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Russia To Create Own National Payment System In "Bid To Reduce Dependence On The West"
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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You do realise it was the neocons, not the liberals, don't you?
Putin - Fighting against tyranny and financial enslavement, supporting democratically elected governments around the world and the right of self determination of the people everywhere.
God Damn American Hero.
.....re-introduces religion, balances budget, pays down debts, drops personal taxes to 12% & corporate tax to 15%, amassed one of the largest amounts of foriegn exhange in the world ....
... talks intelligently, coherently, knowledgeably and spontaneously on complex matters, ...
And doesn't look like a fag on a golf course....
+$30,000/oz
well said
Goobermints never fuck things up, especially communist goobermints.
Stupid fucking Putin!!!! This is going to be funny.
Concensus:
Banks are arrogant, concentrating wealth, won't pay fair interest on savings, petty, incestuous, stupid, sloppy, deceptive, elitist and deserve to die for all we care. We EVEN are willing to suffer from a collapsed economy, international humiliation, and near doom, to warm ourselves by the fire of their utter destruction.
The fed owes each saver both the loss of their own personal savings and FOREGONE INTEREST during this long depression. We also deserve refunds for what they're overcharging for gasoline.
Going foreward we need fair interest on our savings and a stable currency or 'yall just die off, freaks.
Puten took an additional 3 billion people into his shere of influence. Good for him, world domination as Mick Jagger would say "It's just a shot away".
TPTB would not have it any other way...
Puten took an additional 3 billion people into his shere of influence. Good for him, world domination as Mick Jagger would say "It's just a shot away".
TPTB would not have it any other way...
Puten took an additional 3 billion people into his shere of influence. Good for him, world domination as Mick Jagger would say "It's just a shot away".
TPTB would not have it any other way...
Non western nations will be forced to create their own monetary and financial systems or they will be crushed economically.
What's amusing is that non western nations that are in the economically privileged position of being energy exporters are becoming disenchanted with dependence on the west for political reasons. Russia and Saudi Arabia being rather outstanding examples.
More iron fist military dictatorships like the Egyptian solution are likely in the cards to keep Imperialism 2.0 afloat.
Swans flying East from the Black Sea are what color ?
If the US really wants to hit Putin in the nuts, the need to stop burning off gas at the well and sell it to Europe. Flood the market with US natural gas and Russia would feel the pain more than a teleprompter based warning that has Zero affect. Let's look at North Dakota's oil boom as it isn't just about oil; a lot of natural gas comes out of the ground at the same time. But there's a problem with that: The state doesn't have the pipelines needed to transport all of that gas to market. There's also no place to store it. In many cases, drillers are simply burning it. IIndustry experts are estimating it's about $1 million a day just being thrown or burnt into the air,"
Non-starter. High costs & rapid decline rates for fracked O&G. Close to break-even costs currently. US needs high energy costs to generate revenues much more than Russia.
Fine ideas...always ignorant of fact that costs get added...gas arrived in Europe will cost how much?
You have expert estimate?
Explain how Europe affords this? Print and steal?
Check real EROI and declines on new completions..then cost it arrived in Europe....
For instance, Isarel has lots of NG, but the costs of getting it out of there to somewhere else by sea is prohibitive.
Israel, of course has no natural gas other than that stolen from Palestine.
Israel could have significant NG, but not EU-support worthy amounts. It's too bad that instead of keeping it inside and becoming independent (developing an LNG and CNG vehicle industry, for example), the oligarchs in Israel are indeed going to sell it to Europe. They will make more cash in the short term and as much as people here like to squawk about dual-citizens, the 18 oligarch families that run Israel aren't sticking around and they aren't investing in the country. In fact, the EU's NG problem is likely very profitable to Israel's NG monopolists. The real NWO oligarchs are state-less and play the game on all sides.
And lets's not forget that the reason for the great shortage of wood pellets
http://wnep.com/2014/02/27/retailers-face-a-wood-pellet-shortage/
Is largely due to the vast amounts being exported to Europe where they qualify for tax subsidies because they're "carbon neutral"
Let's export all the US enegry feed-stocks and freeze to death.
only one problem with that. we want to buy Russian gas. they want to sell it to us. and then buy our products. it's called... trade
So it is better to waste a million a day in natural gas. My bad. As if Putin will not manipulate the cost of natural higher anyways. We certainly could handle higher or lower natural gas prices than russia could. So it is just fine to transport oil and gas from the middle east to the US but it will not work from East cost US to western europe. OOOOKAY.
Due to the shipping constraints, if we decided to ship ALL of our LNG to Europe it would take YEARs to build the infrastructure. Unless you can put a pipe over the artic circle.
It may not be a matter of Putin marching into the Ukraine but of East Ukraine wanting to march into Russia.
Current US foreign policy: What's mine is mine. And what's yours is mine. Is it any wonder they are starting to turn on us? Our corporate run political system is so fucking greedy and stupid. Down with ALL evil empires. And down with all corporate controlled political systems. The average person has more fucking common sense. The real evil, the real enemy of the people is the concentration of wealth and power. This has been true throughout the ages. It has always led to bondage and enslavement.
The visionaries have run out of alternatives & options! Liberal socialist thinking not opposed to taking from EVEYBODY! Re-distribution to themselves very important paradyme.
have you been paying attention Obama?
are you taking notes, cause you should be.
this is how you lead a nation, this is how you give it's people a sense of national, sovereign identity, this is how you help people to be proud of the flag they live under.
well you could never hope to be half the man nor leader that Putin is, you could maybe avoid a few future blunders by taking a some cues from your older, better and far, far wiser counterpart in Russia.
just a suggestion so don't drone me bro.
Well, Putin is no saint, but if there is anybody who could make him look good, its Obama.
But Obama's job since 2008 has been to destroyAmerica, and no one has ever done a better job....
Excellent, go for your own system and f*** dictator west and on the way make sure to sink their shit banks..
Russia has finally woken up to their postion at the top of NATO's/The IMF's/The International Banker's/The USA Neocon's/The Western Intellectual Elites's/And Wall-Street's HIT LIST! I am surprised only that it has taken them so long to awken to their planned destruction, occupation and exploitation by the western elites. Oddly, Putin himself did not catch on until NATO trained and funded Georgia to make the first armed assualt. Syria, in which the west embraced Al-Qaeda as firm allies also should have been a wake up call. But, it took the overthrow with 5 billion western dollars of Ukraine to convince Russia of their peril.
If I were Putin, every western funded NGO in Russia would be closed and all employees fired and forced to seek paid work on the job markets. NGO's are CIA operations and State Departement agents, paid big wages to undermine the social order.
Time to wake up, the wolf is at the door. Every great wetsern empire in modern times has tried to occupy Russia and exploit it. Poland, France, Germany. Every one mounted a major invasion and made it to Moscow or just to the gates.
I think Putin is much smarter than this....he didn't just wake up one day and decide it would be nice to get involved in Crimea. He knows the game the west plays. He has watched it his entire career (and I am certain he has inside information). He knows all of the tricks the west has and will pull. He has been preparing for them. Just like folks here understand that is a matter of time. This is like musical chairs, when the music stops only the ones that are prepared get a seat.
So, more importantly is, what is the final game? My guess is a Russia/China alliance with a new monetary system (backed by assets and gold). To quickly be one uped by an America/Europe/IMF SDR backed by lollipops, skittles, and unicorn farts. You pick your association.
Whoops! Dey it iz!
i would love to see williambanzais illustration of this new VLADCARD..
NATO just keeps shooting themselves in the foot. All the crude and LNG in the world isn't worth spit if you have no one to buy it, and Putin has sewn up 1/3 of the world's energy market, stopped a war in Syria and anexxed Crimea without a single life lost, with not even a protest.
So the millions NATO killed and the trillions spent killing them, all wasted. Where's Ukraine today? Where's Crimea? ROFLMFAO!
There were protests against Putin in Moscow, but they lacked Nuland cookies (a.k.a. State Department infil and merc deploy), so it didn't catch on. Still a soldier whipping a Pussy Riot psyoper is a cost the drones in the West just can't bear. NATOF4LIFE
Now I can't decide whether my investment strategy should be to BTFD, GTFO, or HOLD.
We're toast
Question is, what took them so long? Next step, their own rating agencies.
ZH should hire some dude with a deep voice and British accent to read and stream the post commentary live
Seriously I heart radio
Don't go Taiga without it...
What does not kill you...make you strong
Except for Bears...bears will kill you
Anybody want to fuck with the algos and tweet "SHORT VISA and MASTERCARD" around 3:00?
So Putin is long Bitcoin? Perhaps Fonestar was on to something...
In Russia there are these things called "bankomats" which are network-connected ATMs on steroids. They have a better and more flexible payment system than most Americans have access to - for instance, any business of pretty much any size can be set up to accept payment via bankomat - so if you want to pay e.g. the equivalent of your cable bill, you can do so at any of these terminals, which are all over; you can even feed the machine CASH into its bill acceptor. Since Russian hackers have been targeting these things, and the makers of the hardware and software have had to respond, these devices are now pretty much "hardened" against intrusion and hacking.
I could totally see these devices being marketed in other countries, with the addition of a backend to clear credit/debit/other card transactions it would be a complete replacement for most banking needs for people.
"...you can even feed the machine CASH into its bill acceptor."
Wait a minute, you're telling me these Bankomat machines will accept a barbarous relic like *gasp* cash? But how will they "protect" the Russian people from "money laundering"? All good sheeple know that cash is "dangerous". Is Boris even safe over there with such a free market?
the independent payment system has been in the works for a long time...it is just a matter of momths to a couple of years before it is fully rolled out....swift will diminish significantly in stature along with the usd. ziocon obama imbecility is growing hugely and reaping its rewards. the goal is still ww3 and this realignment will trigger it.
"SWIFT, or the "Society for Worldwide Interbank Financial Telecommunication""
Better known, of course, as Some Wankers Idea of Fund Transfers.
Corruption: http://www.worldaudit.org/corruption.htm But feel free to pick your own index.
US 15
Brazil 55
Russia 105
India 75
china 62
Perhaps one of you wissards who believes in the BRICS or any othjer combination replacing the Dollar will explain why businesses would prefer to do businesses and trust their assets with such corrupt economic systems. Want to know how bad China is? In some cases roads are shut down during the day because drivers can not see the pavement. It is well on its way to becoming a sewer so toxic as to be unlivable.