Is It Financial Inclusion or Exclusion?

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The McAlvany Weekly Commentary

with David McAlvany and Kevin Orrick

Is It Financial Inclusion or Exclusion?

February 16, 2022

“Inflation is the pin that bursts many a bubble dynamic. And that’s what we’re seeing come to fore is inflation is inflicting pain on fixed income. Inflation is increasing margin pressures for corporations. Inflation is hurting the consumer. Inflation is the only thing that has gotten central bankers off of their keisters to do anything. And inflation happens to be the pin that’s bursting the ego of these central bank planners.” — David McAlvany

Kevin: Welcome to the McAlvany Weekly Commentary. I’m Kevin Orrick along with David McAlvany. 

Well, on everyone’s mind this week, you would think would be the Ukraine, but actually the truth of the matter is what Trudeau did a couple of days ago, Dave. It reminds me, we have heard this banter from the elite, let’s just say, that we want to try to save the unbanked. Do you remember in India a couple of years ago? The concern was that the unbanked— we needed to get everyone into the banking system, and they called it “financial inclusion,” and they said everyone has the right— I always love it when somebody tells me that I have the right to do something they want me to do. But everyone has the right to be in the banking system and financial inclusion. We just had a meeting, our office meeting before we came into the studio, and you said something really profound. You said you’ve got to watch financial inclusion because it can lead to financial exclusion. Can you elaborate on that?

David: Sure. Yeah. Looking at what JT is doing across the boarder, Mr. Trudeau. Mr. Trudeau. Sort of a soft form of martial law. It is a weaponization of banks. It’s a weaponization of the financial industry. And it’s a fascinating thing. I hope we don’t see anything like that here in United States, where free speech and the right to assemble peacefully is called into question. But this is really interesting because you’ve got basically billions and billions and billions of dollars, which did not flow through the economy as a result of government mandated closures. And now individuals who say we’re done with these government mandated closures and restrictions are being blamed for millions and millions and millions of dollars of revenue lost for Canadian businesses. The irony is amazing, pot calling the kettle black is not even to the scale that it needs to be.

Kevin: Well, and the ability to move money, right? In India, a couple of years ago, what they did was they took cash, the most common cash off the market, 500 Rupee, 1,000 Rupee notes. They gave them 30 days to get them into the banking system, open up an account, or they would lose value completely. When you talk about inclusion, that sounds great until, let’s say that you, like in China, your Sesame Credits don’t quite add up, or, in Canada, you haven’t done exactly what the government is saying. Then they say, “Well, you can no longer move money. Your banking system is now shut it down.”

David: Right. What is a peaceful gathering versus an illegal blockade? Coming back to the financial inclusion piece. In India, USAID was the sponsor and we wanted the unbanked to be banked. In many presentations five years ago, I shared a little highlight of—

Kevin: Bill Gates.

David: Bill Gates.

Kevin: Yeah. Bill Gates was saying everybody had the right to be in the banking system. What he was really saying was you had no right to not be in the banking system.

David: Well, the light side is that people have access to credit. The dark side is that creating dependencies on a system allows you to manage the flows of funds, allows you to see everything that is happening,