Unintended Consequences

The tyrants in power in Canada have invoked emergency powers for themselves, including the power to block bank accounts of people they disagree with. This means that no-one is safe with their money in Canada, because there's no way to know for sure what might inadvertently ire the tyrants.

As far as investments go, Canada has joined the ranks of banana republics. It's no longer a safe place for anything but short term investments with high payouts. Anything with a long time horizon is now too risky. So, the Canadian dollar is taking a beating, and will continue to be under pressure for as long as the tyrants remain in power. However, this is not the worst of it as far as the Canadian economy is concerned.

All this uncertainty is making Canadians weary about their bank accounts. They are withdrawing money, apparently in such quantities that it's causing problems for the banks. The bank systems can't handle the rush, and everyone is suddenly without access to cash.

The tyrants have unleased some serious market forces. But they're not letting this get in the way of their scaremongering, which is continuing unabated. Canada's justice minister has just announced that Trump supporters in the US should worry just as much as Nazi truckers should worry in Canada. It's almost as if he wants US banks to suffer the same disruptions we've seen in Canada.

The tyrants seem to think themselves still in control. The rush towards cash can be fixed by printing up more bank notes. However, withdrawal of cash is but the start of their troubles. Once the cash is out of the system, it will find its way into parallel markets as well as gold and silver, and none of this is under their control.

The tyrants have inadvertently set in motion a move away from centrally controlled systems. Once the full significance of this sinks in, we'll see a rush out of financial assets, including government bonds. People will favor gold and silver as well as capital goods of various kinds. Assets that requires banks or online exchanges will be shunned, while that which can be physically exchanged in secret will be in demand.

Gold and silver will shine while crypto-currencies of various kinds will suffer.

Sovereign

By Heritage Auctions for image, Mary Gillick for coin - Newman Numismatic Portal, Public Domain, Link