Tag Archives: Budget 2024

Roundup: Carney and the premiers

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Mark Carney held a First Ministers’ meeting yesterday at the Canadian War Museum, which we’re given to understand was a bit of deliberate symbolism for the current moment, and most of the premiers arrived in person, save Danielle Smith, Scott Moe, and Andrew Furey (who is on a trade mission to Japan, and not in a fit of pique). The meeting ran long, and came out with a number of promises that the cynic in me feels are incredibly optimistic in terms of timelines and ambition. Not that we shouldn’t be ambitious, but oftentimes things are slow for a reason.

In particular, Carney is looking for complete internal free trade by July 1st (barring a few Quebec-specific carve-outs, which one assumes are mostly related to linguistic requirements). He’s also promising to temporary lift the waiting period for EI, to allow businesses to defer corporate income tax and GST/HST filings, creating a new Large Enterprise Economic and National Security Facility for financing, doubling the Indigenous Loan Guarantee programme, increasing funding for regional development agencies, and removing mobility restrictions for federally-regulated workers. The promise around “one window” approvals for major project assessments confuses me somewhat because we already have joint review panels—the whole point being that the federal and provincial assessment processes work together, hence “joint,” so there isn’t duplication. This has been the practice for environmental assessments for decades now, so I’m not quite sure what he’s talking about. Carney was also talking about expediting projects like high-speed rail, but looking at their timeline, I have questions about how much they can realistically speed things without creating new problems. But hey, there’s great enthusiasm in the moment for doing Big Things, so we’ll see if they can actually get off the ground.

In response to questions, Carney clapped back at Trump’s suggestion that he’s the one who changed Canada’s political landscape (not untrue, but not for the reasons he is suggesting),  and gave a line about how Canadians will choose their own leaders. He clarified that yes, he intends to keep the emissions cap (and made the point that it’s an emissions cap and not a production cap), but wants to spur investments in emissions reductions (but really, the carbon price and cap should actually do that on their own). He also did not rule out future investments in pipelines but says he wants to clear the way for private sector investment.

Ukraine Dispatch

Russia continues to hammer civilian targets in Odesa and Zaporizhzhia, but then gets all precious about a major pumping station that blew up as Ukrainians have been withdrawing from Kursk region, even though Ukraine says that Russia blew it up themselves as a provocation.

https://twitter.com/DefenceHQ/status/1902662502334259284

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Roundup: Tantrums, and Ford capitulates

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The day started off with a tantrum—Donald Trump screaming that Ontario wasn’t allowed to put the “surcharge” on their electricity exports, and said he was going to make Canada pay dearly, and then threatened to ramp up the incoming steel and aluminium tariffs to 50 percent. That caused another huge panic, and by the end of the day, Doug Ford had secured a meeting with Howard Lutnick (apparently with Dominic LeBlanc), and suspended the “surcharge,” while Trump decided that the global steel and aluminium tariffs were still coming, but only at 25 percent, and those are now in effect. And that in turn will trigger more retaliatory tariffs from the Canadian federal government. Trump also went on an extended rant about annexation, but flattered Ford in the process, which made me want to throw up a little.

Guys, I’m just so tired.

I scarcely know where to begin. The regulations for that “surcharge” were released, and it reads very much like a cute attempt to pretend that they’re not tariffs for the sake of international trade, so that he can pretend this is provincial jurisdiction and not federal. After two days of bluster and going on every cable news show in the US insisting he wasn’t going to back down on this “surcharge” until the tariffs were gone, and that he was going to go even further, it took one phone call with Lutnik and Ford capitulated right as the global steel and aluminium tariffs were coming into place, so how exactly did he help Ontario or anyone? I’m at a loss. He’s also pretending that he has a role in international negotiations, neglecting in his tweet to mention that Dominic LeBlanc will be at the table with Lutnik, but on top of that, you think you’re actually going to be negotiating a renewed NAFTA? Really? Given that Trump has proven that any agreement he signs isn’t worth the paper it’s written on because he only operates in bad faith? And you still want to go ahead with this farce?

Meanwhile, Poilievre demanded 50 percent retaliatory tariffs if the steel and aluminium tariffs went to 50 percent, Jagmeet Singh continues to demand that Parliament be summoned to pass a package of aid for workers before the election, and Elizabeth May wants a “wartime Cabinet,” and I just can’t because it misunderstands what actually happened during the First World War. Also, Alberta’s energy minister Brian Jean thinks he’s an international negotiator too. And hey, here’s a plausible explanation for Trump’s constant tariff chaos—because affected CEOs have to pay millions to see him at Mar-a-Lago to plead their case, and he’s making a lot of money that way.

Ukraine Dispatch

Ukraine downed a ballistic missile and 70 out of 126 drones in Monday night’s attack, while Russia claims they are making progress in reclaiming Kursk region. Ukrainian drones struck two more Russian oil facilities, with explosions recorded. The US says they are resuming military aid and intelligence sharing after Ukraine said they were willing to sign onto a ceasefire proposal, but Russia has not agreed yet (and won’t agree because they don’t want a ceasefire). AP has a selection of photos from the war.

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Roundup: An ambush in the White House

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It was an ambush. Ukrainian president Volodymyr Zelenskyy’s visit to the White House, ostensibly to sign some kind of agreement around access to critical minerals in exchange for some kind of military support or security guarantees was a set-up for Trump and JD Vance to try and humiliate Zelenskyy in front of the cameras, with one of the reporters from Russian state outlet TASS in the room (who was removed at one point by the Secret Service, but it was obvious that someone in the White House arranged for him to be there). The whole video is sickening to watch.

While Trump and Vance started broadcasting this for their followers as a supposed sign of strength, and their lackeys and apologists broadcast Russian propaganda to justify it, word also started leaking out that Trump is planning on cutting off military aid to Ukraine for Zelenskyy’s supposed intransigence and lack of desire for peace, which is of course mendacious and part of the set-up.

In the wake of this, world leaders started tweeting their support for Zelenskyy and Ukraine, and this was probably the death knell of NATO as we know it. The one leader who has been silent is Keir Starmer, but he is also hosting a summit in London today about Ukraine and European security, which Justin Trudeau will also be attending.

Here are some hot takes from Tom Nichols and David Frum, while Philippe Lagassé has some additional thoughts on the situation.

Closer to home, in an interview with the Spectator, Trump took credit for Chrystia Freeland’s supposed “firing” (she was not fired), and said that Poilievre’s problem is that “he’s not a MAGA guy.” Which is true—Poilievre doesn’t have much of a coherent ideology, but he’s not MAGA. What he is, however, is someone who will say anything that he feels he needs to in order to attract the MAGA crowd to his banner, no matter how ridiculous it is, and he has no morals, ethics, or scruples about it. Poilievre jumped on this to declare that he’s “Canada First,” and later did tweet support for Zelenskyy and Ukraine, and immediately got roasted in the comments by his MAGA supporters for it. Funny what happens when you play with fire.

https://twitter.com/acoyne/status/1895631503469449464

Ukraine Dispatch

Russian drones struck a medical facility, among other targets, in Kharkiv. The framework for a mineral agreement that Ukraine was supposed to sign with the Americans, before the ambush, contained a number of gaps around security or dispute resolution, before it turned out to be a sham.

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Roundup: Carney’s boneheaded “green incentives”

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Liberal leadership hopeful Mark Carney revealed his plan to replace the consumer carbon levy yesterday, and it’s a handwavey bunch of “green incentives” for things like improving your home insulation, furnace, appliances, or buying an electric vehicle. This would be offset by maintaining or increasing the industrial carbon pricing system, along with carbon border adjustments. Carney claimed that the current system isn’t working, which is false, because emissions have been driven down, and then shrugs and says it’s “too divisive,” which is the Liberals’ own gods damned faults for being such incompetent communicators about how the levy works, the rebates (remember when they thought that calling them “climate action incentives” was a genius idea?), and how reducing one’s own carbon footprint maximises those rebates. The government was absolutely incapable of communicating any of it, and Pierre Poilievre swooped in and filled the space with lies and disinformation.

I find Carney’s plan absolutely infuriating for a number of reasons. One of them is that this imparts a false narrative that carbon emissions reductions can happen for free for consumers. Even if there is no consumer-facing price, industrial emitters will pass along costs, and people won’t get a rebate for those higher costs, which hurts lower-income households harder. Everyone fawning over Carney’s economic credentials should be smacking themselves upside the head because of this fiction he is trying to perpetrate and just how economically illiterate it actually is.

Meanwhile, how much of an “incentive” can it really be for one-time purchases? You can only really re-insulate your house once, or buy a new furnace once every twenty years. There is no price disincentive to increased carbon use, and there is no ongoing reward for a low-carbon lifestyle, which the rebates provide. Again, very few people actually understand this because the government steadfastly refused to actually communicate how the levy and rebates actually work, how to maximise them, and how it rewards ongoing low-carbon behaviour. They hoped that legacy media and would communicate that (they absolutely will not), and it was basically up to five economists on Twitter, which is useless to ninety-five percent of the population. So now the people who have done the work to reduce their carbon footprint will now be punished, and people will take advantage of those one-time purchases for what? The pat on the back that they can give themselves? Everyone involved here needs to take a long, hard look at some of their life choices, but then again, if they had any modicum of self-reflection, they likely wouldn’t be in politics. What an absolute disaster.

Ukraine Dispatch

Russian drones injured four in Odessa, damaging a hospital and grain warehouse, while a missile attack seriously damaged a historic centre in the same city. Russian forces are also tightening their approach to Pokrovsk, which is a key logistics hub in the region. Ukrainian forces destroyed a Russian command post in the Kursk region, and are also reporting that they haven’t seen any North Korean troops in the area for three weeks. Ukrainian drones also damaged an oil refinery in Russia’s Volgograd region.

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Roundup: Gould’s stumble of a first proposal

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Liberal leadership candidate Karina Gould made a policy announcement in Ottawa yesterday, and it was…not great. Gould says she’s serious about tackling cost-of-living challenges, so she wants to give a one-year GST cut, and to pay for it by increasing the corporate tax rate for businesses making over $500 million in profit in one year. That sound you’re hearing is every economist in this country crying out in anguish.

It’s just so needlessly dumb, and you would have thought that Gould might have paid attention to what an absolute fiasco the HST “holiday” has been, and how her fellow Cabinet ministers debased themselves to sell it to the public. It’s also giving shades of Stephen Harper circa 2006, and how that government increased income taxes to pay for the first GST cut, and then spent through the surplus they inherited to give a second cut, which permanently hampered the fiscal capacity of the federal government (which was Harper’s plan). And reducing it for one year? So that you face the blowback of the tax going back up? Seriously? I get that Gould is trying to break through the noise around Mark Carney, but come on. There are plenty of economists whom she could consult with, who would gladly give her the time of day and to explain these things to her, but she decided to go with the same kinds of populist stunts that the Conservatives and NDP run on, while ignoring the notion that the Liberals have been the party doing the sensible policies in spite of them being less popular (such as the carbon levy) because it’s the right thing to do. It’s a disappointing first move by Gould out of the gate.

In a related note, Jaime Battiste has dropped out of the race, and will be backing Carney instead. Battiste was a marginal candidate to begin with, so this move isn’t really a surprise, as much as he wanted to be a First Nations candidate in the race, there just wasn’t a viable path forward for it.

Ukraine Dispatch

A Russian drone hit an apartment building in Sumy overnight Wednesday, killing at least six people. Aid groups in Ukraine are scrambling to compensate after the Americans suddenly cut funding to their programming.

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Roundup: Foreign interference commission final report released

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Justice Marie-Josée Hogue released the final report of the Foreign Interference public inquiry yesterday, and there really weren’t too many surprises involved. While there have been attempts at foreign interference, it hasn’t affected the outcomes of any elections, and that our institutions have held up rather well—though not perfectly. Government has been too slow to respond in many cases, and we don’t have enough transparency around national security issues, nor is there a culture of national security in government to make these issues a priority. There has been progress, but we’re not there yet. In many respects, this report proves that David Johnston’s report was right, and we’ve spent a year-and-a-half duplicating efforts because opposition party leaders decided it was more fun to smear Johnston than take him seriously.

One of the most significant aspects was a repudiation of the NSICOP report that claimed there were parliamentarians that were somehow compromised, and Hogue went through how the intelligence didn’t actually say that, and how NSICOP’s characterisation torqued what had been alleged—and frankly, much of the news reporting torqued further because they didn’t bother to read the context in that report. Hogue also noted that much of the reporting that drove this moral panic and the subsequent inquiry was wrong, though she didn’t necessarily blame the journalists because they only had so much to go on. (Nevertheless, this should be a warning about just how absolutely credulous some of those reporters have been on this file since the beginning, and why they failed to adequately question the motives of those doing the leaking).

A couple of other notables—Hogue noted that transnational repression is probably a bigger threat, but her mandate didn’t give her the latitude to explore that, so that remains a big flag for this or the next government to address. Even more to the point, she flagged disinformation as the most existential threat to our democracy, and called for a dedicated federal watchdog to monitor and intercept foreign meddling that uses social media platforms and “AI” tools like deep-fakes. She also recommended developing digital and media literacy among Canadians, which feels a bit like a “perfect world” wish, or at least something that we may be able to impart onto the next generation but I worry that the current one may be lost in that regard.

For more, here’s a thread from Stephanie Carvin who went through the report:

In the wake of this, Pierre Poilievre has let it be known that he’s not going to take that CSIS threat reduction briefing after all, because he can’t talk about what it says, so he is once again relying on the false notion that this, or any other security clearance, is somehow going to “gag” him. It won’t, but it would mean he has to be responsible with his commentary, which he does not want to do. He wants to be bombastic, and to lie at every opportunity, and so he will keep refusing a clearance or briefings, because he only cares about “owning the Libs,” not national security or the good of the country.

Ukraine Dispatch

Overnight Russian air attacks wounded eight and damaged residential buildings around Ukraine on Monday night. Ukrainian drones are targeting power and oil facilities in the west and northwestern regions of Russia.

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Roundup: Trudeau’s slow exit

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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).

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.

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.

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

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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.

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 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

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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.

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

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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.

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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