Get your cash out of Canada, right now.

Retail banking is a remarkably simple business. You have a current account, money gets paid into it on a regular basis and you draw it out for household or living expenses. You’re not charged for having an account or for everyday transactions. How do they make a profit then? Quite simple, they loan out the money deposited on the retail side to various enterprises who need capital and the interest they charge is where their real profits come from. As always in things financial, there are a few more bells and whistles on it but that’s your basic model.

If you add up all the money held in customers’ accounts, it’ll always be much a greater number than the bank’s cash in hand because as I said they loan most of it out. If all at once every customer decides to withdraw their cash, then what’s called a run on the bank develops. There’ll never be enough money to pay out to everyone so those at the front of the withdrawal queue get their cash but those at the back get nothing because the bank has basically ran out of cash. At that point, kersplat goes the bank and your money that was in it if you’re at the back of the queue. There are nominally some deposit guarantee schemes such as FDIC but if enough banks go belly up, there’ll never be enough money to pay out to everyone. That’s what nearly happened in ’08.

The cause of these runs is mainly rumours of the bank being in financial trouble over things like bad investments, massive fraud or some sort of fiscal impropriety. If you pick up on such rumours, the old safety first adage about where there’s a doubt, there’s no doubt applies. When the bank’s doors open the next day, be at the front of the queue of people withdrawing their money. That’s exactly what happened in the meltdown of ’08 that necessitated governments propping up banks using massive cash injections in exchange for equity stakes in the banks.

To that list of classical things that can cause a run on a bank must now be added the effect of what the dictator Trudeau has been doing with ordinary people’s bank accounts over the last two weeks – freezing them. When it comes to money and your life savings, losing access to them overnight and without any due process for doing something relatively harmless like donating $10 to a cause you want to support, what would you do? If I were a Canadian or used a Canadian bank in whatever capacity, I’d be at the head of the queue waiting for the bank to open tomorrow morning to empty my account. Cash suddenly becomes king.

Since Trudeau announced last Monday that his emergency powers would stay in place, people and businesses have been emptying accounts with Canadian financial institutions. By Tuesday lunchtime, the alarm bells were going off all across the Canadian financial sector. The flight to safety from Canadian deposit takers had begun both within and outside the country and it was only a matter of time until one bank ran out of cash. When that happens, you’re into dominoes falling territory which could accelerate the complete collapse of Canadian financial institutions.

The Toronto-Dominion Bank, usually called the TD, is one of the few Canadian multinational financial institutions. A friend of mine who works in the US part of it told me they’d had so many accounts closed or emptied that they’d had to beg for emergency cash from the mother ship back home. If I’d any money held in TD or one of its outposts, I’d be getting it out toot bloody suite. Even the digital and crypto currency markets who’d been obliged to freeze some wallets by the Trudeau regime, had stopped doing business in Canada by the afternoon. When it comes to a risk to their money, nobody fucks around.

By Wednesday, Trudeau announced he was revoking the Emergency War Measures Act with immediate effect. A complete 180 in less than 48 hours but the damage had already been done. No prizes for guessing which power block leaned on him. The same day, his justice minister, who obviously hadn’t been in the climb down loop emergency discussions, announced the temporary powers were now to be made permanent. There’s no bad situation that can’t be made worse, all it takes is a bit of creative incompetence.

It’s an administration in chaos which is wreaking havoc on its biggest donor, the financial sector. An unstable environment like that is never a safe place to keep your money, so the flight to safer climes or into good old cash stuffed in your mattress will probably continue. Just to help, the justice minister has also promised that although the emergency powers act has been revoked, any criminals who donated to the truckers will still continue to be hunted down over the coming months so if you donated, withdraw your cash now. What a shower of bloody idiots.

There used to be an industry saying that you’re more likely to get a divorce than change your bank account. It was probably true at one time but times change. It’s a lot easier nowadays. A ten minute trip to a modern bank’s website that’ll move the balance in your old account and reroute all your direct debits and standing orders to the new account. Opening an online current or deposit account with a bank outside Canada’s jurisdiction is just as easy and with the debit or credit card attached to it, access to your money has suddenly been secured.

Personally, if I had any cash or assets parked in Canada, I’d probably open an account with someone like the Moscow Narodny Bank, who do have a footprint even in Canada. Whatever you do, cash out of the Canadian deposit takers. It’s the smart move.

©Pointman

Related articles by Pointman:

Freedom convoy update.

Canadians joining the club.

Click for a list of other articles.

Comments
3 Responses to “Get your cash out of Canada, right now.”
  1. philjourdan says:

    Anyone with money in a Canadian bank has zero assets! I am even pulling mine out of the “woke” USA banks.

    Russian just invaded the Ukraine. But the funny thing is, the most secure banks right now are Russian! Because the Fascist west cannot get to them! Oi Vey!

    Like

  2. babygrandparents says:

    Unfortunately the Trudope might freeze the Russian banks. Any other suggestions? Asking for a Canadian friend – me.

    Like

  3. Simon Derricutt says:

    Pointy – it looks like Russia will be excluded from SWIFT, thus if you had money in a Russian bank you couldn’t transfer it or use it (except if you live in a Russian-controlled country). Might be safer to go to the traditional ways of protecting assets, in a Swiss bank, if you have enough money to need protecting and live in the West. On the other hand, it looks to me that any assets held in any (fiat) currency now carry a risk of being instantly deleted by some politician or other, with cybercurrencies at an even higher risk of suddenly going missing. Might be better to use the resources while they still work to acquire trade goods that are of durable value.

    Maybe a problem there that such trade goods are generally not edible, and that edible stuff has a shelf life. There’s not actually a permanent store of value, since the relative value of a Gold coin and a potato depends on how hungry you are.

    Like

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