few things the matter with his concerns, not the least of which was that May wasn’t hospitalised for exhaustion but rather that she had a stroke, which was caught in time.

First of all, no MP is sitting in the Chamber for twelve hours a day. Even with committee commitments, MPs are only “on duty” for a few of those hours, and they have plenty of opportunity to take shifts during these late-night sittings. And thanks to remote voting (which is an abomination in our system), they don’t have to rush to the Chamber if there are late-night votes for whatever reason, so that’s not even an excuse. Elizabeth May does like to spend as much time in the Chamber as she can, but that is also a choice.

The bigger issue here, however, is that the biggest reason there are late nights late in each sitting is because there is work to get done, and it didn’t get done earlier because of procedural games or dilatory motions, or bullshit filibusters, or what have you. The parliamentary calendar is pretty finite, and there isn’t much wiggle room in there, so if you start playing games (and over the past few years now, this kind of procedural warfare has been fairly constant because they simply oppose the government as opposed to pulling out the big guns for major points of principle), then you have to make up that time somewhere, and that tends to mean late nights late in each sitting. I would have to say that there were actually fewer of them this spring than usual, possibly because the NDP agreed to play ball with more instances of time allocation to head off the procedural games, but it wasn’t that long ago that they were gleeful participants in said procedural warfare, and this is the result. Nevertheless, I’m not terribly sympathetic here, and this is firmly within the fuck around/find out principle, where the fucking around is the procedural warfare, and the finding out is the late nights in June and December.

Ukraine Dispatch:

Another overnight Russian air attack, this time hitting the port city of Mykolaiv, while defences around Odessa have been engaged. Russia has pulled out of the Black Sea grain deal, which could impact world grain prices and cause more problems for the food insecure regions that rely on Ukrainian grain, though Ukraine and Turkey say they will try to keep shipments flowing in spite of Russia. There are more details about the blast on the bridge linking Russia to occupied Crimea, where two people were killed, while damage to the bridge could cut off supply lines to Russian troops in occupied regions.

https://twitter.com/ukraine_world/status/1680983350692007937

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Roundup: The problem with feel-good legislation

There was a story out over the weekend about a recently-passed private member’s bill about cancers being faced by firefighters, but how it’s, well, a little bit useless. As well-meaning as the bill is, and there are a lot of well-meaning private members’ bills, it’s also one of those terrible “national strategy” bills that plague our Parliament year-in and year-out.

The thing about “national strategy” bills are that they’re trying to legislate in areas of provincial jurisdiction, largely around healthcare, but sometimes around certain environmental concerns, and so on. Because MPs know that people are about these issues that aren’t in their areas of jurisdiction, they instead come up with these feel-good bills that call on the federal government to coordinate with provinces to create a “national strategy” about whatever the issue is, in the hopes that they’ll come to some common ground, or the like. But also remember that these bills are not only about an area of provincial jurisdiction, but they also can’t spend any money, so they don’t create any incentives that the federal government can use to bring provinces on-side. So about the most that these bills tend to do is raise some awareness about the issue in question in the media (as is demonstrated by the CBC piece over the weekend that I’m referencing here), but aside from that, it’s a lot of thoughts and prayers.

My point here is largely that we see these bills time and again, which largely raise a lot of false hopes, and which can be a bit of a waste of peoples’ time. MPs get one shot a private member’s bill in any given parliament, and a lot of them don’t even get that because of the fact that it’s a lottery system that determines the order in which they appear, and for them to waste that shot on a feel-good bill that doesn’t actually do anything just gets tiresome after a while, and it can be really hard on the people whose hopes have been raised for nothing to happen, because it’s just a feel-good bill.

Ukraine Dispatch:

One civilian was killed by Russian shelling on Kharkiv, and seven wounded in a Russian attack on Zaporizhzhia. Elsewhere, there appears to have been a blast on the Russian bridge connecting Russia to occupied Crimea.

https://twitter.com/zelenskyyua/status/1680272192993472513

https://twitter.com/ukraine_world/status/1680525991418929156

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Roundup: Misguided “free-rider” complaints

The Wall Street Journal had an unsigned editorial board op-ed yesterday that denounced Canada as a “military free rider,” but then did little to actually back up their assertions, omitted a bunch of facts, and went on a tear about the current government’s mission to fix the toxic culture within our armed forces, citing “See how that cultural manifesto works on the Ukrainian front lines.” Um, considering that our soldiers are successfully training the Ukrainians into a fighting force that is nimble and not just throwing bodies at the enemy like the old Soviet system did, it’s working fairly well? And how is Russia’s toxic masculinity doing on the battlefield anyway? Oh, right. In a similar vein, the editorial rages that we don’t spend enough on defence while we “shovel money into public unions and social-welfare programmes.” Like our health care system, which even in its current broken state is still far superior to the Americans? I mean, really?

To add to Steve Saideman’s comments, where the paper seems to fall into that same basic trap of not understanding how NATO works, which is that it requires participation from countries, and we participate. We may not spend to the same percentage, but several high-spending countries don’t actually participate, and because the two percent target is a really stupid metric, it ignores that the denominator is far higher in Canada than in a lot of these higher-percentage countries. Could our spending be better? Yes. Is our procurement system completely screwed? Yes. Have we been something of a free-rider in continental defence because we know the Americans will be there regardless? That’s fair. But trying to assert that it’s because we’re too “woke” is just puerile.

Oh, and about their seeming to prefer Poland, who is sliding into illiberalism and who has a major problem with homophobia, there was this gem on the wire yesterday about how that government broke EU law by suspending a judge who for criticising the government. Yeah, that’s totally who should be replacing Canada at the G7 and in a leadership position in NATO. Well done, WSJ. Slow clap.

Ukraine Dispatch:

At least 20 Iranian-made drones attacked mostly the Kyiv regions early Thursday, with debris wounding two people. American intelligence suggests that Wagner mercenary forces are no longer participating militarily in Ukraine in any significant capacity. Russia appears to be detaining thousands of Ukrainian civilians without charges, and appear to be planning to create even more prison colonies.

https://twitter.com/ukraine_world/status/1679477329804902401

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Roundup: Another rate hike, more nonsense talking points in response

Not unexpectedly, the Bank of Canada raised interest rates another quarter point yesterday because inflation is becoming sticky, particularly in the core measures that they use to strip out the highly volatile measures like gasoline prices. If you read through the Monetary Policy Report, which shows the state of the global and Canadian economies, economic growth in Canada remains stronger than expected—too strong to tame inflation—and there is still too much demand in the system, particularly for services as opposed to goods, which is keeping those prices higher, as they are especially sensitive to the tight labour market. To that end, the Bank is now expecting inflation to last around three percent for most of the next year before finally getting back to the target of two percent, which is later than they anticipated because economic growth is still too strong.

Meanwhile, Pierre Poilievre continues to spout absolute nonsense about the causes of this inflation—it’s not government spending, and that isn’t indicated in the MPR anywhere—and lo, media outlets like the CBC simply both-sides his talking points rather than dismantling them. He’s talking about how he’s going to cut taxes, which would actually fuel inflation rather than do anything to tame it (and no, carbon prices are only marginally inflationary and cutting them would do nothing to slow it). And then there’s the NDP, who think that the Bank should lay off and instead use windfall taxes, as though “greed-flation” is what’s driving inflation (again, not indicated anywhere in the MPR). But as economist Stephen Gordon has pointed out, this kind of promise of painless measures to fight inflation are the provenance of quacks and faith healers. It won’t help, and it will make things worse.

Ukraine Dispatch:

It was a third consecutive night of Russian drone attacks directed to Kyiv, and falling debris has killed one person. Elsewhere, Ukrainian troops are reporting “some success” around Bakhmut.

https://twitter.com/kyivindependent/status/1679340673357557761

https://twitter.com/davidakin/status/1679031785764659201

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Roundup: No, it’s not another carbon tax

Pierre Poilievre is currently on a tour of Atlantic Canada, braying about the increase in the carbon price, and the incoming clean fuel standard regulations, which he has mendaciously dubbed “Carbon Tax 2.” Poilievre claims will be a combined hike of 61 cents per litre of gasoline. He’s wrong—the figure comes from future carbon price increases plus a dubious Parliamentary Budget Officer report on the clean fuel standard pricing effects, which were based on a lot of assumptions that may not happen, and the figure from that report that Poilievre is citing was an estimated price effect from 2030, which again, he falsely implies is coming right away.

While I’m not going to say much more, because I will probably write about this later in the week in a more comprehensive way, it was noted that a columnist at our supposed national paper of record not only fully bought into Poilievre’s bullshit, but he couldn’t even be bothered to check his facts on these prices. Here’s energy economist Andrew Leach setting the record straight:

As a bonus, here is Leach throwing some shade at Michael Chong as he tries his own brand of bullshit about what is happening with Norway.

Ukraine Dispatch:

The counteroffensive moves “slowly but surely,” not only in regaining a cluster of villages in the southeast, but also around Bakhmut, while Russians are bringing in their “best reserves.” Ukrainian forces also have to contend with low-cost suicide drones that are difficult to defend against, as these drones target valuable equipment. Meanwhile, in a speech to parliament, president Volodymyr Zelenskyy ruled out any peace plan that would turn the war into a frozen conflict.

https://twitter.com/zelenskyyua/status/1674074924124631041

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Roundup: May inflation shows it’s cooling faster

Statistics Canada released the May inflation numbers yesterday, and they were well down from the month previous, the headline number now down to 3.4 percent, which is in line what the Bank of Canada is predicting about it returning to about three percent by the end of the year. Part of this is because year-over-year gasoline prices fell, meaning that there is a base-year effect in play, but food inflation remains high (in large part because of climate change affecting food-growing regions and the difficulty in getting Ukrainian grain to market continues to keep those prices high), and mortgage interest rates are one of the factors fuelling this. Unfortunately, you have certain economists like Jim Stanford who think that this is the Bank causing this inflation, when in fact if they hadn’t raised rates when they did, higher inflation would still be ripping through the economy. (Seriously, stop listening to Jim Stanford).

Additionally, these numbers continue to prove that Pierre Poilievre’s narratives about inflation are specious at best, but are pretty much bullshit he is squeezing into whatever the headline seems to be. Last month, when there was a 0.1% uptick in inflation, Poilievre blamed it on the news of the budget deficit, and that this was proof that the deficit was “pouring gasoline on the inflationary fire.” That was wrong, and the Bank of Canada said that the trend was that inflation was still decreasing (and that the government’s fiscal policy was not having an effect on that decelerating inflation). And lo, inflation is still decelerating, in spite of the budget deficit. It’s like Poilievre has no idea what he’s talking about.

Meanwhile, economist Stephen Gordon has a few thoughts the numbers.

Ukraine Dispatch:

Two Russian missiles hit the eastern Ukrainian city of Kramatorsk, killing four and destroying a cafe that was fairly well known. Meanwhile, a UN human rights report shows that Russian forces carried out widespread and systematic torture of civilians they detained before executing them, but also found that Russians troops detained by Ukrainians also alleged torture and mistreatment.

https://twitter.com/united24media/status/1673784944798191617

https://twitter.com/defenceu/status/1673769121450696724

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Roundup: Johnston’s classified last word

In what appears to be a growing habit of waiting until the prime minister is out of the country, His Excellency David Johnston turned in the final version of his report last night, stating that this was all classified material added to the confidential annex to his previous report, and that the public title page was updated, and with that, he’s not answering any more questions as he is no longer Special Rapporteur. You can pretty much imagine him giving the finger as he did so, considering what he was subjected to for stepping up (though I will reiterate the point that Philippe Lagassé correctly makes in saying that former Governors General should not be seen or heard). The Privy Council Office responded publicly that they received it, and thanked him for his service.

https://twitter.com/SusanDelacourt/status/1673445165191643137

As this was happening, NSIRA put out a public statement saying that they’re going through Johnston’s findings in the confidential version of his report, but said that certain Cabinet confidences were not being disclosed to them, and that only a limited number of documents were handed over, and if they are to examine things, they and NSICOP need to see everything, which is fair enough. Given that Trudeau had waived Cabinet confidences for Johnston, I suspect this is more the work of the civil servants and their obsessive desire for secrecy, but it is a bit curious that NSIRA did call the government out so publicly like that, and once again, Trudeau pretty much needs to be shamed into doing something that should have been a matter of course.

Ukraine Dispatch:

Despite reclaiming another village in the southeast, Ukraine admits that not a lot has changed along the southern front just yet. President Volodymyr Zelenskyy did visit with troops along the eastern front, and presented medals to those on the front lines. Meanwhile, the Russia/Wagner Group infighting has improved Ukrainian morale along the front lines.

https://twitter.com/defenceu/status/1673301190753550341

As for the aborted mutiny/attempted coup, here are four things we do know about the outcome, and four things we don’t. In the meantime, the memes are just getting started, and there are some pretty good ones.

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Roundup: A game of chicken over a public inquiry

A game of chicken is shaping up around the demands for a public inquiry into allegations of foreign interference, that started with Dominic LeBlanc throwing it into the opposition’s lap to come up with a name they could agree to that could head it, along with terms of reference, knowing full well that it is going to be incredibly difficult to do, particularly because they all have competing goals, and some their demands are literally impossible, such as having an incredibly wide-ranging inquiry that could somehow complete its work in but a few months. Not going to happen.

Pierre Poilievre has decided to try and turn the tables and says that he wants the government to commit to said inquiry before he starts sharing names, which risks letting the government sit back and say that they already stated their terms. Committing to a public inquiry is one thing, but drawing up the Order in Council for it is quite another, and that requires having the commissioner(s) and terms of reference already decided.

This being said, the deadline of having this declared before Friday is wholly artificial. The government doesn’t need to table this in the House, and they can draw up the Order in Council at any time. If the aim is for the House of Commons to vote on the proposal, that’s a bad idea because then it launders the accountability for what happens, and lets the government off the hook if things go sideways, and MPs should know this because it’s fundamental to their very jobs, but they have become completely blinkered in this. At this point, I’m not expecting an announcement before Friday, and for this to drag on for several more weeks because there won’t be any agreement on names or the scope of the inquiry. That said, I do fully expect that we’ll have a summer full of “emergency” committee meetings on this and other topics, so I doubt the story will go away—just the daily demands in Question Period.

Ukraine Dispatch:

Russians fired another 35 Iranian-made drones into Ukraine, with some 32 being shot down, but a “critically important facility” in Lviv was struck, with no further clues as to what it was. There are also competing narratives at play—president Volodymyr Zelenskyy says that they are destroying Russian forces in both the east and south, while the Russians claim that they are repelling the offences. Here is a look at some of the Canadian soldiers training Ukrainian troops at Camp Sapper in Poland.

https://twitter.com/ukraine_world/status/1671118296374976513

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QP: Gesturing to an empty chair

The prime minister was in town but not present, while his deputy and most of the other leaders were also away. Pierre Poilievre led off in French, and asserted that Justin Trudeau has not fired his “misleading and incompetent” public safety minister because he also knew about Paul Bernardo’s transfer and did nothing about it, before he pretended that Trudeau was present and afraid to answer. Mark Holland dismissed the notion that anyone would have sympathy for Bernardo, and that Correctional Services were independent. They each went the same around in English, practically verbatim, before Poilievre insisted that the government had the power to block the transfer, somehow. Holland insisted that they should not politicise Corrections. Poilievre tried to call the absent Trudeau out, didn’t really get cautioned by the Speaker, and demanded that the government pass their bill on ensuring all mass murderers stay in maximum security forever. Holland again tried to insist that they not politicise Corrections. Poilievre gave another plea for unanimous support for that bill (which I doubt is even constitutional), and Holland says they are ready to have conversations about not politicising Corrections, and that they wait for the review of the transfer.

Christine Normandin led for the Bloc, and she demanded that they announce a public inquiry before the end of the sitting, to which Marco Mendicino said that he was encouraged by their willingness to work together. Normandin insisted that the Bloc would not let this go, and insisted that a public inquiry commissioner be approved by the House (which is a bad idea) and be completed in a few months (which is literally impossible). Mendicino recited that an option of a public inquiry is on the table.

Peter Julian rose for the NDP, and in French, he listed the number of ministers who are apparently unable to read their emails and worried about re-traumatising Bernardo’s victims. Holland reminded him that it’s important that Correctional Services remain independent. Julian repeated his question in English, and Holland gave him much the same answer.

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