Roundup: Inflation falling into the control range

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: Misguided “free-rider” complaints

The Wall Street Journal had an unsigned editorial board op-ed yesterday that denounced Canada as a “military free rider,” but then did little to actually back up their assertions, omitted a bunch of facts, and went on a tear about the current government’s mission to fix the toxic culture within our armed forces, citing “See how that cultural manifesto works on the Ukrainian front lines.” Um, considering that our soldiers are successfully training the Ukrainians into a fighting force that is nimble and not just throwing bodies at the enemy like the old Soviet system did, it’s working fairly well? And how is Russia’s toxic masculinity doing on the battlefield anyway? Oh, right. In a similar vein, the editorial rages that we don’t spend enough on defence while we “shovel money into public unions and social-welfare programmes.” Like our health care system, which even in its current broken state is still far superior to the Americans? I mean, really?

To add to Steve Saideman’s comments, where the paper seems to fall into that same basic trap of not understanding how NATO works, which is that it requires participation from countries, and we participate. We may not spend to the same percentage, but several high-spending countries don’t actually participate, and because the two percent target is a really stupid metric, it ignores that the denominator is far higher in Canada than in a lot of these higher-percentage countries. Could our spending be better? Yes. Is our procurement system completely screwed? Yes. Have we been something of a free-rider in continental defence because we know the Americans will be there regardless? That’s fair. But trying to assert that it’s because we’re too “woke” is just puerile.

Oh, and about their seeming to prefer Poland, who is sliding into illiberalism and who has a major problem with homophobia, there was this gem on the wire yesterday about how that government broke EU law by suspending a judge who for criticising the government. Yeah, that’s totally who should be replacing Canada at the G7 and in a leadership position in NATO. Well done, WSJ. Slow clap.

Ukraine Dispatch:

At least 20 Iranian-made drones attacked mostly the Kyiv regions early Thursday, with debris wounding two people. American intelligence suggests that Wagner mercenary forces are no longer participating militarily in Ukraine in any significant capacity. Russia appears to be detaining thousands of Ukrainian civilians without charges, and appear to be planning to create even more prison colonies.

https://twitter.com/ukraine_world/status/1679477329804902401

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

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: A pathway for Ukraine but no obvious timeline

From the NATO summit in Vilnius, Lithuania, we saw some movement on the question of Ukraine’s membership, but with no timeline attached. And while Ukrainian president Volodymyr Zelenskyy railed that this was “absurd,” that’s pretty much entirely for show because everyone knows that it’s baked into the rules that you can’t join so long as you’ve got an active war taking place in your territory, because as a mutual defence pact, it would draw in the other members, and we don’t want this to turn in to World War III. The other conditions are all largely being waived, because Ukraine is largely becoming interoperable with NATO countries thanks to the training they’ve been receiving from countries like Canada and the UK, and because they’re getting and being trained on more western equipment as it displaces old Soviet equipment; there is also the issue of combatting corruption in their government and ranks, which are also conditions for entry into the European Union, so again, there’s a lot of progress on fast-tracking Ukraine’s membership, but there can’t be a timeline because there’s no timeline as to when the war will be over.

Meanwhile, member countries pledged to boost their spending to at least two percent of GDP (which, we’ve explained previously, is a really dumb metric), and yes, we’ll re-litigate Canada not spending enough yet again, even though we don’t have the capacity to spend more. We can’t spend the current budget allocation, and even if the budget allocated the requisite two percent, a lot of that would lapse and roll over into the next year because we don’t have the capacity to spend it. And this is also the part where I remind you that when Stephen Harper committed to the two percent target, he then cut defence spending and it fell below one percent of GDP, so whatever bellyaching James Bezan and Michael Chong get up to over this, they need to have a good hard look in the mirror about their own record.

https://twitter.com/StephanieCarvin/status/1678933048346263552

As well, the cluster munitions issue came up again. While the US, Ukraine and Russia are not signatories to the international convention banning them, the excuse is that they are running out of other munitions, so the Americans are going to send these instead, which seems…problematic in reasoning considering the reason why they’re largely banned. There doesn’t seem to be any particular move to sanction the US or Ukraine for using them, but or an appetite to prosecute any war crimes for their use, but it’s still not a great sign.

Meanwhile, here is some good analysis from Queen’s University’s Stéfanie von Hlatky that is worth your time to watch.

Ukraine Dispatch:

There was a second night of drone attacks on Kyiv in a row as the NATO summit is underway. As the counter-offensive continues, helmet cam footage is being selectively released, but can’t really provide proper context for what we’re seeing from it. The F-16 pilot training coalition is now firmed up, and training is due to begin in August. Meanwhile, survival skills training is taking off in Ukraine, as the war drags on.

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Roundup: Get out your faux-cowboy drag, it’s Stampede season

It was the start of Stampede in Calgary, meaning political leaders donned their faux-cowboy drag and put in an appearance in what has become an expected performance annually. Over the weekend, we saw both prime minister Justin Trudeau and Conservative leader Pierre Poilievre make appearances—Poilievre in the parade—but I have yet to see anything from Jagmeet Singh (or Elizabeth May for that matter).

Trudeau made a campaign appearance for the by-election happening in Calgary Heritage happening right now, as well as a Laurier Club donor’s event, but did have a few public appearances, particularly at the annual Ismaili community pancake breakfast (where Poilievre and Danielle Smith also appeared).

This having all been said, there was also some weird commentary around Poilievre’s appearance, some of it a little…Freudian? Aside from the comments about the amount of make-up he was wearing (which was seen rubbed off on his open shirt collar), but also comments about the tweets he was putting out during his time doing some door-knocking on the by-election campaign.

Ukraine Dispatch:

The 500th day of the Russian invasion of Ukraine passed over the weekend, and to mark the occasion, president Volodymyr Zelenskyy visited Snake Island (site of the “Russian warship, go fuck yourself” declaration at the start of the invasion) as part of a symbolic act of defiance, and as proof that they will reclaim their territory. Over the weekend, the Russians struck the town of Lyman with rockets, killing eight civilians and wounding 13 others. The counter-offensive seems to be making more progress in the south, while the Russians continue to try and maintain their gains around Bakhmut as Ukrainian forces continue to surround it. Here is a look at life in Zaporizhzhia, in the shadow of the Russian-occupied nuclear power plant.

https://twitter.com/StephanieCarvin/status/1677716706066612225

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Roundup: Agreement on terms of reference?

There were talks between Dominic LeBlanc and members of the opposition parties yesterday over the potential public inquiry into foreign interference, and the Conservatives spent the evening crowing to the media that they came to an agreement around the terms of reference for such a possible inquiry (but this was not confirmed by anyone else). It will be interesting to see what they are, because there was certainly no unified position on how far back they want this to go, and how many countries this might include, because that’s going to have a very material impact on the timeline and the kinds of things that this will consider.

There remains the subject of just who is going to head this particular endeavour, because as I have stated before, you’re looking for a current or former judge who is a) bilingual, b) has never donated to any political party every, c) was not appointed to the bench by the current government, and of course d) is willing to subject themselves to character assassination, because it’s pretty much inevitable, no matter how much this whole exercise is supposed to find unanimity between the parties, because several of them operate in bad faith and this will be amply demonstrated.

Ukraine Dispatch:

Ukrainians are ending rescue operations in Lviv after the attack there two days ago, where the death toll has reached ten. Ukrainian forces also say they are making progress in continuing to move on Bakhmut, gaining more territory. President Volodymyr Zelenskyy was in Türkiye to meet with Recep Tayyip Erdogan, who said that Ukraine deserves NATO membership and pledged to try and extend the Black Sea grain deal. Meanwhile, the US sending cluster munitions to Ukraine puts Canada in a tough spot because we have been leading the international effort to ban them (and landmines) since 2010. And here’s the story of a Ukrainian trans woman fighting both Russians and misogyny and anti-LGBTQ+ hate within her own ranks.

https://twitter.com/ukraine_world/status/1677287692676091904

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Roundup: Neo-Nazi terror charges in Ottawa

The RCMP arrested two neo-Nazis on terrorism-related charges, which is the first of its kind, and what is particularly interesting is that these relate to the production of propaganda. Why this matters is that these so-called “white power accelerationists”—far-right groups who are wedded to the notion that civilisation is crumbling and they want to accelerate that in order to replace it with something that more fits their fascistic vision—need this propaganda because they operate in these leaderless networks. It’s where terrorism and far-right violence are headed, and it’s good to know the RCMP are on the case, but also a reminder that this kind of thing is also home-grown and isn’t just crossing the border from the US as we would like to believe.

Full thread here, but some context from Jessica Davis.

https://twitter.com/JessMarinDavis/status/1676600596583915522

https://twitter.com/StephanieCarvin/status/1676601800592375808

https://twitter.com/StephanieCarvin/status/1676606665813000195

Meanwhile, here are Leah West and Jessica Davis explaining this in greater detail on Power & Politics last night, and it’s very worth your while.

Ukraine Dispatch:

Russian missiles struck an apartment block in Lviv, in the western part of the country that has been largely untouched by fighting. The counter-offensive is going slowly because they can’t make frontal assaults owing to Russian fortifications and mines, combined with their air power, which makes the Ukrainians’ tasks much harder as they slowly regain territory.

https://twitter.com/United24media/status/1676485850064990210

https://twitter.com/DefenceHQ/status/1676468871069417473

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

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: The Bank of Canada disputes the narrative

The prime minister was present today, while his deputy was not, but all other leaders were. After a couple of standing ovations for Yvonne Jones for her return to the Commons from cancer treatment, things got underway.

Pierre Poilievre led off in French, and worried about the number of RCMP investigations into foreign interference, and that the former national security advisor was aware of this, before demanding a “genuine” public inquiry. Justin Trudeau said that he tasked Dominic LeBlanc with the task of next steps. Poilievre switched to English to recite his usual illiterate nonsense around deficits and inflation, to which Trudeau quoted the Governor of the Bank of Canada who said that government spending was not standing in the way of taming inflation. Poilievre haltingly tried to return to misquoting Freeland on deficits and inflation, and Trudeau insisted that the budget was responsible and fiscally sound, before reminding him of our enviable economic position. Poilievre then misdiagnosed why housing costs doubled, and this time, Trudeau took up a script to accuse Poilievre of standing in the way of action on housing and looking only to pick fights with mayors rather than doing something about housing. Poilievre returned to French to repeat the same accusation, and Trudeau read a list of measures they are taking on housing.

Yves-François Blanchet led for the Bloc, and he demanded public inquiry once again. Trudeau thanked him for submitting prospective candidates to lead said inquiry, and insisted this was too important for partisanship. Blanchet demanded that there be an inquiry and that its leader must be independent of government, and before the end of the sitting. Trudeau agree that they need to move forward quickly, but lamented how toxic this has become.

Jagmeet Singh rose for the NDP, and in French, he recounted working three jobs in university to make ends meet, and lamented the state of student housing. Trudeau insisted that they have been investing in housing for many years, including programmes to build more, as well as supports for students. Singh witched to English to recount the CBC of the state of student housing in Windsor, and demanded “concrete steps” for the cost of rent for students—which is provincial jurisdictions. Trudeau patted himself on the back for investments made so far.

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Roundup: LeBlanc wants the opposition to put up

In the wake of David Johnston’s resignation (and because it happened on a Friday evening when the prime minister was out of the country, we are counting this as being done with spite), Dominic LeBlanc held a press conference on Saturday to try and turn the tables. Yes, they will consider a public inquiry, but the opposition parties need to get together to determine a commissioner, a timeline, and terms of reference, and godspeed to them in doing so. The theory is that the opposition wanted to be in this so badly, and they blew up the last process, so now they need to show up and do the work. I’m…dubious. I mean, I get that he wants to make the opposition leaders eat their words, and it may yet happen, but I’m not a fan of the government just taking their hands entirely off the wheel here because the Inquiries Act determines that this is a government process, and turning over these decisions is laundering the accountability for them, which is always a very bad thing.

Pierre Poilievre said on Sunday that he would be willing to work with the Bloc and the NDP on doing said work, in order to ensure that a commissioner is “independent and unbiased,” but good luck finding someone who is acceptable to everyone, and who is willing to take on the job, considering how much the opposition parties have fouled the well with the spate of character assassination and willingness to outright lie in bad faith about everything in order to score points. (Note that the government is not blameless in that they never should have picked Johnston in the first place, and should have taken more responsibility around the decision of whether or not to hold an inquiry at all instead of outsourcing the credibility responsibility). I expect these negotiations to drag on, and for the government to find the eventual outcome to be so poisonous as to reject them outright, because we are not dealing with serious people who act in good faith any longer.

Meanwhile, Andrew Scheer continues to be the klassy parliamentarian he has always proved himself to be. I would say it’s unbelievable, but sadly, this is who he is, and it’s all too believable.

Ukraine Dispatch:

President Volodymyr Zelenskyy seems to have indicated that the counter-offensive has begun, but offers no details at this particular time, while the Russians counter with disinformation. Ukrainian forces did report recapturing a south-eastern village on Sunday, with reports that Russian forces opened fire on a boat carrying civilians evacuating from flooded areas. Ukrainian forces also advanced some 1400 metres near Bakhmut. Also over the weekend, Russian strikes killed three in Odessa, and killed and wounded others attacking Kharkiv.

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