Get Prepared for a Banking Crisis in Canada!

About a year ago I posted a blog suggesting in the gentlest terms that we should all have a little cash around in case of  trouble with the banking system.  The title was “Get Prepared! Something wicked this way comes”  I have reposted as a page for your convenience.

  • Today I  upgrade that warning from a “gentle suggestion” to an “urgent action request ” for my friends.

There is lots of evidence to suggest that it is time to be very worried about  the warning signs. Here is just a sample of the red flags I have seen.

1) The Royal Bank of Scotland went five days without letting customers withdraw cash last week and it was not reported widely here in Canada.

2) Last week Moodies down graded the credit risk of our strongest Canadian bank —  RBC bank  ! and it was not reported widely, and

3) This was reported in Germany last week.

“Germany and France’s joint proposal to allow Schengen-zone countries to temporarily reintroduce border controls as a means of last resort might sound harmless. But doing so would damage one of the strongest symbols of European unity and perhaps even contribute to the EU’s demise. 

Germany and France are serious this time. During next week’s meeting of European Union interior ministers, the two countries plan to start a discussion about reintroducing national border controls within the Schengen zone. According to the German daily Süddeutsche Zeitung, German Interior Minister Hans-Peter Friedrich and his French counterpart, Claude Guéant, have formulated a letter to their colleagues in which they call for governments to once again be allowed to control their borders as “an ultima ratio” — that is, measure of last resort — “and for a limited period of time.” They reportedly go on to recommend 30-days for the period

Granted, the Schengen system is not perfect. With the EU’s eastward expansion, its external borders have become more porous. The problem areas are well-known: Greece doesn’t sufficiently guard its border with Turkey, and Italy simply allows refugees through to continue their journey into neighboring countries. Doing so violates the Schengen Agreement, which stipulates that immigrants have to be taken care of by the country in which they arrive.”

I believe they are doing this to prevent money from being taken out of their Countries by panicking Europeans.  They are already limiting cash withdrawals and the house of cards in the European banking sector is about to fall and it will take the Canadian Banking system with it too.

The International banking community is tightly interwoven with credit default swaps and other weapons of mass financial destruction.  If a major European Bank fails almost every bank in the world will be called upon to make good on the losses  and then like dominoes they will all start to fail.  All it will take is one Country to default on its sovereign debt and the process will begin. Can any one say Greece, Spain, Italy, Ireland or Portugal ? There is nothing Governments can do to stop this but I do think you can take steps to protect your family.

There are a few shocking issues here and the first and foremost is, ” Where the hell is the Canadian Mainstream Media on these stories and when the heck will they start thinking? ” . They should be reporting on these  issues ,but no, the Ottawa Citizen is obsessed with Presto and other little minded things  and the the Sun, well it’s the Sun and  what more can I say.  But I digress.

The real question is:  what can we do to protect ourselves from what may be a few weeks or months  of SIGNIFICANT inconvenience this summer?

MY RECOMMENDATIONS For URGENT ACTION!

  • Take out some cash and hide it away and do so within the next month.
  • Buy a little extra food and medicine.
  • Buy and stock up on some treats like candy and a good bottle of wine or two :-)
  • Convince your family and friends to do likewise.

We will get through this but I think we are in for a tough summer.

God Bless

Larry

 

 

 

 

 

One Comment to “Get Prepared for a Banking Crisis in Canada!”

  1. Peter Raaymakers 26 June 2012 at 7:13 pm #

    “If a major European Bank fails almost every bank in the world will be called upon to make good on the losses and then like dominoes they will all start to fail.”

    Let’s say this actually happens (it won’t), and international banks fail and people come to Canada demanding re-payment (and I don’t know why that would happen); what’s stopping Canada from just saying no? Iceland did it, and their financial sector was heck of a lot messier than ours is now, and that country is rebounding quite nicely thanks to their bounty of natural resources. There’s no reason Canada can’t follow suit.

    Also, to your advice: If there’s a banking crisis in Canada, what would hoarding paper money do for it? If we’re talking about a seriously concerning crisis, paper money will be worthless anyway. You’d be better off hoarding canned food and bottled water.


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