Audrey,

Sorry, I have already exchanged it for goods that retain value, before it lost any more value.

Andrew:

Whereas it is true that the reserve requirements of Canadian banks are 0% of deposit liabilities, the banks have desired liquidity ratios (if you like, desired reserves/deposit liabilities). The Bank of Canada has found that it can quite easily control the money supply in the absence of “required” liquidity ratios. Any changes in reserves by the central bank, however, affects bank liquidity, bank lending and the quantity of money in Canada in a fashion similar to the way it does in the U.S., with required reserves.

“I am informed that after 2 million dollars in a regular off the street chequing account you must open a private banking account, ie; go from CIBC to the Wood Gundy Investment Banking Division, which is an arm of CIBC. Or at Toronto Dominion go to TD Waterhouse, the reason I am told this, is because all private banks report more frequently to Revenue Canada to monitor high net worth clients tax payments. My extended relative stated he was pressured, and emphasize, heavily pressured, to buy Canadian government bonds by Wood Gundy.”

Something funny going on here. If Wood Gundy was doing such heavy pressuring for a wealthy client to buy Canadian government bonds, it can only be as part of their investment advice. However, it would seem as though your relative needs to get some independent (fee-for-advice, not commission fee-linked advice). It would be strange for anyone to want to hold $2 million in a checking account at any bank. Any banker seeing this would “suggest”, rather than require that the client discuss his financial needs with their investment banking arm.

But again it would seem that your high net-worth relative needs the kind of financial advice that is institution and instrument independent.

At least some bloggers can still write. Thanks for this article..