Tag Archives: Inflation

Roundup: Games of inflation denialism

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As opposition parties continued to shitpost about the inflation numbers and the interest rate decision, it got intensely stupid. To that end, Emmett Macfarlane has coined the term “inflation denialism” to characterise these kinds of responses, and he’s completely right about it.

https://twitter.com/emmmacfarlane/status/1681741904797466624

As well, economist Stephen Gordon has spent the day calling out “greedflation” theorists, and it was fun to watch.

Programming note: I am away for the next week and a bit, so blog posts are on pause until August. Behave in my absence, and don’t make turn this car around.

Ukraine Dispatch:

There was an early morning Russian strike on the port city of Mykolaiv that wounded 18. Russians have been targeting ports and grain infrastructure in particular in recent days, deliberately targeting it in Odessa, as well as Chornomorsk. Meanwhile, Russia pulling out of the Black Sea grain deal is worrying Ukrainian farmers, some of whom still have last year’s crop stockpiled because they couldn’t get it to market.

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Roundup: Inflation falling into the control range

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The inflation numbers were out yesterday, and headline inflation dropped to 2.8 percent annualized, which is the lowest in the G7, and back within the Bank of Canada’s control range of 1 to 3 percent (though they have stated they are going to keep measures in place it reaches two percent). There are still hot spots—food price inflation is still fairly high, and shelter costs are also running high, but that’s not unexpected given where things are at right now.

Chrystia Freeland called this news a “milestone moment” that Canadians should feel some relief in, while the Conservatives repeated some of their usual talking points. The NDP, naturally, are keeping up with their attempt to blame high inflation on corporate greed, particularly food price inflation, even though the data doesn’t really bear that out, as I pointed out in this thread:

Ukraine Dispatch:

Russian forces struck the southern port city of Odessa, and while most of the missiles and drones were intercepted, there were hits and there was damage from debris. This was considered to be retaliation for the explosion on the bridge linking Russia to occupied Crimea. More strikes are aimed at Odessa in the early morning hours. Meanwhile, with the Black Sea grain deal ended by Russia, the EU is looking to transport more Ukrainian grain by rail and road, while the UN says they are floating “a number of ideas” around how to get that grain flowing again.

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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

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Roundup: May inflation shows it’s cooling faster

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Statistics Canada released the May inflation numbers yesterday, and they were well down from the month previous, the headline number now down to 3.4 percent, which is in line what the Bank of Canada is predicting about it returning to about three percent by the end of the year. Part of this is because year-over-year gasoline prices fell, meaning that there is a base-year effect in play, but food inflation remains high (in large part because of climate change affecting food-growing regions and the difficulty in getting Ukrainian grain to market continues to keep those prices high), and mortgage interest rates are one of the factors fuelling this. Unfortunately, you have certain economists like Jim Stanford who think that this is the Bank causing this inflation, when in fact if they hadn’t raised rates when they did, higher inflation would still be ripping through the economy. (Seriously, stop listening to Jim Stanford).

Additionally, these numbers continue to prove that Pierre Poilievre’s narratives about inflation are specious at best, but are pretty much bullshit he is squeezing into whatever the headline seems to be. Last month, when there was a 0.1% uptick in inflation, Poilievre blamed it on the news of the budget deficit, and that this was proof that the deficit was “pouring gasoline on the inflationary fire.” That was wrong, and the Bank of Canada said that the trend was that inflation was still decreasing (and that the government’s fiscal policy was not having an effect on that decelerating inflation). And lo, inflation is still decelerating, in spite of the budget deficit. It’s like Poilievre has no idea what he’s talking about.

Meanwhile, economist Stephen Gordon has a few thoughts the numbers.

Ukraine Dispatch:

Two Russian missiles hit the eastern Ukrainian city of Kramatorsk, killing four and destroying a cafe that was fairly well known. Meanwhile, a UN human rights report shows that Russian forces carried out widespread and systematic torture of civilians they detained before executing them, but also found that Russians troops detained by Ukrainians also alleged torture and mistreatment.

https://twitter.com/united24media/status/1673784944798191617

https://twitter.com/defenceu/status/1673769121450696724

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QP: The last big Poilievre/Trudeau show of the spring sitting

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The prime minister was present for what we all hoped was the final QP of the sitting. Hopefully. Some of the other leaders were present, but not others, which was very unusual for a Wednesday where they would normally use as many spots as possible for themselves.

Pierre Poilievre led off in French, and worried that some housing costs have doubled in Quebec, and blamed the prime minister and inflation (which is risible). Justin Trudeau said that if Poilievre was serious, he would support their policies like the housing accelerator fund, and working with municipalities to build more. Poilievre switched to English to worry that it would take twenty-years to save up for a down payment in Toronto, and again blamed deficits for this. Trudeau praised their job creation record and investments in growing the economy, before talking about his work with municipalities to build housing. Poilievre trotted out his “he’s telling people they’ve never had it so good” line and railed about housing costs, and again blamed the prime minister. Trudeau worried the Conservatives would cut the programmes that are helping Canadians. Poilievre insisted that the programmes were not working and blamed them for doubling housing prices, which again is laughable. Trudeau said that picking fights with mayors, like Poilievre is trying to do, would not solve the housing crisis. Poilievre worried that Trudeau says all the right things but doesn’t do them, and Trudeau insisted that he would take saying the right things as a vote of confidence.

Yves-François Blanchet led for the Bloc, and he worried about small companies suffering from the wildfires, and wanted to meet about implementing solutions, and Trudeau read a script about standing in solidarity with them, and promised to work with provinces through the summer. Blanchet insisted that they needed an immediate answer, and Trudeau insisted that they are working with the affected provinces.

Lori Idlout rose for the NDP, and she blamed the government’s inaction on intergenerational trauma with Indigenous people. Trudeau noted that today was a celebration of Indigneous languages and cultures while also recognise the sins of past and continuing the path of reconciliation. Idlout demanded action and not empathy, particularly with Grassy Narrows, and Trudeau insisted that they are working on that solution. 

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QP: Some half-hearted swipes around the by-election results

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The prime minister was present for one of the final Question Periods of the sitting, but his deputy was away in Toronto, and only a few of the other leaders were present. Pierre Poilievre led off in French, claiming that trust in democracy has been “shattered” and that he has been working with opposition parties about a public inquiry, but demanded the inquiry be declared before he shared names for who to lead it. Justin Trudeau read a script about working with stakeholders and opposition leaders about next steps in this issue. Poilievre then pivoted and cited a letter to the Journal de Montreal about someone losing their house, and demanded a balanced budget, as though there were a correlation. Trudeau patted himself on the back for the “tangible investments for families” with things like dental care. Poilievre switched to English to worry about household debt and again demanded a balanced budget. Trudeau acknowledged that Canadians are struggling which was why they have supports for them, while the Conservatives only promise cuts. Poilievre reiterated the story of the woman losing her house, trying to tie this to the deficit, which is false, and demanded a balanced budget yet again. Trudeau again reiterated that the Conservatives only proposed cuts while Canada has the lowest deficit and debt-to-GDP in the G7, and then took a swipe at Poilievre’s underwhelming by-election results. Poilievre again tried to tie housing and rental price increase to deficits, which is specious, and Trudeau again took a swipe at the by-election results before patting himself on the back for his positive vision.

Alain Therrien led for the Bloc, and as expected, he demanded a public inquiry immediately. Trudeau insisted that the opposition turned this into a partisan issue rather than taking this seriously. Therrien repeated his demands, and Trudeau repeated his same points about working to establish the next steps.

Jagmeet Singh rose for the NDP, and he worried about the rental prices in Toronto and blamed corporate landlords—never mind that this is an issue of provincial jurisdiction. Trudeau recited the housing measures that they have taken or are planning to take. Singh insisted that they were not acting with urgency and in French, noted that July 1st is Moving Day in Quebec and that families were under stress. Trudeau reiterated that they are there with projects and plans to help people.

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Roundup: By-election holds in all ridings

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There weren’t really any surprises in the by-election results last night, as both the Liberals and Conservatives held their respective seats. Both Liberals handily won their respective seats, getting over 50 percent of the votes in each riding, and they were a fairly close second in Oxford, but didn’t quite make it in the end with that seat. In Winnipeg South Centre, the fact that the Conservatives didn’t even crack 25 percent of the vote should be of concern to them, because this is the kind of riding they need to win if they’re going to form government, and they can’t. Again, in Oxford, the fact that the results were that close in a fairly safe Conservative riding should give them pause.

And then there’s Portage—Lisgar, and the big showdown with Maxime Bernier there, where the Conservatives wanted to “destroy” him. I’m not sure they succeeded, as the Conservatives got around 65 percent of the vote, and Bernier got around 17 percent, so I’m not sure it’s quite the “destruction” they had hoped for. It also came at a cost where they largely absorbed Bernier’s rhetoric in order to entice his votes to the Conservative party, but that is likely to have consequences, as they shift the Overton window ever further to the right, and far-right talking points become more mainstreamed.

Moving forward, expect each winner to visit their respective caucus meetings on Wednesday, and for Anna Gainey from Notre-Dame-de-Grâce—Westmount to make it into Cabinet in short order during the upcoming shuffle, because she’s one of the few people that Trudeau trusts, which is why the government has as many problems as it does.

Ukraine Dispatch:

Russia launched another large air raid overnight, targeting mostly Kyiv but also other cities but no casualties have been reported. In part this is because Ukraine has been building a three-stage defence system using the technology provided by Western partners. Meanwhile, the counter-offensive slogs on, with Ukrainian officials promising that the biggest blow is yet to come.

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QP: Countdown to whether a public inquiry will happen before summer

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The prime minister was away in Halifax, while his deputy was present today, though most of the other leaders weren’t.

Things got off to a late start, but when they did, Pierre Poilievre led off in French, and he worried about increasing payments for housing and mortgages, and got onto his bullshit about deficits causing inflation (they’re not). Chrystia Freeland asserted that they found the right balance between fiscal responsibility and compassion, and listed measures like child care and dental care while ensuring the lowest deficit in the G7. Poilievre insisted the government raised taxes on food (false) and decried the clean fuel standard as a second carbon price (it’s not), to which Steven Guilbeault raised the fires and floods we are facing but the Conservatives have no climate plan. Poilievre switched to English to ridicule the notion that carbon prices will stop forest fires (absolutely nobody has said this), and Guilbeault tried to ridicule the Conservatives’ plan for technology and that the minister of national resources does more for climate change before his first coffee any day than the Conservatives did in ten years. Poilievre quoted the Liberal premier of Newfoundland and Labrador on carbon prices, and this time Gudie Hutchings stood up to praise the government for making rural economic development a full department. Poilievre cited the false figures around the clean fuel standard and demanded it be axed, and this time Guilbeault said that they listed to the Atlantic premiers and delayed implementation of that standard by two years, two years ago, and that time is now up.

Alain Therrien led for the Bloc, and demanded a public inquiry before Friday. Marco Mendicino said that Dominic LeBlanc was on the case. Therrien demanded the inquiry be announced immediately, and Mendicino reiterate that LeBlanc was engaging with them.

Alexandre Boulerice rose for the NDP, and he decried that the government did nothing about forest fires by not spending enough on climate action. Steven Guilbeault went on a tangent about the pandemic, and that they managed to do more in spite of it. Taylor Bachrach repeated the accusation in English, and Guilbeault recited praise for the national adaptation strategy.

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Roundup: Poilievre tries out new tough-on-crime disinformation

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As evidenced in Question Period yesterday, the Conservatives have found a new lie to suit their narrative around the transfer of Paul Bernardo, and it’s citing the former Bill C-83, which allegedly eliminated solitary confinement in Canadian prisons on favour of “structured intervention units.” We can pretty much be assured that the legislation did not do what it said it would, and “structured intervention” is largely still solitary confinement, and the actual problems haven’t been solved, but the underlying notion here was that this bill was in response to the finding of the courts and international human rights bodies that solitary confinement is a violation of human rights. Nevertheless, this is being blamed for the conditions that allowed for Bernardo’s transfer, which again, is not true. It’s not the first time they’ve done this tactic—they also did it with the former Bill C-75 on bail reform, which was about codifying Supreme Court of Canada jurisprudence around bail, and actually created several more categories where a reverse onus was needed, which made bail tougher to get. That didn’t stop the lies then, and it isn’t around C-83 now.

In the meantime, here is the Alberta Prison Justice Society with some important context around prison transfers and security classifications, which a lot of people should know (and in some cases, do know but are lying about it in order to drum up outrage, because politics is all about rage-farming and shitposting these days).

Ukraine Dispatch:

Russians struck the settlement of Novoberyslav in the Kherson region, killing a married couple when their house was bombed. The Ukrainian advance continues in the south, while Russians are trying to trying to dislodge Ukrainian positions in the east. Meanwhile, a group of African leaders are visiting Kyiv to discuss Ukraine’s “peace formula” to end the war.

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QP: Repetitive demands for Mendicino to resign

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The prime minister was away on a Wednesday, which is unusual, as he was in Quebec touring areas affected by the wildfires. His deputy was also in town and had addressed the media earlier, but she was also absent, and with that absence, the Bloc leader also opted not to show up. Pierre Poilievre led off in French, and declared that an entire generation of women will need to relive the trauma of Paul Bernardo with news that he has been transferred to a medium-security facility, and that Marco Mendicino was aware for three months, insisting that what he said was false and demanded his resignation. Mendicino said he was shocked by the news because he wasn’t informed until the day after the transfer, that it was a mistake within his office and he will take tangible action and that they always stand up for victims’ rights. Poilievre repeated his over-the-top accusation in English, and Mendicino repeated his same response, noting that there is an review process underway at Corrections. Poilievre accused him of throwing his staff under the bus, but because nobody got fired, he must be lying and needs to resign. Mendicino invited him to repeat the accusation outside of the House, and the Speaker how to call order among the yells that he already did, and when calm was restored, Mendicino accused Poilievre of misleading the House in his assertions. Poilievre insisted that Mendicino was trying to say that his staff forgot to walk down the hall to inform him and claimed he has the authority to designate all mass murders go to maximum security. Mendicino insisted that this question was a prescription for political interference, and that he was going to be issuing new ministerial directives to the Correctional Service. Poilievre again insisted that Mendicino has the power to designate prisoners, and demanded Mendicino be fired. Mendicino repeated that he is issuing new directives to the Service.

Alain Therrien led for the Bloc, and demanded a public inquiry be launched before the House rises for the summer, and demanded clarity and not talk of a “public process.” Dominic LeBlanc insisted that he shares the desire to get to the right process, and that a public inquiry is an option provided they could find the right way to do so. Therrien insisted that they must declare it be an inquiry, and LeBlanc repeated that it could be an inquiry if it can be done the right way.

Jagmeet Singh rose for the NDP, and returned to the Bernardo question, saying that Mendicino can’t keep his house in order and told him to stop waiting by the fax machine and check his emails. Mendicino said that he corrected the matter in his office. Singh switched to French to point to the testimony about Blair being meant to read the briefing about Chong, and told him to check his emails again. This time Bill Blair stood up to clarify that ministers and their offices don’t have access to the top secret network and that he was not briefed by the CSIS director. 

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