Tag Archives: Refugees

Roundup: Higher inflation than expected

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It is now day fifty-seven (or so) of Russia’s invasion of Ukraine, and hope is waning for the remaining defenders of Mariupol, and the civilians still sheltering there. As the fighting intensifies in the eastern part of the country, there are also concerns that it will devolve into a war of attrition, which Russia has historically been more able to withstand. We have also learned more about what happened when Russian troops occupied Chernobyl, where staff were working at gunpoint, and sleeping three hours a night in order to safeguard the site and ensure that Russians didn’t tamper with any of the equipment there.

Closer to home, the inflation numbers were released yesterday, and they were much higher than expected, as conflict inflation brought on by the aforementioned invasion of Ukraine is hitting. And of course, most media outlets were useless in explaining the causes of it, while the parties were equally useless in their own reactions. The government keeps focusing on their talking points about things like child care and dental care, and the fact that they indexed benefits, rather than actually explaining the drivers. The Conservatives are railing about “printing money” (which, to be clear, nobody is actually doing) and insisting that the government should declare a GST holiday, which would a) do nothing for grocery prices as most groceries are GST-exempt; and b) would have a stimulative effect and just fuel even more inflation, especially as people would be likely to use said GST holiday to buy big-ticket items. And the NDP, predictably, chalk this up to greed and want higher wealth taxes, which again, do very little about the drivers of inflation.

And then there’s the Bank of Canada, who will be forced to respond with higher rate hikes, but the question becomes whether they’ll keep the increases more gradual—another 50 basis points at the next meeting in June—of if they’ll go even higher as a way of demonstrating that they are really taking this seriously and that the system of inflation control that they’ve been responsible for since the 1990s will prevail. It doesn’t directly address the drives, but it could be that the signals are more important than the actual policy at this point, because the bigger worry is the expectation that inflation will continue, which will turn it into a self-fulfilling prophecy—something they are very, very keen to avoid.

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Roundup: Chalk up another Conservative disinformation campaign

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We’re now on or about day fifty-one of Russia’s invasion of Ukraine, and has been confirmed that Russia’s Black Sea flagship, the Moskva, has sunk, which is a huge loss for Russia (particularly as Turkey is blockading the entrance to the Black Sea to military vessels, so there will be no replacement for it anytime soon), and it will no longer be able to support Russian ground forces, or to shell cities from afar. In the meantime, president Volodymyr Zelenskyy continues to show that he is a master communicator for his country and his cause.

https://twitter.com/ZelenskyyUa/status/1514681561412780035

Closer to home, yet another pernicious bit of disinformation has started circulating, courtesy of the Canadian Taxpayers’ Federation, who read the Emissions Reduction Plan (which was prepared by an arm’s-length advisory panel), found a reference to a proposal to add a surtax to certain kinds of gas-guzzling vehicles, and then wrote an op-ed in the Toronto Sun that declared this was the government’s plan. Jason Kenney picked up on this and decried it, as has the Conservative Party writ-large and several of its leadership contenders. Of course, there are no actual plans for such a tax, but why does the truth matter? This was the tactic they’ve been using on the supposed plans for a capital gains tax on primary residents, which doesn’t exist and never will exist (even if it’s actually decent public policy). This also compounds with the selective quotes they’ve been using from the Parliamentary Budget Officer’s recent report on carbon pricing, which has been torqued into more disinformation.

There’s so much disinformation and lies floating about, as though there weren’t enough actual things that you could absolutely excoriate this government for, and yet they resort to fiction. Utterly boggling.

Programming Note: I will be taking a long weekend off from the blog, because I am exhausted after the past few weeks. See you Tuesday!

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Roundup: Words with meanings and obligations

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We’re now around day fifty of Russia’s invasion of Ukraine, and four European presidents—Poland, Lithuania, Latvia, and Estonia—visited Kyiv to show their support yesterday. (Some photos of Ukraine here). Ukrainian forces also detained one of Putin’s oligarch allies, which has led to a new round of threats from Russia. The other thing that will make Russia angry? The fact that the Ukrainians sank Russia’s flagship for their Black Sea fleet—the same ship that fired upon the border guards at Snake Island. It’s almost poetic justice.

https://twitter.com/dgardner/status/1514397710509559814

Meanwhile, we are getting into a frustrating debate about whether or not to call what’s happening in Ukraine a genocide, and what makes it frustrating is the fact that there are international obligations to do something about it if that’s indeed the case. There is no argument that there are crimes against humanity happening, and those are very, very serious. But “genocide” is a specific legal term with specific intent, and for President Biden to throw the word around and saying that lawyers can sort out the details later isn’t helping, when the term obligates the US to do something about it (which they have danced around in the past because they don’t want to be obligated). And then Justin Trudeau chines in and says it’s “absolutely right” to use the term, which would then obligate Canada to do something about it as well. But we need to stop using the most serious language for things for shock value, because words have meanings, and in this case, obligations as well.

https://twitter.com/dgardner/status/1513890485970116614

https://twitter.com/dgardner/status/1513902439556169733

Closer to home, the Bank of Canada raised its key interest rates by fifty basis points, and has hinted that more rate hikes are on the way, as they have to not only combat inflation with the only tool they have, but they have to fight the perception that they aren’t doing enough to cool inflation (and that latter part is the bigger part of the problem). I’ll be writing more about what’s in the Monetary Policy Report in the coming days, but in the meantime, here are some smart economists giving some reaction.

https://twitter.com/LindsayTedds/status/1514249461857366021

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Roundup: Sanctions take time to really bite

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It’s now around day forty-nine of Russia’s invasion of Ukraine, and it’s carrying on as Putin insists that they will continue until they meet their goals. This as there are unconfirmed reports that chemical weapons were used in an attack in Mariupol, while Russian spokespeople from Donbas were discussing the possibility. That could lead to another escalation in sanctions, and talk of “red lines,” though that didn’t seem to do much good when it happened in Syria. The mayor of Mariupol says that more than 10,000 civilians have been killed as the strategic port city continues being flattened by Russian forces. Ukrainian government officials also say that they have thwarted an attempt by Russian hackers to knock out power to parts of the country, and it’s worth noting that Canada has been providing cyber-security assistance to Ukraine.

On the subject of sanctions, there are lots of questions circulating about how effective they really are if the invasion continues, and it’s one of those things for which it’s not an easy answer. Yes, they’re hurting Russia, but Putin and his inner circle seem fairly insulated from some of the worst of it, in part because they managed to stop the ruble from collapsing entirely. That makes it even more imperative to provide military support to Ukraine so that they can defeat Russia on the battlefield, which will hurt Putin more. This doesn’t mean that we shouldn’t carry on with sanctions, because we should, but they’re at the point where they are hurting us as well, and we had Conservatives demanding exemptions for farmers last week who bought fertilizer from Russia before the conflict began and now don’t want to pay the tariffs associated. But for sanctions to be effective, they will hurt us as well, and people seem to forget that.

As well, this conflict is now going to have an effect on inflation globally, because of the effect of diverting from Russian oil and gas, and from the effect this war has on Ukraine’s ability to produce and export food, as the breadbasket of Europe. Of course, it’s going to continue to be blamed on government spending (never mind that it actually isn’t, and this is a global problem), and the Bank of Canada is going to hike rates this week if only because they need to be seen to be doing something about the problem even if it won’t actually address the root causes of these price increases. Things are messy, and it’s going to take time for everything to work itself out, but what will really help is for Russia to get out of Ukraine.

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Roundup: What the budget leaks reveal

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We are on or about day forty-three of Russia’s invasion of Ukraine, and it looks like Russian units have pulled out now from around Kyiv and Chernihiv, back into Russia or Belarus in order to resupply and reorganise, and the expectation is that they will move toward the Donbas region, which Russia says it wants to “liberate.” That has Ukrainian authorities encouraging people in the region to evacuate before they come under fire. On a related note, the mayor of Mariupol says that at least 5000 civilians have been killed in his city including 210 children, and that 90 percent of the city’s infrastructure has been destroyed, because that’s what Russia does.

Closer to home, it is the great pre-budget tradition of leaks from the PMO in order to set the stage for the main event. So far, we have leaks on:

  • Defence spending—as much as $8 billion will apparently be allocated (though who knows if they will have the capability to actually spend it, as they can’t with their current allocation)
  • The promised surtax on big banks and insurance companies who profited during the pandemic, which they hope will raise $1.2 billion per year for the next three years.
  • They plan to allocate $10 billion to housing over five years to implement the various measures from their platform, including $4 billion to help municipalities update their zoning and permitting to hopefully unclog that particular bottleneck.
  • There are hints coming that it may “overperform” in its fiscal anchors because of the roaring economy boosting revenues.

And of course, the usual wailing and rending of clothes by a subset of economists who think that enhancing the social safety net is expansionary fiscal policy that will force the Bank of Canada to fend for itself in tackling inflation.

https://twitter.com/kevinmilligan/status/1511835606132830211

Meanwhile, here are Chrystia Freeland’s budget shoes. This was the first time federally that the event had taken place in a women’s shoe store (as she had them delivered to her home last year because of the pandemic). And thankfully, she didn’t try something gimmicky.

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QP: Exasperation with housing talking points

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A bright and sunny Tuesday in the Nation’s Capital, and Prime Minister Justin Trudeau was present for QP, and for the first time in weeks, so was every other leader, all together. Candice Bergen led off, script in front of her, and she complained that the Liberals had moved away from “moderates” like John Manley and Anne McLellan—because it’s 1995 and will always be 1995—and she worried the budget would be an NDP document. Trudeau recited that they made the choice two year ago to support Canadians through the pandemic, and that led to the economic growth that we are seeing now. Bergen complained that out-of-control spending led to out-of-control prices and insisted that Canadians were worse off than six years ago—which I’m pretty sure doesn’t actually track. Trudeau insisted that they made the choice to prop up Canadians in the pandemic, and were working to make their lives better. Bergen again insisted that every budget made Canadians worse off, and demanded that Trudeau listen to “moderate” Liberals and produce a “responsible” budget, to which Trudeau produced a list of supports that they introduced or enriched, which the Conservatives opposed entirely. Luc Berthold took over in French, and he too insisted that these big-spending budgets led to inflation (never mind that we know the cause of the current bout of inflation and it’s not government spending), and Trudeau recited that they would be there for Canadians, which is why the economy has boomed. Berthold quoted Paul Martin to demand that they cut spending now that the economy is growing, to which Trudeau countered that they enhanced supports for Canadians to help them with rising costs, where the Conservatives wanted austerity.

Yves-François Blanchet led for the Bloc, and he insisted that nobody believes in the emissions reduction plan, and wanted the prime minster to admit that his plan failed. Trudeau took a script and read off that the Montreal and Quebec City mayors supported their plan. Blanchet insisted the plan was “scientifically unacceptable” and listed fossil fuel subsidies as proof, and demanded the Bay du Nord project be cancelled. Trudeau instead lamented that Blanchet badmouthed the mayors.

Jagmeet Singh rose for the NDP, and after reciting a lamentation about rising prices, he wanted assurances that their shared priorities were in the budget. Trudeau responded with a rehearsed paean about how their investments in Canadians have grown the economy. Singh switched to French to demand that the ultra-rich pay their fair share starting with big banks—which was a Liberal platform promise—but Trudeau merely repeated his same paean in French.

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QP: Category is—fisheries questions!

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Prime minister Justin Trudeau was present for the first time in over a week, but in spite of this, only one other leader was actually present. Observing today was a delegation of Ukrainian parliamentarians, though that did not guarantee good behaviour. Luc Berthold led off once again, and in French, he accused the government of stoking inflation by raising the carbon price (erm, except it’s not captured by the consumer price index), and then went on a tangent about the NDP wanting to raise taxes in the upcoming budget. Trudeau stood up to offer some bromides about delivering on promises for Canadians including their emissions reductions plan, reconciliation, and national child care. Berthold repeated the question and demanded a reduction in taxes in the upcoming budget, and Trudeau reminded him that the cost of inaction on climate change is far more than the investments they are making, and that the price on carbon was the right way to move forward. Berthold then policed Trudeau’s feminism by raising the military ombudsman’s warnings about General Jonathan Vance. Trudeau recited that they need to transform the culture in the Canadian Forces, and lamented that it is taking too long, but it’s happening. Kerry-Lynne Findlay took over in English, and lambasted the government for not taking action against General Vance of the minister who enabled him, and Trudeau repeated that nobody should be in a toxic work environment, particularly those who serve the country. Findlay gave a somewhat spun version of what happened with the military ombudsman, and Trudeau repeated his assurances, before stating that he didn’t agree with their characterisation of events, and that they were trying to score points.

Yves-François Blanchet rose for the Bloc, and he repeated the Bloc’s demand for an immediate airlift for refugees. Trudeau assured him they were working as quickly and safely as possible, with no limits on who could arrive. Blanchet pivoted to worries that some were being excluded when it comes to research, and Trudeau read some talking points about valuing science and providing resources to a scientific and research ecosystem. 

Alexandre Boulerice led for the NDP in person, and he accused the government of caving to the energy sector at the expense of the environment, to which Trudeau read some good news talking points about their emissions reduction plan. Charlie Angus took over in English to repeat the question with additional bombast and theatrics, and Trudeau read his English talking points with a bit more enthusiasm.

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Roundup: Insufficient consequences for an abuse of power

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We are now on or about day thirty-six of Russia’s invasion of Ukraine, and the promise that they were pulling back from Kyiv and other places to give peace talks room to breathe were, well, not true. But nobody actually believed Russia in the first place, so nobody is exactly shocked here. Maclean’s features photos from Ukraine from Canadian photographer Philip Cheung on the ground there.

Closer to home, former Chief of Defence Staff Jonathan Vance pleaded guilty to obstruction of justice charges, and admitted to all the various things that he flatly denied previously. But the galling part in all of this is that got off on a conditional sentence that included community service, rather than face a criminal record. And even more appalling was the fact that his lawyer was trying to argue that Vance was going to suffer enough because his reputation had been stained enough that he wasn’t going to be able to cash in on the promises of future defence spending, whether that’s with some kind of government relations gig, or consultancy.

The bigger picture in all of this is not just that there is a highly sexualized culture in the military that this is a mere hint of, it’s that there is an abuse of power crisis within the military that the lack of meaningful consequences here simply emboldens. This obstruction of justice charge, and the admission of it all, is a demonstration of the abuse of power that Vance was trying to wield, and got caught doing. That he gets to avoid the serious consequences of this abuse, and that the notion that he can’t cash in is punishment enough, is a sign that this is a rot that runs deep and we need to be serious about this problem and acknowledging that it exists before we can get to work on tackling it as part of the culture change that the Canadian Forces desperately needs to undergo.

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QP: The pre-budget questions have started in earnest

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It was a very unusual Wednesday in that most leaders were once again absent—the prime minister was off at the Williams Lake First Nation, missing his self-imposed Wednesday PMQs for the second week in a row, and missing from QP for over a week now; his deputy was also absent. Candice Bergen has been absent for days (and there has been some chatter that her husband tested positive for COVID), as has Yves-François Blanchet. As well, somewhat unusually for a Wednesday, the benches were emptier than they typically are. And possibly worth noting, Speaker Rota remains away, and his deputy, Chris d’Entremont remains in the big chair. Luc Berthold led off, and lamented that they have a date for the first “NDP budget,” which merited him applause from the NDP benches, and he decried what it would represent. Randy Boissonnault stood up to insist that the Conservatives were talking down the economy, and he recited StatsCan data on GDP growth. Berthold quoted Jean Chrétien about deficits, as though it were still 1995, and Boissonnault made a plea to pass Bill C-8 to buy more rapid tests. Berthold accused Chrystia Freeland of selling her soul for a majority, and Boissonnault listed measures they have taken for Canadians. Dan Albas took over in English to decry inflation and a measure around housing, for which Ahmed Hussen dismissed the concerns as the Conservatives did nothing for affordable housing. Albas spouted a few misleading things about what the Bank of Canada Governor and the Parliamentary Budget Officer said about carbon prices, demanding they not increase, and Randy Boissonnault recited that the carbon rebates were progressive and most will get back more than they pay.

Alain Therrien led for the Bloc, and he decried the policy that seniors aged 75 and older age getting a top-up rather than all seniors, wondering if this was a Conservative or NDP decision, and Darren Fisher responded with a few points about how affordability gets tougher for older seniors. Therrien insisted that inflation meant they were abandoning seniors, and Fisher read some talking points about measures they have taken for seniors to date.

Jagmeet Singh rose in person for the NDP, and accused the government of siding with banks over people. Boissonnault said that while they understand the sentiment of the NDP’s failed supply day notion, they have taken action on taxing the wealthiest. Singh repeated the question in French, and got the same answer.

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Roundup: A strange definition of dictatorship

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We’re now on or about day thirty-five of Russia’s invasion of Ukraine, and Russian forces appeared to be pulling back from Kyiv, allegedly to give more space to peace talks, not that anyone believes Russia (nor should they). It could mark a more concentrated effort by Russian forces to “liberate Donbas,” which some say could be a face-saving measure for Putin. As part of the peace talks, Ukraine floated the idea of making Canada a security guarantor to the proposal of neutrality, and not hosting any military troops or bases from other alliances such as NATO, so that’s something. In the meantime, here is a look at why Russia is taking such heavy casualties (and why that is unlikely to deter them).

Closer to home, we have a major problem with disinformation that is being pushed by MPs, particularly Conservative ones. This week, MPs Brad Redekopp and Rachael Thomas declared that Justin Trudeau is a “dictator,” and that they were being absolutely serious about it. This, like Andrew Scheer declaring that Trudeau is the world’s greatest threat to liberty, is absolutely gobsmacking, but part of an increasing pattern of rhetoric that is dangerous to our democracy because it is so corrosive to both accepting election results, and faith in government writ-large, regardless of party.

https://twitter.com/StephanieCarvin/status/1508917840333709317

https://twitter.com/StephanieCarvin/status/1508917842607054853

This metastasises into the full-blown endorsement of conspiracy theories, and it’s a problem that is currently plaguing MPs, as that (fairly shite) Senate bill on developing a framework for a guaranteed basic liveable income has senators’ mailboxes and social media being flooded with both conspiracy theories and disinformation about this bill, but also panicked seniors who are being told that they will be denied their pensions and benefits if they are insufficiently vaccinated or the likes. It’s a real problem, and too many MPs (and a handful of senators) have been feeding into this disinformation environment for the sake of scoring a few points, and they really need to stop. No good comes of this, and they’re causing longer-term damage that will be incredibly hard to overcome.

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