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China Completes SWIFT Alternative, May Launch "De-Dollarization Axis" As Soon As September
One of the recurring threats used by the western nations in their cold (and increasingly more hot) war with Russia, is that Putin's regime may be locked out of all international monetary transactions when Moscow is disconnected from the EU-based global currency messaging and interchange service known as SWIFT (a move, incidentally, which SWIFT lamented as was revealed in October when we reported that it announces it "regrets the pressure" to disconnect Russia).
Of course, in the aftermath of revelations that back in 2013, none other than the NSA was exposed for secretly 'monitoring' the SWIFT payments flows, one could wonder if being kicked out of SWIFT is a curse or a blessing, however Russia did not need any further warnings and as we reported less than a month ago, Russia launched its own 'SWIFT'-alternative, linking 91 credit institutions initially. This in turn suggested that de-dollarization is considerably further along than many had expected, which coupled with Russia's record dumping of TSYs, demonstrated just how seriously Putin is taking the threat to be isolated from the western payment system. It was only logical that he would come up with his own.
There were two clear implications from this use of money as a means of waging covert war: i) unless someone else followed Russia out of SWIFT, its action, while notable and valiant, would be pointless - after all, if everyone else is still using SWIFT by default, then anything Russia implements for processing foreign payments is irrelevant and ii) if indeed the Russian example of exiting a western-mediated payment system was successful and copied, it would accelerate the demise of the Dollar's status as reserve currency, which is thus by default since there are no alternatives. Provide alternatives, and the entire reserve system begins to crack.
Today, we got proof that it is the second outcome that is about to prevail following a Reuters report that China's international payment system, known simply enough as China International Payment System (CIPS), which serves to process cross-border yuan transactions is ready, and may be launched as early as September or October.
According to Reuters, the launch of the will remove one of the biggest hurdles to internationalizing the yuan and should greatly increase global usage of the Chinese currency by cutting transaction costs and processing times.
It will also put the yuan on a more even footing with other major global currencies like the U.S. dollar, as CIPS is expected to use the same messaging format as other international payment systems, making transactions smoother.
CIPS, which would be a worldwide payments superhighway for the yuan, will replace a patchwork of existing networks that make processing renminbi payments a more cumbersome process.
In other words, while the west was using every provocation involving the Ukraine civil war as an opportunity to pressure Russia into developing its own cross-border payment system, it achieved not only just that but it also pushed China to accelerate the roll out of its own international payment system, in the process telegraphing to the world that the USD is replacable as a reserve currency and giving any other nations (such as the BRICs) the green light to think of SWIFT as an alternative to either the Russian or Chinese payment system (which with enough political and financial stimulus, they would be delighted to do).
But what is most disturbing is just how quickly the Chinese regime change is coming:
"If it's all smooth, (the launch) will be in September or October. If there is a need for a bit more time, we are still confident about (rolling it out) before the year-end," said the source, who declined to be named because he is not authorized to speak to the media.
The system was expected to be launched in 2014 but was delayed by technical problems, with most market participants anticipating it would not come on stream before 2016.
Needless to say, China will be delighted to have its own unified payment system, one that will further internationalize the Renminbi which at least check had become one of the top five payment currencies in November 2014, overtaking both the Canadian and the Australian dollar based on SWIFT data.
Until now, cross-border yuan clearing has to be done either through one of the offshore yuan clearing banks in the likes of Hong Kong, Singapore and London, or else with the help of a correspondent bank in mainland China.
"Misunderstandings under the current clearing system happen from time-to-time due to different languages and codings. The CIPS is a breakthrough since it will offer a united platform and enhance efficiency," said Raymond Yeung, an analyst at ANZ in Hong Kong.
The launch of CIPS will enable companies outside China to clear yuan transactions with their Chinese counterparts directly, reducing the number of stages a payment has to go through.
It will also make it far more difficult for the NSA to track payments to and from the mainland when such compromised intermediaries as SWIFT are used.
This is how the Mercator Institute for China Studies previewed this major development:
The Chinese government is striving towards a controlled internationalization of China's currency through a step-by-step expansion of the use of the RMB in Chinese foreign trade and investment. Towards this end, a worldwide network of agreements dealing with central bank currency swaps, the direct exchange of the RMB with other currencies, and RMB clearing hubs has been built. The establishment of an independent payment system (CIPS) for RMB transactions and an alternative to the existing SWIFT would further increase China’s autonomy vis-à-vis U.S. centred financial market structures.
Finally, as it becomes easier to transact in non-USD terms, it will merely accelerate the adoption of the Chinese Yuan as the primary currency of global trade, or what little is left of it, as opposed to the currency of financial engineering.
Global yuan payments increased by 20.3 percent in value in December compared to a year earlier, while the growth for payments across all currencies was 14.9 percent for the same period, SWIFT said.
China has accelerated the pace of yuan internationalization in recent years. The central bank assigned 10 official yuan clearing banks last year, bringing the total number to 14 globally that can clear yuan transactions with China.
The final observation to make here is that if indeed it was the Obama administration's brilliant ploy to kick out Russia - and by geopolitical affiliation, China - out of a monetary transaction mechanism that is controlled and supervised by the US and force the two biggest challengers to US global dominance into their own (or joint) payment system, then well, congratulations: it succeeded.
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I learned long ago, never to wrestle with a pig. You get dirty, and besides, the pig likes it.
George Bernard Shaw
There are no miscalculations here...everyone is playing their part in preperation for the coming transition to yet another world order.
Would have laughed at that statement ten years ago. As the man said, I ain't laughing now.
I can't wait until they throw Apple's patent rights out the window. Got to be some fractured globalist over this. What's a fractured globalist look like anyhow?
Well now, isn't that timing just purrrfect for the Super Shemitah!
Jonathan Cahn, who wrote a book titled "Shemitah", puts the American collapse on Sep. 13, 2015. This is a Sunday. How many times have I read that the banks will close on a Friday and NOT open the following Monday?
AAPL soon to be kicked out of China.
Why the NEW SYSTEM when the current ONE serves just DANDY like? heavy sarc.
[OT] I once new a new mainland Chinese immigrant who had taken the anglicized named DANDY, when I asked him why he chose DANDY, he replied, his favourite movie was Crocodile DANDY. No shit, true story.
This is mainly a response to the Snowden revelations on spying, and the USA using SWIFT as a political weapon. The world has had enough of your bullshit.
IDKWTS after so many years on this zh, is everyone here in stocks, and who lost money otherwise why blame USA, we have been one of the best countrty to live in the world, probably many don't know how other third world countries are or maybe you are naive..........
After the dollar collapse, you, me and the others will be subordinate in the global marketplace, if we don’t nuke them back to the stone age.
Frankly, we have to teach Russia a lesson. Using Japan, blow-up Chinese factories using large-scale nuclear warheads…. bringing the factories back to U.S. shores…. Or Africa and we run-up the debt again.
We deserve everything coming to us.
Sadly, I have to agree.
I wonder if academics and eggheads will be kind to us in history books?
Well ~ they sucked at foretelling the FUTURE if that's any indication...
Brilliant analysis. But you overlooked one detail. The Russians and Chinese have hundreds of nukes and all of us will be crystal along with them should your ' solution' ever be put to the test.
Mmmm, how do you bring blown up factories back?
There is no-one in the US making the machines that make things anymore.
How did you came up with such a brilliant idea? Gee! It's amazing how Mankind evolves within the hour...
pook1e.....what ever you do, do not drive a car for the next 12 hours.
The threat of full scale currency war by Sept. may well mean round three of "The Guns of August" if not sooner. Anyone who is gleeful at the prospect is an ignorant fool.
Hey SQUADRON....what other prospect is there?
Continue down this shit-paved road, being taken for fools and lied to while being raped and savaged by our own government?
You might be enjoying this long ride down the razor blade...I myself am looking forward to getting of this shitty-go-round.
The only rational alternative currency wars leading to a horrific wars in Europe and or the Middle East is global sovereign debt repudiation. Unfortunatly that would require the political class growing hair on their balls and forsaking the boat loads of bribes errr campaign contributionsthey get from the corrupt bankers. So war it will be and my God have mercy on us all.
May the Wrath of God be fomented upon the deserving.
Yes...Including me. I do not deserve mercy and neither do any of us here.
I will leave that judgment to God not to some poster on zero hedge.
So war it will be and my God have mercy on us all.
Really? Laughing my ass off.
You are blind to your own hypocrisy.
If i was interested in MERCY then I'd be praying for peace rather than pronouncing the curse of war upon us.
As a result of your own utterance of that curse you are amongst the most deserving.
You shall be judged by your own words which screams for death and condemnation.
Yes it was Jesus who said, "But I tell you that every careless word that people speak, they shall give an accounting for it in the day of judgment.For by thy words thou shalt be justified, and by thy words thou shalt be condemned." Matthew 12:36-37 (KJV)
If you do not like the King James translation there are a plethora of translations to choose from here...
http://biblehub.com/matthew/12-37.htm
So please tell me why you deserve Heaven. I want to read that as I can use a good laugh.
And...you know... I have not read any of Jesus' posts here on Zerohedge...yet.
But I expect that some sacreligious clown will take that name as I have suggested it.
Tuchman ?
"May Launch As Soon As September"I would expect they will have it done way ahead of schedule. Russia did.
Yup, build in some contingency and don't tip the opposition off.
This is good news. The unravelling of the US dollar/empire is getting more predictable. The time line of the US economic implosion is hard to accurately know but one thing for sure, the process is under way and the picture is getting more clear. If a total collapse is what it takes for 'us' to shake off the opportunistic parasites of Wall Street and D.C., then so be it, the buffalo will happily wallow in dirt to shed the ticks!
THese mofos are worse that ticks, they are more like Tissue worms.
accelerate the demise of the Dollar's status as reserve currency and take down the US war machine as well. First really good news of the year. No wonder the Beltway is having hissy fits trying to start World War III - “Just Us” know their time is running out.
The Beltway isn't "trying" they already have.
Another hundred plus armored vehicles unloaded today in addition to the hundreds already there.
You can get from three to five thousand pretty quick.
Joint maritime patrols in the Black Sea. Civil war in Libya. Tikrit.
These "games" can get out of hand real quick.
How about that new i-watch?
I am Sorry but no encouragement to any of this but this has been going on for what like 10 yrs now? maybe i am thinking of why am i even looking into this website..... anybody misleading to people who are really investing in stocks or whatever...
Hey SARA, I'm as disappointed as the next guy that this shit ride is taking soooo long to come to an end...but I, like many others, see 2015 as the year SHTF...haven't you noticed the quickening of events and benchmarks.
Take heart, it'll come and soon. Promise.
You place your currency into a fraudulent scheme?
You participate in the Ponzi Scheme that is known as the US Stock Market?
There are none so deserving than those who seek ill gotten gain.
Watch for US sabotage of this system.
Watch China then call it an act of war, which it will be.
4th red blood moon about that time.
Perhaps coincidence, perhaps not.
Totally agree DSTY...
Did you notice how the Shanghai Daily Gold Fix will start on March 20th (supermoon eclipse and equinox)...
And the launch of this CIPS in September...betcha it'll be by September 24th...
All these nations and their leaders follow astrological and astronomical events for major decisions.
As a rule of thumb, if dsty said it, you can pretty much disagree.
Add yet another coincidence. As I write this, I'm watching the South Park episode Margaritaville, famous for "and...it's gone". The show was done in 2009 and revolves around an economic collapse in South Park. Recommended viewing.
(spoiler alert) In that southpark episode they discover that the fed bases their decisions on a beheaded chicken where it will fall. It is almost true.
Keep fucking that chicken!
Chicken or dreidle?
In three years you will be required to settle all China accounts in yuan using CIPS.
It will be like watching the Mississippi flow upstream.
One year of working bugs from the system.
One year for adding another 100 countries to the system gratis.
Three years of continued Obama spending, Fed manipulation and a ridiculous US election to render the dollar an also-ran for the Sino-industrial base.
Nobody likes a bully and America has become a bully.
Does ANYONE in ANY POLITICAL BASE believe that either Herr Hillary or Jeb hold any moral authority or irresistible force to win a White House with a mandate other than keep the Corporate Establishment from being unplugged.
These creeps are not Dr. Frankenstein. They're Igor and Renfield.
At some point millions of unemployed formerly middle class Americans will wake up and say, "Dude. Where's my economy?"
Neither the Fed, the billionaires, the smart-ass Ivy League MBA's and economists, the Democrats or Republicans or their corporate candidates will have an answer.
These spoiled student loan indebted barrista worshiping Millennials will be jack-booting themselves over the bodies of the Establishment.
The elite will continue their hallow attempt to divide the country by cheap race baiting, but for some odd reason people's desire to eat with dignity will prevail.
I used to laugh at the notion of the super rich and powerful wanting to drop nukes on their own population to avoid disaster.
Now I think you could say the probability is no longer zero.
What other alternatives do they have?
Good luck to everybody.
<<These creeps are not Dr. Frankenstein. They're Igor and Renfield.>>
HEY. Am not. You take that back.
Millions will wake up and say dude where is my fooood.
I agree on one thing anyone or country or entity threating USA should be parking place as soon as possible
Coz if you don't do that, you will be that!
I for one thing know that for sure that if u don't do that someone else will do it for ya! I have lived and worked for long enough in Asia and ME to know this I am not giving nay fin advice or anything else, this country USA is the only safe haven when hell breaks loose, hate this place then i don't know where else it could be better...
lol, the USA is not a safe haven. When the US social fabric rips itself to bare threads, even the threads will catch fire from friction. There are no safe havens unless you consider gold a haven.
One last word all! Why so much Pessimism?
Yes, why so pessimistic.
As reported today, from yahoo unbelievably enough :(((
http://news.yahoo.com/us-sends-heavy-armour-baltic-states-deter-russia-1...
The article presents the facts such that taking this action is as normal as sending a shipment of grain.
The truly sad part is that the towering intellects who get their world information from yahoo were just handed a slick PR campaign.
They won't even question it.
Yay! Good for them.
This is what happens when you act like tool for 60 years or so.
The Washington Wankers have gone after Russia with the gloves off the last 3 years. Winning major victories in the propaganda war and war on the ground, taking most of Ukraine in one well planned coup. Then the USA is now setting up for a Summer War in Donbass which the USA will be a party to, pressing Russia into a direct proxy war. Using this Ukraine coup as leverage, the Washington crowd has declared an open ended economic and fiscal war on Russia, and is bring as many allies as it can with them.
But, in the attempt to collapse Russia's economy, Washington may be laying the ground work for a vast counter action. The Russia variant of SWIFT, and now China getting onboard, these events are not what Washington had expected. In fact, by declaring an economic and financial war on one, Washington has sent shock waves among the many who are wondering if they will be next on Washington's hit list.
Let's see how this plays out. And move away from dollar denominated trade, any relaxing of the demand for green backs is a giant kick in the balls to Washington. Let's face it, Washington runs on printed green backs, the it's power to force the world to accept and use freshly printed greenbacks as a legitimate form of wealth. Exporting American's fiscal problems to foreign nations, using green backs to carry the poison pill to them.
Well said, Jack, as usual. I believe the war will start in earnest this year. Stay away from tall buildings this Wednesday. In fact, call in sick and stay out of the cities.
Jack, this situation kinda brings to mind the old saying that "Russians take their time to saddle the horses, but they ride awful fast!".
Well the spirited Russian (and for that matter, Chinese) steeds are galloping at breakneck and things are developing much quicker than many observers (myself included) envisioned. As you correctly put it, it is no wonder the "Washington Wankers have gone after Russia with the gloves off the last 3 years."
I would go further than you, and posit that the "Washington wankers" have been going after Russia since Putin's spectacularly blunt and ballsy speech at the Munich Security Conference on February 10, 2007.
In the early years, it was believed by many "Washington wankers" that Putin would learn to comply with western demands and accept a subordinate role in the Washington-centric system, but the Russian President’s blistering critique of US foreign policy in Munich, which provided a rational, point-by-point indictment of US interventions and actions around the world and their devastating effect on global security, disabused the hubristic masters of the universe from their fairy-tale notions and gave them a hellacious, high-voltage shock to the gonads.
Putin flat-out rejected what the United States assumed was a privileged position earned by prevailing in the "Cold War". He systematically dismantled the embarrassingly ridiculous Neocon idea of "the end of history", which entitled the US to unilaterally intervene whenever it sees fit. He debunked the notion that the United States, as the "world’s only superpower" was the judge, jury and executioner of global justice. He told the "world's elite" to their face and let the entire world know that he, and by extension Russia, would never be a flunky to Washington and foolishly dance to their tune.
Simply put, Putin refused to surrender and relinquish Russian sovereignty to trans-national capital, foreign powers, or supra-national organizations. By some definitions, that qualifies a person as a patriot, and in my old-fashioned view of things, I find it admirable and totally respect that.
Is it any wonder that we see harsh economic sanctions, a US State Department-led coup in neighboring Ukraine, a conspiracy to crash oil prices, speculative attacks on the ruble, a proxy war in the Donbass using neo-Nazis as the empire’s shock troops, deliberate lies, malicious propaganda, and several false flag operations used to discredit Putin personally while driving a wedge between Moscow and its primary business partners in Europe?
It is enough to make any reasonably intelligent and sensible man explode with indignation.
Now the brain-dead, imbecilic yes-men (decidedly not patriots) of the Pentagon are going to "follow their orders" and train the Ukrainian National Guard to escalate things. Along with that, we have the Israeli ...er, American Congress foaming at the mouth, baying for blood, determined to arm the Nazis and put US boots on the ground, in order to provoke a response from the Kremlin.
Our government has been captured and is going off the rails.
Excellent comment, and I share your disgust.
Oil to $200 by October. Course the dollar won't be worth much then either I would bet. If China starts settling it's oil payments in Yuan using CIPS and the Russian alternative, the price of oil in $ will rise since there will be much less oil available for sale in $. You can bet China will continue to consume 8m bbl/day but it won't buy that oil with $ which means the $ that were buying that oil will have to buy less oil and so clearly there will be more $ than oil to buy with them.
If the oil producers aren't paid in USD, they certainly aren't going to be buying all that fancy shmancy military hardware from the MIC.
where there is a market
there is a way
I would assume they buy MIGs with rubles and silkworms with Yuan.
Oil and other hard assets and imported goods will skyrocket when the dollar starts to crack.
it's not like a case of ammonia, iodine or acephetamine won't do the trick.
Maybe te MIC payments can be hedged with stolen gold from the Ukraine. Hmmmm.... if you push China too far, special interest in the U.S. is going to be ticked.
Just think of the Foxconn goodies that techies got for nickles.
Upvoted b/c I think your scenario is likely, but since we're all speculating here's another thought. What if oil goes to $40... $30... $20... and after that the USD disappears, gets replaced completely by some other vastly devalued currency? (One without 'global reserve' pretensions, that can and will be devalued over and over again to satisfy international creditors.)
Dollar may disappear completely, riding a rise to nowhere, until it is nowhere to be found. It is our curse to live through these interesting times, of proving why 'global reserve' and 'national currency' make a very poor mix.
Shaping up to be a very 'interesting' year.
The storage situation tends to lend support to my theory. Everyone is stocking up on oil at these prices because they know it's going to cost a lot more in the future. That is of course the opposite of the spin being put out by the MSM.
I agree with your view; the markets are currently reflecting that.
Contango, bitchez!
Which is gonna suck with the fuckers at the EPA doing this shit
http://www.cfact.org/2014/01/29/epa-ban-on-wood-stoves-is-freezing-out-r...
In a SHTF situation, who's going to care about the EPA if his children are freezing?
Exactly. Fuck the EPA, the FDA and the NSA.
I'd worry less about the EPa than I would about how long there will be wood available to cut once people start burning it (along with their furniture).
wrs1, you're basically saying Europe if not the entire world will be in a hot war by August... there's nothing else on the radar to indicate oil demand will be driven up any other way this year... let's hope that doesn't happen
Sorry I thought I was I was In a USA website!!
USA! USA! USA!
Umerica, Umerica?
This is a USA site without sheeple.
This is a site where we non USA people can come to appreciate USA people. A glass of good red wine to you, folks.
By the way, to those using "Third World" for labeling shit, please go checking to what extent are American governments responsible for others being "Third World".
What a difference a decade makes. America sure has fallen. So many developments but in a type of slow motion. No decision or move yet has created a big bang in the US, but I just am getting a dread it's not that far off.
Slow motion? It took the Roman Empire nearly 200 years to fold.
What we are witnessing here is an instant collapse, that hasn't even yet begun.
Transactions of all sorts are thousands of times faster today. It takes 30 min for nukes to reach targets enstead of months to begin a campain.
There really isnt good comparison. Even the time to conceive a good con and execute is pretty quick.
I just wonder when we serfs will have this internet thingy taken away.
I don't know. Dollar is still up, which is keeping PMs and oil down, so ya gotta like that. What I keep thinking is the best thing to do is be a good boy scout and Be Prepared. Most people will be able to survive whatever the ass-clowns in DC and Wall Street have cooked up. At the worst, they can either throw your ass in jail (three hots and cot) or send you to never-never land (72 virgins or whatever).
So, my view is, "stay the fuck out of my life." I've done pretty well keeping big guv off my ass for the past 40 years (I'm 61), so I figure I can outsmart them even better as a get older and wiser.
Buncha fucking wankers. Fuck 'em. Every last one of 'em.
Ouch! That hurts.
Well, the tone is that this is Obama's FAILED policy. I'm not so sure that's the case. This may have indeed been the intent from the git go...
Does this will end the market lies from Washington and Wall St or we'll keep listening to the same BS on and on?
World-wide currency debasement followed by war.
who would have thunk it?
Does this mean that I'll be able to make my ebay payments for all that chinese crap using CIPS?
This is a slow burn, peeps. Not a collapse. Good on Russia and China for standing up to a tyrannical Washington. The Washington Elysium class dosent represent honest, God fearing American families. Neither does Beijing or Moscow to their people who are just trying to earn a living, raise a child, take a vacation, etc.
In 20 years there will still be people talking about the collapse not realizing it took place slowly all around them. Just the nature of people. Waiting for a bang and ignoring the whisper taking this country down the road of (continued) third-world mediocrity.
If Bitcoin could float into CIPS it would be interesting.
Also this should make currency controls more difficult with more options to move money.
so what? does this mean dollar is overpriced or something?
Why do y'all think China and Russia have been loading up on gold, the metal gold? If China can keep the CIPS system going through the soon coming world depression, the US$ will be well and truly fucked...and in turn, so will holders of US$'s.
Still stackin' here.
hairball
If the plan is to gut the US, shred the Constitution and any semblance of a free nation, while moving the center of world power to China, it's succeeding.
If the plan is to gut the US, shred the Constitution and any semblance of a free nation, while moving the center of world power to China, it's succeeding.
The blame lies with an evil government and an ignorant public.
The evil lies with an evil government and a public that believes in their bullshit & lies while the .gov we elected gets paid by us!
So often, one sees the bias of the author here. He's got a lot right, but he so destroys his credibility with such bias. U$ has been predicted to tank for at least a decade, maybe 2. It won't, get over it. NO ONE is gonna want Putin rubles, even if he dies tomorrow. Renmimbi just can't replace U$ for a long time.
Agreed US should stop abusing all with spying on these transaction, but don't you think any player can camouflage his true position?
CIPS does mean the world has only a few months to kill Russia's economy by blocking SWIFT transfers. PLEASE, let's get it done? It will save many lives AND remove Putin!
OK....so now THIS is what will cause the dollar, petrodollar, US economy to collapse just like the "holy grail" oil/gas deal between Russia and China was supposed to have been the trigger?
I have lost track of all the supposed triggers that was supposed to have initiated the US collapse. Where is it?
It's called 'death by a thousand tiny cuts'.....
I don't give a flying ratted ass what "swift" payments are and scams they come up with. Have you ever needed this service to buy a fucking chocolate bar at the corner store?
Here...quickly.....take this towel and wrap yourself - you are in serious need of something to hide your glaring ignorance.
Victor999: I see you are quite new here so I'll give you a pass just this once. You obviously don't "get it" here do you?
Now go fuck off like the little bitch you are before the street lights come on.
Thumbs Up; Thumbs Up; Thumbs Up;
Barack Hussain oBanana promised change.
THIS IS CHANGE
The Homo Chimp on Weed has really made the BIG CHANGE.
If The western world thinks that they can suppress us any longer by giving us green paper and taking our best produce , think again.
We are the producers of Goods.
We are the Producers of Services.
We are the Market.
We have Resources.
We have Minerals.
We have Technology.
We have People.
We have Best Brains.
We have Skill.
We have the Will.
We have Weapons to defend.
We have Missiles.
We have Nukes.
We have SWIFT Alternative now.
We have own New Development Bank.
And We also have had the world's best Messiah's, Prophets & Enlightened ones.
The dollar is only a contract to pledge your Soul to the Devil.
Come people of the world,
Leave the Beast, The Dollar based Israeli-American, Dev. World Nexus to enslave your soul
Which gives you what?
Which gives your family what?
Which makes you work like machine for what?
Which threatens your country for what?
Which changes your government for what?
Which gives you Slum life for what?
They are destroying nation after nation
whosoever refuses to be their slaves.
While they live lavish life in their Mansions ,
with manicured lawns.
Come out ,
we can feed ourselves
we can dress ourselves
we can make housing for ourselves
We have everything , so why we are still poor.
Stop selling to West , and see the west crumble & cringe
REALIZE THIS NOW
"(and NSA-supervised)"
That says it all.
Priced out of one's own market.
(national/notional security)
Dream on ZH. Even if CIPS gets rolling, it's going to take a long time before it supplants SWIFT and the petrodollar. Bluster like this is making it harder to treat this blog seriously.
Yours is a worthless one-liner.
Learn to support your claim with facts and logical arguments. Until then, YOU will be treated as a typical brainless idiot and propaganda junkie in this forum.
I am an independent thinker & observer, a common man. Not a robot & certainly not a govt.(CIA) sponsered one.
Imagine what can happen when all common people know.
All it requires is a client/Server s/w to enter & send the details.
And any programmer can write this kinda s/w , cant they?
We are not living in jungle.
An advice to Chinese/Russians:
Use a strong encryption at least 20000 bits on a private network separate from Internet.
feel free to dream on pages of CNN.
this is not a binary switch from 100% to 0% or from 0% to 100%.
the competition between the two will be very interesting.
Yes, you love a monopoly for NSA, thats maybe your source of moeny and hence this propaganda from you.
With the CIPS China will better be able to bribe corrupt thirld world leaders without them getting exposed, truly a magnificent development ....
https://m.youtube.com/watch?v=G_Z3lmidmrY
The poor negro in the White House is spinning out of control.
I'm speechless! But, my fingers are not typeless!
That is such an unpolitically correct word to describe him. Isn't he only one-half Negro? Is that even possible? Or relevant?
Besides, does anyone really think that a few people ponied up billions of dollars to get him elected without at least a few strings attached? More than a few? How about an entire spiderweb?
I'll sure be glad when this politically correct speech BS gets flushed down the toilet and people regain a sense of humor. Life was so much happier when one could tell a good-natured joke or story without every possible permutation of persons being offended.
https://meduza.io/en/news/2015/03/06/siberian-city-gives-out-free-bread-...
Every Saturday and on federal holidays, pensioners in the Siberian city of Tomsk will be given free bread, according to the local mayor’s office, which says it's reached an agreement with a local bread producer.
Two shops belonging to the bread producer will begin handing out bread on March 7. The program will begin with the free distribution of 30 loaves of white bread, but the selection of free bread and the number of distribution points will grow with time.
Yeah compare to USSA where kids, teenagers, young adults, and adults get free food via welfare.
Ok these stories are just pretty much tempest in a teapot, at least for the time being.
The mere fact that neither Russia nor China had an internal interbank system is just amazing, and it is a sensible and much needed project that they actually start to build something on their own. Now to displace SWIFT... That's a very different story !
Lets see what we got as alternative: Chinese yuan linked to USD, RUB has lost half of its value in few month and has tinny part in world cureny reserves, EUR not going to work with Greece in the club
The core of the issue is utter collapse of demand for anything throughout the world due to massive over-leveraging of business of all sizes and households often in US dollars/Euro/Yen not in domestic currencies leaving CBs helpless. People simply paying off their loans and obligations and have nothing left for consumption or investment, This catastrophic collapse of world demand (pointed out by Russia and China) causes dramatic flight of capital resulting in recalling massive amounts of speculative capital back to US. Japan and Europe refused to accept yen and euro assets desperately seeking shelter in panic. They are trying to accomplish it via QEs and NegIRP as a barrier to capital inflows in order to avoid surging of their currencies and killing their economies, meaning industries capable to export since domestic demand is dead.
This leaves emerging markets (commodity driven) in conundrum. Their currency is weak vs. dollar but they do not trade that much with US to have any advantage (US is a significant exporter of commodities itself), but if currency of a country to which they sell is weaker, then their sales collapse. And that’s really the case. So they fight a currency war indirectly, through FX dollar among themselves by collapsing their CB interest rates while facing collapse of their own currencies vs. dollar due to capital flight. All against common wisdom which would suggest rate hikes instead. That’s why while 75% of world currencies lost to dollar, 75% of all worlds CBs lowered interest rate within in last 12 months and they keep lowering to out-export each other giving up on domestic demand and growth or even preventing any significant growth in first place to avoid their currency surge. Even China accepts much lower growth, to talk down yuan, and Russia lowered the interest rates while under FX attack and massive capital outflows, happy with rubel half of its values 12 months ago. To defend themselves countries abandon FX market and set up huge currency swap lines to limit this spiral of death which actually boosts dollar since there is additional to capital escape, shortage of FX dollar funding since nobody needs to sell dollars to buy other currencies if the have swap lines open. In strange ways globalizations causes dedolarization.
But why? What’s going on?
The general answer is that national economies and sovereign states (with few exception) are illusions. Their domestic markets are illusions, their economic and social policies are illusions maintained for domestic political audience. Global integration has been accomplished. Only global economy exists now. And unified global capital rules.
Production is distributed so much all over the world that no country controls production of nothing but some small subsystem one of thousands parts from all over the world assembled in final product with no ownership and no country of production. Even in F-16 there are part from China. This serves purpose to practically eliminate any political leverage that country may have over world production. But now with ZIRP nobody has any leverage over global elites.
In other words countries (with few partial exceptions) cannot reestablish control over their economies and social policies by imposing tariffs, trade barriers and capital and labor controls or specific social policies in any way that would not result in collapse of their “hollow” economies and political turmoil at least in transition. Even countries at war cannot stop cooperating economically, close borders or limit civilian trade, thing unheard off 50 years ago. This has most corruptive influence of national politics. That’s why all politicians that promised economic growth, betrayed the people as soon as they got in power since they know the only way to growth in global economy is to export if not it is cutting expenses, collapsing governmental and private social programs and dismantling democratic institutions that still left, to pay un-payable debt.
The fallacy of debt based global economic system is only too apparent.
There is no way out of world pauperization and death spiral except to break through globalism in very painful ways. Unfortunately, people would rather believe in illusions than face pain of reality and turn around to stop this genocidal system of alien class of global oligarchy directed towards extermination, crew expendable, all other priorities rescinded. End of transmission.
The United States has had a long, long line of presidents who seem hell bent at every decision point to take the path most likely to piss off the Russians. Even when it was the Soviet Union it was still the Russians whom we were determined to offend. ZH had an article within the last day or so trying to answer the question of why western leaders feel so inadequate regarding Russia.
We made many, many promises to them to keep them from making a separate peace with Nazi Germany during WW II. After the war President reneged on most or all of them. The Russians had at least 20,000,000 military personnel killed in action on the Eastern Front. US killed in action during the entire war, including against Japan, were around 450,000.
Just think of the possible alternate history if the Soviet Union had signed a separate peace agreement with Nazi Germany in 1941. [I like reading fictional alternate history books. There are some very good authors, like Harry Turtledove, who give one an appreciation for the real history versus the could have beens.]
Assaulting Fortress Europa held by the entire German army that had not been bled of so many men and mechanized equipment, pilots and aircraft might have resembled the joint US Marine and US Army assault and conquest of Okinawa, only scaled up by a factor of about 100. Okinawa cost the US over 82,000 casualties (KIA + WIA) and cost the Japanese more than 77,000 soldiers and more than 149,000 Okinawan civilians.
Fast forward to recent history. When the Soviet Union came apart in 1991 we promised the Russians that we would not push NATO eastwards. But, that's exactly what we are doing today. Involving NATO in the conflict in Ukraine, which from what I have read here on ZH, the US instigated in the first place.
There are certain war-crazed US Senators and Representatives and the usual assortment of Chicken Hawks that actually want to send US armaments to Ukraine. That would be as unacceptable to Russian President Vladimir Putin as would a Russian-backed overthrow of the Mexican government, and supplied with heavy arms, be to the American people. As for President Obama, his fantasy world is quite disconnected from reality, he might not even notice.
We should be building an alliance including Russia and China to counter the threat from Islamic extremism, considering that each country has long borders and/or significant domestic Muslim minorities. That would be a very wise thing to do if we had any leaders with a modicum of common sense and a little wisdom learned in real life versus a fantasy life.
What happens in Ukraine is not and never has been a core or even peripheral US national security interest. I wish no harm to them, but the US should never have interfered in the internal affairs of Ukraine. And a lot of other countries.
What I wish for most of all is to conscript all the nationally-featured chicken hawks calling for war and put them through Marine Corps boot camp and then through Marine Corps infantry training. I don't care how old they are, either. They all get to serve in their own unit appropriate to their numbers, whether it's enough for a basic infantry company or even a battalion. I'm a 59-year old former Marine and I volunteer to serve alongside them for the entire tour just to see them in action. Then, we all rotate into an actual, real, live combat zone for a full tour. Everyone can still have dreams, right?
Hiter and Stalin did have a peace treaty early in the war. Hitler broke it to strike first against communism, because as Hilter retaliated against Poland, the soviets took the rest of poland, and were moving closer to Germany
Hitler was determined from the beginning to take Ukraine from the Bolsheviks. Superb farmland, natural resources, and a buffer for the Fatherland's National Socialism from international socialist incursion. It seems that he miscalculated the French and British determination to defend Poland and side with the Communists.
wasnt the division of poland agreed on before it even started?
If the Chinese had an ounce of imagination they would have called it CHIPS.
I believe that by common usage, CHIPS is how it will come to be known.
Problem. Response. Solution.
"Russia has less than $700 million in debt, the US has over $18 trillion; Russian debt is about 15% of GDP, the US runs at over 100% of GDP; Russia runs a budget surplus, the US runs a burgeoning deficit; Russia has gold to back its currency, the US now only has the military to back its fiat and increasingly widely shunned “dollar;” Russia has the largest natural resources in the world, the US has depleted or ruined most of its natural resources. With which of these two countries does the rest of the world want to conduct business?"
Michael Noonan
http://edgetraderplus.com/market-commentaries/gold-and-silver-nothing-is...
As always money talks and the BS walks and let's be honest the Pentacon Anglozio mobsters will never ever dare to fight the Bear. Whining, entitled "exceptionall" supremacist punks don't do real men!
Nederland al volop bezig om voorbereidingen te treffen om het systeem 'Leven en Laten Leven' ineens te introduceren:
De Provinciale Staten in Gelderland hebben al een commissie ingesteld die moet uitzoeken of geldstromen tussen (rechts)personen wel of niet rechtvaardig zijn.
http://www.nrc.nl/nieuws/2015/03/11/provinciale-staten-stellen-transpara...
Ook de gemeente Amsterdam gaat toetsen aan de 'Logica van de 1' om zo te bekijken of evenementen wel of geen doorgang kunnen vinden.
http://www.nrc.nl/nieuws/2015/03/11/van-der-laan-toetst-of-evenementen-b...
Maar toch gaat de euro nog omlaag?!
http://www.trouw.nl/tr/nl/4504/Economie/article/detail/3896670/2015/03/1...