Roundup: Pipeline necromancy in the discussions

With the prime minister back in Canada, a couple of additional things were made known about the meeting with Trump, and one of them was the fact that the “energy” portion of their conversation involved Mark Carney floating the possibility of reviving the Keystone XL pipeline. For those of you unaware, this is entirely an American decision—all of the infrastructure on the Canadian side of the border is pretty much in place, and this project was never in contention. The Trudeau government supported it, but the resistance was on the American side of the border, not only from environmental concerns, but also because there were conspiracy theories developing in places like Nebraska that this was a secret ploy to drain their aquifers. No, seriously. Nevertheless, this is something that the proponent abandoned after Biden rescinded the permits (even though part of the network was built and renamed), so it would need someone to pick it up again.

Meanwhile, US commerce secretary Howard Lutnick spoke virtually at a Eurasia Group event in Toronto, and said that there will be no tariff-free auto deal with Canada, that the most we can hope for is a relationship around auto parts, and that Canada needs to get used to coming in second place to the US. Lutnick also expressed a desire to replace the New NAFTA with bilateral deals rather than a trilateral agreement with Mexico. When Carney later addressed the same event virtually, he said that the government will come to some bilateral agreements with the US, and spoke of “granular discussions” around steel and aluminium tariffs, but didn’t address these comments, just as he didn’t address the reports of Lutnick’s remarks during QP.

It’s hard to know what to make of any of this. After insisting that there was a “rupture” in our trade relationship, this is yet one more proposal to deepen integration and reliance on the American market…but it’s also probably the most viable pipeline for Alberta (though there are proposals to optimise the capacity of the Trans Mountain Expansion that would increase its maximum capacity for west coast exports—not that it’s anywhere near capacity at the moment). On the other hand, if they want to pay for our oil, and also pay their own tariffs to do so, then why not take their money? None of this is going to stop Danielle Smith or the Conservatives from demanding that Carney rip up all of the government’s environmental legislation so that they can crank up production with no consequences (even though there are absolutely environmental consequences that are getting more and more expensive each year), and this isn’t going to create that many jobs in the sector, even if production is increased, given that they are increasingly relying on automation and have been since the last price crash in 2014. But everything is stupid all the time, so this is no exception.

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Effin' Birds (@effinbirds.com) 2025-10-08T13:25:07.008Z

Ukraine Dispatch

President Zelenskyy says that Ukrainian forces are inflicting heavy losses on the Russians in a counter-offensive in the Donetsk region.

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Roundup: The growing incoherence with environmental protections

This government’s incoherence with regard to its environmental policies continues apace, as Tim Hodgson told Vassy Kapelos that exceptions to things like the tanker ban or emissions cap could be made through Bill C-5, which doesn’t make any gods damned sense. Why have a tanker ban or an emissions cap if it’s only applied on an ad hoc basis? If you want to get rid of them (and with that tanker ban, be ready for a major fight with local First Nations), actually lay out a rationale for it other than hand-wavey nonsense, But seriously, Hodgson is worse than any Trudeau-era minister when it comes to being unable to communicate his way out of a wet paper bag, and I fail to see how he could possibly have been considered a star by Carney.

Meanwhile, while Alberta continues to beat the drum for the obliteration of environmental laws, they keep using examples where there are already permits in hand, and where the market has determined that they don’t see a business case to move ahead, which has nothing to do with government. But hey, why be honest about it?

Oh, and because this government seems to be pinning a lot of hopes on reinventing the wheel, there already was a pre-existing major projects office, but Carney has determined to recreate it under a different minister, just because, and not actually learn any lessons as to why projects take time or approvals take as long as they do.

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Effin' Birds (@effinbirds.com) 2025-08-21T14:04:55.394Z

Ukraine Dispatch

Russia launched another massive attack in the early morning hours of Thursday, with 574 drones and 40 missiles, and one of the targets was an American-owned household electronics company based in Lviv, because they know the Americans won’t respond. Ukraine attacked an oil refinery in Russia’s Novoshakhtinsk city. And Putin’s demands include the whole Donbas region, and a prohibition on joining NATO or having Western troops in the country, which are clearly unacceptable because Russia has no intention of ending the war.

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Roundup: Spending vs inflation

 

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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Roundup: Danielle Smith’s weapon of mass distraction

Alberta premier Danielle Smith continues to be in increasing hot water—and oh, look, her justice minister is related by marriage to someone at the centre of the healthcare procurement scandal—so she has decided to go full-bore into her weapon of mass distraction, which is to attack the federal government and to try and call out Mark Carney for…reasons. She’s asking Carney for a “reset” of relations with Alberta (translation: Give me everything I want), because of course she is. One of the things she announced was a new court challenge of the clean electricity regulations, because of course she is. Nothing like making the lawyers a bunch more money.

https://twitter.com/maxfawcett/status/1917945085674791322

Throughout this, Smith insists she’s not stoking separatism *cough* and that these are just “hypotheticals” about the group of loons in the province itching to trigger a plebiscite by starting to gather signatures (before the bill has even passed), but the fact that she is lowering the threshold for just this eventually is a sign that she knows she’s doing it deliberately. And hey, she even says that there’s no appetite in the province for their own separate pension plan after all (because she got spanked by the reality that she couldn’t raid the majority of the CPP on the way out), so that must mean she’s serious about not stoking separatism, right? Does she think we’re all stupid and can’t see through her transparent bullshit?

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Of course, because Scott Moe can’t help himself, he said that he’s a “true Canadian” but wouldn’t stop a public vote on separation if they triggered a plebiscite under provincial legislation. So…as premier he’s willing to also drive out investment and opportunity from companies that have no interest in dealing with this kind of nonsense? Wow, that’s some smart politicking!

Ukraine Dispatch

A Russian drone attack late Thursday set houses ablaze in Zaporizhzhia and injured 14, but didn’t cause any deaths.

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Roundup: Another plan to save the CBC

Day thirteen, and the campaigns were trying to get back to a message that wasn’t trade war-related, for what that’s worth in the current moment we’re in. Mark Carney was in Montreal, where he promised to protect CBC/Radio-Canada though a more accountable governance structure and more funding directed to local coverage, and to protect it by enshrining its funding in legislation…except that you can’t bind future governments by statute, and yes, the Supreme Court of Canada has said so. He also downplayed Preston Manning’s crybaby separatism comments, and reminded reporters of his western credentials. Carney will be in Oakville and Toronto today.

I should have been clear. This is from Carney's announcement this morning about funding CBC/Radio-Canada.

Dale Smith (@journodale.bsky.social) 2025-04-04T14:04:04.457Z

Pierre Poilievre was in Trois-Rivières, Quebec, to propose tougher bail conditions and sentencing for intimate partner violence (which is something to tackle! But sentencing is not the only solution). The Conservatives didn’t send out a notice as to where Poilievre would be today.

Jagmeet Singh was in Montreal to pronounce that they would crack down harder on offshore tax evasion, with some digs about Brookfield as though Carney was making all of its decisions (because apparently the NDP need to learn how corporate boards operate). They also promised they would tear up tax treaties with havens like Bermuda…except those treaties are vital for information sharing used to combat tax evasion. Because apparently the NDP really thought through that policy. Singh will be in St. John’s, Newfoundland and Labrador this morning, and then off to Halifax for the evening.

NDP: We're going to cancel tax agreements with havens like Bermuda to stop tax evasion!Reality: Those tax agreements provide information sharing crucial to combating tax evasion.

Dale Smith (@journodale.bsky.social) 2025-04-04T15:10:14.685Z

In other campaign news, here is what we heard from the Radio-Canada “Five leaders” interviews, and how Poilievre is starting to moderate a few of his positions including on things like the digital services tax.

Ukraine Dispatch

A Russian attack on a residential area of Kryvyi Rih killed nineteen people including nine children, and yet they claimed they were targeting “gathering military,” which is obvious disinformation. Germany is funding Eutelsat to provide Ukraine an alternative to Starlink, with the hopes of sending between 5,000 and 10,000 terminals within weeks.

https://twitter.com/ZelenskyyUa/status/1908205945790107887

https://twitter.com/ukraine_world/status/1908247091601711399

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Roundup: Positive feelings about a useless meeting

We seem to be caught in a pattern where Donald Trump will invite a world leader to the White House—yesterday it was NATO Secretary General Mark Rutte—and he goes on an unhinged rant while they’re sitting there, trying to avoid saying anything that will set him off. And yesterday’s rant included a full-on threat to annex Greenland (while Rutte tried to downplay NATO’s involvement in any way, which is true to the extent that it only operates by consensus), and went on an extended rant about Canada not working as a real country, and made up the lie that America pays for our military (not true in the slightest), before repeating the falsehood that the US subsidizes us.

Half-point to #CBCNN for not both-sidesing that caption.

Dale Smith (@journodale.bsky.social) 2025-03-13T18:09:44.596Z

Meanwhile, Dominic LeBlanc and François-Philippe Champagne had their meeting with Howard Lutnick, with Doug Ford along for the ride as he continued to try and make himself the main character (and I watched Conservative talking head pundits also putting forward this distorted view of reality). Ford came out of the meeting, effusive about how “positive” it was and how they were going to have more meetings next week (and was later corrected that officials were going to meet, not him), while the two ministers basically talked a lot and said nothing, because nothing could be accomplished here. But they had to pretend that something came from this meeting when obviously nothing did, as there were no changes to any tariffs, and Ford’s pressure tactic around the electricity “surcharge” remains off the table again.

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Elsewhere, Trump’s pick for US ambassador to Canada had his Senate confirmation hearing, and when asked, he said that Canada is a sovereign country, and tried to claim that Trump’s expansionist rhetoric is about “negotiation tactics,” but it certainly doesn’t seem to be. And yeah, he said the bare minimum to ensure that he wasn’t PNGed before he could even arrive in the country. Closer to home, Scott Moe continues to call for capitulation to China regarding their tariff fight, because of course he did, and claimed it was about protecting Quebec’s industries over Saskatchewan’s, except Quebec doesn’t really have much of an auto sector, but Moe’s brain is pretty smooth, after all.

Ukraine Dispatch

An overnight attack on Dnipro injured three women and damaged apartment buildings. Ukrainian forces are in retreat in parts of Kursk region, which means losing a bargaining chip in possible peace negotiations. And Putin has all kinds of conditions on a possible ceasefire, because he’s not serious, and Ukraine only went along with the plan to call his bluff.

Surprise! The Russians, who have repeatedly said they don't want a ceasefire, have once again said they don't want a ceasefire

Anne Applebaum (@anneapplebaum.bsky.social) 2025-03-13T11:42:16.938Z

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Roundup: Offering a limited reprieve

Because the trade war is many ways a weird power dynamic, yesterday was all about offers of reprieves. After a lengthy phone call between Justin Trudeau and Trump, there came word of a “reprieve” on tariffs for the auto sector—for a month—but at the behest of the Big Three auto companies rather than any of Trudeau’s efforts, and while there hasn’t been official word, Senior Government Sources™ are saying that Trudeau is not budging on the retaliatory measures. And why would he? The one-month reprieve came with the message from both JD Vance and Trump’s press secretary that they want those manufacturers to locate all of their factories in the US to avoid tariffs, but the “official” reason for the tariffs remains fentanyl, because Trump needs the legal fiction of a “national emergency” to use executive powers to levy tariffs rather than Congress (but he controls that, so the logic only extends so far). Oh, and now Trump is talking about agricultural carveouts, because they’re stupid and don’t realise the consequences of their actions until it’s too late.

Trump Weighs Agriculture Carveouts From Canada, Mexico Tariffswww.bloomberg.com/news/article…

Brian Platt (@brianplatt.bsky.social) 2025-03-05T22:58:52.676Z

In provincial reactions, both Danielle Smith and Scott Moe said they were pulling American liquor from their provincial liquor control boards, a day after everyone else. Smith had to put on a big show that included one of her Alberta Sheriffs holding a big rifle to show that she was super serious about them patrolling the border (not that they can legally do much more than taxi that person to an authorised federal border agent or RCMP officer). Both Smith and Moe also insisted that they didn’t want export taxes on either oil or potash, which again, is a boneheaded move of signalling to Trump that they don’t want to play their strongest cards ever (because they’re both super geniuses). Of course, it’s not their call because those powers are federal, but it’s still a sign of how unserious either of them is in the face of an existential threat. Meanwhile, Yukon premier Raj Pillai is “considering” limiting ties with Elon Musk’s businesses, like Starlink (which seems like something they should be doing more than just considering).

There was also word that there was more progress on interprovincial trade barriers and incremental progress toward credentials recognition—with some exceptions for Quebec because of linguistic requirements (but I still have questions about how they plan to get self-regulating bodies like the colleges of physicians and surgeons to play ball).

Progress reported on internal trade barriers, but I am still unclear on credential recognition when professional bodies are self-regulated (like doctors). #cdnpoli

Dale Smith (@journodale.bsky.social) 2025-03-06T01:13:30.326Z

Ukraine Dispatch

A Russian missile hit a hotel in Kryvyi Rih, killing three and injuring at least twenty-nine others. The Americans are cutting off the flow of intelligence to Ukraine, because they’re now on Putin’s side. A Ukrainian commander says that NATO forces are not ready for modern drone warfare. Here is an examination of the state of the war, and that it would take Russia 118 years to fully conquer Ukraine at their present rate of advancement.

If the US had continued to support Ukraine, we may have been months away from the end of the war. The Russians would not have been able to continue to fight for much longer. They were making almost no progress, taking huge casualties.

Anne Applebaum (@anneapplebaum.bsky.social) 2025-03-05T15:19:16.697Z

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Roundup: Clutched pearls over a paper move

Because everything is stupid, the Conservatives spent the whole day screaming, both at a media availability and over social media, that Mark Carney “lied” about his involvement with Brookfield Asset Management relocating their headquarters to New York, and tried to tie this to Trump inviting companies to relocate to the US. This is something that the Conservatives have been howling about for months, but they claim that there is “proof” now that Carney “lied” because his timeline of events doesn’t match up. And maybe he was wrong, but this has pretty much been a non-story from the start, because this was largely a paper move to their pre-existing New York office in order to get access to the New York Stock Exchange, while their parent company remains headquartered in Toronto. It’s not an actual scandal, but the Conservatives have been ginning up faux-outrage over Carney for two years now, and this is just the latest example.

But I can’t get over the fact that every single Conservative has been lining up to declare that Carney “lied,” when pretty much every single member of that party has been lying about everything under the sun for years now, because they know they can get away with it. The fact that someone like Andrew Scheer isn’t bursting into flames over the abused irony of him of all people trying to call Carney a liar is just too much. It’s not just projection—it’s a complete lack of self-awareness that they lie so much about everything (especially things they don’t actually need to lie about!) that they don’t even realise that they’re doing it anymore, and then they start running for their fainting couches over this absolute non-issue. Unbelievable.

The Conservatives have also taken to calling Carney “sneaky,” and claiming that he’s hiding the truth about his assets, and whether this business activities were benefitting from his advising the government. But as this fact-check explains, he is under no obligation to comply with conflict-of-interest laws because he is not yet a public office holder, but if he does win the contest and becomes prime minister, lo, he will be subject to the disclosures. Again, this is just more faux outraged being ginned up, and making the Conservatives look like they are desperate.

Ukraine Dispatch

The overnight attack on the Kyiv region overnight Tuesday killed two and damaged energy facilities. Russia claims that it retook two settlements in the Kursk region, as more North Korean troops arrive. Ukraine’s drones have hit Russia’s Tuapse oil refinery. Ukraine’s prime minister says a preliminary agreement has been reached with the Americans on an economic deal that includes access to rare earth minerals.

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Roundup: Caretaker doesn’t apply

Sometimes, the pundit class in this country boggles me. Case in point—the National Post’s John Ivison wrote yesterday that the announcement about moving ahead with high-speed rail was “ignoring the caretaker convention,” (and because this is Ivison, the words “in this country” are used loosely as he is currently filing from Costa Rica). I get that Ivison wants to dump on Trudeau for making a big, flashy announcement as he’s on his way out the door, but the thing is, the caretaker convention doesn’t apply. The only time that the convention does apply is when Parliament is dissolved for an election (and Philippe Lagassé can explain this all to you here).

Part of the problem is that legacy media in this country does not know how to deal with the current political situation, where Trudeau has signalled his intention to resign, but remains in power until his successor is chosen. This is perfectly legitimate in a Westminster system like ours, especially as Trudeau won a series of confidence votes before Parliament rose for the winter break, and before his advice to the Governor General to prorogue. Since then, virtually every single pundit and editorial writer has been wringing their hands, writing things like “lame-duck,” or “leaderless,” or “vacuum,” when none of this is actually true, and it breaks their brains that the government is capable of operating and responding to Trump and his predations without Parliament currently sitting, as though Parliament would have anything in particular to do in this current situation other than take-note debates or unanimous consent motions. Trudeau is personally able to exercise the full suite of his powers as prime minister right up until the moment he does officially resign and turn the keys over to his successor. This is neither illegitimate nor illegal, and the long-time observers of our political scene should know that.

What is particularly galling is that long-time Ottawa columnists don’t understand these very basics. Ivison used to be the Post’s Ottawa bureau chief, for fuck’s sake. He should have a basic understanding of the difference between prorogation and dissolution, and when the caretaker convention should apply. He’s been writing about Canadian politics since the birth of the Post, and was writing about UK politics before that. This is basic civics. And it’s not just him, even though he is today’s object lesson. We have a real problem when the people we are supposed to turn to for help in putting the news into context can’t be arsed to get the basic facts right, so long as they get to grind their ideological axes.

Ukraine Dispatch

Tens of thousands of people in Odesa remain without power after successive Russian attacks, while Russia claims to have taken back a “huge” chunk of Kursk region in Russia. The EU has been coming up with a plan to manufacture and send more arms to Ukraine.

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Roundup: The threat of annexation is serious

Well, things got real again today, as Justin Trudeau told the audience at his Canada-US Economic Summit that Trump isn’t joking around with his talk of annexation, and that part of the reason why is access to our critical minerals. Trudeau apparently also talked about the need to mend fences with Mexico as well, which was apparently an oblique shot at Doug Ford, who has been trying to throw them under the bus rather than working with them to counter Trump. (Ford, meanwhile, disparaged the whole summit while on the campaign trail, because apparently, it’s stealing his thunder). There was also talk at the summit about pipelines, nuclear energy (and conservative shills who claim Trudeau is anti-nuclear are straight-up lying), and removing some of the federal-situated trade barriers around financial services regulations and procurement.

As the day went on, more details came out about those two calls that Trudeau had with Trump on Monday about the tariffs and the “reprieve” that was granted. Comments included that Trump was musing about breaking a 1908 boundary treaty, was dismissive of our contributions to NORAD, and listed off a litany of complaints. (Because “it’s all about fentanyl,” right?) It was also on this call that Trudeau apparently deduced that Trump hadn’t been briefed on the $1.3 billion border plan, but maybe that’s what you get when Trump refuses your calls for weeks while he plays gangster. (And he was also refusing the Mexican president’s calls as well, so this was not a Trudeau-specific snub).

So this is where things are at—the stakes are higher than we may want to admit (and certainly the head of the Canadian American Business Council doesn’t want to admit it and still believes this is just an offensive joke), but maybe this existential threat will help shake off the normalcy bias that has perpetuated a certain status quo. Nevertheless, the political landscape is shifting drastically right now, and it’s going to make for a very different election campaign than what everyone was counting on.

Ukraine Dispatch

A Russian guided bomb attack on Sumy region in the northeast killed three. Russians claim to have taken the settlement of Toretsk, but the Ukrainian brigade in the outskirts says they haven’t moved. International nuclear monitors are concerned that the number of attacks on the Russian-occupied Zaporizhzhia nuclear plant have increased.

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