Tag Archives: Inflation

Roundup: The weird fixation on east coast LNG

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There was another report about Europeans looking for Canadian LNG, this time in The Logic in a conversation with the German ambassador. What it did not really mention was the actual business case—only that the “long timelines” involved was a reason why former prime minister Justin Trudeau said that there wasn’t a business case for it. The thrust of the piece is that demand maybe longer than just short-term because even rapid electrification will still require some gas, however there is a boatload of context about this that journalists who have this weird fetish for LNG never actually touch on.

First of all, this discussion is only about east coast LNG, not west coast, where the conditions are different, and where there a whole bunch of potential projects that are fully permitted, and have all of their approvals in place, but aren’t moving ahead because the market isn’t showing demand (and by demand, we mean signing long-term contracts to buy the product). While this was also the case on the east coast, it’s complicated by the lack of ready supply of natural gas to liquify. Neither Quebec nor New Brunswick are about to start fracking for the sake of domestic supply, and the costs to bring a pipeline from western Canada to New Brunswick for export purposes is a lot to consider when we think about what is “long term.” That means supply is likely to becoming from the US, and that in turn will drive up local prices because they’re competing with the theoretical export terminal. To add to that, the “long term” we need to keep in mind is that these kinds of plants need to be operating for a good forty years or so to get their money’s worth. Is anyone in Europe thinking about the infrastructure necessary on that kind of time scale? Unlikely, and unlikely at that time scale for the kinds of prices that Canada would be offering, which are higher than they could get elsewhere.

What do they mean by "long-term"? Because these kinds of projects need a 40-year lifespan or so to actually get their money's worth, by which time we'll be well past net-zero goals.

— Dale Smith (@journodale.bsky.social) 2025-09-25T13:37:04.762Z

This is why these stories never actually make sense, because those journalists never actually talk to an energy economist about it, or if they do, it goes right out the other ear while they maintain this weird fixation on LNG. I’m not quite sure what it’s in service of—have they simply absorbed the propaganda of the oil and gas industry, who say dumb and wrong things like how our fossil fuels are the “cleanest” (they absolutely are not), or worse, that it will displace coal (the final emissions profile is not that much lower than coal, and as David Cochrane is the only journalist to push back on this talking point, there is no guarantee that they wouldn’t just use Canadian LNG in addition to coal rather than displacing it)? Or is this some kind of sad attempt at playing gotcha with Trudeau and the business case line? Because certain journalists are relentless in badgering and hectoring European leaders about this, and it’s just weird, and just completely ignorant of the facts on the ground.

Ukraine Dispatch

A Russian attack on Chernihiv meant power cuts for 70,000 people. NATO Secretary General Mark Rutte says that members can target Russian planes that enter their airspace as necessary. And president Zelenskyy says he is ready to leave office once the war is over.

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QP: Happy birthday to Poilievre’s mother

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The prime minister was once again away, off to the UK after a morning meeting with the visiting Taoiseach of Ireland (who did come by to watch QP), and most of the other leaders absented themselves as well. Pierre Poilievre, however, was still here, and he led off in French, accusing the prime minister of “fleeing scandal and crime,” and began his daily list of the public safety minister’s supposed failures. François-Philippe Champagne stated that the prime minister was travelling to build Canada, and that the opposition should congratulate him. Poilievre repeated the same again in English, and Champagne praised the budget en anglais. Poilievre said that today was his birthday and he said that she complained about grocery prices, and he demanded the government eliminate “all taxes on groceries.” Patty Hajdu wished Poilievre’s mother a happy birthday before pointing out that the voted against the school food programme. Poilievre moved onto the PBO’s latest deficit projections and wondered how anyone could be worse than Trudeau. Champagne also wished his mother a happy birthday and said that she should be happy because her taxes got cut. Poilievre praised his mother’s ability to budget and lamented the government’s deficits. Hajdu again raised the school food programme that Conservatives voted against. Poilievre returned to French to repeat the question about the PBO’s numbers, and Champagne said ghat he wouldn’t want to tell Poilievre’s mother that he voted against child care, dental care, or the school food programme. 

Christine Normandin led for the Bloc, and she declared that Canada Post is an essential service that people needed. Joël Lightbound said that it was essential, which is why they needed to make reforms to ensure its viability, while maintaining services for seniors and people with disabilities. Normandin worried about the closure of rural post offices, and pointed to the essential nature in the remote areas. Lightbound assured her they would not abandon these communities. Marie-Hélène Gaudreau asked the same question about people who need at-home delivery and, Lightbound said that they will ensure those Canadians still have access, and that they needed to ensure the corporation would remain viable.

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QP: Harvesting food insecurity clips

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The PM was freshly back from his trip to the UN General Assembly, and was stopping into the House of Commons before meeting with the President of Indonesia, who was dropping by Parliament for a visit. Pierre Poilievre led off in French, and he accused the government of taking money away from border officers and police for the gun buyback, and then switched to English halfway through to call for the public safety minster to be fired. Mark Carney said that they were going to do a voluntary buyback the right way. Poilievre repeated the accusation of “ripping money away” in English, and railed about hunting rifles. Carney said that he didn’t know where to begin that intervention, that Poilievre voted against gun control, and that the government was doing things the right way. Poilievre said that he voted against soft on crime policies, complained about the “broken border,” and implored the government to “leave Grandpa Joe’s hunting rifle alone.” Carney said that he doesn’t know any hunters who use AR-15s, and that the government was strengthening the border. Poilievre listed guns used by farmers to kill gophers being banned, and implored Carney to read his briefing books. Carney insisted that they providing fair compensation for illegal weapons, and that they were tightening the border. Poilievre again listed guns that are being banned, and accused the government of harassing farmer and duck hunters while gun crime rages in the streets. Carney said the RCMP gets this, and that they want these guns off the streets. Poilievre moved onto food prices, and declared Carney to have been a failure. Carney patted himself on the back for cutting taxes and cutting the carbon levy. 

Yves-François Blanchet led for the NDP, and he calmly spouted absolute rot about the factum before the Supreme Court on the Quebec “secularism” law challenge. Carney cited that the Charter protects everyone, and it was the government’s responsibility to defend it. Blanchet declared that Liberal applause was an insult to Quebeckers, and Carney again praised the Charter and that it was the government’s job to defend it. Blanchet insisted that the constitution was “imposed” on Quebec (not true) and demanded that Carney withdraw the factum and apologise to Quebeckers. Carney declared that the government would not backtrack on this.

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QP: Two ministers under fire

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The PM was away on this grey and rainy Monday, off to the UN General Assembly in New York, while that meant other leaders felt they could get away with not showing up. Pierre Poilievre, however, was present, and led off in French, and he raised the story of the secretly recorded call with Gary Anandasangaree about the gun buyback. Anandasangaree said that his comments were “misguided.” Poilievre repeated the question in English, and this time, Anandasangaree talked about Canadians demanding gun control after mass shooting. Poilievre repeated phrases from the recording, and again thundered about playing politics with guns. Anandasangaree repeated his same points about the mass shootings. Poilievre said Liberals only tell the truth when they think nobody is listening, and Anandasangaree said it was a good thing it was on tape, and accused Poilievre of playing politics. Poilievre decried the entire gun buyback scheme, and this time Sean Fraser railed about Poilievre’s record in opposing gun control. Poilievre demanded the government pass their “three strikes” law instead, and Fraser pointed out their tabling the hate crimes legislation and said that more legislation is on the way.

Christine Normandin led for the Bloc, and suggested the government was engaging in conspiracy theories with their factum to the Supreme Court. Fraser said they were working toward the national interest in protecting the constitution, and that the Supreme Court was the right forum to debate these issues. Normandin said that this should be litigated in Parliament, and Steven Guilbeault said that her assertions were misinformed, and that their factum doesn’t put forward that provinces can’t use the Notwithstanding Clause. Rhéal Fortin gave his own jab at the factum, which was similarly devoid of facts, and Guilbeault pointed to his own pride in being a Quebecker before pointing to the government’s record on supporting Quebec.

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QP: Concern trolling about Mexico’s growth rates

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The prime minister was off to Mexico City, and most of the other leaders weren’t present either. Pierre Poilievre was, however, and he led off in English, and compared Mexico’s economic growth compared to Canada’s (as though there were different baselines or circumstances). Mélanie Joly praised Carney’s trip before reminding him that there is a global trade war that is affecting us. Poilievre insisted that we both trade with the U.S., and that they must be doing something right. Joly accused Poilievre of always talking down Canadian workers, and praised yesterday’s interest rate cuts. Poilievre switched to French to say that they support workers, then accused the Liberals of “collapsing” the economy, before repeating his first question about their growth rates. Joly said that Poilievre doesn’t know what he’s talking about, and praised the interest rate cuts as good news, and said that we need to work with trade partners to grow the economy. Poilievre returned to English to accuse Carney of only heading to Mexico for a photo op, and then repeated the line that the economy is “collapsing,” and Joly said that Poilievre believes in isolationism while the government is engaging abroad. Poilievre said that we already have trade agreements and that this trip was just for fake engagement, and said Carney could ask those other counties why they’re doing so much better than we are. Maninder Sidhu patted himself on the back for the trading relationships Canada has. Poilievre said he was taking credit for things he never did while the economy collapses, to which Sidhu said he wouldn’t go to personal attacks, before reading off some trade statistics with Mexico.

Christine Normandin led for the Bloc, and she accused the government of attacking the ability of Quebec to pass their own laws with their factum to the Supreme Court of Canada in an upcoming hearing. Steven Guilbeault says that the government has a duty to protect the Charter. Normandin repeated the accusation, which was wholly specious in its arguments, and again Guilbeault said that they are not preventing any province from invoked the Clause, and he could organise a presentation through the department of Justice. Rhéal Fortin returned to his same questions as earlier in the week, attacking a judicial appointment on false grounds. Patricia Lattanzio read a statement about the independence of the judiciary.

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QP: Day two, and the front bench is useless

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An hour before things got underway, it was announced that Chrystia Freeland was leaving Cabinet (but not her seat) to take on a special envoy role for Ukrainian reconstruction, meaning the front bench got shifted one day into the new sitting, and the gender balance skewed just a little more male. The PM was not present, as he was off to meet with Scott Moe, but other leaders did show up.

Pierre Poilievre led off in French, and decried that a budget had not been delivered yet, and claimed that the deficit had been doubled—higher than Trudeau’s. He claimed that inflation was fifty percent higher than the target (it’s not), and worried about people relying on food banks; if people were to judge Carney based on food prices, then what was the verdict? François-Philippe Champagne said that Canadians chose a government that would focus on change, and that they were going to be rigorous in spending and ambitious in investment. Poilievre worried that empty promises led to empty stomachs, to which Champagne again praised their tax cut, which was going to help the Middle Class™. Poilievre switched to English to repeat his faux concern that deficits cause food price inflation, and the empty promises/empty stomachs line. Champagne recited the “spend less to invest more” line, before praising their tax cut and the elimination of the carbon levy. Poilievre said this government’s failure led to human suffering, and this time, Tim Hodgson stood up to praise their pledge to expand the LNG terminal in BC. Poilievre said it was insulting that nobody would answer a question on the price of food, and Gregor Robertson said that while they were concerned about the cost of food, they were taking action on housing. Poilievre again pounced on the fact that the question was about food, and this time Adam van Koeverden got up to chide Poilievre for voting against school food programmes, and that Poilievre voted against the other measures in the Food Banks Canada report, like strengthening the social safety net.

Yves-François Blanchet rose for the Bloc, and he worried about the state of talks with the U.S. Dominic LeBlanc assured him that the talks continue, and that they are preparing for the review of the New NAFTA. Blanchet said that he heard in Washington that there is disappointment that Carney is not in Washington more often, and LeBlanc agreed that the U.S. is an essential economic partner, and that with the trade relationship changing they need to work to get the best deal. Blanchet wondered if Carney would speak to Trump on the summit circuit, or go to Washington, and LeBlanc again reiterated that we treat the American relationship with great respect, but we are also diversifying out trade relationships.

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QP: A collegial-ish return for Poilievre

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The first day back, and absolutely everyone was salivating for prime minister Mark Carney and Pierre Poilievre’s first face-to-face since the election. As Members’ Statements were underway, Carney and Poilievre met in the centre aisle and shook hands before the show got starter. When it it, Poilievre led off by praising the people of his new riding, and wanted to see if Carney agreed that they were united in believing in…a list of his slogans. Carney said that he spoke for everyone in welcoming him back, and noted a few things changed he was last here, including the largest women’s caucus in history, and a sprit of collaboration in passing legislation. Poilievre repeated the thanks for his constituents in French before listing those slogans again and seeking agreement for them. Carney said he agreed with the sentiments expressed. Poilievre returned to English, to give a few swipes at Trudeau, and then applied those to Carney, demanding real change. Carney patted himself on the back for their tax cut and eliminating federal barriers to internal trade. Poilievre again returned to French, said that they would simply insist on Carney listening up to his promises, decried food price inflation, and demanded a budget that would address this. Carney repeated his back-patting in English, including a new point about supporting the CRTC in bringing broadband prices down. Poilievre switched back to English to repeat his same points, and Carney insisted that they were undertaking the biggest investment in the Canadian military, and promised more to come. Poilievre railed about deficits and debt, and Carney insisted that they were still going to build the strongest economy in the G7, which means being clear about the size of the challenge ahead of them.

Yves-François Blanchet took over for the Bloc, and lamented that there was still no resolution to the trade war, and wanted a commitment to ending tariffs. Carney responded that we currently have the best deal with the Americans worldwide, and that counted as a success. Blanchet contested such an assertion, and wanted the trusted relationship re-established (as though Trump was a rational actor). Carney said that he spoke with Trump over the weekend about the situation with Russia, Ukraine, and China. Blanchet demanded that Carney made it a priority to go to Washington, and Carney said that we need to diversity trade with Europe, Asia, Africa, and South America.

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Roundup: More proof the carbon levy didn’t raise food prices

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Pierre Poilievre is at it again, railing about food price inflation, but lo, he can no longer blame it on the carbon levy because that was never actually the problem or the cause of food price inflation, but he certainly vilified it, and Mark Carney capitulated and allowed Poilievre’s vilification to work. Poilievre is now blaming government spending on food price inflation, which is hilariously wrong, but Carney has also capitulated to that as well and is ushering in a new wave of austerity, because why actually explain things when you can just surrender to the bullshit?

Meanwhile, here’s Andrew Leach walking you through why it wasn’t the carbon levy and never was the carbon levy.

Ukraine Dispatch

Russians broke through the front lines near Dobropillia, but were quickly contained (but it’s a poor narrative for the upcoming Trump-Putin talks). Ukraine has also been regaining territory in Sumy region. President Zelenskyy says that Russia wants the remaining 30 percent of Donetsk region for a ceasefire, which they won’t give him.

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Roundup: Spending vs inflation

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Last week, the CD Howe Institute put out a report on the recent bout of inflation, and tried to pin it either on government spending or the Bank of Canada, and in the process ignored a whole lot of things that happened during the pandemic that were material to those price increases. Or the fact that early in the pandemic, we had deflation, and that the Bank of Canada needed to act fast to ensure that it did not continue lest it turn into a spiral that would lead to a depression, because that’s what deflation does.

Naturally, however, the moment Pierre Poilievre saw that they were pinning blame on government spending, he had to jump on that because it’s his entire central thesis for inflation, in spite of all evidence to the contrary. I report on economic data on a regular basis, and that includes the Consumer Price Index (or inflation) data every month, and the Bank of Canada’s Monetary Policy Report every quarter. I can tell you what prices increased and where, because that’s in the data every month. None of the causes had anything to do with government spending.

I also have to take some exception to the notion that government supports like CERB were driving demand. CERB was not extra spending money. It was survival money for low-income people who were out of work because of the pandemic. It staved off a wave of bankruptcies and even more demand on provincial social services or food banks (and the lack of provincial social services is the main driver behind increased food bank use, per their own reports). The “excess demand” was coming from higher-income households who had plenty of money to spend when they couldn’t go out to restaurants or go on vacations. They were not the recipients of government support, and trying to conflate the two is disingenuous, and frankly smacks of a great deal of ideological bias.

— Effin' Birds (@effinbirds.com) 2025-07-19T21:10:16.169Z

Ukraine Dispatch

There has been another barrage of drones and missiles that have killed at least one person in Kyiv overnight. Here is another look at how the people in Kyiv are coping with the increased attacks.

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QP: Day three of the same GC Strategies response

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As the countdown to the G7 summit was on, the PM was not in the House for Question Period today, nor was Andrew Scheer. That left it up to Leslyn Lewis to lead off, raising their Supply Day motion to force GC Strategies to repay their contracts. Anita Anand said she would get go the question, but wanted to raise their air crash in India that included one Canadian aboard. Lewis also extended condolences, before repeating her question. This time, Joël Lightbound recited the talking points about barring GC Strategies, and that there are RCMP investigations and legal actions ongoing. Bob Zimmer read the same script, and demanded support for their motion. Lightbound released his same response. Zimmer said that the answer wouldn’t cut it, but got much the same response. Dominique Vien recited the French version of the same script, and Lightbound recited his same points en français. Vien tried again, and got the same answer one last time. 

Christine Normandin led for the Bloc, and decried that the government is planning to invoke closure on Bill C-5, which would steamroll fossil fuel projects and gut environmental assessments. Steven MacKinnon insisted that this was necessary in response to the trade war that the Americans started. Normandin corrected stated that this bill needed more study, and MacKinnon responded that Quebec voted for 44 Liberal MPs, as though that justified a Henry VIII clause in that bill. Patrick Bonin took over and said those 44 Quebec Liberals voted to steal from Quebec when they voted against the Bloc motion to extend the rebates for Quebeckers. This time Steven Guilbeault pointed out that there is still an industrial pricing system, and that Quebec’s price under cap-and-trade is below the price in the rest of the country.

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