What Petrodollar: Russia, China To Create SWIFT Alternative

Tyler Durden's picture

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...

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q99x2's picture

You don't need a SWIFT alternative. You can use Bitcoin. Big ass nations are a bunch of F'n fat retards.

Kirk2NCC1701's picture

Wow, that was... a SWIFT move on their part!

Can we stay focused on Ukraine, or ISIS, or Fukushima, or Ebola, NFL, Dometic Violence, or…?

Sofa King Confused's picture

I will be curious to see what Putin does when the US starts bombing inside Syria.

SumTing Wong's picture

Dollars...smoke 'em if you got 'em.

Joe Tierney's picture

Yes, but don't smoke the ones you used to wipe your ass with.

sushi's picture

If you cross this red line then I'm going to shoot myself in the foot. Cross it again and I'll shoot myself in the other foot! That'll teach you to mess with me!!


0b1knob's picture

Its called the SWIFT Bring On America's Termination system, or SWIFTBOAT.

disabledvet's picture

Word is the new acronym will be the "TATER TOT" system which stands for "the alternative to everyone's reserve touted or torted" system...and yes it runs on Windows.


Windows 98 and if you're feeling randy "Windows Media Center Edition."

Save_America1st's picture

Jim Willie (The Golden Jackass) has been all over this for over 2 years now at least.  He's done the interviews which I'm sure (I hope) many of you have listened to on TFMetalsReport, SilverDoctors, Greg Hunter USA Watchdog, etc. 

Gotta give Jim mad props for his insider info and for sharing what he does with those of us willing to listen and prepare accordingly for the "End of the Great Keynesian Experiment" as Turd put so eloquently and presciently when he started the Watchtower and TFMetalsReport. 

conscious being's picture

Jim Willie is great. Turd is no Jim Willie.

balanced's picture

That sort of propaganda has been out in full force. I am beginning to think that there might actually be a false flag to get Americans behind sending troops back to Iraq. Hopefully Americans will be less gullible this time. I'm sorry, but the mentality behind a bunch of morons yelling "god is great" while women and children are executed is not consistent with an agenda to end the petro-dollar or alter global financial methodologies.

If you want to know who's truly behind a given event, you simply identify the person or group that stood to gained the most by it's occurrence. Who's agenda was furthered? Who got to do something in the aftermath, that they couldn't have gotten away with had the event not occurred?

AlaricBalth's picture

It is my understanding that SWIFT is a messaging system for funds transfer instructions, rather than a financial settlement system. The settlements are actually transmitted by FedWire and/or CHIPS. SWIFT does not handle the movement or settlement of funds.

Elvis the Pelvis's picture

Foolish mortals.  There is no SWIFT alternative.  The Yankee dollar rules the world.  Put that in your pipe and smoke it.

AlaricBalth's picture

The Clearing House Interbank Payments System (CHIPS) handles both the transmission of funds transfer instruction messages among financial institutions, as well as the settlement of the payment between the institutions. CHIPS is operated by The Clearing House Payments Company, L.L.C. CHIPS is the United States’ main electronic funds-transfer system for processing international U.S. dollar funds transfers made among international banks. Like Fedwire, CHIPS is a real-time final settlement system. In other words, CHIPS settles the transactions at the time CHIPS transmits the payment order; meaning that the sending participant’s obligation to pay the amount of the payment order to the receiving participant is discharged at the time CHIPS releases the payment message.

CHIPS claims to handle more than 90% of all U.S. dollar-based funds transfers moving between countries around the world.

Lux Fiat's picture

Perhaps Ron White can come up with a zippy slogan and ad campaign.

disabledvet's picture

"We got TATER...and TATER TOT's too!"

Lux Fiat's picture

After Malaysian Airlines flight 370, the empathetic part of me felt for the families and friends of all those on board.  The other part thought about Ron White's "scene of the crash" monologue.

mkkby's picture

It would be trivially easy for China to send and receive Russia's swift transactions, and just send them the differences.  Much like punching someone else's time card.

Given China's love of fraud, I'm sure someone already thought of this.  Building a duplicate system for brics will take a few years, but helping each other this way is an easy way to bridge the gap.

Sashko89's picture

The rothchild controlled DTTC corporation must be thrilled about this development;)

Save_America1st's picture

DTCC...that's some evil shit right there.  Did you listen to Bix Weir's interview about the workings of the DTCC and Cede and Co. on SGTReport a couple months back? 

It's all so totally FUBAR

Here's the interview on SGTReport.com: 

Sashko89's picture

I did, the interview was very interesting indeed. I'm surprised that corporation is able to keep to the shadows so well when it controls so much... I mean, swift belongs to DTCC right?

The Fonz...before shark jump's picture

DTCC is scum....how does this obvious monopoly allow to function without being forced to break up into a 100 little pieces....oh right they are owned by the fed...

Just like Stalin said about voting....the people that cast the votes mean nothing, the people that count the votes matter...

Same with dtcc its not the trade it's the person that settles the trades that matters...(oh and that holds all of your equity in street form a la cede & co) for "safekeeping" and "efficiency" of course....

gdogus erectus's picture

DTCC, DTCC... Hmmm rings a bell. Oh wait, the one who's waterproof vault full of $49 Trillion of stock certificates were flooded (doors left open) by a 1 in a million (but the news announced it 5 days early) freak hurricane (Sandy) that hit Manhatten and then a frekin' fire broke out in the vault later, DTCC?

I'm so glad they had all my stock certificates from my 401k backed up on computer! Whew! That was close!

You can't make this shit up.

TahoeBilly2012's picture

They can just ask Etrade and Schwab who owns what  on the honor system, sorta like the MERS mortgage computer...

Dapper Dan's picture

gdogus erectus


Tomorrow a stranger will say with masterly good sense precisely what we have thought and felt all the time.

-Ralph Waldo Emerson-

“self reliance”

Majestic12's picture

"The rothchild controlled DTTC corporation must be thrilled"

Like most topics on ZH...try "polling" your neighborhood...

Ask as many as you can if they understand what a "Petrodollar" is?

Then ask "who are the Rothschilds"?.....

Constant West v. East "ideology" war completely "corn-fuses" all "Muricans"...

And the .1% retain anonymity... can't take out an invisible target....

Those here who know..."owe it"....no train...no gain....

forensicator's picture

Yes, the sheep aka FSA will do as they are told and Riot when called apon

kowalli's picture

 shoot down usa planes in Syria before they can bomb  anything...

Winston Churchill's picture

With Iran joining the SCO as a full member, just what happens to their

mutual defence treaty with Syria ?

That would be a Sarajavo moment, would bombing Syria count as an attack on Russia and China ?

hobopants's picture

Better hurry up and get it going before that whole China debt thing blows up.

disabledvet's picture

And yes...the "TATER TOT System" is backed by actual taters...and tater tots even.

All cooked to an even and ovenly brown crisp...

With ketchup.

conscious being's picture

JW says don't worry about it. Something about the need to get more RMB circulating prior to the reset.

Circle of DNA's picture

Unlike retarded Ukraine that is full of imbecilic and Russophobe Zio-Nazis, Syria is totally friendly to Russia and even advocates/promotes Russian as a second language...

disabledvet's picture

They can be part of the TATER TOT too!

We'll call them "The TOT's in our TATER"...not meant for them to feel inferior of course. "Can't have no TATER without a TATER TOT." A combination of "legal mumbo jumbo" with both the aspirational views of a Commonwealth and an eye toward precedent as setting normative forms of commercial contract."

Backed up by "the Tot-en-kopf" if necessary!

sandhillexit's picture

This is just Putin trading rooks with Stanley Fischer.  Sanctions which gutted Iran's economy required access to international banking infrastructure. Folks in the US never really saw what was done to Iranian economy but Russia and China are pretty clear about his intentions from the Fed perch.  

RU has always kept China at arms length.  We have now pushed them over the threshold, all for the base at Tartous, I think.  It's the lynchpin.  Hard to believe we have gotten to world war over a little chunk of Mediterranean coast.  

It used to be RU against Bandar Bush - with the Chechens as pawns.  It was a friendly fight for market share.  But now Bandar Bush and Israel acting as allies (stirring the pot in Ukraine) has really made Putin's life difficult.  

The Syrian pawns are awfully close to home, though.  Things could get out of hand for KSA.  It looks like the ISIS guys are open to competitive bidding for their services.  They are trying on enemies like new hats, first it was US, then Russia, then KSA. But clearly ISIS has access to intl bank infrastructure because they act like they have no doubt they will be paid. 

mt paul's picture

I will be curious to see what Putin does

when the US starts bombing inside Scotland


on the way to Syria....

fervent in spirit's picture

"Dometic violence."

Dometic: makers of RV appliances. Got to watch them raging RV-ers! :-)

Divided States of America's picture

I have to give credit it to Juland....if she didnt start all this mess with Ukraine, we wouldnt be expediting the road to retribution. Thanks for everything J-bitch!

And yes very SWIFTLY implemented by China and Russia...why wait? things are steaming ahead as planned.

Winston Churchill's picture

Ever since I saw AWACS in Saudi ,in national colors, operating three months before the

official announcement., my rule of thumb is that any official proclaimation means

the thing was already up, and running long before being made public.

Same here.

Theosebes Goodfellow's picture

You nailed it, Winnie. Unionpay is as reliable with zeros and ones as the Fed, the Treasury Dept. and all of those merchant credit card companies, ain't they? I mean, who could lose anything with Applepay?      /sarc

Just remember, (for those of you playing the home version of the game), counterparties are a bitch. Aiming to shoot yourself in the foot and hitting a target slighting higher and in the middle can be extremely painful. Just don't say nobody warned you.

Titus's picture

I always wonder why people don't call Victoria NUDELMAN by her real AshkaNAZI name.


WhackoWarner's picture

AS IF Nuland ia just some wannabe idiot without one brain cell that fires beyond ego.  She is sooo stupid that she got caught parroting her higher-upsies.  Talk about a suck up bitch idiot.

She will be cut loose or nail gunned fairly promptly due to anatomical/gender based loose lips.

Anusocracy's picture

Screw the nail gun, she deserves prolonged extreme torture for the shit she's caused.

Winston Churchill's picture

Water boarding with mineral spirits would be a start.

BTCTalks's picture

It's going to happen.  I actually think that the Caliphate (hopefully non-ISIS) might be the first to make bitcoin official.  It works perfectly with Shar'ia banking and anti-usery laws and side-steps Western hegemony.  This is going to be a long, steep decline for fiat bagholders.

Bangalore Equity Trader's picture

Listen. Last I heard Russia made the use of crypto's illegal starting in 2015.


But many must dream of a Bitcoin Caliphate! GO Crypto's and gh0strider!

BTCTalks's picture

China has outlawed it as well, but yet they still account for 70% (allegedly) of daily traded volume.  The beauty of digital currencies is that the only way to stop them is by shutting down the internet entirely.  Much like BitTorrent.  

Bangalore Equity Trader's picture

Listen. I LOL'ed in my mouth, just a bit. I thought the endgame was to introduce into retail commerce, not just "RELEASE" to speculators?