Tag Archives: Inflation

Roundup: Contradictions and poor intelligence practices

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There has been a number of competing threads in the ongoing Emergencies Act public inquiry, and a lot of police testimony that is contradictory, and contradicting their own documentary evidence. For example, one senior Ottawa police officer is claiming that they had the tow trucks all lined up and ready to go without the invocation of the Act—erm, except the documents don’t show that at all, and that they needed the Act to secure those services. There has also been a lot of alarming signs about the quality of police intelligence about the make-up of the occupation (which many leaders subsequently ignored anyway). The OPP did see an increasing risk of violence the longer it dragged on, particularly by those in the occupation who felt they were “at war” with the federal government, along with growing anti-police sentiment (presumably because police weren’t doing their bidding to arrest members of the government). The Commission has agreed to hear CSIS’ evidence behind closed doors.

Here’s former CSIS analyst Jessica Davis on the quality of that intelligence, and yikes:

Ukraine Dispatch, Day 245:

Both Russian and NATO forces carried out annual nuclear exercises, while Russia carries on its false narrative that Ukrainians plan to detonate a “dirty bomb” on their own soil in order to blame Russia—information operations entirely. While this was happening, Russian forces targeted 40 towns in Ukraine, killing at least two more people.

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QP: The increasing hyperbole meets the wall of pabulum

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The translation system was haywire in the Chamber, which made for a very awkward and very late start to the day. Pierre Poilievre led off in French, and he started off with the falsehood that  government spending caused inflation (he didn’t), and railed about increasing interest rates as a result. Justin Trudeau got up and said that he would respond in a second but wanted to mark that this is the 40th day since the murder of Mahsa Amini in Iran, and that he stood with the Iranian-Canadian community. Poilievre switched to English to say that people are now paying $7000 more on mortgage payments and wondered who was going to pay it. Trudeau said that the government made the decision to support people in the pandemic, and are now supporting them with the GST rebate, dental care and rental supports. Poilievre trotted out his misquote of Mark Carney and wanted to know how many people would lose their homes because of higher interest rates, and Trudeau pointed out that inflation is a world-wide problem, which is why they have supported Canadians. Poilievre chanted that the cost of government is increasing the cost of living (not true), trotted out falsehoods about ArriveCan and cited a problem with the disclosure from CBSA. Trudeau said that the appropriate ministers are looking into this discrepancy before patting himself on the back for pandemic supports. Poilievre accused the prime minister of personally handing out ArriveCan contracts and then complained about the cost of the hotel in London for the Queen’s funeral delegation. Trudeau reminded him they had a large delegation that went to the funeral and that they stayed in the same hotel and it was expected for us to have a strong presence as a Realm country.

Yves-François Blanchet worried that seniors between 65 and 75 were being discriminated against because they didn’t get the OAS top-up. Trudeau said it’s great that seniors are living longer but those older seniors can run out of savings, so the government was there in a proportionate way for those with the most needs. Blanchet made a dig about King Charles before demanding more healthcare transfers without strings attached. Trudeau said that the law states equitable treatment and the federal government was happy to talk to provinces about getting Canadians the services they need.

Jagmeet Singh rose for the NDP, and he railed about interest rates and demanded action from the government. Trudeau reminded him they are supporting those who need it most. In English, Singh noted that the prime minster’s own former economic advisor was concerned about the increasing interest rates and wanted help for families, and Trudeau repeated his response.

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QP: Admitting to an insincere oath

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While the prime minister was present today, his deputy was not, for what that’s worth. Pierre Poilievre started off in French, where he blamed the federal government for causing inflation with deficit spending (false) and he misquoted Mark Carney about the nature of that inflation, and asked whom people should believe—the current leader or the future one. Justin Trudeau listed some of the global causes for inflation (not mentioning that food price inflation is largely climate-driven), but turned this into a pitch for their dental care and rental supports. Poilievre switched to English to give his facile understanding of how the war in Ukraine affects inflation in Canada, misquoted Carney, and wanted the government to take responsibility for inflation in Canada. Trudeau reiterated that the Conservatives don’t want to help with dental care or rental supports. Poilievre doubled down on his misquote of Carney, calling him the future Liberal leader, and Trudeau repeated his same response. Poilievre insisted that Trudeau was the one who bid up inflation by giving people too much access to easy cash to inflate the housing market (erm…), and Trudeau trotted out his tired “we had Canadians’ backs” line (which really, really needs to be retired) and pointed out that this brought our economy back sooner, and then demanded support for dental and rental. Poilievre then listed a bunch of non sequiturs to blame the deficits on, and Trudeau said that the lesson from the pandemic was that Canadians support one another and we came out ahead as a result, and pitched dental and rental supports one last time.

Yves-François Blanchet led for the Bloc, and trolled for support on his Supply Day motion about severing ties with the “British” Crown (which Canada hasn’t been under since 1931). Trudeau said that of all topics the Bloc could have chosen, they decided to try and open the the Constitution. Blanchet tried to call it a choice between a British monarch and the people or democracy, and Trudeau pointed out that Blanchet swore an oath “to the British Crown” (No! He swore an oath to the Canadian Crown!), and reiterated that there are more important things to talk about.

Jagmeet Singh rose for the NDP and in French, blamed the prime minister for deaths in hospitals for lack of resources (never mind this is the fault entirely of the premiers). Trudeau reminded him that they increased transfers above the usual ones during the pandemic, and they are working with premiers when it comes to future transfers. Singh switched to English to demand that GST be removed from home heating (which disproportionately benefits the wealthy), and Trudeau stated that they have other supports for people and that the climate rebates give more money back to most households.

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QP: Demanding support for their carbon price motion

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Even though both the prime minister and his deputy were in town—the PM being in the building—neither were present for QP, and neither were any of the other leaders as well. That left if up to Melissa Lantsman to lead off, and with a script in front of her, she launched into the party’s talking points about inflation (which weren’t true), and then worried about increasing heating costs because of carbon prices, except they don’t go up until April, and the fact that there is no single type of home heating across the country. Nevertheless, she quoted the Liberal premier of Newfoundland and Labrador in opposition to carbon prices, and demanded the government vote in favour of their Supply Day motion to remove the carbon price on home heating. Randy Boissonnault took the question, and used the opportunity to recite his government’s talking points about supporting their bill on the kludge they call dental care, and for rental supports. Lantsman went another round of the same accusations, and Boissonnault recited the government’s record on lowering taxes, which the Conservatives voted against. Lantsman made a third attempt, to which Darren Fisher got up to denounce the Conservatives’ former policy of increasing the age of OAS eligibility for seniors to 67 as proof that the Liberals care more about seniors than the Conservatives. Pierre Paul-Hus took over in French to raise Chrystia Freeland’s new plan to tighten fiscal policy, insisting this was a surprise to the prime minister, that this was an admission that they created inflation (it’s not and they didn’t), and demanded that the carbon price not be “tripled” (that happens over seven years). Boissonnault said the Conservatives are only interested in cutting supports for things like seniors and housing. Paul-Hus insisted that the Conservatives want to cut the carbon tax and demanded the government stop raising taxes (erm, the only actual taxes going up are to corporations and on luxury goods). Boissonnault insisted that he respects his counterpart, but the Conservatives only cut jobs.

Alain Therrien led for the Bloc, and said that the government could simply have enriched the Canada Child Benefit rather than creating their dental care plan, and recited the Parliamentary Budget Officer’s report that this benefit “discriminates” against Quebeckers because they won’t get as much money—because they have existing provincial benefits. Jean-Yves Duclos stated this fact—that they already have dental coverage and the federal benefit will enrich it. Therrien repeated his question and called it “majority insurance” rather than “dental insurance,” and Duclos pointed out how much his government has reduced child poverty.

Alexandre Boulerice rose for the NDP, and in French, he read a statement from a doctor who lost a patient, and demanded the federal government do something about the crisis in healthcare. Duclos admitted there is a crisis, but he said they are providing additional funding to provinces to reduce delays, for workers, and for long-term care. Lindsay Mathyssen read her own condemnation of the state of healthcare in English, to which Duclos reiterated his comments, noting that the Canada Health Act has conditions, and that he was work with premiers.

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QP: The King of Canada shouldn’t be a difficult concept

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Both the prime minister and his deputy were away, but every other leader was present, for better or ill today. Pierre Poilievre led off in French as he usually does, and said that the government added $100 billion to the national debt before COVID, and $500 billion before Russia’s invasion of Ukraine, and that he added more to the national debt than any prime minister in history, which is pretty selective about the circumstances of what happened during that time period, like, oh, a global pandemic. He blamed inflation on this spending, which is not true, then raised the reports that Chrystia Freeland has given orders to reign in spending, and wondered how they can trust the people who caused inflation to fix it, which again, completely misrepresents the facts. Rachel Bendayan reminded him that Canada has the lowest debt and deficit of all G7 countries, and that they have a budget that will cut spending by $9 billion, while maintaining the strongest growth in the G7 while the Conservatives play petty political games, and praised the government for bringing Moderna to Montreal, which was an odd non sequitur. Poilievre repeated the question in English, with a bit of added self-congratulation, before Mark Holland asked what supports the Conservatives would have not offered to Canadians during the pandemic, and called out their amplifying anxieties before demanding they support dental care and rental supports. Poilievre said they would have cut ArriveCan or WE Charity, and not given money to profitable companies, before he recited some nonsense about inflation. Holland disputed that inflation is a problem only facing Canada, which is not true, before again demanding support for affordability measures. Poilievre insisted that countries who printed money all have high inflation, but countries like Switzerland who didn’t don’t have the same issue, which is a pretty selective reading of the facts. Holland noted that we are dealing with unprecedented times, which demands maturity and serious answers, and offered a sanctimonious request for the opposition to let their affordability measures go to a vote. Poilievre was incredulous, saying that only 0.3% of Canada’s trade is with Russia and Ukraine combined, so that they couldn’t possibly be contributing to inflation—which is possibly the dumbest gods damned leaps in logic I have ever heard. Holland accused the Conservatives of not supporting people who need it.

Yves-François Blanchet got up to claim that there is a debate about pledging allegiance to the “King of England,” worried that the federal government would interfere with Quebec’s secularism law, and then demanded to know who the head of state is in Canada. David Lametti noted that the oath of allegiance is part of the constitution and that courts have said that this is not an oath to the person, but the institutions. He did not, however, say that the King of Canada is our sovereign. Blanchet again demanded to know who the head of state is, and Pablo Rodriguez got up to rip that the Bloc don’t care about the issues of the day, but only about their pensions.

Jagmeet Singh rose for the NDP, and in French, demanded that the government support their plan to help people, to which Rachel Bendayan recited the measures the government has taken and pleaded for support for the other measures. Singh switched to English to decry a possible Rogers-Shaw merger, and demanded that the government oppose it. Andy Fillmore read a statement about ensuring that consumers are protected.

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Roundup: The drivers of food price inflation

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The September inflation numbers were released yesterday morning, and they are still cooling, but not quite by as much as anticipated, in part because food price inflation continues to stay high. While the temptation to conclude that this is entirely the fault of the grocery oligopoly engaged in price gouging, and boy howdy are the NDP trying to make this a Thing, we know from the economic data that it’s not actually the case. And it doesn’t take too much digging to know what some of the drivers of this food price inflation really are:

  • For cereal and bakery products, that’s because the drought on the Prairies destroyed 40 percent of crop yields last year
  • The blight known as “coffee rust” is affecting those crops, and is in large part because of monoculture
  • Drought has also taken out things like the chilis necessary for things like sriracha sauce, or the mustard crops used in condiments
  • Fresh fruit and vegetables are, again, susceptible to droughts in places like California, or the hurricanes that struck Florida
  • Fish and seafood are facing collapsing stocks, which again, drives up prices, and some harvesting seasons have been impacted by hurricanes
  • Dairy and meat has seen higher input costs (again, drought taking out feed crops) and avian flu ravaging poultry flocks is also driving up prices

As you can see, climate change is a big driver for most of these. Our food production is very vulnerable to it, and that is causing a lot of these price increases, and we need to be aware of that and stop couching it euphemisms about “inclement weather” or the like.

Meanwhile, Chrystia Freeland has told her Cabinet colleagues that they need to keep their spending priorities in check, and if they want higher spending, they need to be prepared to find savings in their departments to pay for them. While we have seen that the government’s fiscal stance is already pretty tight, Freeland needs to manage expectations right now—if we do go into a recession, the government can’t keep up the same supports they did during the pandemic, and broad spending programmes could wind up fuelling inflation and undoing the work the Bank of Canada is doing to tame it. It’s unlikely to really blunt any of the attacks from the opposition, and Poilievre in particular because he’ll just make up more nonsense that sounds like economics but is just bullshit, and certain people will spoon it up and legacy media will both-sides it, but regardless, Freeland looks to be steering the Liberals back on a course toward the brand of fiscal prudence and away from trying to capture more of the left, but perhaps that’s because they have put a mark in that territory with things like childcare and know that there are voters at the centre that the Conservatives are abandoning that they would rather pick up instead. Either way, it’s an interesting move.

Ukraine Dispatch, Day 238:

As Russians continue to bomb power stations around the country, Ukrainians are facing rolling blackouts. President Volodymyr Zelenskyy called out the Iranians for accepting “blood money” for these drone.  Meanwhile, Putin has declared martial law in the four occupied territories in Ukraine, giving his Russian regional governors emergency powers to enact new restrictions.

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QP: Politicising a tragedy because of course he did

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For Wednesday, proto-PMQ day, the prime minister was indeed present, and had a binder full of prepared responses, not that he was going to need most of it given how utterly repetitive QP has become in the past number of weeks. Pierre Poilievre led off, and started with condolence for the murder of a police officer in Burnaby, BC, and wanted action on the “crime wave” gripping the country. Justin Trudeau agreed that they need to do more, and spoke about their plans to increase funding for mental health supports. Poilievre then moved to the inflation numbers, and food inflation in particular, accusing the government of raising taxes on food, which of course is not true, and the biggest driver of food price inflation is climate change. Trudeau disputed the characterisation, and raised their GST credit, and wanted support for their other measures. Poilievre cited the figure that average families will pay $3000 more in inflation and interest, and blamed inflation on deficits, which is not the driver. Trudeau repeated that the Conservatives are not supporting measures that will help the households that need it most. Poilievre repeated his questions in French, and Trudeau poked holes in Poilievre’s assertion that inflation is so high that they shouldn’t do anything to help people. Poilievre spouted a bunch of nonsense about food price inflation on things gown in Canada, ignoring that drought wiped out 40 percent of crops last year, and blamed the costs on carbon prices. Trudeau raised the climate rebates that people got on Friday, and that they need to take action on climate change.

Yves-François Blanchet led for the Bloc, and raised both the contracts for a lease near Roxham Road and wanted a better way to accept asylum seekers. Trudeau recited that there is no magic solution and that we need to work with the Americans to find a sustainable solution. Blanchet claimed that the government wanted to use Roxham Road to get cheap labour, and wanted African francophone students instead who are being discriminated against with their visas. Trudeau read a script about having no tolerance for racism and that the minister was looking into the issue.

Jagmeet Singh rose for the NDP, and first gave condolences for the slain officer, then switched to French to accuse the government of doing nothing about inflation. Trudeau listed their actions and the plans still waiting passage. Singh switched to English, and blamed food price inflation on “greed-flation” (which is not a thing), and took credit for “forcing” the government to study the issue. Trudeau repeated his response about the GST credit and demanding support for dental care and rental supports.

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QP: Chaining us to oil oligarchs

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Both the prime minister and his deputy were present today, which tends to always be a better day than when they’re away. Pierre Poilievre started off in French, where he cited a report stating that inflation and interest rates will cost Canadians an extra $3000 this year. Justin Trudeau responded with a fairly standard rebuttal of his government helping Canadians while the Conservatives, who were free to disagree with their affordability measures were now blocking them from passing. Poilievre switched to English to insist that the rental supports would help no one, and that the government oversaw the worst housing bubble on planet Earth. Trudeau reiterated that no only does he not support people, he his also blocking the measures from going forward. Poilievre took the opportunity to decry the cost of rent and housing, and that the government was tripling the tax on the costs to heat them (not true), and Trudeau dismissed this as attack politics, and repeated that Poilievre was blocking their supports rather than simply disagreeing. Poilievre tried to sound wounded, and demanded that home heating be exempted from the carbon price, to which Trudeau insisted that most families get back than they spend on carbon prices. Poilievre then dismissed this, and tried to call Trudeau a “high-carbon hypocrite,” to which Trudeau accused Poilievre of simply trying to help the rich, and pointed out that trickle-down economics doesn’t work, as the UK is learning right now.

Alain Therrien led for the Bloc, and he accused the government of secrecy on the contracts linked to Roxham Road, and Trudeau took up a script to say the contract decisions were made by public service and CBSA contacted the land owner, where they could not change the location, and they got market value for the use. Therrien railed that the government insisted on national security clauses in the contracts to hide them from the public, and Trudeau reiterated the same response.

Jagmeet Singh rose for the NDP, and in French, he worried about a possible recession on the horizon, and demanded a plan from the government before people suffer. Trudeau insisted they were already engaged, and called on support for the other affordability measures like rental supports and dental care. In English, Singh raised the state of the EI system and repeated his demand for a plan in the event of a recession, and Trudeau repeated his tired line that they have Canadians’ backs.

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QP: Some new faces with the same repetitive lines

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Neither the prime minister nor his deputy was present today, but Pierre Poilievre was, as he so frequently is. He led off in French, and claimed that government spending caused inflation (false), and cited an RBC report saying that inflation and higher interest rates would cost families an additional $3000 next year, before he demanded that the government stop “raising taxes” (which they aren’t, but if they were, higher taxes actually fight inflation). Rachel Bendayan said that they know Canadian are facing higher expenses, which is why they are putting forward supports, that the Conservatives are opposing, such as rental supports and dental care. Poilievre switched to English to blame the federal government and the outgoing (formerly) NDP mayor of Vancouver for overdose deaths, violence and higher housing prices. He praised the election of a new mayor and demanded that the federal government “get the message.” Mark Holland said he appreciated the leader’s interest in the mayoralty campaign in Vancouver, but here in Ottawa, he was looking for support for their affordability measures. Poilievre insisted that the federal government was forcing British Columbia to “triple, triple, triple” their carbon price and demanded that they cancel the plan. Steven Guilbeault remarked that families in provinces under the federal price got their quarterly climate rebate payments on Friday. Poilievre then said the government was forcing “energy poverty” onto the Atlantic provinces, to which Guilbeault corrected him in that they are providing support for them to transition to cleaner and cheaper alternatives. Finally, Poilievre insisted that the government was just taking the carbon price revenue, and mocked the notion that it would “trickle down” back to people (false–the revenues don’t go to federal coffers and go to each province to recycle in the way they chose, including the federal climate rebates). Holland responded with some mockery about the Conservative belief in trickle-down economics, which doesn’t actually work.

Alain Therrien led for the Bloc, and he insisted that Chrystia Freeland announced a policy of “drill, baby, drill,” and that she drove the nail in the coffin of climate change. Jonathan Wilkinson noted that she did not contradict the government and that they would only move ahead on the right projects. Therrien insisted that the government was using the war in Ukraine to sell more oil, and Guilbeault reminded him that there is a rigorous environmental assessment process and that Canada is moving ahead on renewable energy, which is why Germany came to us for hydrogen.

Alexandre Boulerice rose for the NDP, and in French, he noted the Loblaws “price lock” on generic food products and demanded support for their Supply Day motion on making companies pay more. Rachel Bendayan recited that the government raised taxes on corporations. Alistair MacGregor took over in English, with the took credit for the Loblaws move, to which Terry Beech called for support for their affordability measures.

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Roundup: The first witnesses at the inquiry

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The first day of witness testimony took place at the Emergencies Act Public Inquiry, hearing from citizen representatives about what they went through during the illegal occupation, as well as two of the city councillors whose wards were most affected, and representatives from affected BIAs. There was a common theme in there—people feeling afraid and terrorized by the collection of far-right extremists, grifters, conspiracy theories and grievance tourists who made up the occupation; and more to the point, they felt abandoned by the Ottawa City Police, who were the police of jurisdiction.

Which brings me to my other point—that the NDP, and MP Matthew Green in particular, are trying to return to this bullshit narrative that the federal government “abandoned” the city and didn’t show leadership during the occupation, which is completely false. There was no jurisdiction that they could exert—the Ottawa police, as established, were the police of jurisdiction, and there is no mechanism by which the federal government can bigfoot them or assert jurisdiction. Even the Emergencies Act allowed for the RCMP to be deployed under the command of the Ottawa police, with expedited swearing-in that enabled them to do their jobs. There is nothing that the federal government could have done to “show leadership” up until they invoked the Act. I know the NDP like to pretend that there’s a Green Lantern ring somewhere, and that all it takes is “political will” to do something, but there is no “political will” section of the Constitution. Real life doesn’t work like that, and the NDP need to grow up and start criticising the government for things that are actually their fault, not the things that aren’t, because it weakens their credibility when it comes to the real problems.

Ukraine Dispatch, Day 233:

Ukrainian forces continue to press their advantage in the Kharkiv region, as the Russians say they will have completed their mobilisation within two weeks. The first 200 Ukrainians have completed their training in the UK with British and Canadian trainers, which includes offensive tactics, not just defensive ones. Here is a look at the city of Lyman, and how much it suffered under four months of Russian occupation.

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