Some free advice. The first party to understand this very real problem and do something to fix our banking system so that “our money” really is our money will be rewarded in all sorts of ways. Max? Pierre? Yes, even you Jagmeet can take Justin’s blunder and turn it into a winning formula for both yourselves and Canada.

Fed Guy- The banking system is built on trust that the money one places in the care of others will be there when needed. This is as true for the retail investor with deposits at the local commercial bank, as it is for the sovereign with FX deposits at a foreign central bank. Hard earned trust is part of the magic that enables developed market sovereigns to massively deficit spend with limited consequence. The world happily holds their liabilities, be it in the form of deposits or sovereign debt. But that trust is weakened when sovereigns are seizing the assets of their own citizens and other sovereigns without due process of law.

Canada also recently deployed similar measures against its own citizens. Canadian Prime Minister Trudeau invoked emergency powers to seize the bank accounts of truckers protesting pandemic related restrictions. Reports also suggested that donors who made legal donations to the protestors were prosecuted based on a retroactive application of the order. Protestors lost assets without any warning, due process of law, or potential recourse. Although this happened in Canada, many outside Canada took note and interpreted it in light of the rapid expansion of government power they see in their own countries. They realize that money in a bank can go poof at anytime regardless of deposit insurance.