Stick what you think is your money in a bank and it’s no longer your money, it’s an unsecured liability of the bank to you. The system all depends on people’s trust in banks. The U.S. and Canada are doing their best to undermine trust in banks. From Nick Giambruno at internationalman.com:
“We are broadening the scope of Canada’s anti-money laundering and terrorist financing rules…
As of today, a bank or other financial service provider will be able immediately to freeze or suspend an account without a court order.”
These are the words of Canada’s minister of finance, Chrystia Freeland.
Freeland’s announcement shocked millions of Canadians and many more across the world.
A major Western country had just thrown out any semblance of the rule of law and property rights on a mass scale—something unprecedented in recent memory.
Many Canadian companies and everyday citizens were paralyzed, suddenly unable to access the money they thought was theirs.
There was not even a pretense of due process. It wasn’t needed since the government simply granted itself emergency powers. The fundamental civil liberties that most Canadians thought they had proved to be illusory.
Imagine if the crackdown against dissidents in Canada instead happened in Venezuela, Cuba, or elsewhere. Is there any doubt there wouldn’t be a fevered pitch call for sanctions or worse?
Instead, to the extent the mainstream media even mentioned it, coverage was generally sympathetic to the Canadian government. The media rationalized their actions as necessary measures against insurrectionists and potential terrorists.
The Canadian banks sheepishly complied. There was no attempt to protect their clients and push back against this blatant government overreach.
If you understand how money, banking, and politics really work, none of this should be surprising.
Like almost all governments, the Canadian government heavily regulates and influences the nominally private banking system. If a Canadian bank were to disobey, the government would immediately give it the kiss of death by revoking its license, removing access to the central bank’s clearing system, and perhaps arresting executives.
The banks will do whatever the government tells them when the chips are down. They have no choice.