Babylon's Bankers

UK SEEKS TO BAN RUSSIA FROM USING S.W.I.F.T.

By the time this blog appears, the UK will have (last week) advanced a proposal to expand the West's economic sanctions on Russia by banning it from using S.W.I.F.T., the Society for Worldwide Interbank Financial Transfer. If you've ever wired or transferred money to or from Europe, it went through SWIFT, and you had a SWIFT transaction number recording it:

UK seeking to bar Russia from using SWIFT banking network

The UK Has a Plan to Cut off Russian Businesses from the Rest of the World

There was a time when the United Kingdom didn't march in lock step with Washington, or even with its own financial oligarchs. And Great Britain did not manage to run a global empire for a couple of centuries by being geopolitically (and for that matter, technologically) naive and suicidal.

But that, in my opinion, is what this latest bit of insanity seems to me, at least, to be portending. The one good thing here is that at least the insanity is not coming out of Washington this time, at least, not directly. Nor, I suspect, is it coming out of Parliament or 10 Downing Street (which seems to be harboring its own special brand of insanity in recent memory). It would appear to be coming from the City of London. The British will face an obstacle here, and that is Berlin (hmm... I'm sensing a bit of deja vu here, I don't know about you). You'll recall that Frau Bundeskanzlerin Merkel is openly pressing and secretly maneuvering for a negotiated end to the Washington-brokered Victoria Nuland train wreck that the Ukraine has become.

The Reason?

It's very simple: the sanctions will hurt Germany's export-driven economy, at at number four on the ranking of the big world economies behind the USA, China, and Japan (depending of course on where you look), and way ahead of, say, Italy or Russia, Germany's per capita productivity is even higher than that of much bigger economies with a much bigger population base. For Germans, and therefore eventually for the German government, the sanctions are a bad idea whose time has never come and never will. From Frau Merkel to the local Hausfrau, this is reality.

But there's something else this action will inevitably bring about, if pursued. Regular readers here will recall that for some time, I (and for that matter, other commentators on the internet), have been arguing that an inevitable consequence of the establishment of the BRICS development bank, and the various bi-lateral trade and currency deals being negotiated between China and her trading partners (including, you'll recall, the fact that the Frankfurt bourse is now trading bonds denominated in the Chinese yuan), will be the development of their own independent international clearing system.

Already we've seen agreements emerge between Russia and China to pool their space resources for global positioning systems, and this push by the UK will only serve, in my opinion, to broaden the degree of space cooperation between the big four BRICS nations (Russia, Brazil, India, and China), each of which has their own space capability or, in Brazil's case, a real space potential. The move, in other words, if endorsed, will only serve to hasten that development, and to hasten the crack up of the European Union. And even if not endorsed, the only thing this does is to serve notice to Mr. Putin that the west is hell-bent on the encirclement and economic isolation of Russia, and Russia's response will inevitably be to expand its own international clearing mechanisms via expanded pooling of space assets available to the BRICS nations.

The ball has been very firmly served by London. It's now in the court of Madrid, Paris, Rome, and Berlin. And in those four capitals, all eyes are on Frau Merkel, and what she will signal not only at the meeting, but after it. A de jure "Ja" today can, as we've already seen, work out to a de facto "Nein" tomorrow.

See you on the flip side.

(Thanks to Mr. J.L. and Mr. T.M. for bringing sharing these).

 

10 thoughts on “UK SEEKS TO BAN RUSSIA FROM USING S.W.I.F.T.”

  1. If Germany, as well as a whole host of nations, want to cut their own throats and join the City of London’s financial follies then they deserve what they will reap. However, Frau Merkel impresses me with her recent attempts to find a resolution to the crisis in Ukraine and she will do exactly as you or I would do, and that is to thumb our nose at the City of London.

    The problem I have is to accept, or believe the City of London is stupid enough to believe Frau Merkel would accept the consequences of this on a long term basis, but maybe the City of London is that stupid. We live in strange times.

    Regardless of the short term there is only one viable long term solution and that is for Frau Merkel to reject these recent sanctions. What other choice is being given? Will Germans willingly march into poverty? I think not.

      1. Another thought is what about the gold reserves being depleted from the City of London by China cashing in its US Treasury bond holdings?

        What does the US export besides financial service, military armaments and its GMO grains? Are we not getting closer to that event when the SHTF?

  2. The end result of this circus show is the rest the World will tell London, Wall Street NYC, Brussels to kiss their ass and go to hell. Now they will put together their own S.W.I.F.T and ostracize the former icing them out of their new monetary system. Leaving them out in the cold where they deserve to be.

  3. S.W.I.F.T , well I don’t think Mr. Putin gives a hoot about what that tiny rock called Briton proposes to do. They can do all the sanctions and all the threats, but in the end Russia will stand tall and be seen as the great nation it really is.

  4. The New World Order folks never intended it to be anything other than a “two world order” with perpetual militaristic tension between the two because fear and unease is the best tool for keeping the hoi polloi in line and stealing from treasuries via military budgets is very low hanging fruit.

  5. More desperate stupidity from a faltering power bloc that has no imagination or sense and no desire to share with their equals. It is truly a childish crowd.

    1. Exactly my sentiment.
      These clowns in Washington and London remind me of little spoiled brats that start throwing their toys out of the cot if they can’t have their cookie.
      Pathetic and sad at the same time. And a bit scary, since these same spoiled brats have their finger on the big red button.

  6. From my viewpoint this is about private power vs public power.
    Open systems vs Closed systems.
    The geopolitical axis on GMOs is favored to the BRIIICSA side because truth and real science are becoming self-evident.
    Now if people can wrap their heads around open public banking vs closed private-debt-based cartel banking, then perhaps another front could be established. Need to go on the attack on as many “open” systems fronts as possible/against their selfish centralized “closed” systems.

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