Roundup: Deficit is coming in lower than expected

It is on or about day ninety-four of Russia’s invasion of Ukraine, and Russian forces are claiming that they have captured a rail hub in Donestk, while they continue to pound Severodonetsk, with some 90 percent of the city’s buildings damaged. Ukrainians are calling for Western allies to deliver weapons faster, though there is talk that it looks like this aggressive push by Russia has depleted their arsenal.

The invasion is also not accidental in terms of location or timing—the eastern part of the country are a trove of natural gas and critical minerals, and when Russia invaded, it cut off Ukraine’s exploration of natural gas reserves in the Black Sea, which could have been used to help wean Europe off of Russian oil and gas. Because aren’t all wars really about resources?

Closer to home, the Fiscal Monitor was released, and the deficit figure is coming in much lower than anticipated, because in large part the economy is overheated which is generating a lot of revenue (and inflation does help in terms of collecting higher taxes on higher prices). But as Kevin Milligan points out, this means that the obsession by the Conservatives with the deficit is becoming really misplaced—the massive spending in 2020 to get us through the pandemic is behind us, and we’re not in that situation anymore. Not that facts matter—this is really an exercise in people’s feelings about the deficit, and the perceptions that are not grounded in facts.

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Roundup: How to remove a central bank governor

It is now approximately day seventy-nine of Russia’s invasion of Ukraine, and war crimes trials are beginning in the country, hearing from one youth who whose father was murdered in front of him, and who was shot by Russian soldiers but who survived. Shooting at civilians—and children especially—is a war crime, and Russians will be hard-pressed to come up with justifications for them. As well, the UN is declaring a “child rights crisis” in the country, given how many children have been killed in the invasion. Meanwhile, here is a look at the “partisans” fighting on Ukraine’s behalf from behind Russian lines, which may or may not be the cause of all of those fires and explosions.

Elsewhere in Europe, Finland’s president and prime minister are urging the country’s parliament to vote in favour of making their application to join NATO, while Sweden is expected to follow suit days later. If Putin’s fig-leaf excuse for invading Ukraine was to stop NATO’s expansion, well, he’s just done the opposite, so good job there. There will be some sensitivity in managing the time between Finland applying for membership and when they are granted it, as they could be particularly vulnerable to Russian aggression during that period.

Closer to home, Pierre Poilievre’s attack on the Bank of Canada is not going unnoticed, but it helps for the rest of us to know just what he’s trying to suggest. To that end, Kevin Carmichael provides needed context to what exactly Poilievre is threatening to do to the Bank of Canada governor, and why he’s wrong on inflation. As well, this thread is a good take on the mechanism for the how governor is appointed and what it would take to remove him.

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QP: Panic at the passport office

While the prime minster was in town, he was not present for QP, though his deputy was. No other leader was present either, for what it’s worth, and we did learn later in the day that Candice Bergen tested positive for COVID earlier in the week, and has been isolating. Before things got started, the Deputy Speaker returned to what happened yesterday regarding unparliamentary language, and said that reviewing the tapes found no definitive proof if the prime minister actually said anything amidst the noise, but he did hear unparliamentary things on both sides, and he cautioned MPs that it was not acceptable. He also noted that the question on abortion from Sophie Chatel did not have to do with the administrative responsibilities of the government, and such questions will be disallowed in the future. (Famous last words…) He also asserted that for those whose blood pressure is running a little high, it was a beautiful day outside and they should go take a walk.

Luc Berthold led off, worrying about delays at passport offices, and asserted the solution was to have civil servants back at work in their offices. Chrystia Freeland noted that they understand their responsibilities to Canadians, but she could not agree that everything was going wrong in Canada, and the IMF praised our growth. Berthold carried on with the complaints about delays, and again demanded civil servants go back to their offices. Freeland thanked civil servants for their efforts, and that she knew they worked diligently. Berthold insisted that Canadians expected service from civil servants, and once again demanded that civil servants return to their offices. Freeland again repeated that civil servants do exceptional work. Michael Chong took over in English, and worried about another court challenge against Line 5 in Michigan—ignoring that the challenge is coming from Indigenous groups—to which Freeland assured him that they understand the importance of Line 5 and that the government was standing up for our rights including treaty rights with the US. Chong wondered why Canada was in court to fight this challenge, and Freeland repeated the assurances that the government was on the case.

Claude DeBellefeuille led for the Bloc, and she repeated this week’s demand that the federal government turn over the responsibility for immigration to Quebec. Freeland recited the government’s lines that Quebec sets their own targets and that the federal government supports them. DeBellefeuille was not mollified, and repeated the demand, and Freeland repeated her assurances, with a few added figures to quote.

Jenny Kwan rose for the NDP, and she cited the MMIW inquiry listing housing as a contributing factor, blasting the government for not having a dedicated housing strategy for Indigenous women and two-spirit people. Freeland first recognised that today is Red Dress day, and that they agreed that housing is a problem and part of the solution, which is why it was a central part of the budget. Niki Ashton took over, and demanded immediate action in the MMIW inquiry’s calls to justice, and insisted it wasn’t in the budget. Freeland repeated her initial acknowledgment of the day in French, before returning to English to correct that there were investments in this budget.

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QP: Down the dark path to disinformation

For Wednesday, proto-PMQ day, you would generally expect all of the leaders to be present because they will try to take as much of the spotlight as possible, so imagine my surprise that Candice Bergen was absent yet again today, meaning she has been present less than the PM on the past couple of weeks.

Luc Berthold led off, and he started off on the RCMP memo on the Aga Khan vacation, and he wanted agreement that there is no time limit to crimes. Justin Trudeau read that this was a distraction from their support for the occupation, while they should be focused on things like the war in Ukraine. Berthold insisted that the RCMP should pursue charges in light of “new evidence,” while Trudeau repeated that the Conservatives were focusing on personal attacks instead of what matters to Canadians. Berthold pivoted to federal vaccine mandates and demanded that they be ended, and Trudeau rose to extemporaneously praise Canadians who did the right thing and got vaccinated. Melissa Lantsman worried that unvaccinated international travellers were mixing with people on airplanes so there was no point in keeping up those measures, but Trudeau disputed this, and insisted that measures kept Canadians safe. Lantsman tried to insinuate that the government was being secretive about the evidence they get, but Trudeau disputed the Conservatives’ assertion that Canadians were divided, when they united to getting vaccinated and being there for each other through the pandemic.

Yves-François Blanchet led for the Bloc, and he demanded that the federal government turn over immigration authority to Quebec, worrying that they wanted to impose their own targets on the province. Trudeau insisted that they always work with Quebec on their immigration targets and they were willing to help them grow them. Blanchet tried again, and got the same time.

Jagmeet Singh got up for the NDP to demand that the federal government hasn’t done enough to increase access to abortion, and wanted federal funding for contraception. Trudeau recited a paean to a woman’s right to choose. Singh insisted this was about lives and not a political wedge, before he repeated the question in French, and Trudeau listed actions they have taken to claw back funding from New Brunswick for their denying funds for an abortion clinic.

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QP: An amazing amount of revisionist history

While Justin Trudeau was away at Guy Lafleur’s funeral, none of the other leaders showed up in the House of Commons either, never mind the brewing political storm and promise of some mischief after QP. Luc Berthold led off, and he accused the prime minister of doing nothing about the Ottawa occupation before he pulled out the Emergencies Act, whereas this past weekend, those same “protesters” came back and left, and wondered what was different. Marco Mendicino talked about how police were better prepared, but the measures were needed at the time. Berthold tried to downplay the occupation and insisted that if it wasn’t safe, MPs should not have been able to cross it, and Mendicino talked about how Parliamentarians’ experience was not necessarily that of other residents of the city, and and they looked forward to the inquiry. Berthold tried to be cute and wondered how many people were arrested for sedition in relation to the blockade, and Mendicino waved it off, and said they government would cooperate with the inquiry. John Brassard took over in English, and raised that RCMP memo—ignoring that the memo stated there was no evidence to support a charge—and wanted to know if the prime minister was above the law. Mark Holland stood up to sermonise about the opposition was concerned with personal attacks and not the business of the nation. Brassard gave it another go, and Holland pleaded with them to let Bill C-8 pass.

Alain Therrien considered it arrogant that the government wouldn’t devolve powers to Quebec to deal with their own immigration files, and Marie-France Lalaonde cited some figures about the province not managing to fill their entire quotas as it is. Christine Normandin got up next, and gave a paean to a woman’s right to choose, and Chrystia Freeland assured her this government would protect a woman’s rights, and she expressed shock at the news coming out of the United States, and gave a clear defence of a woman’s rights, to an ovation from most of the Commons, but not all.

Jagmeet Singh railed about an alleged tax agreement achieved with a corporation, to which Diane Lebouthillier said that this allegation was examined by a third party and determined there was no wrong doing and that the CRA came out ahead in the arrangement. Singh switched to French to decry the profitability of the oil and gas sector while getting subsidies, and Jonathan Wilkinson gave a bromide about working with sectors including the oil and gas sector.

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QP: Appealing to the NDP Whip?

While the prime minister was away, none of the other leaders were present either, though the deputy PM was attending virtually. Luc Berthold led off, and he decried Motion 11 on extending sitting hours, and wondered if the NDP were be whipped on the vote (which…isn’t really a question to the government, as much as they’re trying to be clever about there allegedly being a coalition). Kevin Lamoureux insisted this was simply about more hours for debate, which surely nobody could object to. (Note that there are things that can be objected to, but neither side will be reasonable in the discussion). Berthold then listed off some torqued versions of this government’s ethical lapses, and wondered if someone on the other side would say enough was enough, and Lamoureux dismissed this as mere personal attacks. Berthold demanded that the RCMP re-open the investigation into the Aga Khan vacation—never mind that they already concluded that there was no evidence—and Lamoureux dismissed it again as personal attacks instead of focusing on things that matter. James Bezan took over in English to demand an RCMP investigation, and Lamoureux insisted that this was simply character assassination. Bezan tried to pretend he was a prosecutor who had obtained a witness box confession, and Lamoureux deployed the “three leaders ago” quip.

Alain Therrien led for the Bloc, and he praised the police action over the weekend with the “bike rally” and how they didn’t need the Emergencies Act, and he wondered if it was necessary at all months ago. Marco Mendicino also praised the police’s actions, and said that the invoked the Emergencies Act at the time because it was needed. Therrien spun a version of events during the occupation that presumed more federal powers than exist, and Mendicino repeated that they needed the Act that time.

Peter Julian rose for the NDP, and in French, and he lamented that federal COVID sickness benefits were expiring, and Karina Gould appeared by video to say that they extended EI sickness benefits, which was not the same thing. Daniel Blaikie took over to add some sanctimony to the question, and demanded the benefits be extended, and Gould listed actions they have taken around sick days (for federally-regulated sectors) and EI modernisation.

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QP: Concerns about the scope of the inquiry

Despite the fact that he gave a press conference outside of the Chamber minutes before QP, the prime minister was not present, nor were any of the other leaders. Luc Berthold led off, and in French, he accused the government of writing the Emergencies Act inquiry’s findings before it even began. Chrystia Freeland slowly read some talking points about the blockades and occupation, and said they look forward to the inquiry report. Berthold again accused the government of fixing the report in their favour, and Freeland read that the measures were targeted and limited, and that they had a duty to protect Canadians and the economy, which they met. Berthold then switched to the torqued story on the RCMP memo and demanded a new investigation, which Freeland slowly and patiently read that the opposition was bringing up a six-year-old matter that has been settled. James Bezan took over in English to demand a new RCMP investigation, and Freeland again slowly read the same talking points in English. Bezan selectively quoted the RCMP memo, without quoting that they concluded there was no evidence, and Freeland responded that Canadians are instead demanding action on climate change, to build more house, and to support Ukraine.

Alain Therrien led for the Bloc, and he complained that a new committee was being set up to deal with the Winnipeg Lab documents without the consent of two opposition parties, and Freeland read that they came up with a reasonable solution, and that they would move ahead with this committee. Therrien repeated his complaint, and Freeland repeated her answer.

Alexandre Boulerice led for the NDP by video, and said that Quebeckers demand universal pharmacare—erm, which would be an issue of provincial jurisdiction—and demanded a federal solution. Freeland read that they announced an agreement with PEI last August as a first step, but they were continuing the work. Matthew Green raised the plan to lift the federal sickness benefit and demanded the enactment of ten paid sick days (in federally-regulated workplaces, surely). Freeland praised working with unions and their legislation to make those sick days happen.

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QP: Go meet with the RCMP again

The prime minister was present today, as were all other leaders, so that was a nice change. Candice Bergen led off with her script, and she declared that “fraud on the government” occurred with relation to the prime minister’s trip to the Aga Khan’s private island—the details of which Bergen omitted and framed to sound more lurid—to which Justin Trudeau noted that this was dealt with five years ago, and that the Conservatives were focused on him while he was focused on Canadians. Bergen demanded a yes or no answer as to whether he gave himself permission to break the law, and Trudeau gave a resounding no, and that the RCMP decided there was nothing to pursue, and that it was thoroughly investigated by third parties, while the government doesn’t interfere in the RCMP’s operations. Bergen suggested that Trudeau go back to the RCMP to let them reconsider, and he more emphatically noted that government does not direct the RCMP. Luc Berthold took over in French, demanded the same response on the decision not to pursue the fraud charge, and Trudeau again repeated that this matter was put to bed and that the RCMP made their own decision. Berthold tried to suss this out further, and he too demanded that Trudeau meet with the RCMP again, and Trudeau listed the things the government was doing while the Conservatives were playing petty politics.

Yves-François Blanchet led for the Bloc, and accused Trudeau of disrespecting Canadians and Ukrainians by not chartering flights for those refugees, to which Trudeau read the script that they are working safely and effectively, and thanks to the emergency travel fund, it was the safest and most effective way to act. Blanchet took issue with the rapidity at which this is happening, and Trudeau insisted that they were taking all measures to expedite this travel.

Jagmeet Singh rose for the NDP, and after some word salad about profits and corporations, he demanded the government block the proposed merger between Rogers and Shaw. Trudeau noted that they set a goal to lower prices, it actually happened, which is why they were focused on competition and access. Singh switched to French to repeat the demand, and Trudeau recited the same response that did not address the demand.

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Roundup: Legitimizing lunatic narratives about inflation

We are now around day fifty-nine of Russia’s invasion of Ukraine, and it looks like Russia is shifting more units to attacking cities in Eastern Ukraine, and what could be a battle to control the country’s industrial heartland. We also have satellite images that show Russians digging mass graves around Mariupol to try and hide evidence of their war crimes and atrocities against civilians in that city. In Russia, the regime is cracking down harder on its critics, including Vladimir Kara-Murza, who is being charged under the new law that criminalises spreading “false information,” and could be imprisoned for up to 15 years as a result.

Closer to home, I have about lost all patience with the way that the inflation numbers are being reported on, particularly because it’s primarily a lot of both-sidesing without actually reading the gods damned Consumer Price Index from Statistics Canada, even though it’s right there, and spells out what the drivers are. But because our media outlets—and both the CBC and The Canadian Press are especially bad about this—are more invested in the appearance of fairness for political messages than actually calling out falsehoods, simply give equal time to all of the messages. This particular piece on the CBC’s site yesterday, that goes and very gently debunks the messages that different political parties are spreading, is a lot more both-sidesing because it’s still giving equal weight to all of these messages, even if it’s getting experts to push back a little bit (but in some cases, still framing it as though some of these messages are still “a little bit right,” which is the cute trick that they’ve been relying on to not look like they’re biased against any party). And how much room is given to explaining the actual drivers? A single, small paragraph that lists a few of them in general terms, rather than laying out the issues of energy production and fuel shortages in certain countries, or the global supply shortage of semiconductor chips, or most importantly, the fact that we’ve had a lot of droughts in food-producing regions, including in Canada, and that is having a huge impact on food prices because the supply simply isn’t there.

Why this becomes even more important is because you have Pierre Poilievre saying flat out that the Bank of Canada’s economists are “financially illiterate,” because he learned better from the crypto bros on YouTube. It’s alarming, and if the mass media can’t push back against this utter lunacy, but instead soft-pedals it and frames it like “everyone is a little bit right” when they don’t actually bother to go to the gods damned statistical data, it lets this utterly bogus narrative gain traction and legitimacy. This is a problem for our democracy and our society in general, because they’re afraid that Poilievre’s bot army will be mad at them. They’re going to call you biased whatever you do, so why not show a bit of fortitude and call the lies what they are?

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QP: Sticking by childish epithets about the NDP

While neither the prime minister nor his deputy were present, Candice Bergen was back after a week of isolating while her husband had COVID. She led off, script on her mini-lectern, and she raised the of inflation, and worried that the government would spend “outrageously” rather than producing a “responsible” budget on Thursday. Randy Boissonnault, appearing by video, stated that the Conservatives have ignored the facts of the economic recovery from the pandemic. Bergen raised Jean Chrétien, Paul Martin, and John Manley to denounce the supposed “tax-and-spend” budget, because apparently it’s 1995 and will always be 1995. Boissonnault reminded Bergen that she campaigned on a higher deficit, and that their positions are all over the map, and called on the Conservatives to support Bill C-8 on the fiscal update measures. Bergen demanded a GST holiday on fuel and to scrap the price on carbon as “real measures” to give Canadians “a break,” and offered some childish epithets about the NDP. Boissonnault recited measures the government has taken for affordability, including their new plan on low-cost internet for low-income families. Luc Berthold took over in French, and repeated the claim that there were no fiscally-responsible Liberals left, and wondered what good the Liberal Party was if it sacrificed its values for the NDP agenda. Boisonnault repeated his good-news talking point about economic statistics, but in French. Berthold lamented inflation, and worried that the government would unveil new permanent spending in the budget, which apparently would make Chrétien and Martin embarrassed (though I’m not quite sure about that). Boissonnault thanked Berthold for saying that Liberals are fiscally responsible, and praised measures that helped children and seniors out of poverty.

Christine Normandin led for the Bloc, and she wanted unconditional health transfers and demanded a public summit to hear from premiers and health care providers. Jean-Yves Duclos praised providers, and noted that tens of thousands of lives, and tens of billions of dollars were saved thanks to their collaborations and efforts. Normandin repeated her demand for a public summit, and Duclos repeated his response. 

Alexandre Boulerice led for the NDP by video, and he cited the three-year warning of the IPCC on the pace of emissions cuts, demanding and end to fossil fuel subsidies, to which Steven Guilbeault recited that they are ahead of the rest of the G7 on ending subsidies and praised the investments in their emissions reduction plan. Laurel Collins repeated the question in English, to which Guilbeault cited environmental groups who praised the emissions reduction plan. 

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