Nevermind! Suspected Canadian bank runs force Trudeau to abruptly withdraw Emergencies Act declaration
After a 185-151 House of Commons vote affirming the emergency declaration, Trudeau pulls a complete 180 canceling it
“I’ve been in contact with a reliable source within the Canadian military, and he told me today by email that if I had any sense I’d take my money out of the Canadian banks because the situation is far worse than I’ve been informed.”
- Jordan Peterson, The Catastrophe of Canada Podcast, February 22, 2022
Well, that’s embarrassing. In what may go down as one of the greatest political blunders in Canada’s history, Prime Minister Justin Trudeau abruptly revoked his emergency authority. These powers were imposed in recent days following the multi-week trucker standoff in Ottawa. It involved, among other things shockingly, seizing Canadian citizens’ property without court order or recourse. Its goal: to break the opposition.
The matter was forwarded to Canadian Parliament to confirm the emergency. The House of Commons went first affirming by a 185-151 vote.1 It then proceeded to the Senate on February 22 for debate. Incredibly, after more than a week of urgent insistence, Trudeau pulled the plug on February 23! I’m sure the politicians in the lower house aren’t too pleased they were put on record voting for a tyrannical declaration only to see it dissolved two days later. Oh well!
In total, at least 206 Canadian financial accounts were frozen.2 According to the government, they have lifted sanctions and unfroze these accounts as of February 22.3 So what was behind the sudden change of heart? What may be dismissed as conspiracy theory, there appears to be a possible explanation: bank runs.
Depository institutions such as banks are required by regulations to maintain adequate capital ratios. A bank run occurs when panicked depositors flock to withdraw large sums from their accounts. If banking reserves are depleted, it risks spiraling into insolvency. With the interconnectedness of financial entities, the potential of contagion becomes apparent cascading throughout the economy.
The famous Jordan Peterson, clinical psychologist and author of 12 Rules for Life, raised some eyebrows when, on Tuesday, February 22, he indicated the Canadian financial system may be teetering on the edge. His connections to the government suggested possible distress within financial institutions. While I have no direct knowledge and no way of verifying such claims in real-time, the narrative was spreading. The next day, Trudeau yanked his emergency declaration—a move diametrically opposed to his rhetoric.
“So let’s talk about the bank. So here’s what our prime minister did last week: He permanently destroyed 20 percent of the population’s faith in the entire Canadian banking system and stained the Canadian banking system’s international reputation, I would say, for decades.”
- Jordan Peterson, The Catastrophe of Canada Podcast, February 22, 2022
The scenario is not all that farfetched. Capital goes where it is treated best, and flees where it is under threat. By invoking the Emergencies Act, the Prime Minister opened a can of worms with inadvertent effects. The blitzkrieg of freezing bank accounts sent a chill through the populace. People began questioning the rubber stamped executive authority may be turned on them next. Many who never attended the protest may have donated to the cause. Upon catching wind of how rally goers were treated, it wouldn’t be surprising if they made moves to avoid their own financial lockdowns.
Trudeau assured us on his emergency revocation that current laws are adequate in addressing the matter going forward. That was always the case. Something drastic changed between February 21 and February 23. The House of Commons would not have even considered approving the measure only to see it become moot less than 48 hours later.
What was that cause? We’re left to wonder. But it had to be something rather ominous. Given the various reports and anecdotes one can readily find for themselves, there’s likely more than a kernel of truth to it.
The Canadian Free Press. February 21, 2022. House of Commons passes Emergencies Act motion after fractious debate. https://energeticcity.ca/2022/02/21/137338/
Roberts, Katabella. February 21, 2022. Canadian Police Freeze 206 Financial Products, Including Bank and Corporate Accounts, Allegedly Involved in Ottawa Protests. https://mb.ntd.com/canadian-police-freeze-206-financial-products-including-bank-and-corporate-accounts-allegedly-involved-in-ottawa-protests_742855.html
Austen, Ian. February 22, 2022. Canada Ends Its Freeze on Hundreds of Accounts Tied to Protests. https://www.nytimes.com/2022/02/22/world/americas/canada-protest-finances.html