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ECB Warns UK: Excluding Russia From SWIFT "Could Undermine Confidence In The Whole System"
As "isolated" Russia signs a military deal with Cyprus, agrees bilateral trade with Greece, ratifies the $100 billion BRICS Bank, and offers to trade advanced anti-aircraft missiles to Iran, it seems threats of more sanctions against Putin and his nation are finding resistance from an unexpected place. With British PM David Cameron re-demanding that Russia be excluded from the SWIFT global financial payments system, none other than ECB Governing Council member Ewald Nowotny has exclaimed, "one has to be very careful here, exclusion of Russia from Swift would be very problematic because it could potentially undermine confidence in this system as a whole."
As Der Standard reports (via Google Translate),
A SWIFT exclusion of Russia as a sanction against the EU-Ukraine Moscow because of the crisis had last been suggested by British Prime Minister David Cameron. Nowotny said he had spoken with EU Commissioner for Economic Affairs Pierre Moscovici... the question of the Russia-EU sanctions.
"I pointed out that one has to be very careful here," the governor said. Exclusion of Russia from Swift "we would see as very problematic because it could potentially undermine confidence in this system as a whole".
Austria would advocate a pragmatic way. His warning was not so much related to Austria, but on the credibility of the SWIFT system. This international payment system should be a neutral service, Nowotny said.
For Austria exclusion of Russia from Swift would have no immediate effect. However, Russia could then put retaliation, "and, of course, would have implications for all companies doing business in Russia there". But he assumed that it would not come to such a step. He would not comment on the sanctions, "only if sanctioned, this is not the appropriate field."
* * *
Of course, Russia has already created an alternative to SWIFT - as it said it would...as Sputnik News reports,
Almost 91 domestic credit institutions have been incorporated into the new Russian financial system, the analogous of SWIFT, an international banking network.
The new service, will allow Russian banks to communicate seamlessly through the Central Bank of Russia.
It should be noted that Russia's Central Bank initiated the development of the country's own messaging system in response to repeated threats voiced by Moscow's Western partners to disconnect Russia from SWIFT.
...
Joining the global interbank system in 1989, Russia has become one of the most active users of SWIFT globally, sending hundreds of thousands of messages per day. In general, SWIFT provides a secure communication network for more than ten thousands of financial institutions around the world, approving transactions of trillions of US dollars.
Earlier this month Russian Deputy Prime Minister Igor Shuvalov expressed confidence that Russia would not be disconnected from SWIFT. In her turn, Russian Central Bank First Deputy Chair Ksenia Yudaeva called upon Russian civilians and financial institutions not to dramatize the current situation.
Russian experts point to the fact that Western businesses would face severe losses if they expelled Russia from the international SWIFT system. On the other hand, the alternative system launched by Russia might reduce the negative impacts caused by measures imposed by the West, including possible disconnection from SWIFT, and diminish Western financial dominance over Russia.
* * *
...and one wonders how destabilizing it would be for the world financial system if Russia decided unilaterally to leave SWIFT?
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I thought the point was to undermine the system?
International law/treaties in numerous places includes the exclusion of a country from the international payments mechanism constituting an Act of War.
Go Figure
Like Iran ?
it doesn't include Muslim States. States governed by the religion of peace are exempt.
The religion that still bans usury you mean.That and oil explains everything.
British and US laptdog Zio puppet "leaders" make me sick, you wonder when their heads will just start spinning ala Exorcist...
What if Russia decides to become a banking safe haven free from US laws?
You know, the more I contemplate the doings of 'our' governments and weigh the good and bad and start defending the actions of one over the other, the more I feel like a chump.
It's like some shop owner who pays protection money to his local mafioso taking sides and debating what's 'best' when 'his' mafia gets in conflict with a neighbouring mafia family.
What a bunch of Stockholmed fools we are; a pox on all their houses!
With their own encrypted systems Russia could replace Switzerland as the haven for secret financial accounts.
The U.S. bureaucracy is so large and cumbersome that each department pursues its own agenda without ever thinking about the collateral consequences to other departments and agencies. Cutting Russia off from Swift means that the accounts of American investors in Russia and American execs working for American companies in Russia go dark to the IRS.
Russia may not be quite the vacation paradise to match the Caymans, but then some of the "scenery" in Russia looks pretty damn good!!
The Russians got BABES!!!
https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rj...
Dup!!
They can be bankers for ISIS and Assad.
Who needs swift when you have HKSB and JP Morgan?
not the fucking confidence!!!!!
The Queen Mum
She's had some good fun
But the shapeshiftin' snakes
Are now on the run!
Keep on playing with fire, western leaders. Your death wish might be fulfilled sooner than you think.
Zion Protocol number??? I keep getting them all mixed up, Like being puppy being trained, I am confused by the crosstalk and mixed messages. What's a poor serf to do?
Zion Protocol number???
That would be...47544.
Oh wait, thats Frank Marshall Davis' Communist Party number.
My bad ;-)
It's a death cult. I"m dreaming of the day the world goes "Jim Jones" on their asses. They've already drank the kool-aid.
soon EU to be in bed with Russia by my observations
They've been in bed for 2,000 years. The American citizen is the mark here.
As designed by Dear Leader
yep, they've realized which side their borscht is buttered...
Putin may indeed be a valiant man standing up to a corrupt and evil empire. Maybe. If he is, he will probably fall. The lion sign is too strong.
Woar, if the west does it.
Woar when Russia does.
Hobsons choice,
west has cornered himself, he can't do damage without selfdestraction
And all in it's final analysis, for no rational reason whatsoever. Let the pipelines be built, the external trade treaties take place, the world will turn and the follies of men dissolve as they have in the past. Left alone, things will simply work out. Ignoble activities such as those being pursued suffer only tragic and expensive outcomes.
Knukles, your astuteness is astounding
Tough talk from the same platform where Gordo sold a huge chunk of their gold at firesale prices.
What a maroon!
Not so swift then?
That must be why this is happeing right about now along with 50,000 dead men women and children and counting in that civil war that the U.S. started last year.
Hope Russia and China send D.C., London and Tel Aviv to the moon!!!
The ECB gave the warning?
I don't understand. Aren't they suppose to be monetizing all of Ukraine's debt?
What passes for "currency" over there these days anyways?
At least Greece has a "gold mine."
The problem is that the numbers don't make any sense. Obviously Europe could pass a "gold price rule" as well...that would probably strongly motivate investment in Greece actually.
Ask the Turks what they think
I think I read recently on ZH that Russia is responsible for a huge percentage of SWIFT transactions. If they were excluded the impact would send a shockware for sure.
Russia have second place with banks number in the world
Nonsense. As usual, nothing will happen. We have been knocking at the doors of collapse for so long that I don't thing anyone is at home.
Russia bought a lot of gold recently and get rid of US treasuries together with China
this are clear intentions
http://www.zerohedge.com/news/2014-12-15/china-russia-dump-us-treasurys-...
F.M :
do you know the story of the kid always yelling " wolf wolf ", when nothing happens in reality, until the day ppl were no more listening the kid the day he really saw wolves ?
that's the problem, that makes elite's excuse " we did not see it coming, this time it is different" overestimating stuff all the time, until...it comes..
Yes David the camera is on...
As bad as we have it here in the states with the hip-hop prez0, I can't imagine the embarrassment felt by you poor Brits..
Hey Dave, why not follow Estonia's rented valet example, reposition 30 armored personel carriers around Stonehenge ...at night.. and call it a NATO exercise.
That will fuck with em...
Putz
Cameron... Obama... Cameron... Obama...
Nope, sorry, I can't say that I see that Cameron is actually worse than the Big O.
Oh the irony! Stonehenge is literally next door to an army base and the Salisbury Plain training area. Lulz
The setup is obvious. Russia is setting up an alternative to SWIFT. Russia is buying gold. Russia is stopping the West in Syria. It is obvious Russia is tired of the USSAs shit and is getting ready to pull the plug and move away to their own systems. They will quickly bring in the BRICS and the Russian eurasian economic union next....then dare the USSA to start a war.
This Russian system is just so that 91 banks within Russia can communicate without outside assistance. That should have been done ages ago. No time line has even been given for when, if ever, it will accomodate other nations other than China. The last I read China would not be connected for several years.
Syria is largely destroyed and the destruction is ongoing. Nothing has been stopped. TPTB could not blame Syria for the poison gas and thus have not had an event they could sell the sheep at home as justification for finishing the job quickly. That appears to be changing with the new boots on the ground to "fight" ISIS and the increased bombing in Syria.
This is not an attack.
Would like to see a link for China not connecting for several years.
Also, Assad's head-on-a-stick has not made a cameo appearance in an ISIS video, soooo I would say they were definitely stopped in Syria. Remember the naval "blockade" and failed Tomahawk "test"?
I'll look briefly via google for a reference. I think it might have been here on ZH.
Do you have any link to an official announcement from Russia about this system being operational for China sooner?
They are bombing Syria on a regular basis. The denial by many on ZH that Syria is already largely destroyed, citizens having vacated many towns and that the situation is not under control is fantasy. The Tomahawk diverting was a success. The blockade has not been. Planes fly right into Syria and kill. Has one of those Russia ships fired a single shot to protect Syria? Why does Russia not announce a no fly zone over Syria just like the US has repeatedly done against the will of soverign countries?
The attitude that all is right in Syria and the insurgents have been stopped unless Assad's head is on a stick pretty well sums up the wishful thinking found here. I guess those same people also believed Iraq had stopped the invaders right up to the time Saddam was finally hanged.
Syria became a dispenable pawn with the advent of Crimea and the new port facility
agreement with Iran.Bringing Turkey into the Russian spere also blocks the pipeline.
You pick your battleground, and its Iran, soon to be a full member of the SCO.
These things that they do, they are done well before they are announced. We have little knowledge of what they are really doing in totalality. We are told through announcements what they will allow to be announced. I will bargain to think they have a bit more going on then we are told.
Just how significant is this little SWIFT thing to the Western banks?...
This important!!!
Russia is the biggest user if I recall correctly.
This will be the last step before the nukes start falling in Washington DC I'm pretty sure that will be the first place to be hit by the Russian nukes. "A snake without head is not a snake"
Its the only way to be sure.
Let's make sure we have some champagne to celebrate the destruction of Washington DC when that day comes.
Is there somewhere we can donate ?
We can have some boxes ready to be distributed in the neighborhood. We can use the churches and the schools.
Why Champagne? Good tasting well water would be good enough. Just as healthy as Chanpagne for a lot less $.
Maybe just an EMP so we can save the buildings for when we have to restart the republic?
restart = again.
lets play tribal like planet of ape style, funnier, all busy to sharp sticks, no politics involvment.
you will be able to go fun hunting in missouri
God I hope Obama is at home at the time.
Why do we give a shit about Ukraine all of a sudden? We really want war with Russia to gorge on the left overs? This is so crazy.
We could not fuck up Iran for 30'years so why do we think we can do this to Putin? What is the angle?
Who is going to get rich?
the best plan is to pick on those least able to fight back. Obama does not believe in American exceptionalism but he still thinks he can throw his/our weight around without blow back. If you have seen him with a gun in his hands you know what we are dealing with.
I'm going to have to search that image. It has to be funny with how he handles himself in the gym...
Lots of precious metals, oil and gas in Russia. Ukraine is just an excuse to take over.
It is crazy! But, Russia's state controlled media propaganda campaign is making it sound like war is around the corner with the US and NATO. What they are really trying to do is distract the people of Russia from the recessionary economy, low oil prices, the ever expanding police state, and widespread corruption in Russia The US really does not have any real strategic VITAL interests in the Ukraine. Not vital enough for US and NATO to send combat troops to the Ukraine and fight the Russians in their own backyard. Yes, a Pro-Western regime in the Ukraine is a nice thing, but not worth going to war with the Russians, which could go nuclear. In the worst case, if Russian's invaded, conquered, and installed a pro-Russian regime in the Ukraine, it would not change anything. Yes, more sanctions against Russia, but it doesn't go past that unless trouble starts in the Baltics or elsewhere.
This is all so Biden jr. Can have his own country ?!
As of right now Ukraine is burning in flames.: Police disperse protesters at Ukraine National Bank
putinic is a bully.
the china man has plastic dollar store weapons
the russian has rockets made of wood they can only fly in the dry as when wet they bend
butt anyway already
only zion and david cam moron can put the new hilter in his place.
enough anne franks have died already during the w w 2 wars.
we cannot allow more jews to suffer without a compensation package being in place.
no dollars
just gold
the rabbi must not be messed with
without a pain in the wallet or purse
HaHa, that's a good one Tony.
I can't wait for the US military to be soundly defeated, its ships lying at the bottom of the seaans its warplanes in acrid smoldering heaps.
My Uncle Beauford told me once, "If you're commencin' a pissin' contest, best not to step on y'own dick."
God bless his cankerous old soul.
I dont know if Putin is for real but damn, I'd vote for him anyday over cameron/Obama/Harper.
At least Vlad has a clue on how the game is played.
I dont know if Putin is for real but damn,
that sounds like queer talk my man.
here at the soros institute branch of chatham house at the united service tavistock institute
we deal in facts and files and docu munts
the fact is my man that putin is clearly a gay man my man
and not to be trusted.
he wants tp take away the last sheckles of us poor imf israelites
already
the crosshairs. i really can't fathom why vlad (and team) just don't swiftly roll over europe. what have they got to lose?
History an their freedom.
The big military deal simply allows Russia to dock some ships for refueling and supplies and from what I remember for them to continue to have some maintenance personnel on land. There is not airport with military planes being stationed, no naval base, no troops - just allowed to dock some ships.
The $100 billion BRICS bank is less than 2 months of Fed printing.
Barry Obammy was a man, was a BIG man, but the bear was bigger so he ran like a nigger up a tree.
The British politburo seems to be much like a spoiled child playing a game.
They constantly change the rules when they are not winning, scorns anyone that questions the rules, and finally throws a temper tantrum and threatens to take their game home, since it's theirs anyway, if you can't let them win by constantly changing rules.
SWIFT shell game will be exposed under names and addresses. It won't be pretty for the wankers shoveling new laws to receive a kick-back.
Cameron has a peanut for a brain. Every western effort to provoke Russia has backfired. This one will too. Just remember if WWIII starts the responsible parties are Cameron, Obama, Merkel,Hollande, Nato, anyone in the GOP, anyone in the Democrats.
Re previous comment: I forgot Harper and Abbott but then who wouldn't
Do you ever get the feeling that you are snookered?
Expell Russia.
RUssia will expand their own system further, make the life of their oligarchs more difficult and expand its own "SWIFT" system, maybe excluding the "West".
Cameron and his relationship with Obama brings to my mind Salacious B. Crumb,the Kowakian monkey-lizard, and his relationship to Jabba the Hutt.
Screw the bankers!
Finance should not be used as an insturment of arbitrary power-politics between nations.
Using the elements of power in a hostile manner is warfare.
It should not be used unless the stakes are appropriate to justfy the risk of open warfare - and then only after a public debate.
The world, both east and west, is being led by power-hungry juveniles with a deficit of caution and a surplus in self-confidence.
SWIFT is mostly settlement messaging system.
Actually, SWIFT.NET is the network, but anyone can create its own network, like Russia did, which passes messages beetween adressants with BIC addresses. Some banks use it between branches.
The problem with current SWIFT is that all messages are intercepted by US hub, so no banking privacy exists - at some point EU was pressed to do it.
So, building a new independant network will be a positive thing.