Affordability is a big issue in this election. But let's be clear about where the problem came from. Higher fossil fuel prices (driven by speculation, not a 'supply shock') were the biggest single cause of the post-COVID surge in inflation. Full report: www.falseprofits.ca/reports

Study finds fossil fuel prices largest source of post-COVID inflation, warns of repeat due to Donald Trump’s policies Researchers at the Centre for Future Work say fossil fuel price hikes cost Canadian households $12,000 each between 2022 and 2024.

Here's a fine story by Nathan Bawaan at @thestar.com on the report and its recommendations: www.thestar.com/business/stu...

This report was not just a historical forensic exercise. More price spikes will occur, especially with Trump running amok. Moreover, the carbon tax clearly did not cause that price spike in 2022. And eliminating it won't prevent the next one. See more at falseprofits.ca.
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We must learn from this history to avoid repeating it. Key lessons:
1. Insulate Canadian prices from the futures roller-coaster.
2. Stronger royalties & an excess profits tax on oil companies.
3. Accelerate energy conservation & transition to renewables (which are not ruled by futures markets!). /7

Add it all up (measured relative to pre-pandemic 2019 norms), and Canadian workers and consumers lost almost $200 billion over 2022-2024. That is $12,000 per household on average. An incredible cost--and it's still growing by $5 billion (or $300/household) per month. /6

Canada's mostly deregulated fossil fuel prices immediately passed on this price spike, even on Canadian production. In the coming 3 years, Canadians paid dearly through 4 major cost 'buckets': higher direct prices, higher indirect prices, higher interest rates, and lower employment income. /5

The dramatic price spike in early 2022 drove the price up by two-thirds ($50US/bbl), reaching $130US/bbl. It stayed there for just a few months--but long enough to spark worldwide inflation. Surprisingly, oil supply (both global and in Canada) KEPT GROWING throughout this whole time. /4

The report was co-authored by @jimbostanford.bsky.social and Erin Weir. First we explain how oil futures mkts work: they are not driven by 'supply and demand', as commonly assumed. They're driven by finance, speculation, emotion & cartels. Every physical barrel of oil is traded on paper 13 times. /3

We have released a new report today adding up the huge (and continuing) costs to Canadians of the 2022 spike in oil prices. Check it out, it's part of our new 'False Profits' project: falseprofits.ca/reports. #cdnecon #canlab /2