The economy is heating up Did someone forward you this newsletter? Sign up here to get it delivered weekday mornings. The Bank of Canada raised its inflation projections on Wednesday, noting that the economy is primed for rapid growth in the second half of the year led by a surge in consumer spending, the Globe reports. The rate decision comes at a turning point for the Canadian economy. Businesses are reopening and hiring workers after months of lockdowns. Consumer confidence is back to prepandemic levels, and the bank now expects people to spend a significant portion of their extra savings over the coming quarters. “Falling COVID-19 cases, progress on vaccinations and easing containment restrictions all point to a strong pickup in the second half of this year,” the bank said in its rate decision. At the same time, the bank acknowledged that inflation will likely be higher than it anticipated in April. It now expects consumer price index inflation to remain above 3 per cent for the remainder of the year, and to be around 2.5 per cent in 2022. Military sexual misconduct class action claims have jumped by 170 per cent since late December 2020, Global news reports. More than 600 new claims have been submitted in the past month. The $900-million class action lawsuit was settled in 2019 and opened to claims from survivors and victims of military sexual misconduct on May 25, 2020. It had received 2,729 claims by late December 2020. Since then though, claims have jumped to 7,346 as of July 13, 2021— an increase of roughly 170 per cent, with four months still left for survivors and victims to submit further claims. The 7,346 claims as of July 13 is up from 6,666 claims submitted as of mid-June, or an average of roughly 150 claims submitted per week over the past month. Americans want in: Legislators from across the U.S. Midwest on Wednesday asked the White House and Ottawa to reopen the border to fully vaccinated travellers, the Canadian Press reports. The border has been closed to all but essential travel and trade since last March. Restrictions are currently set to expire July 21. Canada has eased quarantine requirements but only for fully vaccinated citizens, permanent residents and other eligible travellers. Et Les Français, aussi: France, which has opened its borders to Canadian tourists, wants Canada to return the favour. At the French embassy in Ottawa Tuesday, the French ambassador said it is time. “The borders will have to be reopened relatively quickly now for us to put Canada back on our travel plans,” Kareen Rispal said. “If not, it’s true that French ministers will go to the countries where they can go.” Paul's membership at risk: Green Party officials met Tuesday night to discuss the status of the party membership of Leader Annamie Paul, sources tell the Toronto Star. One of the sources, who did not attend the meeting and spoke on condition of anonymity, said the party launched a review of Paul’s membership during the meeting and that the leader herself was not invited to attend. The source said interim executive director Dana Taylor initiated the review, which did not require a vote. It is unclear how a membership review would affect the status of Paul’s leadership, but the move marks a stunning escalation of party infighting that has rocked the Greens for months. Paul faces a vote of non-confidence at a session set for July 20.New subs: The navy is launching its long-anticipated push to replace Canada’s submarines, setting the stage for a debate around whether Canada needs subs, the Canadian Press reports. Questions about the costs and benefits of submarines have circulated since Canada bought four second-hand vessels from Britain in 1998. The government at that time argued it was getting a bargain by paying only $750 million for the four Victoria-class vessels. Yet the vessels have since spent more time in dock for repairs and maintenance than at sea, with Ottawa sinking billions of dollars into the fleet over the past 20-plus years to address a series of problems and incidents including fires and faulty welding. Complaints about Simon: Canada’s official languages watchdog said Wednesday his office has received almost 200 complaints about the appointment of Inuk leader Mary Simon as governor general, Global reports. Simon speaks English and Inuktitut but not French. Manitoba minister resigns: Eileen Clarke confirmed her resignation Wednesday as Manitoba's Indigenous and northern relations minister after Brian Pallister made comments last week that suggested the colonization of Canada was done with good intentions, CBC reports. Pallister recently chastised people who had been involved in tearing down statues of Queen Victoria and Queen Elizabeth on the grounds of the Manitoba Legislature on Canada Day. Tax the rich: Jagmeet Singh said in Windsor, Ont., on Wednesdays the NDP would tax corporations and the wealthy if he becomes prime minister, CP reports. "One of our plans is to make sure we have a wealth tax, that we have a pandemic profiteering tax." Globe columnist Andrew Coyne has a look at the Conservatives and finds them struggling with more than just leadership problems. He thinks maybe their temperament is the problem. If the besetting sin of Liberals is smarmy sanctimoniousness, the Conservative equivalent is a chippy defensiveness, an adolescent petulance, a conviction that the cards are perpetually stacked against them. Moreover, while the Liberals, as the party of power and therefore of cabinet posts, have always been able to recruit individuals with a record of accomplishment in other fields, the Conservatives tend to get stuck with the lifers, people who have never done anything but partisan politics and are motivated by nothing so much as hatred of the Grits. Which may explain why the party’s leading lights so often look and sound like campus Conservatives. — Stephen Maher | 
