A Bloomberg article sums up their collective fears:
"Booting Russia from the critical global system - which handles 42 million messages a day and serves as a lifeline to some of the world's biggest financial institutions - could backfire, sending inflation higher, pushing Russia closer to China, and shielding financial transactions from scrutiny by the west. It might also encourage the development of a SWIFT alternative that could eventually damage the supremacy of the US dollar."
Those with IQs over 50 in the European Union (EU) must have understood that Russia simply could not be totally excluded from SWIFT, but maybe only a few of its banks: after all, European traders depend on Russian energy.
From Moscow's point of view, that's a minor issue. A number of Russian banks are already connected to China's CIPS system. For instance, if someone wants to buy Russian oil and gas with CIPS, payment must be in the Chinese yuan currency. CIPS is independent of SWIFT.
Additionally, Moscow already linked its SPFS payment system not only to China but also to India and member nations of the Eurasia Economic Union (EAEU). SPFS already links to approximately 400 banks.
With more Russian companies using SPFS and CIPS, even before they merge, and other maneuvers to bypass SWIFT, such as barter trade - largely used by sanctioned Iran - and agent banks, Russia could make up for at least 50 percent in trade losses.
The key fact is that the flight from the US-dominated western financial system is now irreversible across Eurasia and that will proceed in tandem with the internationalization of the yuan.
Russia has its own bag of tricks
Meanwhile, we're not even talking yet about Russian retaliation for these sanctions. Former President Dmitry Medvedev already gave a hint - everything, from exiting all nuclear arms deals with the US, to freezing the assets of western companies in Russia, is on the table.
So what does the "Empire of Lies" want? - Putin terminology, on Monday's meeting in Moscow to discuss the response to sanctions.
In an essay published this morning, deliciously titled America Defeats Germany for the Third Time in a Century: the MIC, OGAM and FIRE conquer NATO, Michael Hudson makes a series of crucial points, starting with how "NATO has become Europe's foreign policy-making body, even to the point of dominating domestic economic interests."
He outlines the three oligarchies in control of US foreign policy:
First is the military-industrial complex, which Ray McGovern memorably coined as MICIMATT (military industrial Congressional intelligence media academia think tank).
Hudson defines their economy base as "monopoly rent, obtained above all from its arms sales to NATO, to West Asian oil exporters, and to other countries with a balance-of-payments surplus."
Second is the oil and gas sector, joined by mining (OGAM). Their aim is "to maximize the price of energy and raw materials so as to maximize natural resource rent.
Monopolizing the Dollar Area's oil market and isolating it from Russian oil and gas has been a major US priority for over a year now, as the Nord Stream 2 pipeline from Russia to Germany threatened to link the western European and Russian economies together."
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
6
4
4
