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What Petrodollar: Russia, China To Create SWIFT Alternative
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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Do you think the Russians and Chinese will call their new transaction system TRABANT?
SWIFT...TRABANT... It's got a nice ring to it.
Institutions are gas stations SWIFT is road - China and RUssia have traffic
don't mix financial institutions with countries.
Last night I got a banner ad for Visa in yuan in English??? Weird? I was not on some Asian bride site either. I want to find out more about Visa and yuan soon.
If you're anywhere near NYC I hear PBOC has a branch in Chinatown and Flushing that will open yuan-based retail accounts.
Let's see what tomorrow brings, It's 9/11. Everyone is on heightened security.
A few years back I was trying to take a long vacation, entirely on airline miles. Was only able to do so on 9/11. Now I look for scheduling our vacations and travel on 9/11.
And we have a winner for a Darwin award.
A very stupid comment on any level.
Now that the cabin doors on planes are locked there will be no more Highjackings. It's the fucking little things that make the difference.
Go long SDRs, or whatever they're calling them.
An American, not US subject.
"If a bankster shoots himself with a nail-gun while alone in the woods, does anyone really care if no one is there to hear it?!
"If a bankster shoots himself with a nail-gun while alone in the woods, how many seats could you have sold for viewers?! Participants?!
ROI
Just helping out....
I'm surprised they didn't do it sooner.
Not only is this a long term threat to the BIS/IMF model, but it also wildly realitivizes the long term role and income for Visa, Money Gram and Western Union.
Not only that but the vaulted US sanctions that cover rogue states like Iran, North Korea, etc persist exactly because of SWIFT and the Beast of Belgium.
When you put all the machines in China and all the cheap energy in Russia the money will naturally begin to flow there - away from the bankrupt "West."
See you in 12 months.
http://www.tfreview.com/news/reports-data/fdi-confidence-sustained-us-and-china-not-russia
Russia does not count anymore. China can buy Russia and tame it for the benefit of all mankind.
Come on, just admit it. You're Latvian.
Of course I am. I'm also Lithuanian and Estonian. Throw in a little Finnish and Dane. There is also a touch German, Polish, Ukrainian, British and Italian.
So you're from the Heinz 57 range?
My ancestors called it Heinz 69...
Jawohl, mein Fuhrer!
Führer.
John Williams of Shadowstats seems to think that there will be very high inflation but no bank bail-ins when this pony really gets moving. The rationale is the Fed exists purely to keep the banking sector alive and a bail in would be a death sentence for the larger banks who would be losing to deflation and obliterated trust. The collateral of our entire system has been largely extinguished with QE...
Isn't a little competition good for the market?
much much much too slow from russias perspective, if you knew nato was slowly creeping on your border then they (russia) should have quietly made preperations for an alternative to much of the wests mechanisms. Be it swift or other internet protocols,such as http etc. I would it would also make sense for russia to work with china in going into african countries and securing mineral rights and also developing their technology and energy and food infrastructure. even using low rated solar panels or natural gas is enough to turn large parts of their "ice deserts" into lush argicultural zones for self sufficiently.
Hope for peace while you prepare for war.
who cares???
typical communists - lots of talk and little action
china can crush russia when it feels like it - good way to hold russia close before doing it
.
Ummm, the NATO conference was last week.
turbo tax timmy once declared he would welcome a non-dollar reserve currency system. his pithy argument was the same as bernstein's. the reserve currency stifles growth because of the forex arbitrage. is this the deliberate policy of the usa? to get rid of the dollar as reserve currency.
the only context that this would make sense in is if the yuan is actually a greenback in disguise. it has all the attributes of a central bank currency but can be treated as a state currency at any convenience. a setup like that would add a lot of stability to a fiat world simply because it could effectively annul domestically held sovereign "debt" without counterparty risk or volatility in the bond and equity markets.
the other observation is the chinese banking system has zero jewish participation. is the jewish path to the chinese banking system through russia?
"the chinese banking system has zero jewish participation"
Tell me that in a few years when Mordecai Wang will be saying herro from the CEO's office at PBOC.
You know that classic image of the gun barrel in a "U-turn" with the handler on the trigger finger...
Just 30 years ago the CIA and DoS would have disappeared or eliminated all those that participated on that little project after the first batch of cookies got handed out in Kiev...
But they're ALL alive and well holding their "battle stations" and continuing to receive paycheck and pension(s) that you're paying for, for blatant public "blowback" and treason they have created that may very well start a World War in Europe!
Think about it... What does it say about the people that work for them and follow those kinds of "orders" even when they know there cover is blown but continue anyway?... More importantly, what does it say about you and me that allow it to continue in our names?...
Too low for "0"
What does it say about those people? It says they're so confident they have us all by the balls that they don't even try to hide any more.
Um. It's all out in the open, with web sites and everything, including a wikipedia article.
http://en.wikipedia.org/wiki/Project_for_the_New_American_Century
The fact that 99% of Americans have no idea says a fair bit about the American population.
This si all good news but unless these currencies of Russia and China are backed by something or limited in their production, then I fear that we will simply see another medium for the rape of people's fiat savings.
Or does SWIFT stand for SOVIETS WILL INFILTRATE FOREX TRADING?
If you want to end this, then let all profits go to the people who are on , or own the land take all but 10% to go to the company that offers tech.
This is the solution. There is another but this leads to it. You see dear Amiriacians , and I include central and southern " Americans , North America has done some fucked up shit. Like destroying your foundation starting 100 yrs ago. By destroying your foundation you were left with relying on superstition in all its on leashed forms.
And that is what all of us ZH readers are witnessing.
I put forth a decree, THAT from this day forward we remove all forign land owners from and insert only local families to farm ALL LANDS in thier native lands. And all oil producing land are to kick out and burn all companies that do not do you justice. BP You only get 10%. All the rest is let those fuckng nitwhit discover market.
I await my degree to make the streets. Than I and my kids will bust down all doors to establish. Ok. You smart heads. Please add and get me into the front lines. Which reminds me , paid contractors and X military you now know the truth so you are on our side ha ha Ha
OT large full-halo CME just happened, pointed right at us.
http://www.solarham.net/
http://spaceweather.com/
All part of the master plan my friends...
Bwah ha ha ha ha ha ha ha ha!
Proposals by the end of the year, they say. Oh so very late. Does that mean it will be 2 years from now for it to be operational?
I do not know what Putin has been doing but this is not masterful chess playing.
Look at the changes over the last two years, Russia is sooo far behind and is only reactive, very little proactive planning.
GO BRICS!!
Hyperinflation will soon follow. buckle up.
Putin to star in remake of "Dollar" westerns , directed by Clint Eastwood.
"For a fistful of rubles"
"For a few rubles more"
"The good ruble , the bad dollar and the ugly euro"
Obama and Yellin to counter as a pair of happy-go-lucky drone pokes in
"A dollar to die for"
Whose draw is the SWIFTest ?
S. Sure
W. We
I. Intimidate
F. F*ing
T. Turncoats
Russia-China alternative system:
R. Ruin
A. America's
P. Petrodollar
E. Exceptionalism
Developing the computer system and infrastructure for a SWIFT alternative is a truly massive undertaking. About 10,000 times more complex that the Obamacare website. Of course the BRICS won't be using an Obama AA crony to develop it.....
Yeah right...
SWIFT is a text messaging system, nothing more (except some security and circuit infrastructure). The twatter geeks could build it from scratch over a weekend. SWIFT doesn't actually even move money from point A to point B. It's just a bankster party line (local loop) where banksters chat and exchange messages about the nominal ownership of the banks' money.
I beg to disagree. The proof will lie in the length of time it takes to get the BRICS alternative up and running. But as the previous commentator said the Indians and Chinese have probably stolen all the SWIFT code anyway so maybe all bets are off!
India is in the BRICS so any software the banksters have has been outsourced anyway. So the BRICS have it already. No problem.
I want to know % of dollar usage in the world now
Despite all the doom and gloom (or more correctly high expectations) its proportion of the world's reserve currency holdings has not gone down very much in the last decade.
It was about 80% last time i checked.15% euro and 5% other.hasnt really changed much since the euro came in.i think it was about 87% prior euro.it needs to drop below 50% for shit to hit the fan
92% OF OIL TRADE IS CONDUCTED IN DOLLARS
85% of goods trade in dollars.
The word bollocks springs readily to the lips.
The US State Dept. again, plays Russian Roulette with a 9MM semi-automatic and as always, goes first...
We don't want to fight but by Jingo if we do
We've got the ships, we've got the men, we've got the money too
We've fought the Bear before, and while we're Britons true
The Russians shall not have Constantinople.
Whatever happens, we have got
The Maxim gun, and they have not.
And so it goes .
As for Russia and China they are very decisive and there will be no turning back. I admire this and look forward to the demise of the US Criminals and murders that lead the country. We may suffer but are already suffering and they have cross-hairs on us.
China debt does not matter, they have productive capacity and can make things that the USA gave up on.
WHY. WHY THE HELL ARE WE FIGHTING? Let them figure it out for them selfs. Let them stave , let thier woman kill thier men to bring peace. Seriously. Don't fucking buy from them and if a country deals with them then cut that country off. FUCK politics Afghanistan get the fuck out. Completely. Any country that deals with them hood wearing woman then FUCK that country
Iraq offer the people 90% of thier right. And see all of a sudden sanity.
Just in time for China to unleash their own version of Comex on Sept 22nd...Chicago is fucked and the World will soon find out that there is no gold here! Talk about a derivitive default? The BRICS have been stacking physical and the Bankrupt USSA, which is closing in on an 18 Trillion dollar debt have only been storing paper and tungsten. The Ponzi is running out of options for the West, It's only a matter of months not years at this point before they get called to the rug. Every indicator is hitting red alert and the Central Banks seem to believe that if they have stocks in worthless investments the world will follow? No longer, we have seen the breaking point and it won't be long before all those Countries like Germany and Austria will find out there is no gold here and there hasn't been for some time..
Worth watching and thinking about... I been saying BRICS BITHEZ for some time now, I think its finally sinking in..,.
http://beforeitsnews.com/politics/2014/09/harvey-organ-by-december-whole-thing-going-to-collapse-2649594.html
I've been saying...in relative terms...there's some s am countries with some real 21st c advantages for a while too.
One obvious advantage...a shit load less background radiation. Some countries like Colombia have much less debt to GDP than the US and much of Europe.
coincidentally, this came up.
.
Bob Dylan - Sweetheart Like You
http://www.youtube.com/watch?v=PpRKstHl7Y0
.
"patriotism is the last refuge to which a scoundrel clings,
steal a little and they throw you in jail,
steal a lot and they make you king." b.d.
zimmy
Using SWIFT as a political weapon was a stupid idea.
blowback!
Blowback yes, but at times it seems scripted its so obvious. Everybody seen as an enemy of the GRC has their dollar privledges cut piece by piece and big surprise, they construct their own, alternative systems. What other outcome could Barry and his handlers anticipate? The more that get pushed out of the dollar system the more viable and necessary the alternative becomes.
So what's the take away? Barry's handlers want to kill the dollar and all that implies, by destroying its GRC status.
The Russian company CyberPlat has already introduced a replacement called CyberSWIFT for Russian banks.
It says that its solution is 50% cheaper than SWIFT.
http://www.cyberplat.com/about/news/?id=224
With friends like Jared Bernstein, who needs enemies?
"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"
Perhaps that was the goal all along...
re. Russia, China To Create SWIFT Boat Alternative
Is John Kerry aware of this?
What the F am I missing?.. why do you need a system or any stupid setup to have trade?
You have 2 partys..both exchanging 1 thing for another..gas for gold..food for oil...whatever for whatever. Both teams bring their security guys tk make sure nobody gets fucked..and thats it. That is all. All this titleing certain ' systems' with cute names is just for public consumption. Again..this just proves that the whole thing -all of it- is a game for you common folk. And you all eat it up..just like friggin clockwork. God damn.
When a trade happens..its one item for another..always has. Fancy names and accounts and converting and the like is all from the made up banker crooks, that want you to think that somehow 'they' or 'a system of sorts' need to be in place or trade cant commence.
I really do understand that all the years of conditioning have tried to make us think a certain way. . But cmon guys. They not only control the 'good side' ..they controll all sides.
Rig the setup.
Rig the outcome.
Rig the 'fact that its rigged'..so you control the outcome..in any direction it may go.
Carry on..ill be here all night.
Even though they have gold the Russians and Chinese are hoping to cut in on the international fiat game. Not only bankers, governments can't resist fiat. If you would only trust me I could issue you fiat from my laser printer and sign each note personally, and I won't print more than is needed to facilitate trade, I promise. Fiat is like that ring in Lord of the Rings, so lovely, my precious.
If you are dealing solely with intragovernmental trade you don't need a "system". If Vlad the inhaler wants to sell his asthma medicine to chuffin Charlie Chan, they'll probably go though a bank which will need some international settlement system.
Some Wanker's Idea of Funds Transfer has long needed competition.
Those of you who've watched the Never-ending Scope-Creep Snooping performed by our MIC and Govermental Agencies can probably recall how the Data Security previously enjoyed by the EUR/CHF Branch of SWIFT have been compromised by TEAM_USA in the name of Terr'st Huntin'; and pwned as they were, TEAMS_EUR&CHF didn't rcv squat about potential Terror/Crime Potentials in exchange.
TEAMS_RUS&CHN are prudent in offering an alternative. If and when built with Integrity in mind, good money will flow in.
"Ring Ring!"
"Get that, please, Reg."
"Munchkins, it's for you!"
"Hello?"
Good job, Agent Haffcracker. We just read an article on ZH. You have almost finished the dollar destruction."
"Thank you, sir."
"The guys here in Basel want a round of golf when you finish the job"
"Hey! My middle name is Golf!"
"We are thinking of changing your code name back to "Puttnick," but some artist in Asia has been using it."
"Want me to drone him?"
"No, if you miss he will go al Banzai on us. Nobody will be safe. I have to go, we're stopping at a yuan-swap facility."
******
Honey, will you pick up some Rubles on the way home?
Awright awright, hey, I'm trying to finish some satire here."
Swift is a financial email system...
Look it up
Society for worldwide interbank financial telecommucation
Late News Flash!!
Suspected Ebola patient on Gold Coasthttp://www.stuff.co.nz/world/australia/61177585/Suspected-Ebola-patient-...
Maybee a game changer for you yallllll!...?
sad to say this...but US just accomplished biggest Own Goal in the history of civilization...way to go! USA just became usa
Second biggest.
You've forgotten Truman's 1948 fuck-up.
Truly the beginning of the end....
I guess necessity really is the mother of invention.
EU being a bitch over gas, build a pipeline to china.
Paying the US to be an assclown, switch reserve currency.
UK wants to ban you from swift, go in internet and google 'make your own swift'
Its really too bad that our fortunes as a Americans are tied up with this bunch of criminals.
Heard that US is in default of a silver lease of somewhere around 300 million oz. China had agreed, in 2003, to a silver lease as part of the favored nation status granted to it by .gov. The lease expired Dec.13. Seems .gov may have lost the silver? Got washed away in a hurricane or turned to carbon under buildings? Chinese very angry. Further, Shanghai silver exchange has reduced from 33 million oz to 2.9 million oz over the last year. China has been buying average 2 million per month to service it's industrial sector. Reported at best a two month inventory before physical supply shortage. Many predicting the s to hit the fan by the end of this year. Chance of major diversion extreme! Ebola, ISIS and a strong element of US patriotic extremism ( terrorism ) in the forefront. War Ukraine, war Syria, and continuing devastation of Libya, Afghanistan, Somalia and Iraq will divert. Russia bad, US good! Hang on to your asses. We're going for a ride!
Fucking Sauds must be shaking in their dresses about now. No more petrodollar to manipulate and pay for their global proxy slaves?
GO PUTIN!!!
Friend, The Saudis will have two choices,
Maintain the US hegemony and sell your oil in us$, or, we will unleash the Islamic caliphate in your country.
It is US diplomacy, or extortion?
That's a great point...the purpose for ISIS revealed. A creation of necessity as the dominos might fall.
The Bitcoin of financial telecommunications. Almost.
Our American puppet-masters must know the jig will be up soon. So I wonder what new plans they have in store for the American people? Besides impoverishing America into a large third-world Ebola-infected continent merged with Mexico, do they have plans to provoke China and Russia into nuking our American cities to hide their many crimes and bring about the new world they envision?
False flags anyone? It’s a mistake to assume that all of the sins and deceptions that are being inflicted upon Americans and the world will quickly come to an end when the dollar ceases to exist, as America still has an arsenal of exotic weapons that go way beyond paper and digital currency warfare. Will these weapons be used to defend what’s left of America, or will they be transferred to the new world regime along with the installation of a new world reserve currency.
Whatever happens, my confidence has been permanently shaken by whatever Washington does or does not do. I am no longer that innocent little boy who used to watch the Lone Ranger and John Wayne movies with naive excitement, as I don’t think that the same wonderful country still exists any longer (if it ever did), certainly not in Washington or in the expansion of the government Leviathan.
We must continue praying unceasingly for God’s mercy on America. God’s will must be done, but we also fight the good fight and somehow FEAR NOT through it all!
Told ya so. That was too easy and too obvious. It is about time.
its a start, they should have capitol controlls, and better anti graft and absolute despotic corruption than most 3rd world countries
.
China should be way better off
Thumbs up to BRICS
Dump the apartheid based financial system including SWIFT.
We should no longer be slaves to the Pirates aka West.
Western fin. system is nothing more than intimidation & coersion eventually fraud & robbery of the billions of poor people in developing world whose best produce is gobbled up by the West and the trend is increasing.
With immoral thugs leading the western world including the homo drug addict USprez Obamma what we expect?
Get out of the western systems , it is nothing but financial cannibalism as well as modern form of Piracy.
------
Since the SWIFT (and others) are cracked by N-S-A the national stasi agency of USA , the new system should have very high bit encyption. N-S-A has put a limit of 256 bits because their supercomputers can crack any transaction , so the new system should have more than 2000 bits encyption.
Silly ideas. IF China & RF could have done this, they would have already. RF should be blocked from SWIFT transfers, which will shut them down quickly.
That effectiveness is the reason that RF will NOT be blocked, no one seriously wants to seriously damage Putin. Who knows what inglorious bastard/bitch will replace his sorry ass!
BRICS cable has been in the works for awhile. Wonder how its matured. I'm guessing its ready.
INFOGRAPHIC: DOLLAR DEFENDER:https://www.idrive.com/idrive/sh/sh?k=h6f5a6x8e4