what happens if Trump sanctions a Canadian bank?

@nobudgetbabe

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Why it worked

The video addresses a timely and potentially alarming financial news event, breaking down complex economic concepts into easily digestible information with relatable examples, which likely drove engagement and shares.

Summary

The video explains the potential implications of the US sanctioning a Canadian bank. It details how global financial systems rely on US dollars and American banks, and how sanctions could disrupt international transactions, potentially affecting Canadians' ability to send or receive money from the US, or even make everyday purchases in the US.

Structure

1Introduction of the potential sanction and its impact on Canadian bank cards.
2Explanation of what bank sanctions mean in the context of the global financial system and the US dollar.
3Discussion of how sanctions could disrupt international money transfers and business transactions.
4Hypothetical scenario of a Canadian bank being sanctioned and its effect on individual accounts and transactions.
5Concluding remarks on the uncertainty of the situation and advice against immediate panic.

On-screen text

what happens if Trump sanctions a Canadian bank?

Original caption

Could your Canadian bank card actually stop working in the U.S.? Potentially. 👀 Hi, I’m Nicole Victoria. I went from $40K in debt to millionaire by 30, built an eight figure net worth in my 30s, and now I teach women how to actually understand money, build wealth and stop feeling completely lost when headlines like this start flying around. Here’s what you need to know. The Trump administration says it will sanction a major bank on Monday. People are speculating that it could be Canadian, but as of right now, we do NOT know that it is. And even if it is, “sanctioning a bank” does not automatically mean your money disappears or your debit card stops working in Canada. Depending on the type of sanctions, though, a bank could lose access to parts of the U.S. financial system. That could potentially affect things like sending or receiving money across the border, certain U.S. dollar transactions, and even whether a card issued by that bank can be processed in the U.S. That’s why the DETAILS matter, and why I’m not making any changes to my money based on speculation. This is also exactly why financial literacy matters. You shouldn’t have to see a scary headline about banks, markets or the economy and immediately wonder if you should pull all your money out or sell your investments. You should understand enough about money to know what actually matters and what’s just noise. If you want me to teach you how to build wealth without needing a finance degree to understand what the f*ck is going on, my brand new FREE training, From Broke to Millionaire in 5 Steps, is available now. I’ll walk you through the five steps I used to completely change my financial life and build real wealth. Go to the link in my bio to watch it for FREE. 💸

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If Trump sanctions a Canadian bank on Monday, will your bank card stop working? Potentially. But before you absolutely freak out, let me break down what's actually happening. Like, your tens. So basically, Trump's administration said that they are going to be sanctioning a major bank on Monday, and a lot of people are speculating that could be a Canadian bank. But what does sanctioning a bank even mean? Think of the US dollar as the popular kid of the global financial system. Banks all over the world need access to American banks. This way, they can move US dollars, send money over borders and conduct business internationally. So depending on the type of sanctions, America can basically tell a bank, you can't play with us anymore. American banks may no longer be allowed to do business with that bank. And other banks around the world might start to back away because they don't want to risk getting sanctioned themselves. Because so much of the world's money moves through the US banking system and American dollars getting kicked out of that system is actually a really big deal. Now, let's just pretend for an example that this is RBC in Canada. We have no evidence saying it's RBC, but just for the example. If you have $20,000 sitting in your RBC account, America doesn't just get to take that $20,000. And your debit card won't suddenly stop working when you go to buy groceries in Canada. The problem starts when your money needs to interact with the United States. This way, they can move US dollars, send money over borders and conduct business internationally. So depending on the type of sanctions, America can basically tell a bank, you can't play with us anymore. American banks may no longer be allowed to do business with that bank. And other banks around the world might start to back away because they don't want to risk getting sanctioned themselves. Because so much of the world's money moves through the US banking system and American dollars getting kicked out of that system is actually a really big deal. Now, let's just pretend for an example that this is RBC in Canada. We have no evidence saying it's RBC, but just for the example. If you have $20,000 sitting in your RBC account, America doesn't just get to take that $20,000. And your debit card won't suddenly stop working when you go to buy groceries in Canada. The problem starts when your money needs to interact with the United States. So if you own a Canadian business and you have an American customer that needs to send you $100,000, your American bank needs to send the money to your Canadian bank. If American banks are prohibited from dealing with your bank, that bank could block the payment. That the sanctions are severe enough, it could actually affect everyday transactions too. So imagine you're a Canadian. You bank with the sanctioned bank. You go shopping in the US, you go to tap your card at a target or buy something online, that transaction could potentially be denied. Same thing if you're in Canada trying to send money to somebody in the US, or if you're making certain payments that have to travel through the US banking system. And this is why people are worried. It's not about, can I buy my $7 Starbucks tomorrow? It's about one of Canada's biggest banks potentially losing access to the world's most important financial system. Now, we don't know if this is a Canadian bank for sure, that's just speculation. We also don't know what kind of sanctions they're talking about. So I wouldn't be pulling all of your money out of the bank right now because you saw something on TikTok. But if this turns out to be a Canadian bank on Monday, then we have some talking to do.