Brett Oland is the CEO of Bow Valley Credit Union in Alberta, Canada. In this episode, Brett talks about how he came to lead the credit union, how he thinks about inflation, and why he thinks Bitcoin should be the new gold and silver.
00:00:00.000And so effectively in 2008 and again in 2020, we completely detached from reality of the economics of money by basically saying we're going to the zero bound, money costs nothing, we're going to absorb everything and put it into central banks or people's hands or into commercial banks.
00:00:22.560And so basically, once you do something like that, you basically detach the fundamental structure of money. All of a sudden, the fundamental structure of everything breaks down. Physics actually breaks down because you look at something like wind farms or solar farms and things like that, completely uneconomical. They don't make any sense. But yet during zero bound interest rates, all of a sudden physics doesn't matter.
00:00:52.560And welcome back to another episode of the Critical Compass.
00:01:13.240I'm James. This is my co-host, Mike. And we've got a special guest today. We've got Brett Oland, the CEO of Bow Valley Credit Union. Some of you may have seen him on X and Twitter saying things that no other base CEO would say. So welcome, Brett. It's good to have you on the show.
00:01:33.120Well, thanks for that. Well, thanks for that. Really appreciate it. Yeah. Based, I guess it is. So I would love to hear maybe just a little bit on like how you got to this point, maybe a little bit of your background and how you came on to Bow Valley.
00:01:49.760Sure. Yeah. And a lot has driven me towards where my line of thinking, where I sit today. But about 20 years ago, I started my career in banking. I was working down in the Cayman Islands, different type of banking. It was investment fund banking, just different from retail banking that mainly Bow Valley Credit Union does today.
00:02:15.420Sort of left the Cayman Islands, sort of left the Caymans around 2006, ended up back in Alberta. And what struck me as really interesting down in the Caymans is it was working on a fund that was a billion dollars, which seems pretty small in today's terms.
00:02:37.000But we were making about a 12% return per month on this particular fund. And that, I'm sure, continued right through the lead up to the great financial crisis. And it really struck me during the great financial crisis is I felt pretty well prepared for that, as well as obviously the getting 12% return per month on a fund.
00:03:03.500You'd be doing pretty well. You'd be doing pretty well. But then you sort of looked behind yourself and there's 100 people that are struggling. It struck me in around 2008 in the great financial crisis that there was effectively something wrong with the money system if something like that is happening.
00:03:22.860I made the mistake of thinking that it would be very inflationary of what the US in particular did around the great financial crisis of monetizing all the debt, effectively printing a bunch of currency to prop up the system.
00:03:38.980I ended up being incorrect with that because it was largely captured within the system between the central bank, the Fed in the United States, and the commercial banks in the US and didn't get to the broader economy.
00:03:54.160Now, fast forward to 2020, during COVID, when they locked everybody down, basically cut off all means of production and had people sitting at home and started sending out checks.
00:04:09.240And I knew that that was going to be massively inflationary. And I think we're still continuing to see a lot of that happening today. And I don't think we're through the inflationary period.
00:04:22.580Back in 2020, I was recently just assigned the role of CEO of Bow Valley Credit Union. After sort of working at some other jobs and on the board of Bow Valley Credit Union, I sort of parachuted in.
00:04:37.220And I wanted to be able to create something that protected our membership from what I see as incipient inflation. The bigger banks in Canada especially don't do that.
00:04:50.540Their primary concern is the shareholders of the big banks. And a lot of the time, they're foreign shareholders. And the mandate of credit unions is much different than the bigger banks because we actually care about the membership underneath the organization.
00:05:09.260We care about their well-being. So, to us, it seemed like a no-brainer to actually help people prepare for what we see as a massive inflationary decade.
00:05:20.100And we started down this pathway of providing products and services around precious metals because typically over the past 5,000 years, that's the best way to protect yourself against uncertainty, especially inflation.
00:05:36.260And most recently, we've been going down the path of Bitcoin as well, as it also seems to be doing a fairly good job of protecting people's assets and productive means through basically a money in gold and silver in Bitcoin that doesn't deteriorate with the production of fiat currency is effectively what it is.
00:06:00.540So, maybe that does actually raise one question. I'd love to hear how you would communicate this to somebody who's never really asked this question, but like, what is money? Just big, dumb question.
00:06:15.960And what does it mean? Like, if my house increases in $200,000 worth of value, where is that value? Like, I don't have more house. So, what does that all mean?
00:06:28.960No, and that's just about money, Brett, please.
00:06:31.740Yeah, that is really a really big problem in society today. And so, especially with the baby boomer generation, they think they are really smart with their finances, but effectively, no, it's just that you were a result of a product of massive money printing in the background.
00:06:57.240And so, I wouldn't think of that value of that house going up by $200,000, because the purchasing power of that $200,000 isn't there. It's just that they printed so much money in the background that it's effectively goosed the system to a point where it devalued the dollars.
00:07:21.920So, here's a great example of how it would work. So, think of a cup of coffee, and then you pour that cup of coffee into a bowl, and then add a bunch of more hot water into it.
00:07:38.020And so, that's effectively what money printing is doing in the background. And so, eventually, it's going to basically dilute that coffee to the point where it just gets thinner and thinner and thinner.
00:07:49.880And that's effectively what money printing is. So, that original purchasing power or that original espresso that you had actually gets diluted down.
00:08:03.260And that's effectively what's happening when the government goes into debt and deficits or prints money during COVID and helicopter monies it out.
00:08:16.380It's diluting the purchasing power of every single dollar before it.
00:08:22.300But the thing is, normally in society, we don't notice because they have inflation targets.
00:08:28.160And likely, everybody's heard of inflation targets of 2% is usually what they're trying to create.
00:08:35.980But, you know, that's just nonsense to start with.
00:08:39.360Like, why is 2% better than 3% or better than 1%?
00:08:44.280And really, what it is, is they've found that anything higher than 2%, people start complaining about it.
00:08:53.820And they start complaining that their cost of energy is higher, their cost of food is higher, that the cost of housing is higher.
00:09:01.440So, they'll basically print as much as they can get away with.
00:09:05.440So, we definitely noticed it during the COVID times where in Canada, you know, the official inflation rate reached about 8% or 9%, even though it's an old likelihood it was much higher than that.
00:09:20.580Because during the three years of COVID, we increased the Canadian money supply by over 40%.
00:09:26.760So, effectively diluted that cup of coffee by 40%.
00:09:32.900So, every dollar that came before it was diluted.
00:10:07.980And before I get into that, I'll explain why they do it.
00:10:12.100And so, it's like the fox guarding the hen house.
00:10:16.340So, the government has an incentive to not let CPI be high.
00:10:22.500So, with CPP and old age security, as well as tax brackets, if CPI gets too hot, say it's 10% one year, then they have to actually increase CPP by 10%, old age security by 10%.
00:11:44.960Oh, no, there's no inflation to see here, friends.
00:11:47.660But the thing is, I think one of the best indicators of naturally knowing what inflation is, is just going to the grocery store.
00:11:56.340Like, generally, week after week, most families buy the same items.
00:12:02.720And I don't know about you, but I've noticed it, a significant increase from even just a couple of years ago.
00:12:09.640You know, price of yogurt, price of bread, price of milk, eggs, cheese, that pack of hamburger, nobody can afford steak anymore, that type of thing, right?
00:12:20.580So, it's, it's, that's probably your true CPI measure, and it's not this basket of phony goods that they've put together.
00:12:30.620And meanwhile, while, while it's in their best interest to manipulate, you know, if you want to use that word, what the basket of goods represents to, to show a much smaller CPI than, increase than actually exists.
00:12:45.340Because it's, it's actually in their best interest, and the people that they're actually working for, the people with hard goods, if it's, you know, if it's precious metals, or properties, or stakes in businesses, it's, it's in their best, like, that, for those people, it's great.
00:13:00.940Inflation is awesome for them, because their, their goods are inflating along with it.
00:13:05.360But, yeah, that's, that doesn't seem, so they seem to be, I don't know, might you say there's a conflict of interest there?
00:13:12.400No, absolutely, and, and just to that point, but especially around businesses, where, uh, all these businesses out there, not that they're malicious or anything like that, but they're in business for a reason.
00:13:24.960And so, they take a look at the CPI, and go to their employees, look, you know, CPI only went up 2% this year, so I'm going to only give you a cost of living adjustment for 2%.
00:13:36.300But meanwhile, groceries have gone up 8%.
00:13:39.280So, if, if that happens over years, over decades, all of a sudden, the middle class effectively gets wiped out, because of all these, basically, little manipulations that it's a game of inches over time.
00:13:57.420And to, it, it, it, it's all related together, but it piles in with something like immigration.
00:14:05.180So, a lot of people do that job, and maybe they work in a job for 20 years or something like that, and they only got a 2% in cost of living adjustment over those 20 years.
00:14:18.200And finally, they go, forget it, I'm not doing that job anymore, I'm either going to resign and not do anything, or I'm going to go find another position.
00:14:26.340And so, all of a sudden, oh, well, we can't find anybody that's willing to do this job for this little money.
00:14:33.520Well, that's because 20 years ago, the purchasing power of what you were getting paid was much, much better than what it is today.
00:14:41.080Yeah. Yeah, I use that argument a lot with, you know, we, we talk on this channel, I don't know, if you watch any of our stuff, or if you, if you do watch, you'll see probably, I don't know, James, is it every second episode, or maybe every episode at this point, where we say something about how, you know, we try to, like, convert our leftist liberal family members to our way of thinking.
00:15:02.400And, uh, here's, here's another one, here's another one.
00:15:05.920So, there's, there's this, you know, talking point that I've heard a lot on the left of, you know, what, exactly like you said, well, Canadians won't do this job, or, you know, you can't, this is why we need immigration, because, you know, it's only the immigrants who will, who will do this type of work, or, and I, and I try to, like, you know, you look at it in the way of, like, okay, but actually what you're saying is, like, that's actually really convenient if you're a multinational, or if you're a giant corporation,
00:15:32.020because, yeah, that's, you do want it to look like that, but actually Canadians would be more than happy to do these jobs, if they paid what the actual value of the labor is supposed to pay.
00:15:41.540So, what you're actually saying is that, actually, we're too good for these jobs, for the, and, and actually only, we, we can only bring in the third world, these, these people who will work for nothing.
00:15:52.740Like, what are you, what are you actually saying when you say those words?
00:15:55.700Well, exactly, and, and so, it, it almost degrades every single new immigrant, uh, new Canadian, that, that comes, comes to Canada, and, and maybe great, it's, it's maybe worth a fortune to them to, to, to clean toilets or something like that, and it's a much better position than they can get in their home country, but it's still degrading, nonetheless,
00:16:18.340and basically devaluing people, and it goes further than that, just around productivity and, and payment of, of what people are actually worth.
00:16:30.940It, it, it goes into housing as well, so, we, we all know that housing has gone up significantly over the past, say, five years, and, uh, the baby boomers, uh, are a generation where most of their investment is within their residential house, and so, it would be catastrophic for the baby boomers' retirement if, uh, all of a sudden, the housing prices started to decline.
00:16:59.780And so, you goose the system further by pumping as many Canadians as you can into the country to basically goose up the housing, and it's like, that, that's what's really starkly ridiculous about the new mandate of the federal, liberal government of, like, oh, we're going to build 500,000 new homes.
00:17:21.460Well, the most that Canada has ever built, ever built in their highest period was 250,000 housing units, and so, how are we going to come in and basically double that?
00:17:33.660And they know that they can't do that, they've, they've failed ridiculously at it, but the thing is, they know it's also going to goose the system and keep those housing prices propped up, so the system doesn't implode on itself.
00:17:45.980Yeah, and then it also, it, it placates, you know, anyone who's listening to those numbers and those statistics, so when they hear the fact that, you know, in the first quarter of 2025, the liberal government imported 860,000 people from India or something, it's a crazy number like that, it's almost a million people in the first quarter of this year.
00:18:08.320And so you hear, okay, well, we're going to build 500,000 new houses, maybe there's two people to a house, you know, okay, that, that seems to make sense, but actually, to your point, it isn't two people to a house, especially when you're, when you're talking about, you know, Indian or Filipino immigrants, these are people who come from cultures with multi-generational housing.
00:18:26.800And so you have maybe five or six or eight or 10 people to a house and, and, uh, you know, somebody with a more of a Western mindset who, who has a, you know, the single family home sort of idea of what they want their life to be, maybe them and their wife and their kid or two kids or something.
00:18:48.820And so then all of a sudden they're able to buy a second home or a third home and that type of thing and, and just keep on piling in and, and don't get me wrong.
00:18:56.720I have zero problem with immigration, but the thing is it needs to be managed to the point where we're actually keeping up with school services, with legal services, with hospitals and yeah.
00:19:10.020And people scratch their heads and go, gee, why is it taking eight hours to get into a hospital bed?
00:19:15.500And it's like, it's a no brainer to me, but the thing is, it, it seems that people have lost a bit of that ability to have some critical thinking and think of those.
00:19:27.380Derivative, uh, effects of, of a lot of these policies that we've sort of absorbed.
00:19:32.580So yeah, and this goes beyond left, right, because, uh, these are tools that are abused, um, pretty much by any side.
00:19:44.220Let it be when it comes to expanding, spanning debt.
00:51:11.540of course, I don't think we're doing anything wrong other than educating.
00:51:16.000And we're not likely big enough as an organization to make a huge impact.
00:51:21.540But the thing is we're, we're trying to help our members and people understand this a little
00:51:25.940bit better because that's really our proposition is I don't think governments are going to stop.
00:51:32.340They're going to continue to print money.
00:51:35.980They're in a position right now, which is termed fiscal, fiscal dominance.
00:51:40.300And really what that means is they cannot function without going bankrupt, without printing money.
00:51:49.900So the, the debt is so big and the interest payments are so big.
00:51:54.520And these, these goodies promises that they've, they've promised people are so big that if they do not print the money, the system will collapse.
00:52:04.520And, and that's effectively the entire Western world.
00:52:08.520So they need to continue to inflate, but eventually the road's going to run out there.
00:52:14.520There, the, the system's going to need to be re recapitalized.
00:52:18.520And the thing is it's, it's happened before in history.
00:52:25.520It's, uh, effectively the last time it, there was a semi, uh, piece of it happening at late seventies and early eighties in Canada.
00:52:33.520Before that it was, uh, around in the forties for world war II.
00:52:38.520Before that it was the beginning of the 1900s and led to the first world war, like these, these things happen all the time.
00:52:46.520And, and generally what they try and do is create something like a war, uh, to basically cover up their financial malfeasance.
00:52:56.520And so it's, it's again, not a surprise to me that a lot of the Western countries are basically banging the war drums and saying, we need to invade Russia.
00:53:08.520We need to go blow some up, up some stuff.
00:53:10.520And the thing is my, my wife's family is from Ukraine.
00:53:14.520Like I have a ton of sympathy for the country, but the thing is.
00:53:18.520The, the way that the Western world is acting is, is they're, they're trying to get us into this war.
00:53:23.520And, and, uh, Trump maybe have, have skirted around that issue now, but he's basically saying, no, we're not going to let you basically reset the system and do this again.
00:53:33.520We're going to do things differently this time.
00:53:37.520And that's, you know, everything you say there about the, you know, this basically being an affliction that's common amongst, if not all than most Western nations right now leads me to, I think this, this point we wanted to get, get some of your thoughts on, um, with respect to the Alberta independence movement right now, uh, wanting to break away from this, you know, what, what a lot of people term as a, you know, as a sinking ship.
00:54:00.520Certainly Jeff Rath would call it that we've interviewed him, uh, Bruce party, same, same sort of idea from a banking perspective.
00:54:07.520Let's say Alberta does become independent.
00:54:09.520Do we switch right away to, to an American dollar?
00:54:13.520Like just maybe take us through some of the, the major points that you would see from a, from a banking economic perspective in the conversation of Alberta becoming an independent state.
00:54:26.520First, first off, I'll say as the CEO of Bow Valley credit union, I do not have a position on this, but if, if I was going to become a separate country, uh, I think, yeah, you touched on a few, few points there.
00:54:40.520I would definitely transition to a U S dollar first and basically be able to flip a switch and move everybody's Canadian dollar account in, and convert it into U S or the equivalent effectively overnight.
00:54:55.520Because I think it's important for people to, to understand that Alberta is effectively underpinning the Canadian dollar because we are a resource based country.
00:55:08.520It might get wild in the U S or, uh, Canadian effects exchange for an exchange.
00:55:20.520So I think plans need to be sort of in place before a vote even happens around something like that.
00:55:27.520So now my recommendation would be go to U S dollar first, uh, because it's the most liquid and stable, uh, currency in the world.
00:55:36.520It's, it's still a dirty shirt, but it's the least dirty shirt.
00:55:39.520I would also recommend getting a line of credit with one of the bigger banks, uh, in the United States for say $500 billion to give confidence to.
00:55:51.520The people of Alberta that we can pay our bills, even though sort of day one under the value of freedom, uh, document that Jeff Wrath and the APP produced.
00:56:04.520Um, we would be able to be solvent and, and sustainable, uh, effectively day one, uh, with, with our finances, but a line of credit would go a long way for assurance.
00:56:14.520As well as I think we would need a U S swap line, uh, with, with, uh, the U S government, the state department, um, to basically continue with trade with, with our major trade partner, the U S.
00:56:28.520And it makes a lot of sense because, um, a U S swap line would allow you to trade oil and gas in, in U S dollars.
00:56:39.520And again, you'd probably need about a $500 billion swap line minimum with something like that.
00:56:45.520Um, if you eventually did want to transition to an Alberta dollar, uh, what I would recommend is first moving to the U S dollar and then, uh, setting up.
00:56:57.520Uh, setting up the structure behind it, uh, with basically a reserve behind the dollar.
00:57:05.520Uh, you, you wouldn't need a hundred percent backing for the reserve, but say 30% backing for the reserve.
00:57:11.520And, and that reserve would consist of about 50% gold, uh, 30% or 40% oil reserves.
00:57:20.520And then maybe another 10% for Bitcoin, um, to basically underpin and give confidence that the Alberta dollar does have something besides government promises behind it.
00:57:34.520So part of the challenge is to, to set up some kind of reserve structure like that.
00:57:38.520You likely would need something like a central bank.
00:57:41.520I'm not a huge proponent of central banks.
00:57:44.520So you'd have to really scale back what their powers are and their abilities to do behind that.
00:57:50.520And maybe their only function is to make sure that credit doesn't grow too fast within the commercial banking sector.
00:57:59.520Uh, meaning that commercial banks can't create loans to get to a place where there's a bubble.
00:58:05.520Um, and, and, uh, asset prices get goosed and basically ensure that the, the, uh, stabilization factor of the reserve of gold, Bitcoin and oil is, is intact.
00:58:18.520And that effectively the dollars, uh, produced are not outstripping the need for, for production in, in, in Alberta.
00:58:29.520So anyway, that's, uh, a few ideas that I would recommend.
00:58:36.520And it seems like that would be in line with, um, there are many who seek the, they, they see Alberta independence as a good opportunity to set up more, maybe checks and balances on a government side.
00:58:50.520Because if you just leave Canada and you've got the same career, like same fundamental issues underpinning your society, like you'll just create a small Canada outside of Canada.
00:59:01.520Like, so are we leaving, like, are we actually leaving, like, or are we just replicating the system that we're trying to get away from?
00:59:10.520So I feel like on the government level, those checks and balances would be key in addition to like a central bank that again, was there to enforce, to provide that confidence and level playing field on the financial side.
00:59:26.520That's a different, it's playing a slightly different focused role than central banks would be currently in a fiat system.
00:59:34.520So like there are ways of weaving in these checks and balances.
00:59:39.520So yeah, it would just need to be a spy design, some really good focused direction when it comes to, to some of these things.
00:59:50.520Yeah, no, and absolutely that, that, and that'll take time to set up as well.
00:59:54.520And so that's, that's maybe what you do during the transition period from, from the U S dollar.
01:00:00.520Yeah, you're Alberta is definitely in a position.
01:00:05.520You definitely want to be a rich idiot versus a poor idiot.
01:00:08.520But the thing is, you still don't want to be that idiot.
01:00:10.520That's that basically in another 50 years, we'd be running into the same problems that the West is in right now.
01:01:07.520Um, and unfortunately we can only help Alberta just because of our, our regulations that, that we have in place at, at the time being.
01:01:17.520But as mentioned, really what we started from five years ago on was to create products and services to help people navigate this.
01:01:28.520What we see is a, a massively inflationary time.
01:01:32.520Um, so we have, uh, products both on the gold and silver, precious metal side, as, as well as on, on the Bitcoin side to help people protect against that.
01:01:42.520The Bitcoin gateway is, is a new account that's linked to, uh, your Bow Valley credit union account.
01:01:50.520And you can seamlessly move fiat cash to Bitcoin back and forth within seconds.
01:01:57.520Um, and so effectively the on ramps and off ramps, you don't have to worry about, um, a lot of financial institutions will block, uh, Bitcoin transactions.
01:02:07.520And so we've basically combined our banking rail system.
01:02:17.520You can do e-transfers, that type of thing.
01:02:20.520All regular banking functions, but with the actual store of value being in, in Bitcoin.
01:02:26.520And now we've, we've on the, on the gold and silver side, it's a much more robust system just because we've been at it for longer than the Bitcoin.
01:02:36.520So, uh, you can purchase physical gold and silver through us.
01:02:41.520We also have what's called an e-metals account.
01:02:44.520So it works the same way as the Bitcoin gateway.
01:02:46.520You can transition from your Bow Valley credit union account into your e-metals account, seamlessly back and forth, purchase tokenized gold and silver.
01:02:55.520It's, it's tokenized because it's much more effective to pay less premiums and less cost when you're going in and out of gold and silver.
01:03:07.520Uh, the premiums can get quite high on like one ounce coins of, of say silver.
01:03:12.520It's upwards about 15% or on gold, it can be around 3%.
01:03:17.520Whereas with this tokenized system, we're using 400 ounce bars of gold and thousand ounce bars of silver.
01:03:24.520So you own a fraction of that, but don't have to pay, um, basically the cost.
01:03:29.520And, and it's, it's like basically your volume buying, but we fractionalized it.
01:03:35.520So you can just get a portion that so you can buy 50 cents worth of silver or 50 bucks worth of gold.
01:03:41.520And it makes it much more, uh, accessible for people being a little bit more robust.
01:03:48.520You can actually borrow against your gold and silver.
01:03:50.520So if, if you say have $10,000 in gold and silver, oops, your furnace blew up or something like that.
01:04:55.520Uh, I'm fairly active on X, uh, at Brett underscore Oland.
01:05:01.520Um, I'm, I'm extremely sarcastic most of the time on there, but, uh, you can also go to our website, bowvalleycu.com.
01:05:11.520Uh, there's, there's a ton of great information on there, uh, just about our products and services and our locations and, and how we can try and help.
01:05:23.520This has been, this has been so cool to, uh, I, I never thought we'd, uh, we'd actually have a podcast where we interview a CEO of a bank and it's not like, and I don't feel like I have to have a shower after, you know what I mean?