Roundup: 100 basis points, because the Bank of Canada is serious

It’s day one-hundred-and-forty-one of Russia’s invasion of Ukraine, and with Russian forces trying to turn the entire Donbas region to ashes with continued shelling, Ukrainian forces have been trying to reclaim some ground in the south, hitting another ammunition depot in Nova Kakhovka. Russian missiles struck the southern cities of Mykolaiv and Zaporizhzhia, as a show of their determination to hang onto their gains in the south.

Closer to home, the Bank of Canada raised their key overnight rate by 100 basis points, so that interest rates are now sitting at 2.5 percent, which is in the middle of their estimated “neutral” range of two and three percent. This means that the rate is not supposed to be either stimulative or contractionary. The hike was so high in large part because of the shock value—the Bank wants to break any psychological expectation that can lead to an inflationary spiral, where people keep expecting inflation to keep rising, and behave in ways that reinforce it. This goes for wages as well, and the Bank is trying hard to send signals that will hopefully keep a wage spiral from happening, where wages rise to meet inflation, which just increases demand and stokes inflation, and the cycle becomes self-reinforcing. The Monetary Policy Report also included an interesting section where the Bank examined why their previous estimates went wrong, and while they didn’t conclude that it’s because they don’t have a division of precognitive psychics guiding policy, they did find that a lot of the global shocks didn’t factor into their calculations. One such example was oil prices—their modelling used oil prices as being stable, but when they jumped, that threw off their modelling. And the invasion of Ukraine really did a number on everyone’s models, so the Bank of Canada wasn’t unique there.

When it comes to political reaction, both the Conservatives and the NDP sent out press releases freaking out. The Conservatives blame government spending for inflation, instead of its actual causes, and freak out that the cure is high interest rates, as though one can have it both ways in perpetuity. (This is the alleged “party of sound economic management,” who continually prove they are fiscally illiterate). The NDP think the cause of inflation is price gouging, instead of the actual causes (which isn’t to say that there hasn’t been some, but it’s not the cause), and therefore interest rates going up punishes people. Which is also missing the point. And it would be nice if we had opposition parties that were economically literate and capable of challenging the government on its bullshit rather than on largely imaginary problems.

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Roundup: The premiers think we’re all stupid

It is now day one-hundred-and-forty of Russia’s invasion of Ukraine, and Ukrainian forces are claiming to have hit a Russian ammunition depot near the captured city of Nova Kakhovka in the south. At the same time, Russians continue their attacks on the cities of Sloviansk and Toetsk in the Donetsk province, killing at least nine civilians. Here is a look at efforts to train Ukrainian soldiers and civilians in combat first aid. Over in Russia, the government is poised to enact legislation that can force companies to supply the military, including making employees work overtime, as the country tries to replenish its supplies after depleting them in the invasion thus far.

Closer to home, the Council of the Federation meeting ended, and lo, the premiers were unanimous in demanding that the federal government come to the table with them to, well, accept their demands to give them more money with no strings attached. Only they had both a wounded tone, which quickly switched to sanctimony when they were challenged, particularly about the pandemic spending that couldn’t be tracked. Some premiers, Tim Houston most especially, seem to think that we all have amnesia about 2004 to 2014, when the bulk of those six percent health transfer escalators were spent on other things. Saying that they all want improved outcomes is one thing, but the federal government isn’t stupid—they are well aware that provinces would be just fine with status quo that the federal government paid more for, and that they spent less on. That’s why they want conditions—so that provinces don’t pull this kind of thing once again. Premiers were also pretending that they had no idea what kinds of outcomes the federal government is looking to achieve, because most of the is in last year’s election platform. It’s not hard to find. And frankly, federal health minister Jean-Yves Duclos is right when he says that these outcomes should be agreed to at the ministerial level before the first ministers sit down to talk dollars, because you want to have a plan in place before you attach dollars to it, rather than the opposite, which John Horgan seems to think is how government should function. (You can find my thread as I was live-tweeting the closing press conference here).

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On a related note, The Canadian Press devoted several hundred words of wire copy yesterday to the fact that the promised $2 billion to clear up surgical backlogs hasn’t flowed yet…because the budget only received royal assent a couple of weeks ago. And that premiers are complaining they haven’t received the money yet. I mean, premiers know how a budget cycle works. This is not a news story—it’s not even a real process story. It’s complaining for the sake of complaining. The only piece of interest in the story was that the government tabled a bill about the spending commitment, then abandoned it in order to wrap the spending in their budget bill a couple of weeks later. This isn’t the first time they’ve done so, and it’s a really annoying habit that they have, but again, not actually a news story.

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Roundup: An “adult conversation” consisting solely of a demand for cash

It’s now day one-hundred-and-thirty-nine of Russia’s invasion of Ukraine, and the Russians have resumed pounding the city of Kharkiv, destroying civilian buildings. The Russian government is trying to fast-track giving Russian citizenship to all Ukrainians, an attempt to exert more influence over the country. Meanwhile, president Volodymyr Zelenskyy is calling out Canada’s decision to return those gas turbines to Russia by way of Germany, saying that Russia will interpret this as a sign of weakness that Russia will try to exploit, and he’s not wrong, but one wonders if there may not be a greater danger in alienating Germany as they are already facing rationing. For what it’s worth, the US State Department is backing Canada’s decision, but this situation was very much a Kobayashi Maru.

Closer to home, the Council of the Federation got underway yesterday, and of course the opening salvos were about healthcare funding, without strings attached. BC Premier John Horgan, who is currently the chair of the Council, was dismissive about the federal government’s concerns, calling them “accounting differences,” when Dominic LeBlanc called them out for their misleading figures about the current transfers, and the fact that several provinces are crying poor while simultaneously bragging about surpluses that they paid for with federal pandemic dollars, of the fact that Quebec is sending vote-buying cheques out to people ahead of their election. And LeBlanc is absolutely right—there need to be strings to ensure that provinces won’t use that money to pad their bottom line, reduce their own spending, or lower taxes, because they’ve all done it in the past. The best part is that Horgan keeps saying he wants an “adult conversation,” but the only thing the premiers are bringing to the table is a demand for more money, and that’s it. That’s not an adult conversation. (For more, the National Post took a dive into the issue, and came out with a fairly decent piece that includes the actual history of transfers, tax points, and provinces who spent those health care transfers on other things).

There will be a few other things discussed, and there’s a primer here about them. Jason Kenney wants to spend the premiers meeting pushing back at the federal emissions reduction targets, because of course he does.

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Roundup: Brown’s whistleblower goes public

We’re now in day one-hundred-and-thirty-five of Russia’s invasion of Ukraine, and it sounds like Russia might be taking an “operational pause” to regroup before they return to hammering Donetsk province…though there was still some shelling in the region. The Ukrainian flag is once again flying on Snake Island, which is a strategic access point to ports like Odessa. For his part, Putin says that he’s just getting started, and is daring the West to meet him on the battlefield, so that’s going well.

Closer to home, the Patrick Brown saga continues, as the woman who was in his camp and reported the alleged financial misdeeds to the party came forward and said she blew the whistle, and detailed the allegation that a company was paying for her work on the campaign and that Brown knew about it (which he and his camp have denied). As this goes to the Commissioner of Elections, the Liberals, keen to make some mischief, sent in their own complaint to the Commissioner, asking him to investigate the Conservative Party as a whole in the event that they benefitted financially from any memberships the Brown camp sold that may have been done improperly. So that’s going well.

The party is also contending with how they will count votes for Brown that are received, given that they’re not reprinting ballots, and don’t want to just not count his votes in any way in case that alters the maths of the preferential ballot in some way, so…they’re consulting. And we’ll see what that says. Meanwhile, members of the Conservative committee vetting leadership candidates apparently warned the organizing committee not to approve Patrick Brown’s bid, but were overruled, so that’s also interesting.

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Roundup: Patrick Brown disqualified?

We are on day one-hundred-and-thirty-three of Russia’s invasion of Ukraine, and the governor of Donetsk province is urging some 350,000 residents to evacuate in order to both save lives and make it easier for the Ukrainian army to repel Russian advances. This being said, the Russians have been using up so many personnel and equipment on this advance that they may be forced to stall later in the summer, though they still have abundant resources that the Ukrainians don’t have at this point. Meanwhile, here is a look at Ukrainians struggling in towns and villages outside of Kyiv, as their homes have been bombed out and they don’t know when they might get new ones.

Closer to home, the Conservative Party’s Leadership Election Organising Committee has taken the decision to disqualify Patrick Brown on the basis of “serious allegations of wrongdoing,” and that they are planning on turning the file over to the Commissioner of Elections. Brown’s campaign responded a short time later saying this is all based on anonymous allegations they haven’t been able to respond to, and that their lawyers are now involved. So, it’s going well. Nevertheless, it’s one more reminder of just how bastardised this whole process is because our parties keep trying to ape American presidential primaries, while filling their coffers and databases rather than worrying about things like accountability, or parliamentary leadership. These races are a mockery of our system, and we really, really need to return to a system of caucus selection of leadership, so that MPs are empowered, leaders are held to account, and that the party isn’t just a hollow vehicle for a personality cult.

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Oh, and while we’re at it, one of Peter MacKay’s staff from the last leadership contest is now suing Erin O’Toole for alleging he was behind a hacking theft, so there really is no end to the drama here.

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Roundup: Hoping for a Canada Day with little disruption

We’re on day one-hundred-and-twenty-eight of Russia’s invasion of Ukraine, and it looks like shelling by Ukrainian forces have driven Russian troops from Snake Island, a strategic location in the south near Odesa (and where those border agents famously told the Russian warship to fuck itself). This could mean that the threats against Odesa are receding. Meanwhile, the fighting continues around Lysychansk, where the Russians are facing a tough road to try and encircle the city as they can’t cross the river without being exposed to the Ukrainian forces on the high ground.

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Closer to home, it’s Canada Day, but the festivities are taking place off the Hill in Lebreton Flats, because a third of the lawn in front of the Centre Block is now a giant pit while they dig new underground infrastructure for the renovated building. As well, the Snowbirds have been forced to cancel their performance because of a serious maintenance issue with their fleet. The far-right extremists, grifters, conspiracy theorists and grievance tourists have already started to descent on downtown Ottawa and Parliament Hill, so we’ll see if things are as disruptive as they were during the occupation, but thus far, police are taking no chances and we’ve already seen arrests and vehicles being towed, so we’re off to a better start than we were in January. Regardless, I hope you enjoy your Canada Day as much as possible.

Programming Note: I’m taking the long weekend off to recuperate, so I’ll see you Monday or Tuesday, depending on how I feel (and how much news there is over the weekend).

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Roundup: Allegations of interference still not adding up

It’s day one-hundred-and-twenty-seven of Russia’s invasion of Ukraine, and a major prisoner swap took place, securing the release of 144 Ukrainian soldiers, including 95 of the defenders of Mariupol. The majority of those prisoners swapped were badly wounded. It sounds like an equal number of Russian fighters, as well as so-called Donetsk separatists, were released as part of the swap.

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Closer to home, we got another denial from Bill Blair about any interference in the Nova Scotia mass-shooting investigation, and he speaks reasonably authoritatively enough about knowing where the line is given his previous life as a police chief. And there is not a lot of things adding up around these allegations of interference, particularly that the forthcoming order-in-council around banning assault-style rifles, which they would have needed to work on for weeks or months, so it was pretty much baked-in by that point if it was announced days later, and they would have been in consultation with the RCMP over it. The notion that releasing the information could have jeopardized the investigation has been debunked, especially given that the shooter’s spouse could tell them all that information. To add to that, the PMO had already been given the information on the guns thanks to the National Security Advisor, so again, there wouldn’t have been any need for interference if that’s what you’re calling it. Now, we all know that the very first question reporters would have asked when the announcement on the OiC came down was whether the guns used in this shooting would be covered, so again, this seems like fairly basic disclosure that they knew was coming. And if anyone is clutching their pearls over the Liberals politicizing a mass shooting—which is actually appropriate—then they haven’t watched Question Period, where tragedies are politicised every single day. Also, not to be forgotten, the Justice Department isn’t holding onto documents on behalf of the government—they’re acting as the lawyers for the RCMP in this situation, so this likely has to do with the advice they are receiving from their clients. Again, the allegations that this is some kind of cover-up are not adding up.

But these issues aside, let’s be clear—the RCMP in Nova Scotia had just shit the bed. Massively. They didn’t disclose information that could have saved lives, they lied to the media, and they have been increasingly caught out about it, and a lot of this sounds like deflection, particularly because they are butthurt that Commissioner Lucki chewed them out about it. Like I said, stuff isn’t adding up about the supposed “interference,” but I would again remind you that we should not be credulously believing everything the RCMP are saying, particularly as they are in the middle of justifying and deflecting around what happened, and the fact that they were trying to keep from disclosing information unnecessarily.

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Roundup: Standing for the Emergencies Act inquiry

It’s now day one-hundred-and-twenty-five of Russia’s invasion of Ukraine, and Russian long-range bombers struck a shopping mall in Kremenchuk in central Ukraine that had over a thousand people inside, leaving 13 dead and over 40 injured. Further east, Russians are now advancing on Lysychansk, but because it is higher up the river banks, it is a more defensible position for Ukrainian forces, and that could tie up Russian forces for months.

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President Volodymyr Zelenskyy met with G7 leaders by video, and asked for more modern air defences, as well as even more sanctions as the ones that are in place are still not having enough of an effect. Zelenskyy also asked for assistance in unblocking Ukrainian ports so that they can get grain ships in, but this will mean de-mining work that could take weeks or months. Russia, meanwhile, looks set to default on its foreign debt for the first time since the Bolshevik revolution, and here is an explainer of what that could mean.

Closer to home, Justice Paul Rouleau, heading up the public inquiry into the invocation of the Emergencies Act, has released the list of who he has granted standing to hear from, and lo, the Conservative Party is not on it. Citing precedents from previous inquiries like Gomery, Rouleau has basically concluded that the Conservatives had nothing substantive to add, other than to whinge that the Liberals were mean to them about their support for the occupation, and he’s not interested in partisan point-scoring.

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Roundup: A bill to swiftly pass?

We’re at day one-hundred-and-fifteen of Russia’s invasion of Ukraine, and it sounds like Severodonestk is still contested territory, under constant Russian shelling making it impossible for civilians trapped under a chemical plant to escape. UK prime minister Boris Johnson visited Kyiv for a second time, promising more arms as well as training for soldiers on a rotating basis. At the same time, the European Commission is recommending Ukraine for consideration for EU Membership. Meanwhile, a Ukrainian soldier who recorded the atrocities at Mariupol has been freed from Russian custody, while the Ukrainian Cabinet approved a resolution to bar Russian citizens from entering Ukraine without a visa.

Closer to home, the federal government tabled a new bill aimed at responding to the Supreme Court of Canada decision five weeks ago that allowed automatism as a defence in very narrow circumstances. The bill eliminates “self-induced extreme intoxication” as a defence, while leaving automatism out in those very rare cases where it would be unknowable that one might enter into this state, which points to the fact that in at least one of the cases before the Supreme Court that led to the provisions being struck down was that it was simply a bad trip that they didn’t know would happen as he had never done mushrooms before. David Lametti also indicated that he’s been in discussion with the other parties, and it sounds like this could be a bill that gets passed at all stages next week before the House of Commons rises for the summer (and likely leaving any actual scrutiny up to the Senate, if they have the appetite to do so before they also rise, way too early).

I also did note that during the press conference announcing the bill, minister Marci Ien had some fairly critical words for her former media colleagues in how the Supreme Court of Canada decision had been reported, where the headlines were that “extreme intoxication is a defence,” which isn’t what the judgment said, and the judgment very clearly differentiated between extreme intoxication and a state of automatism. Nevertheless, bad headlines led to disinformation that was making people afraid (and Ien cited her own daughter’s experiences reading social media about this decision, and she listed some of the figures that these disinformation posts got in terms of likes and shares). And I remember reading those headlines, and listening to the outraged questions in QP in the days that followed, and having to sigh and point out that no, that’s not what the Supreme Court ruled, and it would help if they actually read the gods damned decision because it was all right there. But sadly this seems to be the state of the media discourse these days, so good on Ien for calling it out, especially given the fact that she was herself a journalist.

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Roundup: The non-retracted story and the myths around it

It’s day one-hundred-and-fourteen of Russia’s invasion of Ukraine, and Severodonetsk has not fallen yet. French president Emmanuel Macron, German Chancellor Olaf Scholz and Italian Premier Mario Draghi all visited Kyiv together, while Romania’s president, Klaus Iohannis, arrived on a separate train. They were there to show European unity, in spite of the fact that there have been many criticisms levelled at them in recent weeks for being slow to deliver promised aid, or trying to appease Putin. The fact that they could see some of the atrocities in Irpin, outside of Kyiv, may have given them some perspective on the conflict as well. They did also come with a message about trying to facilitate Ukraine’s entry into the European Union, which would have a great deal of symbolic weight in the conflict.

Meanwhile, NATO defence ministers met in Brussels to discuss ways to continue bolstering their Eastern flank, which will mean more forward-deployed combat formations.

Closer to home, there has been a pervasive bit of disinformation circulating, spread by certain media outlets, that CBC had retracted some of its reporting on the occupation, and in particular about its funding. That’s false—there was on radio correction, but the stories themselves stood, and are still there. Nevertheless, this notion that there was this retraction has been the basis of part of the Conservative attacks on Marco Mendicino in the justification for the invocation of the Emergencies Act, and in particular the financial tools that were used to freeze bank accounts of participants. While the Conservatives, citing these certain outlets, claim that the allegations of “dark money” fuelling the occupation was false, there was indeed foreign money coming in, though not as much as some people assumed. Of course, the Conservatives are also lying about just who this occupation was made up of, so any of their assertions what is true or false around the entire situation are suspect because they have a vested interest in protecting the occupiers, believing they can harness them to their own ends. (Spoiler: They really won’t in the end).

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