Roundup: No, we don’t need a “unity government”

The closer the Trump tariffs loom, the more insane the suggestions are being proffered. Case in point was in The Line yesterday, where former NDP MP and law professor Craig Scott said that the only way to save Canada is with a “unity government.” It was like he had decided to smoke meth before sitting down to write the op-ed because it was devoid of sense, or rationality.

Yes, Trump’s threats are serious, but what exactly is a “unity government” going to do? The government currently has all of the powers it needs for retaliatory tariffs and most other countermeasures. Creating a situation of an interim party leader (as prime minister) and building a Cabinet to include members of all other parties (and as he proposes, former Conservatives like James Moore, Rona Ambrose and Lisa Raitt if the current ones don’t play ball) would only be for the sake of optics, and would cause more problems than it solves. What portfolios do you distribute to members of opposition parties, for a few months? And if you’re brining in former Conservatives because the current ones don’t play ball, well, they’re all in the phase of their post-political careers where they are making money, and bringing them into Cabinet means a lot of headaches around disclosures and ethics obligations—again for the sake of a few months of optics. On top of that, the demand to bring Parliament back right away makes no sense either, because there is nothing for them to legislate around the Trump threats. As I have stated elsewhere, its only utility would be for dubious unanimous consent motions and vapid take-note debates.

You don’t need a “unity government” for MPs to play nice in the face of a grave threat. Insisting that you do is naïve and ahistorical, but fully in keeping with Scott, who was a blowhard when he was an MP, and this hasn’t changed in his time since apparently. Anyone who takes his op-ed seriously needs to rethink some of their life choices.

Ukraine Dispatch

Russia claims Ukraine has hit them with a massive drone and missile attack overnight that hit two factories. Russian forces are bypassing the stronghold of Pokrovsk in order to try and cut off its supply lines instead. Production at the Pokrovsk coal mine (used for the steel-making industry) has been halted as Russians close in.

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Roundup: Putting a stake in pharmacare

In the wake of his announced departure, it sounds like Justin Trudeau made calls to Jagmeet Singh and Yves-François Blanchet to try and secure votes on the Supplementary Estimates in order to extend the life of this parliament a little further, and both of them told him no. What is particularly curious here however is that Trudeau pointed out to Singh that more time would give them time to extend the dental care programme beyond seniors and children, and give them time enough to get the nascent pharmacare up and running (as so far, there is only cooperation from one or two provinces). Per the CBC, “An NDP source with knowledge of the conversation said the government already has all the powers it needs.”

*sighs, pinches bridge of nose*

It’s not a question of not having power, it’s a question of time. Implementation takes time to do properly, and with dental care, they went slowly on the groups eligible to ensure that everything was going to work before they rolled it out to the majority of the population, and they haven’t felt that they worked out all of the kinks yet. They want time enough to so. And the nascent pharmacare plan needs cooperation with the provinces, which takes time to negotiate, but also requires some assurance for those provinces that if the government does fall, that they have some guarantees for funding for a set period of time so that they’re not left holding the bag. Singh and the NDP should know this, but, well, they don’t actually know how government works because they’ve never formed it. They have now guaranteed that the premiers won’t bother to sign a deal because Poilievre will just kill the programme as soon as he’s in power, so why set up expectations?

What is most ironic in this is that by refusing to give the government more time so that he can look tough, Singh has doomed the very programmes that he was so insistent that the government set up as part of their agreement with the Liberals (which I will remind you, the Liberals fulfilled in good faith only for Singh to tear up the agreement for the sake of optics). And because the NDP insisted that dental care be a fully federal insurance programme rather than a cost-shared programme with provinces, they have guaranteed that it will be an easy kill for Poilievre, because they’re actually incapable of long-term or strategic thinking. I am reminded of how Jack Layton extracted all kinds of concessions from Paul Martin’s budget, but then brought him down before the budget implementation bill could be passed, and they spent years patting themselves on the back for a hollow victory that didn’t achieve anything they said they did. It’s looking an awful lot like there’s going to be a repeat of that particular folly.

Ukraine Dispatch

Russia attacked Ukraine with 72 drones overnight, and five struck buildings in Chernihiv in the north, another fell on a building in Kyiv.

https://twitter.com/ukraine_world/status/1877669181153304715

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Roundup: Leadership rules released

The Liberal Party National Council met last night, and around 10:30 PM released the rules of the forthcoming leadership contest. The voting ends March 2nd, with the announcement made on March 9th. There will be a $350,000 entry fee (high enough to discourage no-hope candidates), and candidates must declare by January 23rd. People registering to vote in the contest have until January 27th to sign up (remember, the Liberals don’t have memberships you need to buy), and they have tightened those rules to only include citizens and permanent residents, following all of the talk at the Foreign Interference Inquiry.

The Liberal leadership rules are out.High entry fee to discourage no-hope candidates, and they have tightened who can be a "supporter" to just be citizens or permanent residents. #cdnpoli

Dale Smith (@journodale.bsky.social) 2025-01-10T03:35:50.365Z

There are already complaints over social media that the entry fee is too high, meaning the field will be narrow, but that’s kind of the point—this is a race to be prime minister, not leader of the third party like it was the last time around, so you only want serious people, not those looking to build a profile (as far, far too many people do in leadership races). Yes, it’s a barrier to entry, but again, this needs to be a race for serious candidates only. As for the changes to who can register, there were a number of people on social media talking about how they registered their cats to vote, and things like that, because they thought they were being terribly clever in proving a point about how easy the system is to game. The Party spokesperson tweeted out that those fraudulent “memberships” (which they’re not really) will be removed, because again, the point of this exercise is really to collect data to populate a voter identification database, and it’s not too difficult to tell that your pets don’t have voter identification to match to in the system.

Speaking of unserious entrants, backbencher Chandra Arya announced he was running yesterday, and included a list of ridiculous plans including ending Canada’s monarchy, which is not only disqualifyingly dumb, but would mean getting unanimous consent of the provinces to essentially rewrite the constitution to do so. He also speaks no French and dismissed its importance (and good luck with that too). Christy Clark is apparently due to announce her bid shortly, but I did notice that Chantal Hébert was calling her out over social media for refusing to do an interview in French (to say nothing about actually knowing which party she belongs to, as she apparently took out a Conservative membership to vote for Jean Charest in their last leadership race after musing about her own bid for that leadership).

All of it. #cdnpoli

Dale Smith (@journodale.bsky.social) 2025-01-09T15:23:22.169Z

Ukraine Dispatch

Two people were killed in Russian shelling of the town of Siversk in the Donetsk region. Ukraine’s air force says that Russia has launched over 51,000 guided aerial bombs on Ukraine since the start of the invasion. And that oil depot that Ukraine hit near a strategic Russian airfield has continued to burn for more than 24 hours.

https://twitter.com/ukraine_world/status/1877283979574845612

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Roundup: More threats about annexation

It was yet another day that we have to become used to once again, where Donald Trump said something that was all at once boneheaded, insulting, and vaguely disturbing, as he talked about using economic forces to annex Canada (while also threatening Denmark/Greenland and Panama), and of course, that made every two-bit pundit and wannabe in this country light their hair on fire, yet again, because of course they did. And our political leaders were forced to respond, and I’m not sure what’s worse—Trump’s chaotic insanity, or the fact that our political leaders have to come up with something in response.

While threats to our sovereignty are one thing, it also goes to show that all of the obsequious scrambling to strengthen border measures—to say nothing of the boot-licking and obeying in advance of certain premiers—are pretty much for naught because Trump is not about to be mollified by any of this. He doesn’t have any tangible demands, because he wants a win, and today, he’s fixated on annexation as that win, but in a week’s time, he’ll likely move onto something else, because he is likely to lose interest, especially if something is difficult (and you’d better believe that annexation is incredibly difficult, particularly because it involves some near-impossible constitutional wrangling). It’s one of the reasons why we should probably be keeping our powder dry rather than freaking the fuck out every time he says something stupid and insane, but certainly be preparing retaliatory measures, and that’s going to likely mean the big guns like broad-based retaliatory counter-tariffs rather than selective ones like the last time, or export taxes on things like energy products, even if Scott Moe starts to throw a tantrum about it.

Dale Smith (@journodale.bsky.social) 2025-01-08T03:42:32.469Z

Amidst this, there was no end to people who should know better throwing a tantrum that the prorogation should be “rescinded” (no, it doesn’t work like that) and that Parliament needs to be recalled over these threats. Which would do what, exactly? The government continues to function, and no, it’s not a “caretaker” government. What would MPs actually do about this situation? There is no legislation that requires passage to counter any of this. The most that we would get are a unanimous consent motion condemning Trump’s words (maybe, if certain parties don’t balk and say we shouldn’t antagonise Trump), or a take-note debate where MPs spend six hours reading prepared speeches into the record. Oooooh! That’ll show Trump!

Canada MUST recall our Ryans (Reynolds and Gosling respectively) during tariff negotiations & annexation threats by President-Elect & Former POTUS, Donald J. Trump.The risk is too high for some of our greatest national exports.

Jon Liedtke (@jonliedtke.bsky.social) 2025-01-08T01:09:10.162Z

Ukraine Dispatch

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Roundup: Trudeau’s slow exit

And Monday morning, the inevitable happened. Prime minister Justin Trudeau summoned the media outside of Rideau Cottage, and first announced that he had been granted a prorogation until March 24th, and then stated that he had told his children and the president of the Liberal Party that he intends to resign as leader and prime minister once a successor has been chosen in a robust national competition. While he was tinged with sadness, there were still some elements that rankled—he blamed the decision on “internal divisions” in the party rather than a self-aware recognition that he was dragging them down, and that his time had come (or had come months ago and he refused to listen). When asked about Chrystia Freeland, he implied that her version of events was not what happened and that he offered her a chance to work on the most important file but she turned him down (and no, a portfolio with no department, staff, or levers of power, is not a promotion). When asked about his biggest regret, he said that it was that he couldn’t implement ranked ballots (which he never actually tried to do during the whole bloody Electoral Reform Committee process).

holy shit, did I do this??

Effin' Birds (@effinbirds.com) 2025-01-06T17:19:31.856Z

All those Conservatives introducing Pierre Poilievre as "Canada's next Prime Minister" turned out to be wrong, if only on a technicality.

Jason Markusoff (@markusoff.bsky.social) 2025-01-06T16:18:11.576Z

Response from other parties was quick. Jagmeet Singh was first out the door with a statement devoid of class or graciousness, and Pierre Poilievre soon followed on with the same. In a video message shortly thereafter, Singh said that he plans to vote non-confidence no matter who the leader is, but well, his mind changes with the cycles of the moon and the phases of the tide. Poilievre also delivered an absolutely psychotic video message about how the “dark days” are nearly over, and near sweet Rhea, mother of Zeus, that is absolutely divorced from reality.

Jagmeet Singh first out of the gate with a statement that lacks any semblance of class. #cdnpoli

Dale Smith (@journodale.bsky.social) 2025-01-06T16:32:04.683Z

And next up is Poilievre to also offer a classless statement. #cdnpoli

Dale Smith (@journodale.bsky.social) 2025-01-06T16:50:12.984Z

Like an absolute psychotic, Pierre Poilievre's opening remark is about the potential end of "a dark chapter in our history."

Emmett Macfarlane (@emmettmacfarlane.com) 2025-01-06T16:59:17.610Z

And then it's a litany about how terrible crime is in Canada.FACT CHECK: Crime in Canada actually remains near historic lows.

Emmett Macfarlane (@emmettmacfarlane.com) 2025-01-06T17:00:07.538Z

"Everything is out of control" Poilievre says.It's very depressing people fall for this fantasy shit. So many valid criticisms could be made about this listless government, and Poilievre is relying on 1980s-style Republican fear-mongering about crime and taxes.

Emmett Macfarlane (@emmettmacfarlane.com) 2025-01-06T17:02:03.861Z

The party now has to come to decisions about the length of the contest, the rules, and how they plan to deal with the potential for any foreign interference that comes with such an open system that doesn’t even have paid memberships (which, I will reiterate, was always a stupid move, and the Alberta Liberal Party, which instigated this kind of scheme, is now pretty much extinct). Those rules will help determine the shape of the race, and who may throw their hat into the ring, to take what could very well be a poisoned chalice.

Here is a high-level look over Trudeau’s political career. The Star has assembled a list of possible candidates for the job, but that’s going to start changing rapidly. There are concerns about what this will do with the response to Trump tariffs.

In reaction, Emmett Macfarlane sees no issues with the prorogation call (which is not unexpected). Susan Delacourt looks back over Trudeau’s political career and the air of inscrutability he has cultivated around himself. Althia Raj wonders about where the party goes next after Trudeau, and if they have enough runway to make a difference. Paul Wells lays out the four main challenges that Trudeau’s announcement has unleashed.

In case you missed it:

My weekend column on Poilievre and the lessons he seems to be eager to take from the “tech broligarchy” that is flexing its muscles around Trump.

My column on how Poilievre’s plan for a “massive crackdown on crime” is predicated on repealing laws that don’t do what he claims.

My weekend column on why there’s no such thing as an “interim” prime minister, and how the Liberals need to consider their next steps in replacing Trudeau.

My Loonie Politics Quick Take points out that the Conservatives’ plan to use the Public Accounts committee to call for non-confidence is a non-starter.

My year-end column on the four main political lessons that we’ve learned (or in some cases, refused to learn) over 2024.

My weekend column on the considerations around prorogation, now vs 2008, and what’s changed and what hasn’t since them.

Happy to see two of my stories in the top ten!

Dale Smith (@journodale.bsky.social) 2024-12-31T20:05:37.785Z

Ukraine Dispatch

Russian forces claim to have taken the stronghold of Kurakhove, but Ukraine says they are still fighting. The fighting appears to have intensified in the Kursk region of Russia with a possible new Ukrainian offensive, and they are saying that Russia and North Korea has suffered 38,000 casualties, with nearly 15,000 of those dead.

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Roundup: The shuffle and the kabuki responses

The Cabinet shuffle happened, and four ministers had a change in portfolio, with eight new faces joining the ranks. Nothing is too much of a surprise here—David McGuinty did get public safety, Nathaniel Erskine-Smith got housing as was expected and that means he is going to run again. Anita Anand is now solely transport but also got “interprovincial trade,” which is interesting. There is no minister from Alberta, as George Chahal remains tainted (and has been vocal in calling for a secret ballot in caucus on Trudeau’s future), so Terry Duguid from Winnipeg is pretty much it for the prairie representative. In some respects, this may be a “caretaker” Cabinet as the leadership question remains in the air, or it could have a short shelf-life, as threats of non-confidence circle ever-closer. It doesn’t solve any problems, it doesn’t really put a fresh face on government, and the only thing that can do that is for Trudeau to make as graceful an exit as possible, because the number of MPs who are publicly against him continues to grow, and he could very well be pushed by the next caucus meeting.

Trudeau does keep saying he wants MPs to be the "voice of their ridings in Ottawa"…

Dale Smith (@journodale.bsky.social) 2024-12-20T16:36:01.558Z

Amidst this, Jagmeet Singh decided to publish an open letter to say that he was ready to vote non-confidence in the government, but…blamed them for things that are completely within provincial jurisdiction, like healthcare and building housing. But more to the point, this is more performance art after he got called out by absolutely everyone for his “all options are on the table” equivocation, and this letter also didn’t specify that he would seek to vote them out at the first opportunity, so he has wiggle room. Trudeau may yet prorogue (but most likely if he does decide to step down), and if a new leader is chosen before Parliament comes back, Singh can always prevaricate and equivocate yet again about giving said new leader a chance, or something else like that. This is just more of the kabuki theatre that Canadian politics has descended into.

And Jagmeet Singh wants to rush us into the Poilievre era. Great.

Emmett Macfarlane (@emmettmacfarlane.com) 2024-12-20T17:53:04.092Z

And then to top it all off (and possibly to try and call Singh’s bluff), Pierre Poilievre called a press conference to say that he wrote a letter to the Governor General so that she can “reconvene” parliament and demand a confidence vote. Erm, except we’re not prorogued, so Parliament is merely adjourned and not suspended, and it’s at the call of the Speaker to recall the House on a non-sitting week, not the Governor General. Never mind that the government just survived a series of confidence votes, this is deliberate obfuscation and confusion of our system, and no doubt he will attack the GG if she doesn’t accede to his request (which she can’t, because it’s not in her powers to do so). Poilievre is deliberately misleading people about how our system operates so that he can claim that constitutional safeguards are illegitimate if anyone tries to use them against him. Aspiring autocrats love to weaken the guardrails, and Poilievre is engaged in a very concerted effort to do that right now.

Programming Note: This is it for 2024, barring some major news happening. Loonie Politics content will continue on its usual schedule, but the blog is on holiday because the burnout is real. Thanks for sticking with me all year, and we’ll see you in 2025.

Ukraine Dispatch

A Russian missile struck Kyiv in the morning rush hour, killing at least one person and damaging a historic cathedral. Ukrainian forces needed to pull back from two locations in the eastern Donetsk region, lest they become encircled. Here is a look at some of the people staying in Pokrovsk, in spite of Russia’s advance.

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Roundup: Cabinet Shuttle Day today

Prime minister Justin Trudeau will be shuffling his Cabinet today, and you can bet that there are a whole lot of competing narratives about it. On the one hand, many of these appointments are necessary, because you currently have a few ministers who are doing double or triple duty with complex files, and they need to have some of the load taken off so that government can still operate smoothly, despite the political crisis around Trudeau’s political future. On the other hand, there is a sense that this is Trudeau buying time, that he’s trying to secure dissenting voices’ support, and that these carrots he’s been dangling can bear some fruit among a caucus who is turning against him. Then again, making the shuffle means he loses that last bit of leverage with backbenchers who are calling for his ouster, so we’ll see which narrative winds up winning.

The buzz is that David McGuinty will be getting public safety, which may be a good fit because he may be in a position to implement the recommendations made from the NSICOP reports that he helped author as chair of the committee (but it is also a loss for the said committee with his departure, and the loss of Senator Francis Lankin as the other longest-serving member). It also sounds like Nathaniel Erskine-Smith will get housing, on the proviso that he will run again in the next election after previously saying he was going to bow out, but I also suspect that this will be tough because he can no longer be the maverick truth-teller he was in the backbenches, and will have to follow the PMO line (though he may also prove an effective communicator on the file to counter Poilievre’s bullshit). There is also talk that Rachel Bendayan, Terry Duguid and Darren Fisher will also be getting positions.

Amidst this, the Globe and Mail is reporting on contradictory rumours about Trudeau’s thoughts on his political future—one source saying he’s ready to go and is figuring out his exit plan, another source saying that he’s determined to stay put, with a third source saying he was ready to go but that Dominic LeBlanc and Marc Miller talked him out of it, and that Katie Telford is ensuring that he hears from supporters and not dissenters. It remains a chaotic mess, but one can only hope that the first source is correct, and that he is trying to figure out an exit strategy, because his remaining in office is untenable.

Ukraine Dispatch

A Russian missile killed three and wounded three more in Kharkiv, while another missile hit a residence in Kryvyi Rih, injuring five. Russia also carried out a massive cyberattack on Ukrainian government registries.

This has been clear for many months. If Putin wants to negotiate, he can stop fighting anytime. And negotiate. He is the obstacle to peace, not Zelensky, and has been since the beginning of the war. Still not heard Trump explain what leverage he will use to make him stop

Anne Applebaum (@anneapplebaum.bsky.social) 2024-12-19T11:01:48.050Z

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Roundup: On the policing of Trudeau’s feminism

One of the sub-plots around the lead-up to Chrystia Freeland’s resignation was the continued policing of feminism by the Conservatives, because it’s in their interests to dismiss Justin Trudeau as a “fake feminist.” The CBC has a whole write-up about how gender was never mentioned in the letter but is being used as an attack line. I’m inclined to agree with University of Calgary’s Melanee Thomas, cited in the piece, who notes that the only real gendered element was the “frustration” that qualified women can experience when men in power dismiss their advice.

I have to say, though, that the piece lacks some of the specific comments that the Conservatives made, and chose some of the tamer quotes rather than the unhinged ones, where Freeland was belittled as someone who apparently had no agency in order to attack Trudeau, which seems like a really interesting way to defend her, but also not really defend her. My absolute favourite was Leslyn Lewis standing up to declare that she wasn’t a token, with the obvious implication that Freeland was, which again, is hard to square with defending her honour (but not really) by insisting that she had no qualifications and was only there as a quota. It was pretty grotesque, and also a little delusional, because if there is anyone who is more likely to be a token, it’s Lewis, who is a crazy conspiracy theorist who shouldn’t hold a portfolio and yet does, and sits in Poilievre’s camera shot for quite obvious reasons.

One of the most common refrains from the Conservatives as they have tried to denigrate Trudeau’s feminism, as performative as it might be, is that they keep insisting that women and minorities in their caucus all earned their places, but any in the Liberal ranks were all token diversity picks, which is incredibly dismissive, and just perpetuates the very notions that straight white men are the only ones who can really be considered “qualified” without question. It makes it really, really hard to take the feminism-policing from those who continue to push that kind of a narrative, whether they think that’s what they’re doing or not.

Ukraine Dispatch

South Korean intelligence suggests that at least 100 North Korean troops in the Kursk region have been killed so far, another 1000 have bene injured in combat, and that they are struggling with drone warfare. Here is a look at why Russia is so eager to take Pokrovsk. A combined Ukrainian missile and drone strike damaged an oil refinery in the Rostov region. Russia alleges that Ukraine has used white phosphorus in attacks, which Ukraine denies and says Russia is the one who used it.

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Roundup: Can you “reflect” without a sense of self-awareness?

If there’s a theme in the fallout from Chrystia Freeland’s resignation, it’s a complete lack of self-awareness as to what is going on. While Justin Trudeau apparently spent the day “reflecting,” he gave a speech at the big Liberal Christmas party that…was basically his usual stump speech, prefaced with the line “Like most families, sometimes we have fights around the holidays. But of course, like most families, we find our way through it.” It’s completely tone-deaf for what just happened, and pretends that he didn’t reward his deputy with betrayal and telling her that he was going to replace her with Mark Carney when that apparently wasn’t even fully lined up (which would have been incredibly unworkable as Carney doesn’t have a seat, and would be waaaaaay too busy as finance minister at this particular moment to run in a by-election, particularly given that the Liberals no longer have safe seats). Trudeau is bad with contrition, but this is next level. Oh, and then he cancelled all of his year-end interviews with news outlets, so he doesn’t want to face any questions for everything that went down either, whether that’s because he wants to convince himself that everything is still fine, or he knows it’s not and doesn’t want to he reminded of it. Either way, it’s just one more sign of how the wheels have come off, and it’s time to go.

https://twitter.com/journo_dale/status/1869165335854923954

Meanwhile, there are MPs and former party operatives who think that Freeland should be the leader, because she is an intellectual heavyweight, and while I don’t disagree that she has the brains, she has proven to be a charisma black hole, and lacks the retail politics instinct that leadership requires. (And for the record, I don’t think that Mark Carney possesses the retail politics qualities either, or the patience to lead the party through the wilderness of opposition years and rebuilding).

And it wasn’t just Trudeau and the Liberals who are without any self-awareness. Poilievre held a press conference in Mississauga, and gave the line “if you hire clowns, you get a circus.” I mean, has he looked at, or listened to himself or his caucus? Ever? We are so screwed as a country.

Refers to pretty much everyone right now in #cdnpoli.

Dale Smith (@journodale.bsky.social) 2024-12-17T15:50:37.076Z

Ukraine Dispatch

Russia has been intensifying their attacks both in the parts of Kursk region that Ukraine occupies, and along Ukraine’s Donetsk region. Ukrainian intelligence apparently killed a Russian general responsible for the use of chemical weapons in a “special operation.” Ukraine also says they uncovered twelve agents working for Russia trying to determine the locations of their F-16 fighters and other air defences. And NATO is taking over coordination of military aid for Ukraine from the US, before Donald Trump comes to power.

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Roundup: Freeland drops a grenade

The day began with a grenade. Chrystia Freeland published her resignation letter on social media, pulled the pin, and let it explode in Trudeau’s lap. Just hours before she was supposed to deliver the fiscal update, she very publicly disagreed with his “political gimmicks” and the fact that it became clear that he was looking out more for his political survival than the good of the country, and said that he told her he wasn’t going to keep her in the portfolio but offered her another one, which she decided to decline.

It’s hard to fathom just how absolutely boneheaded Trudeau’s move was, to have her accept a demotion but still read a political document whose direction she had concerns with. And as for the portfolio he was going to give her, it was apparently a “Canada/US relations” portfolio with no department attached, meaning no levers of power to actually do anything in the role—it would be strictly ceremonial, and she was perfectly within her rights to reject that as a slap in the face after everything she has done for Trudeau, and been loyal this whole time.

Minister without Portfolio & no officials / no levers is not a real jobYou are being asked to bake the cookies for the team retreat.

Jennifer Robson (@jrobson.bsky.social) 2024-12-16T17:36:13.151Z

Big #cdnpoli vibes today.

Dale Smith (@journodale.bsky.social) 2024-12-17T01:16:13.508Z

Her departure, and the way she did it, sent the government scrambling. There was supposed to be a lock-up for journalists for the Fiscal Update, but it ended up being postponed while the Cabinet figured out what the hell to do, and if someone was going to read the document in the Commons. The rumours were that the back-up finance minister (according to the Order of Precedence), François-Philippe Champagne refused, as did Anita Anand, but I’m not sure what to think of those. In the end, there was no speech, merely a document tabled by the House Leader (who had just spent 45 minutes eating shit on Trudeau’s behalf in QP), and Dominic LeBlanc was shuttled over to Rideau Hall for an emergency swearing-in to add finance to his already too-long list of portfolios. From there, Trudeau went to an emergency caucus meeting as several of his MPs were renewing vocal calls for him to step down. In the end, he didn’t, but apparently the question remains open and he plans to “reflect” over the holidays. Oh, and all that talk about Mark Carney? Yeah, it’s not happening (because it never made any gods damned sense), so maybe stop talking about him already.

I have to wonder how Poilievre/Scheer/Hallan, et al., are going to spin the fact that Carney is not, in fact, taking over in finance. Do they claim credit, saying that they successfully warded him off? Do they pretend they never insisted this was a done deal? Which lie will be the lie they tell?

Dale Smith (@journodale.bsky.social) 2024-12-17T04:14:25.455Z

And as if that wasn’t enough, Trudeau then headed to the annual holiday party of the Laurier Club—the party’s top donors—and somewhat shrugged off the day’s events, repeatedly saying that Canada is the best country in the world. We’re in for some rough waters ahead, and I don’t know how Trudeau can possibly stay on at this point.

Throughout all of this, Jagmeet Singh took the opportunity to beclown himself, by demanding that Trudeau step down, but when asked if he would vote non-confidence, stated that “all options are on the table.” In other words, his party is not ready for an election, and will swallow themselves whole to prevent one while they try and look tough while they shit-talk the government at every opportunity. It’s farcical, but what do you expect from the current state of Canadian politics?

The fiscal update

After all of the drama, the update was released, albeit with no speech in the Chamber, which the Conservatives caterwauled mightily about. There weren’t many surprises, other than the fact that last year’s deficit was larger than expected because the government booked a bunch of legal settlements—primarily for the Indigenous communities—onto last year’s books (which is probably also why the Public Accounts have been delayed). These were one-time costs, so that means the deficit can continue to decline in the future, and economist Armine Yalnizyan noted that this was essentially a gift to the next government because it’s off their books, and they can make it look like they were more prudent managers when that’s not necessarily the case. Nevertheless, the government didn’t try to tease or hint that this was coming, which really makes you wonder about whoever is trying to decide on their communications strategy.

The Logic has a good summary of the document, and it is confirmed that Terry Fox will be on the new $5 banknotes, while Laurier will be shuffled up to the $50 (and I believe Sir John A Macdonald will take over the $100). The NDP, meanwhile, are disappointed there are no new social programmes in said budget, because of course they are.

How great is this, Terry Fox will be on the 5 dollar bill.#Canadianlegend

Rick Dhaliwal (@dhaliwalsports.bsky.social) 2024-12-17T00:33:46.874Z

The biggest ticket item in the FES is the extension of the Accelerated Investment Incentive. This is a huge deal. This allows companies to save taxes when they invest, and only when they invest. It will cost $17.9B in foregone revenue over the next 6 fiscal years.

Kevin Milligan (@kevinmilligan.bsky.social) 2024-12-16T21:44:13.179Z

Next, debt to GDP. We put on some debt during the pandemic. (Which was the right thing to do!) We have now knocked a few points off it. (Which is the right thing to do!). I'm hoping to see this trend continue in the FES. (It's the right thing to do!)We are nowhere near 1995 levels. This is fine.

Kevin Milligan (@kevinmilligan.bsky.social) 2024-12-16T19:00:55.197Z

Finally, here's the deficit to GDP. As a rough line, I'm pretty comfortable so long as the defict is under 2% of GDP. (We can run deficits of that size forever and still have Debt/GDP fall. Sustainable fiscal policy is about Debt/GDP.)

Kevin Milligan (@kevinmilligan.bsky.social) 2024-12-16T19:14:29.334Z

Ukraine Dispatch

Ukrainian and American intelligence both say that North Korean troops have been killed alongside Russians in fighting in the Kursk region. A Ukrainian drone has destroyed a Russian ammunition depot in the occupied parts of Donetsk region. Ukraine is claiming that they have a laser weapon that can down aerial weapons at a range of 2 km.

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