2020-13

Friday April 16, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 16, 2020

The Bank of Canada rolls the dice

Coronavirus cartoons

If desperate pandemic times demand desperate government actions, the Bank of Canada just delivered big-time. 

It’s printing money out of thin air to fund an estimated $200-billion-plus spending-spree intended to keep the nation’s economy alive. 

The best name for this historic and, frankly, alarming intervention is quantitative easing, and every Canadian should pay close attention to what amounts to a roll of the dice by their central bank.

That’s because while quantitative easing is justified under the circumstances, it’s unconventional, controversial and highly risky. Our 85-year-old central bank has never tried it before, and no wonder. It may cure what’s ailing the Canadian economy today only to infect it with new illnesses a year from now.

It all began at the end of March when the Bank of Canada announced it would spend at least $5 billion a week in the coming months to buy Government of Canada bonds on the open market. In other words, it would buy up much of the federal government’s debt.

That action was meant to ease the pressure on the federal government’s growing debt burden while injecting badly-needed cash into an economy ravaged by the COVID-19 pandemic.

And that part of quantitative easing makes sense because it works. The mind-bending part of it comes with the realization that all these billions of dollars are being created digitally. 

It’s as if Bank of Canada Governor Stephen Poloz had donned a magician’s cape, put his hand into a top hat and — poof — the Canadian economy had what it needed to buy its way out of this crisis.

What Poloz did was correct, according to experts such as former Bank of Canada governor David Dodge. At the time of Poloz’s intervention, the rapid spread of COVID-19 across Canada had already triggered government-imposed business shutdowns, huge job losses and what could become the nation’s sharpest economic downturn ever. 

The federal government was mobilizing its fiscal forces to prop up revenue-starved businesses and extend a financial lifeline to the newly unemployed, whose numbers could reach 2.8 million this month.

Other governments around the world were doing the same. And other central banks, most notably in the United States, the United Kingdom and the European Union, were also playing their part by making new money to ease the debt loads of their governments.

The Bank of Canada doubled down on that strategy this week when it expanded its bond-buying program to include purchases on the open market of the debts of provincial governments and corporations. They need help, too, but it will mean pulling another $50 billion in new, digitally-created money out of Poloz’s magic hat. 

The sheer magnitude of all this newly manufactured cash is worrisome. If countries can get everything they want by simply printing more money, why doesn’t everyone do it all the time? 

The answer is the world’s financial markets wouldn’t let them get away with it. The U.S. Fed and the European Central Bank are considered to be big and powerful enough to do what they deem necessary. 

Canada, with its much smaller economy, probably won’t be cut the same slack. The value of its currency may slide if quantitative easing lasts too long. Inflation could rise to unmanageable levels even as millions of Canadians remain unemployed and the nation’s economic engines are struggling to fire on all cylinders. 

This spring, the Bank of Canada had no choice but to experiment with quantitative easing. In short order, it must provide Canadians with a plan and timetable for getting out of it.

Canada, with its much smaller economy, probably won’t be cut the same slack. The value of its currency may slide if quantitative easing lasts too long. Inflation could rise to unmanageable levels even as millions of Canadians remain unemployed and the nation’s economic engines are struggling to fire on all cylinders. 

This spring, the Bank of Canada had no choice but to experiment with quantitative easing. In short order, it must provide Canadians with a plan and timetable for getting out of it. (Hamilton Spectator Editorial)

Thursday April 16, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday April 16, 2020

LRT versus BRT showdown coming to Hamilton

Thanks to the provincially appointed transportation task force, it appears we’re heading into a final showdown over whether LRT or BRT is the best rapid transit system for Hamilton.

February 1, 2020

The task force, formed after the Doug Ford government killed the planned LRT project, says the province and its transportation agency Metrolinx should now consider both systems equally and analyze which best deserves the $1 billion in capital funding that was originally earmarked for light rail.

If neither are feasible, the task force suggests plowing the money into two-way, all-day GO rail service to Hamilton.

If nothing else, there’s a kind of poetic if rough justice in all this. 

There’s always been a strong sense among light rail opponents that the bus rapid transit option was previously given short shrift by both Metrolinx and city staff.

Certainly the city’s 2008 rapid transit feasibility study discussed both systems. But Metrolinx’s 2010 case-benefit analysis basically sidelined the BRT option by concluding LRT delivered the highest economic development bang for the buck.

The problem was that a lot of Hamiltonians felt — and still feel — that the pros and cons of both systems were never fairly compared and publicly debated.

That was supposed to happen after the 2014 municipal election. It didn’t. You may recall that back then Fred Eisenberger ran for mayor on a platform that included a promise to create a citizens’ panel to study all rapid transit options and make a recommendation to council.

Coronavirus cartoons

Instead, brief months after he was elected, Eisenberger hotfooted it to Queen’s Park for private meetings with then-premier Kathleen Wynne and transport minister Steven Del Duca, at which he successfully secured provincial dollars for LRT.

In May of 2015, Wynne came to town to announce the province was providing $1 billion in capital funding. Eisenberger’s proposed citizens’ panel was reduced to window dressing. BRT supporters were suddenly marooned.

It’s been anything but smooth sailing for LRT supporters since then, of course. But no matter how controversial the issue, no matter how many stops, starts and delays the project has experienced, LRT has been the only option on the table.

Until Ford came along, that is. 

During the 2018 provincial election, Ford threw things into a tizzy by offering to let Hamilton council spend the $1 billion on other transit and infrastructure projects. It’s often forgotten, but in the heat of that election New Democrat leader and Hamilton MPP Andrea Horwath said an NDP government would also give council the option to spend the money on other transit projects.

Neither the mayor nor council seriously pursued the offer after Ford was elected. A few months later, it was taken out of their hands. The province cancelled the project because of projected cost overruns and then created the task force.

So now BRT is back on the menu as a main course not just a rejected entree.

Briefly, the task force suggests the BRT option could follow both the B-Line corridor from McMaster to Eastgate and the north-south A-Line corridor from the waterfront to the airport. Recommendations include fully dedicated bus lanes and platform boarding.

For LRT, the task force suggests if there is insufficient funding for the Mac to Eastgate route, phasing should be explored, and the province should look to Ottawa and city council for extra funding.

It’s not clear, of course, how the COVID-19 pandemic will impact the recommendation that, regardless which system wins out, the contract should be awarded or construction begin within two years.

It’s also not clear if or how COVID-19 will impact the social patterns and policy assumptions that sustain rapid transit systems.

Frankly, it’s an open question whether urban intensification, highrise living and the growth of public transit will be as appealing in a post-COVID world leery of future virus lockdowns, compared to the lure of backyards and the self-isolation of cars. (Hamilton Spectator) 

 

Wednesday April 15, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday April 15, 2020

After Mocking ‘King’ Trump, Cuomo Says Virus Should Be ‘No-Politics Zone’

Since the coronavirus began to ravage New York, Gov. Andrew M. Cuomo has used a fine mix of outright flattery and back-room diplomacy to draw down a variety of federal support, preaching nonpartisanship while mostly avoiding direct attacks on President Trump.

Marvellous Maps

In a span of about 24 hours this week, however, Mr. Cuomo, more typically known for his bruising political style, appeared to return to his roots. 

In a frenzy of television appearances on Tuesday, Mr. Cuomo urged the president to avoid being “dictatorial.” He said on CNN that Mr. Trump’s coronavirus response had been “schizophrenic.” About 30 minutes later on MSNBC’s “Morning Joe,” he compared the president’s daily briefings to “a comedy skit,” while saying no governor should watch them because “there’s no value in it.”

Mr. Cuomo’s comments were prompted by Mr. Trump’s unsubstantiated claim during a White House news conference on Monday evening that he had “total authority” over the states when it came to reopening the economy.

That claim was quickly rebuked by several governors, including Gov. Larry Hogan of Maryland, a Republican who heads the National Governors Association. But it was Mr. Cuomo who used the sharpest language, threatening to undo weeks of diplomacy toward the White House.

Mr. Cuomo’s shift in tone comes at a time when New York’s once-urgent need for immediate resources from the federal government has lessened, with many indicators showing a so-called flattening of the curve in the state.

Coronavirus cartoons

It also followed the introduction of the governor’s new coalition with his counterparts from six neighboring states to draft a plan to reopen the region’s economy — a move that displeased President Trump, whose exasperation grew Tuesday after Mr. Cuomo’s media appearances.

“Cuomo’s been calling daily, even hourly, begging for everything, most of which should have been the state’s responsibility, such as new hospitals, beds, ventilators, etc.,” the president wrote on Twitter. “I got it all done for him, and everyone else, and now he seems to want Independence! That won’t happen!”

Mr. Trump followed up with another post in which, referring to the film “Mutiny on the Bounty,” he compared the governors’ coalition to mutineers turning on their captain.

But given a chance to respond at his daily news briefing later Tuesday morning, Mr. Cuomo, a third-term Democrat, held back, repeatedly saying that he did not want to argue with Mr. Trump.

“The president was clearly unhappy,” Mr. Cuomo said, noting the “Mutiny on the Bounty” tweet and other remarks by Mr. Trump, who he said “was clearly spoiling for a fight on this issue.” (New York News)

Every cartoon idea starts with an ugly rough sketch

 

Tuesday April 14, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday April 14, 2020

Should everyone be wearing face masks?

In recent weeks, face masks have become an unremarkable sight in streets and supermarkets.

Life in a pandemic

Many people are choosing to cover their mouth and nose with online-bought or homemade masks or scarves, in spite of the advice of the World Health Organization and, in the UK, from Public Health England, that they are no protection against coronavirus.

Yet one country after another has decided to depart from the WHO guidance and rule that masks should be worn – most notably the US.

To add to the confusion, on Monday, Sir Patrick Vallance, the UK government’s chief scientific adviser, said the UK position on masks was under review and would change if the scientific evidence warranted it.

This followed remarks by David Nabarro, a UN special envoy on Covid-19, who appeared to depart from the WHO’s line by suggesting the UK would have to get used to wearing masks.

“The virus isn’t going to go away and we don’t know if people who have had the virus stay immune afterwards,” he told the BBC, adding: “Yes, we will have to wear masks.”

Despite the mixed messages, the WHO guidance updated a week ago, has remained consistent.

It has stuck to the line that masks are for healthcare workers – not the public.

“Wearing a medical mask is one of the prevention measures that can limit the spread of certain respiratory viral diseases, including Covid-19. However, the use of a mask alone is insufficient to provide an adequate level of protection, and other measures should also be adopted,” it stated.

Underlying WHO’s concerns are the shortage of high-quality protective masks for frontline healthcare workers.

There is also concern the public will not understand how to use a mask and may get infected if they come into contact with the virus when they take it off and then touch their faces.

Most of all, there is no robust scientific evidence – in the form or trials – that ordinary masks block the virus from infecting people who wear them.

N95 masks, worn by doctors and nurses who are treating people with Covid-19, certainly do. But the virus particles are thought to pass through other types of mask.

Nevertheless, masks do have a role when used by people who are already infected by the virus. (The Guardian)

Friday April 17, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 17, 2020

Canada to keep border restrictions with U.S. for long time: Trudeau

Coronavirus cartoons

Canada’s border restrictions with the United States will remain in place “for a significant time” as the two nations fight the coronavirus outbreak, Prime Minister Justin Trudeau said on Thursday.

Washington and Ottawa agreed last month to clamp down on non-essential travel while allowing massive trade flows to continue across their long shared frontier.

“There’s a recognition that as we move forward there will be special thought given to this relationship. But at the same time we know that there is a significant amount of time, still, before we can talk about loosening such restrictions,” Trudeau told a daily briefing.

U.S. President Donald Trump on Wednesday told reporters the two nations were “doing well” and said, “It will be one of the early borders to be released.”

The two nations’ economies are highly integrated, and allowing trade to continue avoided major problems for the auto sector as well as the transportation of food and medicines.

 



Part of a Politico package featuring Canadian cartoonists

 

Although Trudeau’s government has enjoyed good relations with the Trump administration over the last 18 months, tensions still remain. Last month, Ottawa slammed a U.S. proposal to deploy troops along the border to fight the spread of the novel coronavirus, prompting Washington to drop the plan.

A total of 1,048 people in Canada had died from the coronavirus by 11 a.m. EDT (1500 GMT), slightly less than 10% higher than the death toll a day ago, official data posted by the public health agency showed.

The total number of those diagnosed with the coronavirus had climbed to 28,899. The respective figures at the same time on Wednesday were 954 deaths and 27,540 positive diagnoses.

Medical officials now expect the death toll to be between 1,200 and 1,620 by April 21, Theresa Tam, the chief public health officer, told a briefing.

She repeated comments she made on Wednesday about being cautiously optimistic the outbreak could be slowing down. (The Province) 


 

“Dear Leader’s latest initiative is to sign an executive order banning all immigration, and we can let the courts sort the legality of that out, but, in the meantime, those outside the US may be looking at it the way Canadian Graeme MacKay views living in a nation with intelligent leadership versus the one that is right across the border.”

Here’s an unauthorized version of the April 17, 2020 cartoon which found its way circulating through social media several months after originally posted. Obviously, it isn’t printable in mainstream media, and essentially puts words into the creator’s mouth which is never appreciated.  Whomever the mystery person is behind the re-adaptation gets a Social Media Jackass designation. Folks, remember, artistic work should never be manipulated, unless permission is granted by the artist.