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West Controls SWIFT | Russia and China to create alternative

OWoN: Thinking there is no alternative is a road to disaster. Again more abysmal US Judgement calls.




What Petrodollar: Russia, China To Create SWIFT Alternative


Zero Hedge
By Tyler Durden
10 September 2014

If, when in February Victoria Nuland infamously launched a (not so) covert campaign to replace the ruling Ukraine president oblivious to the human casualties, resulting in a civil war in east Ukraine, NATO encroachment along the borders of Russia, and a near-terminal escalation in hostilities between Ukraine, Russian, and various regional NATO members, the US intention was to provoke the Kremlin so hard that the nation with the world's largest reserves of mineral and energy resources would jettison the US Dollar and in the process begin the unraveling of the USD reserve currency status (as much as Jared Bernstein desires just such an outcome) it succeeded and then some. Because in the end it may have pushed not just Russia into the anti-petrodollar camp... it appears to have forced China in it as well.

According to Itar-Tass, Russia and China are discussing setting up a system of interbank transactions which will become an analogue to International banking transaction system SWIFT, First Deputy Prime Minister Igor Shuvalov told PRIME on Wednesday after negotiations in Beijing.

"Yes, we have discussed and we have approved this idea," he said.

But wait: wasn't it the UK's desire to force Russia out of SWIFT just two weeks ago? Why yes, and the fact that Russia is happy to do so, and on its own terms, once again shows just who has all the leverage, and who really needs, or rather doesn't, the US Dollar.

More from Tass:

Russian authorities wanted to decrease the financial market’s dependence on SWIFT since the introduction of the first U.S. sanctions, when international payment systems Visa and MasterCard denied services to some Russian banks owned by blacklisted individuals.

According to Shuvalov, Russia has been also discussing establishment of an independent ratings agency with China. Concrete proposals will be made by the end of 2014, he said.

As regards China’s payment system UnionPay cooperation with the yet-to-be-established Russian national payment system, Shuvalov said that UnionPay is ready for a full-scale collaboration and will provide all infrastructural capacities for that.

The conclusion will be a repeat of what we have said every single time we report on the Eurasian alliance's drift away from the petrodollar, as stated most recently two weeks ago:

We will merely say what we have said previously, and it touches on what will be the most remarkable aspect of Obama's legacy, because while the hypocrite "progressive" president who even his own people have accused of being a "brown-faced Clinton" after selling out to Wall Street and totally wrecking US foreign policy abroad, is already the worst president in a century of US history according to public polls, the fitting epitaph will come when the president's policies put an end to dollar hegemony and end the reserve currency status of the dollar once and for all, thereby starting the rapid, and uncontrolled, collapse of the US empire. To wit:

In retrospect it will be very fitting that the crowning legacy of Obama's disastrous reign, both domestically and certainly internationally, will be to force the world's key ascendent superpowers (we certainly don't envision broke, insolvent Europe among them) to drop the Petrodollar and end the reserve status of the US currency.

And once China and Russia show that not only can it be done but thanks to US prodding it has been done, expect other countries to promptly follow the anti-SWIFT axis on their own...

link

5 comments :

  1. Not surprising. Am sure this is part of well planned moves to further weaken the petrodollar's grasp on the world's throat. Thank you Russia and China.

    ReplyDelete
  2. Well I remember there were few hints that what is necessary regarding finance turmoil is to have alternative to USA co-operation regarding PP's-----

    Work with those who are willing to co-operate - Ignore those who sabotage all - Find new alternatives - Saboteurs will dissipate

    ReplyDelete
  3. Having the alternative system in place will allow for rapid deployment for other countries needing to move out of a collapsed money system. Any how, the SWIFT system is full of back doors which allow stealing of other people money. So with such a corrupt system, someone is thinking.

    Also, whoever it is who is tasked with the replacement of Federal Reserve Notes (FRN) with Treasury Reserve Notes (TRN) do not want this to happen. First, the revaluation would expose those whose pockets are full of money that was not accounted for...meaning, never tracked to where the funds really went. There will be some explaining that will have to be done...

    I do not want to see the financial system collapse, but in its present state it should be revamped because it has no intrinsic value...the TRN is backed by gold and other precious metals and commodities which will have a higher value and will give every country across the board power/leverage in foreign trade.

    So if we were told that the Bail out in 2008 was $700 Billion, come to find out there is trillions used without our knowledge...how much money did they really print on those Quantitative Easing binges" We will never really know unless the money is called in and exchanged dollar for dollar...this is better than an audit!

    The Dinar is in a similar cesspool where there has been over printing and printing of counterfeit money...

    ReplyDelete
  4. Fedup agree. Consider the SWIFT system much like Microsoft with its "many unknown" back doors. When there is such back doors corruption isn't far behind if not the direct cause. Looking forward to all those cabal warehouses of cash from varied enterprises being nonredeemable.

    Sadly right about the cesspool with the dinar. The overprinting is significant and am not sure anyone really knows just how much was really printed. When see it mentioned they speak of 100's of T's when Iraq's budget calls for just 5T. Another cabal effort to suck dry the "useless eaters". Would like to see that one turned around on the cabal. Not unlike your earlier post about social security as it creates just another stream of income that benefits the cabal, but for once it would be good to see the little person end up on top this time.

    ReplyDelete
    Replies
    1. P,
      The sad part is they will never change; however, I hope they will change for goodness...but it will end up that they wind up in the position that we are in...this is our money...they got caught with their hands in the cookie jar. Now I am willing to share, but they took it all and left not even crumbs for the citizens.

      We work to earn money, we work to take care of our families, we are involved in society; not isolated away living in a castle on a hill by itself...they don't work, they don't mingle, they don't take care of anything...someone else does it for them...talking about useless eaters?

      Delete

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