Canadian Emergency ActThe Trudeau activation of the Emergency Act has resulted in some downstream impacts to financial accounts. The government has made it clear that any account can be frozen with no due process. This includes the accounts of U. S. citizens under some conditions.
Overnight 34 crypto wallets were frozen. These may have included contributions from U. S. citizens to the truckers. Total crypto assets involved appears to be about $14 million. If the crypto wallets are not maintained at Canadian regulated exchanges, this freeze can be defeated, which opens the possibility for further actions on the part of the government. It also opens the possibility that some folks will get their assets out of Canadian regulated crypto exchanges - that remains to be seen.
I'm seeing reports of outages at major Canadian banks including the ATM networks and the online banking applications.
The price of gold is pushing higher again this morning.
Although the primary impact of the Emergency Act will be on Canadian assets, there is some potential that President Biden will copy the Trudeau approach. If that occurs there could be significant movement of assets into gold since crypto accounts are not safe. The magnitude will be much greater if American citizens feel the need to protect their assets from their government.
For myself, I'll be moving assets to safer locations, such as hard silver and cash, local banks not doing any business in Canada, etc. I've already initiated that process and will complete it by end of day today since things seem to be moving quickly.
I'm interested in getting intel from the folks on this board in Canada. How do you judge the reaction to the current situation? Are the ATM's down because they are out of cash or did the banks take down their own networks to prevent the flight of cash? Did the banks take down their systems to make changes required by the government that could impact all customers? Are folks in your area draining cash from their accounts, or have they been prevented from doing any banking at all? Are you committing money to gold and gold miners (as I am) on the basis that this could be a significant opportunity?
Thanks for your input on this.
Doug