Roundup: Another rate hike, more nonsense talking points in response

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Not unexpectedly, the Bank of Canada raised interest rates another quarter point yesterday because inflation is becoming sticky, particularly in the core measures that they use to strip out the highly volatile measures like gasoline prices. If you read through the Monetary Policy Report, which shows the state of the global and Canadian economies, economic growth in Canada remains stronger than expected—too strong to tame inflation—and there is still too much demand in the system, particularly for services as opposed to goods, which is keeping those prices higher, as they are especially sensitive to the tight labour market. To that end, the Bank is now expecting inflation to last around three percent for most of the next year before finally getting back to the target of two percent, which is later than they anticipated because economic growth is still too strong.

Meanwhile, Pierre Poilievre continues to spout absolute nonsense about the causes of this inflation—it’s not government spending, and that isn’t indicated in the MPR anywhere—and lo, media outlets like the CBC simply both-sides his talking points rather than dismantling them. He’s talking about how he’s going to cut taxes, which would actually fuel inflation rather than do anything to tame it (and no, carbon prices are only marginally inflationary and cutting them would do nothing to slow it). And then there’s the NDP, who think that the Bank should lay off and instead use windfall taxes, as though “greed-flation” is what’s driving inflation (again, not indicated anywhere in the MPR). But as economist Stephen Gordon has pointed out, this kind of promise of painless measures to fight inflation are the provenance of quacks and faith healers. It won’t help, and it will make things worse.

Ukraine Dispatch:

It was a third consecutive night of Russian drone attacks directed to Kyiv, and falling debris has killed one person. Elsewhere, Ukrainian troops are reporting “some success” around Bakhmut.

https://twitter.com/kyivindependent/status/1679340673357557761

https://twitter.com/davidakin/status/1679031785764659201

Good reads:

  • At the NATO summit, Justin Trudeau announced a training programme for Ukrainian officer cadets to take place at RMC’s Saint-Jean-sir-Richelieu campus.
  • Federal mediators have issued terms of settlement for the BC ports strike, and they have until this morning to agree to ratify them.
  • Pablo Rodriguez says that Facebook’s new Threads social media venture could be captured by Bill C-18 once the regulations are decided upon.
  • Mark Miller is calling out Heather Stefanson’s decision not to search the landfill north of Winnipeg for bodies, saying he’s willing to help but he needs her support.
  • Jonathan Wilkinson is pouring cold water on Doug Ford’s ambitions for the “Ring of Fire,” saying there are easier resource projects closer to existing infrastructure.
  • The government has ended the requirement for immigrants and refugee claimants to have to disclose their HIV status to would-be sponsors.
  • The special three-year visa programme for Ukrainians is ending this week for new applicants, and the government hasn’t said if they will extend it.
  • The RCMP’s Management Advisory Board is trying to dispute the minister’s directive to stop using neck holds, sponge rounds and tear gas. (Civilian control!)
  • Only two fines have ever been issued under the federal legislation that is supposed to prevent people from abandoning wrecked vessels on Canadian coastlines.
  • A report was tabled at the AFN national assembly detailing the toxic work environment in the organisation.
  • The assembly also heard that rights recognition remains a sticking point in co-developing the federal legislation on Indigenous policing.
  • A Quebec judge called out Crown prosecutors for recommending a light sentence for a neo-Nazi, saying it trivialises his crimes of promoting hatred against Jews.
  • At his press conference, Pierre Poilievre offered a terse “I don’t agree with that shirt” to his posing with the “straight pride” guy at Stampede.
  • The premiers are demanding a sit-down meeting with Trudeau over infrastructure commitments (because they always want a 13-on-1 sit-down bully session).
  • Premiers say they want clarity on the future of RCMP contract policing as Marco Mendicino says it’s “under review.” (It should be abolished).
  • Olivia Chow has now been sworn-in as mayor of Toronto.
  • The final chapter of Paul Wells’ The End of Media series is an utterly damning exploration of how message discipline has corroded government.

Odds and ends:

For National Magazine, I look at the Commons’ justice committee’s report into the urgent need to reform Canada’s extradition laws and processes.

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One thought on “Roundup: Another rate hike, more nonsense talking points in response”

  1. Dale, once again a big thank you for your analysis and reality checks.
    I am reassured that you keep at this forum.

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