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Russia To Create Own National Payment System In "Bid To Reduce Dependence On The West"

Tyler Durden's picture


The more the West attempts to "isolate" Russia and pushes it away from its "core values" and of course the US Dollar, the more Russia will seek the safety of a non-dollar based system. We have previously described how Putin has been scrambling to enmesh Russia in tight bilateral commodity-based trade with both China and India, and now it is Russia's turn to announce it would seek its own "national payment settlement system" following last week's surprising and unmandated service halts by both Visa and MasterCard, which as Vladimir Putin said earlier today, will be a "bid to reduce economic dependence on the West."

Putin observed, cited by AFP, that Russia is aggressively looking to trim its dependence on the west for payment settlement: "In countries such as Japan and China these systems work, and work very well," Putin told lawmakers in televised remarks.

"Initially, they started out solely as national systems limited to their own markets, their own territory, their own population but they are becoming more popular right now... Why should we not do it? We should definitely do it and we will do it," he said, noting that Russia's Central Bank and the government have been looking into the matter.

And as everybody knows, while the biggest trump card over the West Russia has are its energy exports, one can retort that Western leverage over Russia is in the form of SWIFT, or the "Society for Worldwide Interbank Financial Telecommunication", aka the umbrella framework for all interbank transactions taking place in a petrodollar world. If and when the day comes when Russia and/or China and/or India and/or any other BRICs and other nations who are tired of the hegemony of the fading US superpower, decide to create their own version of Swift, all bets on the reserve currency for the past century are off.

In the meantime, we will settle with Russia making its own electronic payment settlement system. More from AFP:

Last week the United States hit more than 20 Russian officials, including some of Putin's closest allies, with sanctions over Moscow's takeover of Ukraine's peninsula of Crimea. A lender described as a "crony bank" for the Russian elites, Bank Rossiya, was also blacklisted.


As a result of punitive measures, several banks last week saw their customers barred from using Visa (NYSE: V - news) and MasterCard credit cards prompting talk among officials and lawmakers that Russia should create its own operational network.


"It's a great shame that some companies have taken a decision on certain restrictions," Putin said. "I think it will simply lead to a loss of certain segments of the market for them, and a rather profitable market at that."

Unlike Obama, whose repeated iteration of "costs" to Russia should it annex Crimea, which it did, is now the laughing stock around the world, Putin's threats are not to be trifled with. To wit: "We should protect our interests and we will do it."

But not yet:

Finance Minister Anton Siluanov said on Wednesday that the government had no plans so far to ditch Visa and MasterCard. "But at the same time we are beginning to pay more attention to the creation of our own payment settlement system."


US President Barack Obama has threatened to target the broader Russian economy if Moscow moves into east Ukraine after its takeover of Crimea.


This week, Washington and its partners in the G8 club of leading industrialised countries cancelled an upcoming summit in the Black Sea resort of Sochi in a bid to punish Russia further.


Putin has shrugged off the sanctions, insisting Moscow will conduct an independent foreign policy and would not take orders from the West.


Ratings agencies Standard and Poor's and Fitch last week revised Russia's outlook to negative from stable, citing the direct and anticipated impact from the sanctions and the country's increasing isolation. Some Russia officials dismissed the revision, claiming the move was politically motivated.


Economy Minister Alexei Ulyukayev warned earlier Thursday that the country risked growth of just 0.6 percent this year with capital flight expected to reach $100 billion.

The problem is that should Russia enter into a recession, it will simply drag the economies of all those other countries who are reliant on bilateral trade with it. Such as Germany. Then again, this could be precisely the annual scapegoat the broken global Keynesian model will need to explain why - for yet another year - the global economy will fail to generate a self-sustaining growth pattern despite trillions in central bank liquidity injections, and $16 trillion in hot money emanating from China.


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Thu, 03/27/2014 - 11:16 | 4598590 fightthepower
fightthepower's picture

Fuck you Rothschilds!

Thu, 03/27/2014 - 11:20 | 4598607 quintago
Thu, 03/27/2014 - 11:25 | 4598636 LawsofPhysics
LawsofPhysics's picture

Great link to information that no MSM will undoubtably show...

Thu, 03/27/2014 - 11:27 | 4598654 Herd Redirectio...
Herd Redirection Committee's picture

"Oh, hey, look over there, its a starving bear!  Lets corner it and see what happens..."

The West has forced Russia into a siege mentality.

Thu, 03/27/2014 - 11:29 | 4598663 Pladizow
Pladizow's picture

Thanks for coming out America - good game!

Thu, 03/27/2014 - 11:37 | 4598712 SafelyGraze
SafelyGraze's picture

give me control of the settlement/clearing of a nation's credits, and I care not who issues its currency

Thu, 03/27/2014 - 11:52 | 4598812 Thought Processor
Thought Processor's picture



This is a big move.  Bypassing the SWIFT system is a big FU to the NWO sponsored Central Bank System.


If Russia can now link this to a China / India trading system then they will have taken a chunk of power from the NWO / BIS network.


Question is- is it real or is it a negotiating move on the part of Russia?


Regardless, expect the war drums to begin beating harder in the western MSM's now.



Thu, 03/27/2014 - 11:57 | 4598839 Latina Lover
Latina Lover's picture

False flag in the USA, targeting Russia for war, counting down 3.2.1...

Thu, 03/27/2014 - 11:59 | 4598856 SWRichmond
SWRichmond's picture

Cue shirtless pic of Putin carrying rifle and Russian credit card in 3...2...1...

"What's in YOUR wallet?"

Thu, 03/27/2014 - 12:01 | 4598866 Stackers
Stackers's picture

The Russian Express card - never leave home without it

Thu, 03/27/2014 - 12:05 | 4598889 SWRichmond
SWRichmond's picture

In Russia, card charge YOU

Thu, 03/27/2014 - 12:19 | 4598954 Max Hunter
Max Hunter's picture

The inchworm moves slowly, but moves nonetheless.

Thu, 03/27/2014 - 13:06 | 4599104 dontgoforit
dontgoforit's picture

Thu, 03/27/2014 - 13:07 | 4599175 Anusocracy
Anusocracy's picture

I, for one, am going to buy more Russian products.

Starting with vodka.

Thu, 03/27/2014 - 13:18 | 4599205 tmosley
tmosley's picture

You can tell how much he actually cares about his people or if he prefers personal power by whether or not he adopts a cryptocurrency based payment system.

Meet the new boss, same as the old boss.

Thu, 03/27/2014 - 13:23 | 4599227 ParkAveFlasher
ParkAveFlasher's picture

Every step towards self-empowerment naturally is a step away from those who would not empower you.

Thu, 03/27/2014 - 12:57 | 4599123 BLOTTO
BLOTTO's picture

Rothschild, Rockefeller, The Royal Family and the rest of the illuminati royal occult bloodlines here on this earth - are the problem. They are what is causing our lives misery.


Until we can get that corrected - nothing changes.

Thu, 03/27/2014 - 15:24 | 4599848 sessinpo
sessinpo's picture

 BLOTTO    Rothschild, Rockefeller, The Royal Family and the rest of the illuminati royal occult bloodlines here on this earth - are the problem. They are what is causing our lives misery.

.Until we can get that corrected - nothing changes.


I don't get it.

Let's say the Rothschild, Rockefeller, The Royal Family and the rest of the illuminati royal occut bloodlines were all shot dead today, there would just be someone else to replace them.

It's like capturingt or killing a Mexican drug lord. So what? Then someone else becomes the drug lord of that gang.

The elite have been around forever. Through wars and depressions. They always come out on top because they have the resources. It is the population that suffers and pays.

Thu, 03/27/2014 - 12:09 | 4598912 McMolotov
McMolotov's picture

I really hope you're wrong, but you're probably not. People mistakenly think Russia is the one backed into a corner; in actuality, it's the United States.

"Desperate times call for desperate measures" is usually the rationale behind humanity's most stupid and unforgivable events.

Thu, 03/27/2014 - 12:20 | 4598960 Max Hunter
Max Hunter's picture

Absolutely. It's obvious to some of us who is moving around the chessboard frantically to protect the king and who is blocking these frantic moves with pawns..

Thu, 03/27/2014 - 12:02 | 4598871 Overfed
Overfed's picture

After casting off the shackles of the West and the Rothschilds, et. al., without even firing a shot, Putin will be remembered by history as Vlad the Great, after Peter and Catherine. And likely even more beloved and reknowned by Russians.

Thu, 03/27/2014 - 13:20 | 4599212 pot_and_kettle
pot_and_kettle's picture

May Gd guide his steps


( that isn't a cue for those who believe otherwise to engage in or provoke rancor - live and let live )  :-)

Thu, 03/27/2014 - 13:34 | 4599277 kashey
kashey's picture

Not yet. I am Russian, I have been strongly anti-Putin since 2006 when he used chechen attack on Beslan school to eliminate right of Russians to elect regional governors (now he co-appoints them with regional parliaments). And since then my anti-putin sentiment grew every year. But regarding Crimea I support him greatly, as more than 80% of Russians do. I would even be against sending him in court if he is toppled somehow - as recognition of his contribution in Russian history, which is now not only negative.
But to be called Great he must reunite with Russia ethnic Russia lands in South and East Ukraine, Northern Kazakhstan. and Russian lands of Estonia and Latvia could make him the Greatest.

Thu, 03/27/2014 - 14:54 | 4599675 Overfed
Overfed's picture

The thing in my mind that would make him great is this; if when his work was done, he just stepped down from power, ala George Washington. Were he to do that, he would be regarded extremely favorably by future generations, Russian and non-Russian alike. We all have front row seats to some real history in the making here, whatever the outcome.

Thu, 03/27/2014 - 15:03 | 4599739 pot_and_kettle
pot_and_kettle's picture

RE: But to be called Great he must reunite with Russia ethnic Russia lands in South and East Ukraine, Northern Kazakhstan. and Russian lands of Estonia and Latvia could make him the Greatest.


Target date 2017... and I'll take the under.

Thu, 03/27/2014 - 17:08 | 4600255 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

anyone who knows anything about Russia knows that it is ALWAYS about them having a warm water port. The Ukraine Parliament had a hard time recently granting a renewal of the Crimea naval yard lease to Russia, fisticuffs on the floor. Russia would have seen that and then said Shit we need to REALLY secure Crimea. Otherwise they have to get their navy through the Helgoland Bight (Denmark) or else around from friggin Vladivostok. And notice how much they are spending to beef up Vladivostok too

Thu, 03/27/2014 - 12:56 | 4599117 Grom Hellscream
Grom Hellscream's picture

They had started this one earlier, but will be accelerating roll-out for local transactions, since Visa and Mastercard are now unreliable in country.

If this is made available outside Russia, I want one. I'm sure they will just laugh when some US three letter agency tries to serve an administrative warrant for my purchase data.

Thu, 03/27/2014 - 13:20 | 4599219 tmosley
tmosley's picture

Now if only you and the rest of ZH would realize that Bitcoin also bypasses SWIFT.

Thu, 03/27/2014 - 17:11 | 4600267 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Oh, look, I wonder if this guy knows ANYTHING at all about SWIFT...I mean he was only the CEO for fourteen years:


Thu, 03/27/2014 - 14:49 | 4599655 trader1
trader1's picture

setting up a payment system to rival SWIFT's would take at least 3 years.


Fri, 03/28/2014 - 08:44 | 4602035 Global Observer
Global Observer's picture

Making a payment system bypassing the SWIFT isn't a big move by itself. Nor will be shutting the US$ out of the trade within the BRICS bloc (which I suspect is already the case). What will be a big move is creating a currency to replace the US$ completely in international trade. Timothy Geithner has acknowledged that China has discussed with him a supra-sovereign currency that should act as the world's reserve currency instead of the US$.

The BRICS bank with its own currency is a done deal as is the death of the US$. The US government far from being against it, is actively pushing for it. The US economy will be consigned to the dustbin, but the elite will get even richer.

Thu, 03/27/2014 - 12:30 | 4599006 Kirk2NCC1701
Kirk2NCC1701's picture

@SafelyGraze: "give me control of the settlement/clearing of a nation's credits, and I care not who issues its currency" <-- quoting/paraphrasing A.M. Rothschild.

Looks like ICELand said "Forget yew!" (pun).  They opted for own crypto-currency:

Wish more countries would follow:  Crypto-currency (CC) for trade, and PM for Store of Value.  Then they can all say "Forget yew!" to BIS, IMF, WB and Fed.

Thu, 03/27/2014 - 19:38 | 4600752 Rafferty
Rafferty's picture

Our real rulers know that and would fight tooth and nail to avoid it.  And it's their finger that's on the button.

Thu, 03/27/2014 - 11:38 | 4598718 krispkritter
krispkritter's picture

Commicard...what's in your walletsky Comrade?

And finally, when they call 'Peggy', it will be a local call...

Thu, 03/27/2014 - 11:40 | 4598730 Global Hunter
Global Hunter's picture

#1 in the world at unifying people around the world in their opposition to US policy.

Thu, 03/27/2014 - 12:37 | 4599032 Lewshine
Lewshine's picture

"Russia To Create Own National Payment System"

...So this is a bad thing? The US has been creating its own Stock, Bond, Currency and Commodities market for the last 20 years - And look how grand things are here!!


Thu, 03/27/2014 - 11:36 | 4598677 ParkAveFlasher
ParkAveFlasher's picture

The West is more fragmented than Russia is seiged.  Putin is not extending now, or lashing out, he is backfilling his perimeter, he is solidifying his positions and realizing his profits.  The lightening speed of these developments means that it's all a ball rolling downhill at this point.  No one seemed to notice that ball being rolled into position.

Thu, 03/27/2014 - 11:37 | 4598710 McMolotov
McMolotov's picture

As another poster said yesterday, "Russia is not Iraq." The US can't go to the first play in its playbook and invade/occupy Russia. We've screwed the pooch big time, and whether or not this was all intentional is anyone's guess, but it's pretty much a moot point now.

America is in the process of being cut off at the knees.

Thu, 03/27/2014 - 11:40 | 4598727 krispkritter
krispkritter's picture

The one's Obama's always on...?

Thu, 03/27/2014 - 11:41 | 4598732 Herd Redirectio...
Herd Redirection Committee's picture

Hey, a lot of times being under siege was preferable to being the side laying siege...

Backs against the wall, us against 'the world'...  Its a tremendous unifying and motivating force.


Thu, 03/27/2014 - 11:51 | 4598799 ParkAveFlasher
ParkAveFlasher's picture

I agree that the West has sued to "back Putin into a corner".  The West hasn't realized that Russia is just one big mf'n corner.  One big corner with lots of water, timber, energy resource, access to eastern markets, access to western markets, minerals, cheap labor, and so on, and so on, and so on, ...

Meanwhile, TBTF here in the USA is acting like the two pasty shmoes in the Jackass movie on the golf course, as Knoxville gleefully fires his air horn at them.

Thu, 03/27/2014 - 12:34 | 4599020 Herd Redirectio...
Herd Redirection Committee's picture

The only thing they are missing is a warm water port, and possibly a larger buffer from NATO's missile 'defences'.  Oh wait...

Thu, 03/27/2014 - 12:16 | 4598941 MarsInScorpio
MarsInScorpio's picture

Every post positive for Putin or the Russians, and negative for Obama, gets at least one down arrow,


Definitely a troll in the house . . .


Thu, 03/27/2014 - 13:24 | 4599230 pot_and_kettle
pot_and_kettle's picture

always some dung in the woodpile ;-)


( no - that doesn't mean it's me! )

Thu, 03/27/2014 - 14:27 | 4599502 SDShack
SDShack's picture

"We have a turd in the punchbowl..."

Thu, 03/27/2014 - 16:24 | 4600117 kurt
kurt's picture

Baby Ruth in the Pool

Thu, 03/27/2014 - 11:47 | 4598777 sushi
sushi's picture

More importantly Putin is the leading edge of a growing global awareness of the risks of being made subject to an uncontrolled global hegemon.

If the readers of ZH are aware of flase flag events, the FUCK THE EU thinking, the meddling in the internal affairs of other states, the attempt at control via various form of trade sanction, the despotic IMF and World Bank, the advantage of being free to mint petrodollars as if they were gold, then one must accept that there are many in the G77 equally aware of these issues. These G77 nations realize that the current global system works against them and serves to favour the interests of the G1 above all others.

Why lend any support to a state that will act to depose you if it wishes or launch a Hellfire through your window? The actions of the US are reminiscent of the actions of the COMINTERN. Todays US foreign policy actions will be seen in retrospect as the day the US commenced seppuku with an old wooden spoon. The outcome will be drawn out and painful but inevitable.

Thu, 03/27/2014 - 12:09 | 4598913 NotApplicable
NotApplicable's picture

A lot of people felt the same way on Sept. 10th, 2001.

Yet it was all forgotten the VERY NEXT DAY.

Logic is one tool, emotionalism is another.

Guess which one is more powerful.

Thu, 03/27/2014 - 19:48 | 4600800 Rafferty
Rafferty's picture

Emotion is more powerful, true.  But logic has a way of catching up with emotion.  All the emotion in the world won't roll back what the USA and the West in general has been doing to itself for decades.

Thu, 03/27/2014 - 12:04 | 4598884 jopa
jopa's picture

If the west Ukraine collapse all Europe (east and west) cope the dirt.

Both side must work together (and are, backstage).

The boasting from a part and another is just a try not to lose face.

If Ukraine falls Europe and Russia lose face and a lot more, not mentionning ukrainians.

Thu, 03/27/2014 - 22:37 | 4601340 U-P-G-R-A-Y-E-D-D
U-P-G-R-A-Y-E-D-D's picture

That's because the chart that the West was rolling the ball up showed projected gains to infinity.  

Thu, 03/27/2014 - 12:16 | 4598945 Volkodav
Volkodav's picture

Not good idea to go gangbangin mentality into Taiga...

Thu, 03/27/2014 - 12:17 | 4598946 Kirk2NCC1701
Kirk2NCC1701's picture

How anti-Rossiyist of the Men in Green.

Thu, 03/27/2014 - 11:23 | 4598629 Sudden Debt
Sudden Debt's picture

:) they own both sides. It's where the money is.

Thu, 03/27/2014 - 12:17 | 4598910 SteveNYC
SteveNYC's picture

In a study of history, the worst decision the US ever made will be seen as the use of its currency and payment systems as a "weapon" against other countries. For the short-term benefit and dick-swinging bragging rights it may have yielded, the long-term results will be a disaster. Any country/group on the receiving end of such treatment has IMMEDIATELY sought an alternative and general diversification.

De-globalize, de-dollarize, reduce dependence and realign, this is what is happening given the stupidity of using the $ system to threaten and harm other countries.


Thu, 03/27/2014 - 11:17 | 4598594 LawsofPhysics
LawsofPhysics's picture

Trade trumps all bullshit paper promises.

As in, what items of real value do you have/produce that we can exchange?


(p.s. this does not bode well for countries full of dependents who produce nothing of real fucking value...)

Thu, 03/27/2014 - 11:21 | 4598622 Der Wille Zur Macht
Der Wille Zur Macht's picture

Paper has some inherent value I suppose. Say, wrapping gifts, starting a fire, and wiping oneself after a spectacular shit.

Menger would be so proud. 

Thu, 03/27/2014 - 11:26 | 4598645 LawsofPhysics
LawsofPhysics's picture

Yes.  Actually, in a bank run situation, the physical notes do become somewhat more valuable.  Fucking stupid, but fits with supply/demand...

Thu, 03/27/2014 - 11:30 | 4598667 Der Wille Zur Macht
Der Wille Zur Macht's picture

My digital balance, accessible only through a piece of plastic I keep in my wallet, however, is limited to prying stubborn latches and arranging illicit powders into linear, easily snortable patterns.

Thu, 03/27/2014 - 11:25 | 4598639 walküre
walküre's picture

Rest assured, promptly after Putin "consulted" with his CB, he called his buddies in London

Putin: So, how do we actually create a payment system?

London banker: No problem Mr. Putin, we will help you with that (as long as all payments get settled in London)

Let's face it. Neither Russia, nor China nor India have the wits, the trust and the faith to establish their own payment or settlement system. Somewhere along the lines they will need to employ the wisdom of a "trusted" banker and most definitely from a certain tribe. If it was possible any other way, it would have happened long ago. Even the Soviets couldn't establish that properly and Moscow had allot more muscle then.

Thu, 03/27/2014 - 11:40 | 4598680 LawsofPhysics
LawsofPhysics's picture

Bullshit, but more to the point, the people in Russia, China, India, Brazil, etc. are already accustomed to being self-reliant and dealing with a corrupt government.

how's that going to work out in the average (SNAP-dependent) societies across the U.S.S.A.?

As Crimea now reminds us, people define their borders and alliances...


Thu, 03/27/2014 - 11:59 | 4598854 Thought Processor
Thought Processor's picture



This is the big question in a nutshell:


Has Russia / Putin gone rogue?   Is he seperating Russia from the BIS Central Banking system?  

ie: Is this for real?


Either way it leads to a reset for the west as western debt will implode as a result of this action (that is if Russia really does seperate from the western system).


In my mind all roads lead to a reset and a larger war of some sort.  


When and how are the only real questions.



Thu, 03/27/2014 - 12:07 | 4598895 LawsofPhysics
LawsofPhysics's picture

Look, given the current state of ownership on earth, it is very clear that a relative few oligarchs around the planet already control the majority of the productive capacity in the world.

They will not destroy the world, it's far too valuble to them.  A new world order is coming, the "statesmen" in the BRICs know this and they damn sure want a better deal.  That's what they are negotiating here, period.

Thu, 03/27/2014 - 12:20 | 4598957 Thought Processor
Thought Processor's picture



Sadly I think the above is correct.   Time will tell though.

Thu, 03/27/2014 - 12:38 | 4599035 Ghordius
Ghordius's picture

"A new world order is coming..." or, put more simply, the US is not the sole hyperpower anymore (1995-2013) and something resembling the the Old World Order of 1945-1995 comes back. multipolar

a period where Dear Uncle Sam was indeed - among a few missteps - mostly a champion for liberty, cooperation and prosperity

Thu, 03/27/2014 - 12:56 | 4599115 Zerozen
Zerozen's picture

What's to say the New Old World Order wouldn't have the champion good guy/decaying bad guy roles of the US/Russia reversed?

Thu, 03/27/2014 - 13:08 | 4599181 Ghordius
Ghordius's picture

damn. now you gave me bellyache. though knowing a bit Russia... let's say I expect no further monopoly on "goodness"

Thu, 03/27/2014 - 13:39 | 4599305 Anusocracy
Anusocracy's picture

For over 200 years Uncle Sam has been a champion of destroying liberty, hegemony and government prosperity.

To state otherwise is balderdash.

Thu, 03/27/2014 - 12:54 | 4599105 CH1
CH1's picture

I think you're describing what the sociopaths want, LoP, but I don't think that's what they're going to get.

They're not that good.

Thu, 03/27/2014 - 12:58 | 4599120 Tall Tom
Tall Tom's picture

Gold is the negotiating chip on the Card Table of Geopolitics as it is representative of an enitity's wealth of resources. Gold is an Industrial Metal as it serves the industry of Finance at the apex of Exter's Inverted Pyramid. It the most elegant solution as it all simplifies to who owns the Gold and how much Gold that they have.


The Fiat Currencies of the past paradigm will find their true intrinsic value of zero when the new paradigm is realized.


Remember that as the reset develops as your own personal possession of the resource of Gold will mirror that power of the major players.


The fool knows the price of everything and the value of nothing. The wise man realizes that value is only that of UTILITY and concerns himself not abouty the price of that which he finds useful.

Thu, 03/27/2014 - 12:20 | 4598934 TheMeatTrapper
TheMeatTrapper's picture

"Has Russia / Putin gone rogue?   Is he seperating Russia from the BIS Central Banking system?  

ie: Is this for real?"


My gut feeling is yes - Putin sees his chance to cement his place in history as a great Russian leader. The West is weak, corrupt and broke. Russia has energy. I believe he sees now is the time and he is the man.

Thu, 03/27/2014 - 12:03 | 4598883 gjp
gjp's picture

This was exactly the point I was trying to make to you, LoP, in a debate we had last week about the relative prospects of China vs. USSA.  Do you see it?

Thu, 03/27/2014 - 12:09 | 4598908 LawsofPhysics
LawsofPhysics's picture

I see people around the world waking up to their own true productive capacity.  Why in the fuck would they continue to provide real goods and services to some arrogant cunts on an island (like those in London) who offer them nothing real in return?

Thu, 03/27/2014 - 12:11 | 4598923 walküre
walküre's picture

This is getting so tiring.

We have corruption everywhere and people who have learned to live with corruption.

Tell me how the fuck they want to establish a "settlement" system between corrupt nations? Do you honestly think the Chinese trust the Russians or the Indians trust the Chinese? Fuck, they don't trust their own people as you've correctly pointed out.

A settlement system for huge financial transactions between these players WILL NEVER WORK.

Throwing Brazil into the mix just proves the point. Maybe they won't use London, maybe they will use Singapore. But whatever they setup, it will include a well know banking family. There's NO other way around it.

Go back to the drawing board.

Thu, 03/27/2014 - 12:50 | 4599092 Herd Redirectio...
Herd Redirection Committee's picture

Whats needed is trust.

To establish trust, you need to pledge collateral.

That everyone can agree the value on (hence, not ABS and MBS, low quality 'securities'...)


Thu, 03/27/2014 - 12:56 | 4599118 CH1
CH1's picture

Tell me how the fuck they want to establish a "settlement" system between corrupt nations?

Hmmm... then how did the US/UK guvs do it? They're utterly corrupt too.

Thu, 03/27/2014 - 16:41 | 4600174 walküre
walküre's picture

A look at who is in charge at the respective CBs should give you a clue. What is this? International Finance for first graders?

Thu, 03/27/2014 - 12:12 | 4598925 TheMeatTrapper
TheMeatTrapper's picture

Agreed. And this is a critical point. Other peoples are very self reliant, and they are much more used to a reduce standard of living than Americans. Americans are waking up to the fact that the government that they are utterly dependent upon for their every meal is corrupt and failing. 

As Dmitry Orlov said "The American collapse will be far worse than the Soviet collapse because the American has much farther to fall".

Thu, 03/27/2014 - 12:24 | 4598980 Thought Processor
Thought Processor's picture



Very true.


Americans will begin to tear themselves apart.  Perhaps this has been the plan all along.


It would weaken the US to the point of being a non-issue with regard to a world system.  In other words, it would not have the strength to object to a World Order because it would be at war with itself.  

Most likely the agenda.


If so then conspiracy theory becomes reality once again.

Thu, 03/27/2014 - 11:39 | 4598724 rubiconsolutions
rubiconsolutions's picture

"Let's face it. Neither Russia, nor China nor India have the wits, the trust and the faith to establish their own payment or settlement system."

And America is the same. It had to rely on European bankers to create it's own central bank and payment and settlement system.

Thu, 03/27/2014 - 11:42 | 4598741 LawsofPhysics
LawsofPhysics's picture

Regardless, it's a "debt is money" system.  This can be established by anyone who can establish their "full faith and credit".

i.e. no faith=no more credit...

Thu, 03/27/2014 - 12:13 | 4598931 walküre
walküre's picture

Where in the world are we witnessing the BIGGEST IMPLOSION of credit right now?

CHINA! The bubble blowing master. Russia is surely going to accept the Mao paper for its oil. Gold yes definitely but a settlement system created around "faith" in Mao? Get a clue.

Thu, 03/27/2014 - 13:49 | 4599348 CCanuck
CCanuck's picture

China has how much Gold? Perhaps the new system will be gold backed.

How much gold does China, India, and Russia have? Enough to start a settlement system i suppose.


Thu, 03/27/2014 - 16:43 | 4600182 walküre
walküre's picture

The US still holds more gold than anyone until proven otherwise. For all we know, the rumors about empty vaults at Fort Knox could be just as credible as recent massive gold imports to China. I'd never put my eggs into a Russia/China/India currency basket, never.

Thu, 03/27/2014 - 11:51 | 4598787 Buckaroo Banzai
Buckaroo Banzai's picture

If only there was a payment system that didn't require a trusted third party. Maybe a system relying on, say, public-key encryption, with transactions visible to everyone in the network... on a "public ledger", so to speak. Where the units of payment were independent of any single currency, and denominated in some sort of digital unit, or "coin", if you will, composed of nothing but information, or "bits", rather.


Say, anybody seen fonestar around?

Thu, 03/27/2014 - 11:59 | 4598850 CrashisOptimistic
CrashisOptimistic's picture

I did a while ago.  He was staring up at the price of oil this morning and negotiating a deal for pricing the next SPR release in bitcoin.

Thu, 03/27/2014 - 12:44 | 4599067 JustUsChickensHere
JustUsChickensHere's picture

You know, actually Putin could create RussiaCoin using the existing blockchain technology, but set the rules up so that his Central Bank could increase the money supply as a priviledged 'miner' (predefined public key that can insert new coins) ... allow other miners to get the usual block rewards as well - but only when confirmed by the CB ... as an attraction to supporting the security... and bingo ... world wide access to RussiaCoin via slightly tweaked SPV clients.

No need to do very much software dev at all - keep the miner code closed source for the security angle of the CB .... but free download of the Linux/Apple/Windows binary

Almost instantly allows client programs access in all countries of the world ... leave the SPV clients open source to follow the innovation in BitCoin .. and you will get rapid support of ATM, POS and Android clients ....

Trade in Russia coin with your international partners.... 



Thu, 03/27/2014 - 13:41 | 4599315 aphlaque_duck
aphlaque_duck's picture

Yes, and there are other ways to do it too such as cryptocoins backed by promise of gold. The question is will the market accept such a currency. The crypto cat is out of the bag now and some are already trying to get others to use "pre-mined" coins and such. It's going to be tried every way you can imagine.

Even if they made it legal tender by law (fiat), people would not save in it because there is no necessity for the state-regulated banks as a place for savings. People would just exchange it for a scarce crypto (or gold proper) and store it themselves, converting back to crypto-fiat only to deal with the state.


Thu, 03/27/2014 - 14:02 | 4599407 CrashisOptimistic
CrashisOptimistic's picture

Gold has no function in society.

There are no assay kits under cash registers to check for tungsten, and there never will be. 

It has no function.  The bitcoin ATMs on the other hand . . . .

Thu, 03/27/2014 - 22:34 | 4601330 U-P-G-R-A-Y-E-D-D
U-P-G-R-A-Y-E-D-D's picture

If only the existing technology wasn't already an NSA/USA Corp. front, this would be a great option.  However, I'm certain Russia has the wherewithal not to step into that trap.  In fact - as the (for many years now obvious) shift from Western CB/Reserve currency unveils itself, one can't but help suspect BitCoin isn't a long-game trap.  Obama and Wall Street can't play chess, but I guarantee you Silicon can. 

Thu, 03/27/2014 - 11:55 | 4598827 sushi
sushi's picture

Odd that so many CEO's of highly valued US companies have strange indian names. Do you think it is possible that Russia, China, india graduate more scientists and engineers than the US? Is there a reason the US military has concerns about Russian and Chinese weaponry? If you can build an anti-carrier ballistic missile, or launch your citizens into space, my hunch is that the development of a payments system will not pose too much of an obstacle.

The key ingredient is trust and I don't think too many folks trust FUCK THE EU United States.

Thu, 03/27/2014 - 12:55 | 4599111 Herd Redirectio...
Herd Redirection Committee's picture

Aaah, but how many lawyers do Russia, China and India have?  Hmmm?

Thu, 03/27/2014 - 12:02 | 4598878 Keegan11
Keegan11's picture

Perhaps - but then these same countries couldn't possibly get their shit together enough to build, say, an atomic bomb? Oh wait - they figured that out - so maybe you're overlooking what necessity provides - it's called incentive.

Thu, 03/27/2014 - 13:39 | 4599300 Oldballplayer
Oldballplayer's picture

Yeah, based on the number of Russian Jews in my town, I think they are all out of mother Russia already.

Thu, 03/27/2014 - 11:18 | 4598599 PlusTic
PlusTic's picture

This guy Putin gets better with age, like a good wine!  I can't wait for the next chess move from the master.

Thu, 03/27/2014 - 11:27 | 4598652 ParkAveFlasher
ParkAveFlasher's picture

Knight to queer's wookie.

Thu, 03/27/2014 - 11:36 | 4598705 Chief KnocAHoma
Chief KnocAHoma's picture

Thats is the funniest thing I've EVER read!!! +1000

Thu, 03/27/2014 - 11:43 | 4598748 IridiumRebel
IridiumRebel's picture

Goddamn PAF.....I need to clean my keyboard.


Thu, 03/27/2014 - 11:57 | 4598838 stormsailor
stormsailor's picture

hahhahhahhahahhahahhahahahahhah. my sides are hurting.  funniest post i've read in months.


+ 1 million, rubles

Thu, 03/27/2014 - 12:04 | 4598885 Independent
Independent's picture

LOL on the floor PAF, brilliant dude.

Thu, 03/27/2014 - 12:22 | 4598969 Kirk2NCC1701
Kirk2NCC1701's picture

"Knight to queer's wookie."

I'm guessing it's a white knight.  ;-)

Thu, 03/27/2014 - 12:49 | 4599090 Raging Debate
Raging Debate's picture

PAF - I just logged in to tell you that was more than funny :^D

To me it was always a coordinated CB plan for China to become the new reserve currency. It is a feature, not a bug. However, as I have mentioned here a few times China must have there depression first. The history reminds me of the USA 1932. Follow the money and see where Senators are investing and where multinationals still are (albeit some of the hot money is starting to flow back West.) What I have wondered though was the promise of the reserve currency a bait-and-switch from the West? Maybe some things haven't gone as planned.

Another commentators stated we would have a long way to fall here in America. Frankly, I don't think so. $10 an hour part-time jobs with no benefits and huge basic living costs are already a disaster compared to living in other decades, we have bottomed out. We had more of a social safety net than the Soviets and we got lucky we have the Internet for rapid deployment of resources, ideas etc. in how to cope amoungst the population. Plus the entertainment is dirt cheap now.

Not having to fund a trillion plus a year in defense to be protect global trade (where insiders get rich, citizens get poor) will be a bit of counter balance to loss of reserve status. No, I do not think the Fed will continue printing afteward. Budget cuts are what has been going under the surface and will continue to do so. Plus we are becoming energy producers again. The joke was on the rest of the market for always believing the scarcity memo. The reality is abundance but can't manipulate abundance! As for U.S. growth expect it to be anemic for another several years to 2021. If we avoid WW3 it is going to be dull for awhile but that is obviously preferred. Geopolitics is looking scary of late. Even if some of all this is kubaki and saber rattling it wouldn't take much for a big, bad incident to occur to incite a regional war which could spread.

Thu, 03/27/2014 - 12:50 | 4599091 Raging Debate
Raging Debate's picture


Thu, 03/27/2014 - 15:44 | 4599961 stormsailor
stormsailor's picture

i nominate that for wittiest post of the year.

Thu, 03/27/2014 - 11:23 | 4598600 Ignatius
Ignatius's picture

I think Russia just needs to calm down, confront their irrational psychological resistance, and make that appointment to sit down with the dedicated professionals at Goldman Sachs.

Thu, 03/27/2014 - 13:21 | 4599220 MrPalladium
MrPalladium's picture

No sark tag needed!!


Thu, 03/27/2014 - 16:50 | 4600201 walküre
walküre's picture

Heil Putin!

Yes correct. I've been trying to make that point.

Heil Putin!

(better safe than sorry, better early than gulaged)

Thu, 03/27/2014 - 11:19 | 4598603 youngman
youngman's picture

It will be called the VLAD card....a 20% discount on all vodka purchases


Thu, 03/27/2014 - 11:44 | 4598754 HardlyZero
HardlyZero's picture

Maybe the Russians are cutting a direct deal with Bevmo or Total Wine.

Thu, 03/27/2014 - 11:20 | 4598604 moonstears
moonstears's picture

Cue inflationary Russian US paper dollar Fed notes, velocity reciprocates to issuer, now?

Gas to $8, baby, long mopeds.

Thu, 03/27/2014 - 11:20 | 4598612 LawsofPhysics
LawsofPhysics's picture

I advised a friend to open that bicyle shop he always wanted to.  His business grew 45% in one year...

you may be on to something...

Thu, 03/27/2014 - 11:30 | 4598676 moonstears
moonstears's picture

I had a chance to ride an electric bike last summer(live close to Atlantic coast), tell your buddy to look into it!

Thu, 03/27/2014 - 12:01 | 4598872 CrashisOptimistic
CrashisOptimistic's picture

Bikes have always been thief bait.  You think that's going to lessen?

Thu, 03/27/2014 - 12:58 | 4599131 Herd Redirectio...
Herd Redirection Committee's picture

LONG bike locks.

Thu, 03/27/2014 - 11:21 | 4598615 ebworthen
ebworthen's picture

Velocity Raptor?

Thu, 03/27/2014 - 11:39 | 4598723 Luckhasit
Luckhasit's picture

We are in Jurassic Park, where old men resurrect shit that should stay dead.

Thu, 03/27/2014 - 11:49 | 4598794 tsuki
tsuki's picture

My moped is short. 

Thu, 03/27/2014 - 11:20 | 4598608 ebworthen
ebworthen's picture

Fuck you Mastercard and Visa and Wall Street!

I'm tempted to start learning cyrillic script.

Thu, 03/27/2014 - 11:21 | 4598619 dogismycopilot
dogismycopilot's picture

do it. it is easy to learn. once you can read Russian it's like discovering a whole new world.

Thu, 03/27/2014 - 11:32 | 4598687 Herd Redirectio...
Herd Redirection Committee's picture

Any further tips/resources?

Thu, 03/27/2014 - 11:36 | 4598702 eclectic syncretist
Thu, 03/27/2014 - 12:41 | 4599061 Volkodav
Volkodav's picture

If want learn speak Russian...Russian Accelerator is best learning course


Thu, 03/27/2014 - 11:20 | 4598610 q99x2
q99x2's picture

This is great news for all the nations and individuals that owe debts in US dollars. Once the dollar is worth very little  the debts can be paid off quickly. Get your loans ahead of time.

Thu, 03/27/2014 - 11:21 | 4598620 LawsofPhysics
LawsofPhysics's picture

"This is great news for all the nations and individuals that owe debts in US dollars." -  Yes, for those who are paid in something other than dollars.

For the average american sheep, not so much...

Thu, 03/27/2014 - 12:47 | 4599078 dynomutt
dynomutt's picture

Pay yourself in something else while you can...



Thu, 03/27/2014 - 11:20 | 4598614 dogismycopilot
dogismycopilot's picture

Taking back the birthplace of your countries Christian identity, cost $1 billion.

Evicting the landlord on your $100 million dollar a year lease and making the deed in your name through legal proceedings, savings $10 billion

Raising the rent on the shitty neighbor next door, gain $30 billion


Russian Express GOLD CARD, Don't leave home without.

Thu, 03/27/2014 - 11:22 | 4598623 Seize Mars
Seize Mars's picture

The "fading superpower" phase of the US was clearly described by G. Edward Griffin in the early 1960's. He nailed this whole thing from soup to nuts.
This is all on script.

Thu, 03/27/2014 - 11:23 | 4598627 taketheredpill
taketheredpill's picture



How long before U.S. hints that U.S. citizens would be wise to not use this system.  As in "it will used by drug lords and other criminals so if you use it we may become more interested in you...or at least the last 7 years of tax returns you have filed".





Thu, 03/27/2014 - 11:24 | 4598634 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

They already have it, it is called crypto-currency.... Only reason Russia doesn't like it is for the same reason the banks don't like it, they didn't issue it and therefore can't control supply and in turn use monetary policy in a traditional fashion to control value.

Thu, 03/27/2014 - 11:26 | 4598642 The_Peeper
The_Peeper's picture


Thu, 03/27/2014 - 11:29 | 4598661 moonstears
moonstears's picture

Ripples...if you have the balls. (corrected it for you)

Thu, 03/27/2014 - 12:25 | 4598984 Kirk2NCC1701
Kirk2NCC1701's picture

Ripples are for retards.  You'd be giving up all privacy. 

Might as well stick with your existing banking system, and avoid the extra steps, bullshit and Rentier-class middle-men.

Fri, 03/28/2014 - 00:40 | 4601575 moonstears
moonstears's picture

Kirk, in the 1980s you could have bought/invested in "beta tapes" or "VHS". VHS survived much longer, though not the first. I'm simply, IMHO, explaining "crypto-coin's" trajectory, as I see it progressing, based on who's in bed w/ whom. Don't shoot he fucking messenger. Keep buying bitcoins, whatever. I'll buy Ripples if I'm buying.

Thu, 03/27/2014 - 11:27 | 4598651 docmac324
docmac324's picture

Shits getting real.


Thu, 03/27/2014 - 11:46 | 4598768 kurt
kurt's picture


Shit be gettin' real

Thu, 03/27/2014 - 11:28 | 4598656 Calculus99
Calculus99's picture

This is a BIG BIG move folks. Expect China and many other nations pissed off with the bully-boy US/UK/Euro trash countries etc to start moving to a far FAIRER system.

Things will take time though, the trend will turn slowly but surely....

Thu, 03/27/2014 - 11:47 | 4598779 tsuki
tsuki's picture

I don't think it needs to be fair, just a workable alternate. 

Thu, 03/27/2014 - 22:27 | 4601314 U-P-G-R-A-Y-E-D-D
U-P-G-R-A-Y-E-D-D's picture

And likely after some time, it will become corrupted and less fair as well, necessitating another new system.  Still, the wheel should turn.

Thu, 03/27/2014 - 11:29 | 4598660 Catullus
Catullus's picture

More importantly: it allows one to run to somewhere during a bank run. The trick with central banking is that it must continuously expand its network of banks so that one cannot run on the system itself through normal transactions.

For instance, bank A leverages off deposits eventually to the point where bank c demands a cash transfer. The central bank prevents c from running on A because they both have an account at the central bank to clear the transaction. If c is not part of the central banking network, they demand payment whether or not A can pay.

If Russia does set this up, they're guaranteeing another global bank run. In theory could be instantaneous someday.

Thu, 03/27/2014 - 11:29 | 4598662 q99x2
q99x2's picture

Hey as I remember there is a whole slew of dead sovereign leaders, blown to smitherines nations with millions dead and droned weddings to stop something like this from happening. Is this what happens before bankster globalists set nukes off?

Thu, 03/27/2014 - 11:29 | 4598665 BobRocket
BobRocket's picture

Seems sensible to me to have a multitude of payment systems, that way no-one can lock me out of spending my money / getting paid for my work.

A bit like the internet of banking.



Thu, 03/27/2014 - 11:34 | 4598670 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Where's John Perkins?

Putin assassination attempt in 1...2...3

Seriously, I'm worried the elite will be going after him.


Thu, 03/27/2014 - 12:53 | 4599103 Fractal Parasite
Fractal Parasite's picture

There have been several attempts already.

Thu, 03/27/2014 - 11:36 | 4598701 Azannoth
Azannoth's picture

To Kill a Beast you need to tear it's Heart Out! and the Financial System is the Heart of The Beast!

Thu, 03/27/2014 - 11:36 | 4598704 Itchy and Scratchy
Itchy and Scratchy's picture

Good idea!

Thu, 03/27/2014 - 11:37 | 4598711 Let The Wurlitz...
Let The Wurlitzer Play's picture

In the long run this is actually good news for the average American.  This type of action will create pressure on our federal government and force them to support the value of the dollar.  As our borrowing cost increase the dimwits in Washingtn will be forced to cut spending.  Unfortunately there will be short term pain.

Visa and Mastercard deserve to be punished  finacially for listening to our government.  The market should decide their fate.

The average person can only HOPE that Russia follows through with their new payment system.  This would be a great start to break the current socialist/corporate power structure.


Thu, 03/27/2014 - 11:40 | 4598728 Quinvarius
Quinvarius's picture

Good job Obama.  Did you really think no one could create a SWIFT competitor or create a credit card system?

Thu, 03/27/2014 - 11:42 | 4598743 Itchy and Scratchy
Itchy and Scratchy's picture

The world wants to de-link themselves from USD bondage! America is really gonna regret letting the liberal mental cases run & destroy their system! I guess it was a good run?

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