Weaponizing Money, Bank Runs Have Begun
© R.H. Tamlyn, Jr. March 3, 2022
Few things are more dear to most people in the world than their resources. One might argue their loved ones, family, etc., but money and people’s assets that they’ve accumulated over time, or perhaps inherited from family members are almost always preeminently important.
This would be true of countries, as well as individuals.
So, when you start messing around grabbing someone’s money, or preventing them from accessing it, or using in some way, it’s a pretty serious thing. And pretty much without fail, people or countries will respond to such actions in some manner. And once you’ve done it once, they will never forget what you did. They will take actions that will not allow that to happen again. Common sense, human nature, isn’t it? Burn me once and I won’t trust you again.
Canada recently meddled with people’s money. They froze bank accounts of people who had simply given money to a cause they believed in. It was a cause that was protesting the governments handling of Covid-19 and vaccine mandates. Nationwide truckers, whether vaccinated or not, protested the mandatory aspect of being forced to take the vaccine. Many took up their cause, donating small sums to pay for their protest. Then, in response, the Trudeau led government enacted an emergency act and froze people’s bank accounts. Which started a massive bank run by those affected, and ALSO those watching from the sidelines who may not have had any skin in the argument at all. Funny, some people actually watch, pay attention to what’s going on, and take actions to protect themselves. With money fleeing the Canadian banking system, Trudeau was forced to backtrack and withdraw the emergency act. Much damage was done, however, and will not likely be forgotten any time soon.
Similarly, the US and it’s allies have just done something similar to Russia, in protest of Russia’s invasion of Ukraine. It’s economic warfare in an attempt to shut down an actual war.
This was in a very real sense, a financial nuclear bomb. The Russian currency, The Ruble, lost half its value suddenly, hurting the common Russian tremendously. Wealthy Russian oligarchs have had their accounts frozen or confiscated, as well. No doubt, much damage has been done, financially, to penalize Vladimir Putin and other Russians.
I don’t agree with Putin’s aggression. But I believe this financial attack on him and Russia will backfire, if not immediately, then over time. Putin and Russia will clearly work (or perhaps already have a plan) to manage their economy and lives without Western interference in their finances. They’ve already been buying much gold, they already have a tremendous energy exporting sector. They have little debt, comparatively, to the US. My guess is they’ll find a way around the SWIFT system, around Western control of their finances. For sure, I would suspect, they will from this point on, only place their cash resources in places that are safe from Western control. Physical gold, banks friendly to them, other actual natural resources that can be readily liquidated.
But it’s not just Russia. The world has been watching, as well. Lightbulb moments are happening in board rooms and in sovereign countries, in addition to individuals who possess large amounts of assets. If my money in the bank isn’t safe, perhaps I should move some or all, or a lot of, that money, OUT of the bank. Perhaps I should buy real things. Pay cash for them. Houses. Buildings. Gold. Silver. Platinum. Businesses. Timber. Aluminum. Steel. Tires. Farms. Cars. Art. Baseball Cards. You name it. Of course real estate can also be seized, so perhaps the real run will be into things you can physically hold.
Western powers have started a bank run worldwide. They have violated financial trust. I believe the sooner one can appreciate that virtually everything “real” is a better store of value than cash in a bank, the sooner steps will be taken to protect yourself. Or your company. Or even your country.
