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Justin Trudeau hints at boosting Canada’s military spending

Justin Trudeau hints at boosting Canada’s military spending

Canada says it will look at increasing its defence spending and tacked on 10 more Russian names to an ever growing sanctions list.

By Tonda MacCharles
Ottawa Bureau
Mon., March 7, 2022

Riga, LATVIA—On the 13th day of the brutal Russian bid to claim Ukraine as its own, Prime Minister Justin Trudeau is showing up at the Latvian battle group led by Canadian soldiers, waving the Maple Leaf and a vague hint at more money for the military.

Canada has been waving the NATO flag for nearly seven years in Latvia as a bulwark against Russia’s further incursions in Eastern Europe.

Canada stepped up to lead one of NATO’s four battle groups in 2015 — part of the defensive alliance’s display of strength and solidarity with weaker member states after Russia invaded Ukraine and seized the Crimean peninsula in 2014. Trudeau arrived in the Latvian capital late Monday after meetings in the U.K. with British Prime Minister Boris Johnson and Netherlands Prime Minister Mark Rutte.

Earlier Monday, faced with a seemingly unstoppable war in Ukraine, Trudeau said he will look at increasing Canada’s defence spending. Given world events, he said there are “certainly reflections to have.”

And Canada tacked on 10 more Russian names to an ever-growing sanctions list.

The latest round of sanctions includes names Trudeau said were identified by jailed Russian opposition leader and Putin nemesis Alexei Navalny.

However, on a day when Trudeau cited the new sanctions, and Johnson touted new measures meant to expose Russian property owners in his country, Rutte admitted sanctions are not working.

Yet they all called for more concerted international efforts over the long haul, including more economic measures and more humanitarian aid, with Johnson and Rutte divided over how quickly countries need to get off Russian oil and gas.

The 10 latest names on Canada’s target list do not include Roman Abramovich — a Russian billionaire Navalny has been flagging to Canada since at least 2017. Canada appears to have sanctioned about 20 of the 35 names on Navalny’s list.

The Conservative opposition says the Liberal government is not yet exerting maximum pressure on Putin, and should do more to bolster Canadian Forces, including by finally approving the purchase of fighter jets.

Foreign affairs critic Michael Chong said in an interview that Ottawa must still sanction “additional oligarchs close to President Putin who have significant assets in Canada.”

Abramovich owns more than a quarter of the public shares in steelmaking giant Evraz, which has operations in Alberta and Saskatchewan and has supplied most of the steel for the government-owned Trans Mountain pipeline project.

Evraz’s board of directors also includes two more Russians the U.S. government identified as “oligarchs” in 2019 — Aleksandr Abramov and Aleksandr Frolov — and its Canadian operations have received significant support from the federal government.

That includes at least $27 million in emergency wage subsidies during the pandemic, as well as $7 million through a fund meant to help heavy-polluters reduce emissions that cause climate change, according to the company’s most recent annual report.

In addition to upping defence spending, the Conservatives want NORAD’s early warning system upgraded, naval shipbuilding ramped up and Arctic security bolstered.

In London, Johnson sat down with Trudeau and Rutte at the Northolt airbase. Their morning meetings had a rushed feel, with Johnson starting to usher press out before Trudeau spoke. His office said later that the British PM couldn’t squeeze the full meeting in at 10 Downing Street because Johnson’s “diary” was so busy that day. The three leaders held an afternoon news conference at 10 Downing.

But before that Trudeau met with the Queen, saying she was “insightful” and they had a “useful, for me anyway, conversation about global affairs.”

Trudeau meets with NATO Secretary General Jens Stoltenberg Tuesday in Latvia.

The prime minister will also meet with three Baltic leaders, the prime ministers of Latvia, Lithuania and Estonia, in the Latvian capital of Riga.

The Liberals announced they would increase the 500 Canadian Forces in Latvia by another 460 troops. The Canadians are leading a multinational battle group, one of four that are part of NATO’s deployments in the region.

Another 3,400 Canadians could be deployed to the region in the months to come, on standby for NATO orders.

But Canada’s shipments of lethal aid to Ukraine were slow to come in the view of the Conservatives, and the Ukrainian Canadian community.

And suddenly Western allies are eyeing each other’s defence commitments.

At the Downing Street news conference, Rutte noted the Netherlands will increase its defence budget to close to two per cent of GDP. Germany has led the G7, and doubled its defence budget in the face of Putin’s invasion and threats. Johnson said the U.K. defence spending is about 2.4 per cent and declined to comment on Canada’s defence spending which is 1.4 per cent of GDP.

But Johnson didn’t hold back.

“What we can’t do, post the invasion of Ukraine is assume that we go back to a kind of status quo ante, a kind of new normalization in the way that we did after the … seizure of Crimea and the Donbas area,” Johnson said. “We’ve got to recognize that things have changed and that we need a new focus on security and I think that that is kind of increasingly understood by everybody.”

Trudeau stood by his British and Dutch counterparts and pledged Canada would do more.

He defended his government’s record, saying Ottawa is gradually increasing spending over the next decade by 70 per cent. Then Trudeau admitted more might be necessary.

“We also recognize that context is changing rapidly around the world and we need to make sure that women and men have certainty and our forces have all the equipment necessary to be able to stand strongly as we always have. As members of NATO. We will continue to look at what more we can do.”

The three leaders — Johnson, a conservative and Trudeau and Rutte, progressive liberals — in a joint statement said they “will continue to impose severe costs on Russia.”

Arriving for the news conference from Windsor Castle, Trudeau had to detour to enter Downing Street as loud so-called Freedom Convoy protesters bellowed from outside the gate. They carried signs marked “Tuck Frudeau” and “Free Tamara” (Lich).

Protester Jeff Wyatt who said he has no Canadian ties told the Star he came to stand up for Lich and others who were leading a “peaceful protest” worldwide against government “lies” about COVID-19 and what he called Trudeau’s “tyranny.”

Elsewhere in London, outside the Russian embassy, other protesters and passersby reflected on what they said was real tyranny — the Russian attack on Ukraine. “I think we should be as tough as possible to get this stopped, as tough as possible,” said protester Clive Martinez.
 
Besides, the chattering class say it’s not his to worry about, the Bank of Canada is a separate entity and makes the monetary policy for Canada.

I have a real hard time believing that the decision to print that much money came from bankers. Bankers would know what happens to an economy when money is printed en masses. Trust fund babies on the other hand, not so mych
 
Nobody printed money to pay for Trudeau’s spending during Covid. His government borrowed the money from financial markets, thus increasing the national debt greatly.

BTW, the banks, even the Bank of Canada, do not print money. The Canadian Mint does. Then, it sells the money to the various banks who buy according to their needs for replacement of worn out cash or for loaning on to borrowers. The amount banks will invest in the purchase of money for the latter is premised on the directing rate of the Bank of Canada (the prime rate).
 
So, hemming and hawing on equipment procurement until events overtake them until it becomes urgent. If the government and its procurement system gets out of its own way, something might actually get, you know, procured.

Simply put we can’t get a spot in the production que fast enough so we will likely be forced to go to a bespoke limited user base system in order to be able to get anything timely.
Or we whine our way into the queue. We've done it before.
 
Never ascribe to conspiracy what can be explained by spontaneous order emerging from the individually applied biases of people abusing position and/or authority.
Yup and Hanlon's law but I gets harder everyday to
Nobody printed money to pay for Trudeau’s spending during Covid. His government borrowed the money from financial markets, thus increasing the national debt greatly.

BTW, the banks, even the Bank of Canada, do not print money. The Canadian Mint does. Then, it sells the money to the various banks who buy according to their needs for replacement of worn out cash or for loaning on to borrowers. The amount banks will invest in the purchase of money for the latter is premised on the directing rate of the Bank of Canada (the prime rate).
Yes that but the BofC does "create" money.

The Bank of Canada contracts the Canadian Bank Note company to print notes


Royal Canadian Mint just makes coins.

Physical money is a very small part and shinking part of the Bank system.

And yes BofC did "print" money out of thin air. One way was Quanitative Easing (QE)

The growth of tbe BofC balance sheet has been huge.

Now the pain begins as central banks try to stop inflation and pull in the balance sheets at the very same time government spending is going though the roof.
 
Nobody printed money to pay for Trudeau’s spending during Covid. His government borrowed the money from financial markets, thus increasing the national debt greatly.

BTW, the banks, even the Bank of Canada, do not print money. The Canadian Mint does. Then, it sells the money to the various banks who buy according to their needs for replacement of worn out cash or for loaning on to borrowers. The amount banks will invest in the purchase of money for the latter is premised on the directing rate of the Bank of Canada (the prime rate).

To quote the Bank of Canada
"QE is not the same as printing cash. Under QE, we buy bonds in the open market from financial institutions. And the funds that we use to pay for these purchases end up being deposited in accounts that financial institutions have at the Bank in the form of settlement balances.

Settlement balances (or reserves) are a unique type of money that the central bank creates. They are a normal part of central banking operations. Financial institutions use them to settle payments among themselves. We pay interest on these balances, like deposits at a regular bank."

Taken from Bank of Canada website here.

So the Bank of Canada creates money out of thin air and then pays interest on that money. The only difference in that and printing money is that no paper bills are actually made. The outcome is exactly the same, money floods the market devaluing the money already in circulation. Your Money! Our Money! Hence rapid inflation.

The BoC is desperate to convince Canadians that it is not responsible for the inflation because that will cause mass distrust in Canadian dollars making inflation exponentially worse. Reality is Trudeau made money out of thin air and 1 in 5 Canadian dollars did not exist before Covid.
 
To quote the Bank of Canada
"QE is not the same as printing cash. Under QE, we buy bonds in the open market from financial institutions. And the funds that we use to pay for these purchases end up being deposited in accounts that financial institutions have at the Bank in the form of settlement balances.

Settlement balances (or reserves) are a unique type of money that the central bank creates. They are a normal part of central banking operations. Financial institutions use them to settle payments among themselves. We pay interest on these balances, like deposits at a regular bank."

Taken from Bank of Canada website here.

So the Bank of Canada creates money out of thin air and then pays interest on that money. The only difference in that and printing money is that no paper bills are actually made. The outcome is exactly the same, money floods the market devaluing the money already in circulation. Your Money! Our Money! Hence rapid inflation.

The BoC is desperate to convince Canadians that it is not responsible for the inflation because that will cause mass distrust in Canadian dollars making inflation exponentially worse. Reality is Trudeau made money out of thin air and 1 in 5 Canadian dollars did not exist before Covid.
Head hurts!
 

Canada M1+ (Gross) Money Supply Change

The 12-month change in Canada's M1+ (gross) money supply
9756 Dewdney Trunk - Nault Group

Canada M1+ (Gross) Money Supply

The dollar value of Canada's M1+ (gross) money supply.
oct 22 pic
 

Canada M1+ (Gross) Money Supply Change

The 12-month change in Canada's M1+ (gross) money supply
9756 Dewdney Trunk - Nault Group

Canada M1+ (Gross) Money Supply

The dollar value of Canada's M1+ (gross) money supply.
oct 22 pic

Like Post-WW1 Germany?

Emily Hampshire Singing GIF by CBC
 
Yup, both M1 AND M2 rose substantially, as a result of the pressure the Government de facto put on the BoC as a result of significant deficits, and the BoC’s QE. I may be wrong, but I’m addition to the BoC buying other bonds, I thought some additional bond series were released beyond historical rates of issue.
 
Interesting because the reports I've seen (eg Politico) make no mention of meetings with Boeing, Lockmart or Raytheon. Hope springs eternal.
I stand corrected! Checked todays Politicos Ottawa newsletter and the mention them meeting people from Boeing, Lockmart, Raytheon AND General Dynamics.
 
I stand corrected! Checked todays Politicos Ottawa newsletter and the mention them meeting people from Boeing, Lockmart, Raytheon AND General Dynamics.
"A senior official from Anand’s office granted anonymity in order to speak candidly about the trip told us not expect any new defense announcements today. Next week, though, may be different with the one-year anniversary of the war in Ukraine around the corner."
 
Next week, though, may be different with the one-year anniversary of the war in Ukraine around the corner.
F*cking knew it.

For a month or so I've dreaded the anniversary of the war because I knew soulless politicians, analysts and youtubers would capitalize on it for their own benefit, and here we are...

I knew it was coming and yet it still shocks me. If there is an announcement to be made, why wait?! Just do your job! To hell with your poetic timing.
 
F*cking knew it.

For a month or so I've dreaded the anniversary of the war because I knew soulless politicians, analysts and youtubers would capitalize on it for their own benefit, and here we are...

I knew it was coming and yet it still shocks me. If there is an announcement to be made, why wait?! Just do your job! To hell with your poetic timing.
You must be new here, or drank to much
 
Where there is life there is hope.

Tom Mulcair wondering why Trudeau didn't authorize the F35s 8 years ago, fought them 15 years ago and is going to be 30 years behind Canada's allies.

Mr. Mulcair wants to know what Mr. Trudeau is doing to preserve Canada's proud WW1 and WW2 heritage and the legacy of his family forebears.

Apparently we should have a whole bunch more military stuff in the warehouse.


Oh. By the way. Got to see about improving relations with China.
 
Where there is life there is hope.

Tom Mulcair wondering why Trudeau didn't authorize the F35s 8 years ago, fought them 15 years ago and is going to be 30 years behind Canada's allies.

Mr. Mulcair wants to know what Mr. Trudeau is doing to preserve Canada's proud WW1 and WW2 heritage and the legacy of his family forebears.

Apparently we should have a whole bunch more military stuff in the warehouse.


Oh. By the way. Got to see about improving relations with China.
Preserving our military legacy, asking why F35 wasn't bought in 2015? A NDP member? Did I wake up in the twilight zone?
 
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