By Tish Conlin

While many are grumbling loudly about the cost of everyday items and worrying about the national debt, another crisis is brewing. Commercial banks are sitting on trillions of dollars of unsustainable private debt. In recent years, the commercial banks have been able to issue new credit almost without limit in what is known as the 0% reserve system. Now they are scrambling to meet increased capital requirements. As the economy tightens, the banks are in a precarious position. From January 2020 to December 2021, we witnessed a frenzy of Quantitative Easing (QE). Quantitative easing is a monetary policy action whereby a central bank purchases predetermined amounts of government bonds or other financial assets in order to stimulate economic activity. But as interest rates rise, credit conditions are tightening private sector banking money creation. Diminished earnings are taking a toll on stock prices including bank stocks, and no surprise, no one in the media is mentioning it. The strongest Canadian banks at the moment are Royal Bank, National Bank then BMO and TD. Both CIBC and Scotiabank are carrying the heaviest debt loads according to current data.

This sounds risky but it gets even worse. As interest rates rise, loan failures could trigger a major derivatives crisis; as happened in 2007/8 during the sub-prime mortgage fiasco. Last time, a big tax-payer funded bail-out occurred, and those who recklessly gambled money away were never punished. Maybe the banks learned a lesson at least, you may think. Unfortunately, they did not learn; they have continued with their high-risk derivative trading, and their exposure today is at least 5 times higher than it was in 2007 according to the Office of the Comptroller of the Currency (OCC) in the United States.

The movie The Big Short is a must watch to understand how this all happened. The fall-out here from the current financial fiasco could — and likely will — be much worse, as it is combined with all the other fiascos being perpetrated on Canadians, such as: higher and higher taxes including the ridiculous carbon tax; wild inflation, soaring food prices and supply chain issues in many sectors causing increased bankruptcies along with attempts to bring in increased totalitarian controls including the Digital ID.

Did you know that legislation was introduced years ago to allow for “bail-Ins” in future, rather than bailouts? What does that mean you ask? Anyone with a bank deposit, legally speaking, is now considered an ‘unsecured creditor’ of the bank, and the savings of depositors can be confiscated to fix shaky balance sheets. This is of concern to all of us who have families to feed and bills to pay and need to trust that our savings are protected by the CDIC (Canadian Deposit Insurance Corporation).

Is it too late to stop the collapse? According to my recent Podcast guest, David Ward, former Bond Trader and Financial Commentator, Canada must reform its banking system regardless of what happens this year or in the future although a collapse is likely. The commercial banks have demonstrated that they will not reform of their own accord, and sooner or later, their greed will bring about a total implosion of our current financial system. Will we return to a full reserve system or create legislation like the Glass-Steagall Act (which was established in the wake of the 1929 stock market crash) to separate investment and commercial banking activities to protect us from corruption and fraud? How can we reform our monetary system?

Needed changes:

A move to 100% reserve/full reserve banking is crucial. This option must be revisited, as in Switzerland, here in Canada, and elsewhere. In the 100% reserve system, banks would act simply as ‘financial intermediaries’ (as everyone currently thinks they operate), lending out only the money they have on deposit. In a full reserve system, banks are not actually creating our money (as they do today). From the Bank of Canada: ‘Commercial banks and other financial institutions provide most of the assets used as money through loans made to individuals and businesses’. In a fractional reserve system, commercial banks do actually create money (bank credit), ‘multiplying up’ deposits, and this has been the primary driver of inflation in this country from the 70s on. This has been hugely profitable for the banks, and extremely costly for Canadians. Our national debt is a direct result of this process. In the 0% reserve system, post-1994, profits for banks grew massively, but this system is a Ponzi Scheme by every definition. Our economic woes today are a direct result of the implementation of this ‘capital adequacy’ system.

Tax Reform. Did you know that before the Federal Reserve was created in 1913 as a “temporary measure”, there was no personal income tax? People could keep their hard-earned money. Future taxes will need to fair and not be used to siphon wealth from poor and middle class. A flat tax may be introduced along with other tax reforms since most of the taxes collected have not benefited citizens in the past.

Some form of currency control is required to prevent sovereign Canadian dollars from leaving the country and also to prevent inflows of cash that distort both domestic markets and the political process. To prevent ‘rent seeking’ the recycling of offshore money must be strictly limited. The influx of other offshore money is the most important factor driving bubbles in asset prices, including real estate. The next generation of Canadians must be able to afford a home of their own; right now, they have to compete with massive private equity firms.

Preservation of physical cash, even if a Central Bank Digital Currency is introduced for both practical and technical reasons.

Resistance to all forms of Digital ID, Central Bank Digital Currency (CBDC) ‘programmable money,’ Carbon Credits, Social Credit Scores and vaccine passports.

Is this a controlled demolition of our banking system to set up for a Central Bank Digital Currency as the “Solution”? Many believe this is the case. Or we might see it being introduced with the carrot of Universal Basic Income (UBI) as long as you sign up for the Digital ID and are compliant with other Social Governance Requirements (aka Chinese style social credit system). Time will tell and that time is approaching us very rapidly. In the meantime, it doesn’t seem like a bad idea to move to a credit union and get some solid real assets like precious metals and land and even tradable items like coffee and chocolate if you can, although this is not intended as financial advice. Whether it is a soft landing or a very hard one, everyone with a comfortable nest egg can do their part to help the less fortunate as many families are breaking under massive increases in the cost of living. It is good to shore up your savings, pay down debts, keep cash on hand and opt to support local companies over globalist enterprises so we can avoid a massive collapse of our small business sector.

Many “conspiracy theorists” also talk about a new quantum system in the future that will include GESARA which stands for Global Economic Stabilization & Reformation Act. GESARA proponents state it will bring back precious metals backed assets and a level playing field for all countries with currency revaluation and will include compensation to repay citizens for massive frauds with income tax and over-taxation. Sounds great but some wonder if GESARA is real or another magic trick by the elites to get everyone on CBDCs?

We also see that the BRICS nations (including Brazil, Russia, India, China and South Africa plus many more) have grown in strength and are considering a common gold backed currency which could topple the US fiat currency being used widely today. Soon more than 51% of the world’s population will be members as Argentina, Algeria, Iran, Indonesia, Saudi Arabia, Turkey, Egypt and Afghanistan have applied (and will likely be accepted) as members. How will their new financial system impact the old one? Is the petrodollar on its last legs?

Despite the many financial challenges ahead, I am long term optimistic about our future. It takes a big mess to wake up the masses and boy are we in store for a big mess. Time will reveal how the financial “reset” plays out.

Remember that your spending (and saving) can change the directions of our future so do not support globalist companies with your hard earned money. Every dollar counts in this war on our finances. I am confident that good things are ahead but can see very choppy waters ahead so prepare!!

Check out the full podcast at one of the following links:

https://anchor.fm/tish-conlin/episodes/Episode-59-Are-the-banks-going-to-crash-next-year-e1sabmo

https://rumble.com/v20t6to-are-the-banks-going-to-crash-next-year.html

https://www.bitchute.com/video/xoBblZyxuM5c/

Tish Conlin is an Author, Speaker and Business owner. She is a Resilience Coach, Black Belt Martial Artist and Freedom Fighter. Her Podcast TishTalk can be found on Bitchute, Rumble (ThrivewithTish), Spotify and Apple.