Roundup: Beating the GDP expectations

The Bank of Canada increased the overnight rate another 75 basis points, to 3.25 percent, which is now about the neutral range and into territory where it is meant to dampen growth—and they say it will likely continue to go up in future decisions. This being said, we should also recognise how strong the Canadian economy is running right now, which is having an effect on things like deficit and debt, which conversely makes the Conservatives’ insistence that government spending is driving this inflation (it’s not), and what they think austerity would accomplish here (nothing good). Anyway, here’s economist Kevin Milligan to break it down:

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Ukraine Dispatch, Day 197:

Shelling near the Zaporizhzhia nuclear power plant has damaged the last remaining backup power line to the plant, which means that the coolant systems are now fully on back-up generators, and the ongoing shelling makes doing repairs an unlikely possibility. Elsewhere, heavy fighting has been reported in the north near Kharkiv; in the east, in the Donbas region; and in the south, near Kherson, where Ukrainian soldiers are pushing Russian forces in their counter-offensive.

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Roundup: Harper gives his predictable endorsement

It’s day one-hundred-and-fifty-three of Russia’s illegal invasion of Ukraine, and Russia’s foreign minister openly admits that they want to topple president Volodymyr Zelenskyy because they consider his government “unacceptable” or some such nonsense. Russian forces continue to shell Ukrainan cities in the east and south of the country, as well as in the Kharkiv region. This while a lot of people who initially fled from the Donetsk region have returned home after either feeling alienated further west in Ukraine as Russian speakers, or because they ran out of money, only to be killed by Russian shelling once they’re back. Meanwhile, the push to prosecute Russian war crimes continues in Kyiv even while the fighting rages on, while Slovakia is considering giving Ukraine their fleet of Soviet-era MiG warplanes.

Closer to home, Stephen Harper came out with his endorsement of Pierre Poilievre yesterday, and no, this is not a sign that he’s worried about Charest. Quite the opposite—it’s a sign of his absolute enmity for Charest. Harper has bad blood with Charest, dating back to when Charest was Quebec premier. He had sold Harper on the fantastical notion that Quebec was suffering from some kind of “fiscal imbalance” with Ottawa, which was all bullshit, but it made a good talking point for Charest, and lo, Harper decided to be different from Jean Chrétien and buy peace with Quebec, so he gave Charest the money he was demanding to fix said fictional “fiscal imbalance.” And lo, Charest immediately turned around and turned that payment into a tax cut in the province, and Harper was furious. I mean, it shouldn’t be a surprise, and it’s exhibit eleventy-six for instances of provinces taking federal dollars and not doing what they’re supposed to with it (which is why Justin Trudeau is so insistent upon strings being attached to future healthcare transfers), but Harper has nursed a grudge ever since. His endorsement of Poilievre is just more of him nursing said grudge—he’s not actually worried about Charest winning.

And while we’re here, no, Harper is not still pulling all of the strings in the party. He’s a micro-manager. If he were, they wouldn’t be in as much disarray as they are now. Also, the IDU is not some kind of fascist plot—it’s a gods damned social club that Harper is the convener of. Yes, it’s comprised of small-c conservative parties (including Angela Merkel and her party), and yes, Harper has made some very, very questionable statements from it, but it’s a social club. It has no power, and it’s not pulling any strings. He’s not a Bond villain. He was a mediocre prime minister who now spends his time swanning around the globe pretending he used to be important. That’s it. Stop giving him any more credit than that.

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Roundup: Collapsing hospital care is a crisis for premiers

It’s on or about day one-hundred-and-forty-six of Russia’s invasion of Ukraine, and Russian forces have shelled the city of Toretsk in the Donestk region, smashing more buildings as they continue to try and take control of the area. Ukraine is also calling out Russia’s conduct when it comes to prisoners of war, citing illegal treatment.

Meanwhile, there are no assurances around weapons that Canada is sending to Ukraine that they’re being tracked so that they can ensure they won’t wind up on the black market. NATO partners are having discussion about this, but Canada is merely monitoring rather than participating. Ukrainian officials assure Canada that they are closely monitoring any movement of weapons, as are our allies, and are insisting that information to the contrary is likely Russian disinformation.

Closer to home, emergency rooms are closing in some parts of the country as hospitals are facing a severe staff shortage, particularly among nurses. And gosh, it’s quite a coincidence that Ontario gave nurses an effective pay cut that they haven’t reversed, or that Alberta tried to cut nurses’ pay because they said they were making too much relative to nurses in other provinces. No, seriously, that’s their case. This is while the premiers have mishandled COVID, refuse to do the simplest things like mask mandates at this point, and then wondering why the hospitals, which never recovered from the previous waves of the pandemic, are once again collapsing. A very cynical person might think premiers have created this situation, either to pressure the federal government to hand them more money without strings, or to set up the conditions to force more private delivery of care (which won’t actually do anything about staffing or resources other than distribute them toward those who can pay), but it looks clear that they aren’t prepared to give the necessary damn that the situation requires, and that’s a problem.

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Roundup: Summer showboat season has begun

It’s day one-hundred-and-forty-three of Russia’s invasion of Ukraine, and a missile strike in the more central city of Vinnystia killed a four-year-old disabled girl, which was used by president Volodymyr Zelenskyy and others to demand that Russia be declared a state sponsor of terrorism as a result. There have been other strikes in Dnipro, near the centre of the country, and in Mykolaiv, which is closer to the front lines in the south. CBC has a video of the week in the war here.

Ukraine, meanwhile, is preparing a counteroffensive in the south, particularly to reclaim Kherson, which is a strategic objective that could give them control of the region, including of giving them the ability to strike Russian positions in Crimea. The fact that the Ukrainians have now accepted delivery of the American HIMARS rocket system is giving them a new advantage over the Russians, and could turn the campaign, which is in a “grinding” phase of attrition currently. There have been no Russian advances in the east part of the country for over a week now, so the supposition that Russia needs time to regroup seems to be proving true.

Closer to home, summer showboat—err, committee season has begun, with two emergency meetings yesterday, being the foreign affairs committee, and the industry committee. In the former, they have committee agreed to meet over the summer to discuss the return of those gas turbines to Germany, and will call ministers to testify. The latter used the day to plan meetings on the Rogers outage, where they plan to call ministers, Rogers executives, and the CRTC, and you can bet that MPs from all parties are planning who their best performers on camera will be in order to give some outrage and sanctimony clips that they can then use for shitposts and fundraisers. Because that’s what our Parliament has devolved to.

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Roundup: The premiers think we’re all stupid

It is now day one-hundred-and-forty of Russia’s invasion of Ukraine, and Ukrainian forces are claiming to have hit a Russian ammunition depot near the captured city of Nova Kakhovka in the south. At the same time, Russians continue their attacks on the cities of Sloviansk and Toetsk in the Donetsk province, killing at least nine civilians. Here is a look at efforts to train Ukrainian soldiers and civilians in combat first aid. Over in Russia, the government is poised to enact legislation that can force companies to supply the military, including making employees work overtime, as the country tries to replenish its supplies after depleting them in the invasion thus far.

Closer to home, the Council of the Federation meeting ended, and lo, the premiers were unanimous in demanding that the federal government come to the table with them to, well, accept their demands to give them more money with no strings attached. Only they had both a wounded tone, which quickly switched to sanctimony when they were challenged, particularly about the pandemic spending that couldn’t be tracked. Some premiers, Tim Houston most especially, seem to think that we all have amnesia about 2004 to 2014, when the bulk of those six percent health transfer escalators were spent on other things. Saying that they all want improved outcomes is one thing, but the federal government isn’t stupid—they are well aware that provinces would be just fine with status quo that the federal government paid more for, and that they spent less on. That’s why they want conditions—so that provinces don’t pull this kind of thing once again. Premiers were also pretending that they had no idea what kinds of outcomes the federal government is looking to achieve, because most of the is in last year’s election platform. It’s not hard to find. And frankly, federal health minister Jean-Yves Duclos is right when he says that these outcomes should be agreed to at the ministerial level before the first ministers sit down to talk dollars, because you want to have a plan in place before you attach dollars to it, rather than the opposite, which John Horgan seems to think is how government should function. (You can find my thread as I was live-tweeting the closing press conference here).

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On a related note, The Canadian Press devoted several hundred words of wire copy yesterday to the fact that the promised $2 billion to clear up surgical backlogs hasn’t flowed yet…because the budget only received royal assent a couple of weeks ago. And that premiers are complaining they haven’t received the money yet. I mean, premiers know how a budget cycle works. This is not a news story—it’s not even a real process story. It’s complaining for the sake of complaining. The only piece of interest in the story was that the government tabled a bill about the spending commitment, then abandoned it in order to wrap the spending in their budget bill a couple of weeks later. This isn’t the first time they’ve done so, and it’s a really annoying habit that they have, but again, not actually a news story.

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Roundup: An “adult conversation” consisting solely of a demand for cash

It’s now day one-hundred-and-thirty-nine of Russia’s invasion of Ukraine, and the Russians have resumed pounding the city of Kharkiv, destroying civilian buildings. The Russian government is trying to fast-track giving Russian citizenship to all Ukrainians, an attempt to exert more influence over the country. Meanwhile, president Volodymyr Zelenskyy is calling out Canada’s decision to return those gas turbines to Russia by way of Germany, saying that Russia will interpret this as a sign of weakness that Russia will try to exploit, and he’s not wrong, but one wonders if there may not be a greater danger in alienating Germany as they are already facing rationing. For what it’s worth, the US State Department is backing Canada’s decision, but this situation was very much a Kobayashi Maru.

Closer to home, the Council of the Federation got underway yesterday, and of course the opening salvos were about healthcare funding, without strings attached. BC Premier John Horgan, who is currently the chair of the Council, was dismissive about the federal government’s concerns, calling them “accounting differences,” when Dominic LeBlanc called them out for their misleading figures about the current transfers, and the fact that several provinces are crying poor while simultaneously bragging about surpluses that they paid for with federal pandemic dollars, of the fact that Quebec is sending vote-buying cheques out to people ahead of their election. And LeBlanc is absolutely right—there need to be strings to ensure that provinces won’t use that money to pad their bottom line, reduce their own spending, or lower taxes, because they’ve all done it in the past. The best part is that Horgan keeps saying he wants an “adult conversation,” but the only thing the premiers are bringing to the table is a demand for more money, and that’s it. That’s not an adult conversation. (For more, the National Post took a dive into the issue, and came out with a fairly decent piece that includes the actual history of transfers, tax points, and provinces who spent those health care transfers on other things).

There will be a few other things discussed, and there’s a primer here about them. Jason Kenney wants to spend the premiers meeting pushing back at the federal emissions reduction targets, because of course he does.

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Roundup: Stampede politicking in full swing

We’re now on or about day one-hundred-and-thirty-eight of Russia’s invasion of Ukraine, and there are reports that Russian reservists are starting to assemble near the border for a future offensive. There have been rocket attacks against the eastern city of Chasiv Yar, in the Donetsk region. Civilian evacuatiosn are underway in parts of the Kherson and Zaporizhzhia regions, as the shelling continues in the eastern part of the country. Meanwhile, a cohort of Ukrainians has arrived in the UK for combat training in an attempt to more rapidly turn civilians into soldiers.

Canada has been in the middle of a dispute over a gas turbine undergoing repairs here, for the Nord Stream One pipeline from Russia to Germany. Germany has been trying to urge our government to return the turbine, while Ukraine wanted us to withhold it as a part of Russian sanctions. In the end, the Canadian government opted to return the turbine, but put more sanctions on Russia, though the decision came with much criticism from Ukrainian officials.

Closer to home, it’s Stampede time in Calgary, which has become a major political event over the years. Justin Trudeau attended the Stampede yesterday, and was mobbed by supporters, while a single person yelling “traitor” was escorted out. For Conservatives, this has been one of the hallmarks events for their leadership contest, and of course, Pierre Poilievre has been the darling of the event, touted as “more Albertan than Stephen Harper and Jason Kenney,” seeing as he was actually raised there unlike the other two. Others were not so lucky—Jean Charest was booed at the event, which is not a surprising in the “Conservative heartland” given that he’s from Quebec. Just more of Alberta’s childish politics of resentment that Poilievre is playing into.

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Roundup: Theorizing about Kenney’s slow-motion demise

It is now on or about day eighty-six of Russia’s invasion of Ukraine, and Russia claims that some 1700 Ukrainian troops have surrendered from the steel plant in Mariupol, which Kyiv won’t confirm. Kyiv is also hoping to negotiate prisoner exchanges, but Russia sounds like they want to prosecute this troops as part of their “de-nazification,” which is complicated by the fact that this particular battalion does contain some of the far-right troops fighters that have blackened the reputation of Ukrainian forces. It also remains to be seen if Russia will respect their obligations around prisoners of war, and given how much they have broken international law so far in this invasion, that is a very fraught question indeed. Speaking of trials, the Russian soldier who pleaded guilty to killing a civilian is asking the widow for forgiveness. (She said she wants a life sentence, unless he’s part of a prisoner swap for the Ukrainians captured from Mariupol).

Closer to home, it has been decided that Jason Kenney will stay on as premier and party leader on a caretaker-ish basis, until the party choses a new leader (which, apparently, he has not ruled out running in again, either out of arrogance or self-delusion). Either way, he’s not going away anytime soon, and despite his insistence that this is about “uniting” the party, I am left with the recollection of what a bitter Thomas Mulcair did to the NDP once he was pushed out, but stayed on as a caretaker leader while their leadership process took an interminable length of time.

This has nevertheless had some conservatives, federally and provincially, doing a bit of soul-searching as to what it means that Kenney got things wrong. While my own thoughts about this will be in my weekend column, Ontario conservatives are insisting that it’s because Kenney embraced his right flank while Doug Ford kicked his out and is still surviving. (Ford also didn’t need his to the same extent Kenney does). Some federal Conservatives are warning against panicking, while others are warning against polarised politics, and still others see a movement afoot in the party that caters to siege mentality, fuelled by American right-wing media, that causes them to see everything in oppositional terms.

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QP: Go meet with the RCMP again

The prime minister was present today, as were all other leaders, so that was a nice change. Candice Bergen led off with her script, and she declared that “fraud on the government” occurred with relation to the prime minister’s trip to the Aga Khan’s private island—the details of which Bergen omitted and framed to sound more lurid—to which Justin Trudeau noted that this was dealt with five years ago, and that the Conservatives were focused on him while he was focused on Canadians. Bergen demanded a yes or no answer as to whether he gave himself permission to break the law, and Trudeau gave a resounding no, and that the RCMP decided there was nothing to pursue, and that it was thoroughly investigated by third parties, while the government doesn’t interfere in the RCMP’s operations. Bergen suggested that Trudeau go back to the RCMP to let them reconsider, and he more emphatically noted that government does not direct the RCMP. Luc Berthold took over in French, demanded the same response on the decision not to pursue the fraud charge, and Trudeau again repeated that this matter was put to bed and that the RCMP made their own decision. Berthold tried to suss this out further, and he too demanded that Trudeau meet with the RCMP again, and Trudeau listed the things the government was doing while the Conservatives were playing petty politics.

Yves-François Blanchet led for the Bloc, and accused Trudeau of disrespecting Canadians and Ukrainians by not chartering flights for those refugees, to which Trudeau read the script that they are working safely and effectively, and thanks to the emergency travel fund, it was the safest and most effective way to act. Blanchet took issue with the rapidity at which this is happening, and Trudeau insisted that they were taking all measures to expedite this travel.

Jagmeet Singh rose for the NDP, and after some word salad about profits and corporations, he demanded the government block the proposed merger between Rogers and Shaw. Trudeau noted that they set a goal to lower prices, it actually happened, which is why they were focused on competition and access. Singh switched to French to repeat the demand, and Trudeau recited the same response that did not address the demand.

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QP: Unhappy with the new emissions plan

With Justin Trudeau off in Vancouver to give a speech on the government’s new emissions plan for 2030, we did have his deputy present, which was something. Most of the other leaders weren’t present either, and some have become rare sights of late. Luc Berthold led off in French and complained that the emissions reductions plan would cripple the oil sector and that this meant we couldn’t help our friends in Europe get off Russian oil and gas. Terry Duguid stood up to recite some bromides about the plan as announced. Berthold then launched into a rant about how the government doesn’t answer simple questions, and demanded to know if inflation was costing Canadians more. Chrystia Freeland responded that they were sensitive to costs which is why they indexed benefits and introduced $10/day child care. Berthold then railed about the increasing price on carbon, demanding it be suspended, to which Freeland recited the good news about economic growth. Kyle Seeback took over in English, and he misleadingly cited the PBO report on carbon pricing in order to complain that the emissions reduction plan wasn’t going to work. Duguid got back up to recite that the PBO indeed stated that most families would be better off with rebates, and he cited the rebate levels in several provinces. Seeback then railed that the government spent $60 billion on fighting emissions and they still went up—again, somewhat misleadingly because the curve of growth has flattened—and Duguid responded that if the Conservatives were still in charge the emissions would be even higher.

Alain Therrien led for the Bloc, and he demanded that the government start chartering planes to get more Ukrainian refugees over here. Sean Fraser insisted people were arriving all the time and they were rolling out programmes to support them. Therrien said that Air Transat was just waiting for the government to charter flights and repeated his demand, and Fraser said that they are discussing with airlines.

Jagmeet Singh rose for the NDP in person, and he called the emissions reduction plan “disappointing,” saying it gives a free pass to the fossil fuel sector. Duguid got back up to recite a number of actions they have taken around the energy sector. Singh repeated the question in French, and Duguid recited some more climate action plans.

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