RUSSIA AND CHINA IN FORMAL TALKS TO ESTABLISH AN ALTERNATIVE TO SWIFT ...

Well.... it's finally happening, and now, more or less official: Russia and China are in formal talks to establish an independent system of international financial clearing. Regular readers here know that this is a step that I've been advocating the BRICSA bloc in general and Russia and China in particular would inevitably take. Thus far, however, we have watched the indicators that this was happening, signaled by three things: (1) Russia's stepped up plans to implement its own nationwide internal electronic clearing system, as an alternative to Visa and Mastercard, (2) its more recent requirement that Visa, if it wishes to continue doing business in Russia, has to build a clearing center in Russia, and finally (3) the BRICSA establishment of their own development bank in Shanghai as a counterpart to the IMF and World Bank.

All these things, I've argued, are the stages and steps to the establishment of a parallel system of international financial clearing, one that eventually the BRICSA bloc, and in particular, Russia and China, would eventually have to implement.

Now, the cat is out of the bag; it's official(Thanks to Ms. C.Z. for sharing this important story):

Russia in Negotiation with China for alternative SWIFT Bank system

The article minces no words:

On September 10, Russia’s First Deputy Prime Minister Igor Shuvalov met in Beijing with his Chinese counterparts to discuss setting up a system of interbank international transaction clearing that would replace or could, in event of increased US and EU sanctions, replace the SWIFT interbank payment mechanism. According to Shuvalov after his talks in Beijing he stated to the press, “Yes, we have discussed and we have approved this idea.”(Emphasis added)

You'll note that this meeting took place a little over a month ago, and doubtless you'll reflect that little or nothing was said by the lamestream Western media about this significant development.

But wait, there's more, for interestingly enough, the real concern, as the article indicates, is to drive a wedge between Germany and Russia, the fourth and eighth largest economies in the world:

"Russia is reacting to the current escalating financial warfare being initiated via Washington economic sanctions against key leading Russians as part of the current Washington agenda of recreating the tensions and confrontations of the Cold War in their effort to drive a bloody wedge between the EU countries, especially Germany, and Russia. This past March, under strong US pressure, the EU unanimously adopted a series of sanctions against key Russian individuals close to President Putin. The sanctions came as a response to the independence referendum in Crimea in which the vast majority, some 93% of voters opted to request membership in the Russian Federation and secession from Ukraine."

But that's still not all:

"The latest Beijing talks reveal that Moscow is not naïve about the intent of certain Washington circles to escalate the pressures on Russia to a new Cold or even Hot War. China and Russia are also in discussions around creation of a new international credit rating agency independent of the politically-manipulated US credit agencies, Moody’s and Standard & Poors. These moves between the two leading members of the Eurasian Shanghai Cooperation Council countries, and also the two major countries of the BRICS—Brazil, Russia, India, China, South Africa—follow the decision this July in Brazil by all BRICS states to found an alternative to the Washington-controlled IMF and World Bank, creating a BRICS Infrastructure Bank and currency fund.

"Parallel to these moves to decouple from the chokehold of the dollar system, Russia and China are negotiating agreements to conduct major energy trade in their own currencies and not, as has been the accepted practice since the 1944 creation of Bretton Woods System, via the US dollar. Since August 1971 when President Nixon decided to break the legal tie between the US dollar and gold, US power has rested on a system where, whether the dollar rose or collapsed, all nations would be forced to trade using US dollars for oil, commodities and ordinary trade.

"When the Euro first challenged that “reserve currency” role of the US dollar after the 2008 financial crisis, Wall Street and the economic warfare unit of the Obama Administration, the Working Group on Financial Markets, known in Washington as the “Plunge Protection Team,” headed by the Secretary of the Treasury and including the Chairman of the Federal Reserve, Chairman of the SEC and Chairman of the Commodity Futures Trading Commission, coordinated what became the “Greek crisis,” de facto Washington and Wall Street full-scale financial warfare attack on the stability of the Euro, using the Federal Reserve, rating agencies, Wall Street-financed hedge fund speculators and the Treasury of the United States to create the Euro crisis. The dollar rose dramatically as a result and the Euroland economies have been devastated and weakened ever since."  (Emphases added)

In other words, China and Russia are not stopping with international clearing, but rather, intend to put into place an entirely independent system of international credit rating to challenge the West's monopoly here as well. And finally, you'll note the concluding paragraph: the Greek crisis was - at least in the view of East Asia if not Russia as well - full scale American economic warfare against Europe and the euro, and that means, like it or not, that it was full scale economic warfare against the locomotive of Europe, Germany.

Small wonder then, that the German defense minister, Ursula von-der Was-ist-Irhe-Name, recently informed the rest of NATO that Germany would be unlikely to be able to meet any NATO contingencies or emergencies. That bit of news, coupled with this interesting bit of analysis, means that the midnight oil is probably burning in Berlin over these announcements.

So here's the high octane speculation of the day: over the long term, as Germany continues to walk that typically German diplomatic tightrope, juggling and balancing East-West interests, one might expect, I imagine, for that country to begin quiet talks and negotiations to be able to participate in some capacity in those parallel systems of international clearing and credit rating. Time, of course, will tell, but it's one to watch closely.

See you on the flip side...

 

 

 

Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".

15 Comments

  1. Blue Dragon Lord on October 16, 2014 at 12:48 am

    This is linked with an earlier piece Dr Farrell posted about UK stopping RU from using SWIFT to clear funds and move cash about people find another way it is the law of nature and as they are part of the block known as BRICSA now then smart move. Inevitable cause and effect long term thinking see what will happen if one does this or that the knee jerk reaction and talking without thinking is not wise as we see this new posting is what happens when other try to control large players who are fed up with attitude of others holding them back. Now the action of the others takes on dramatic backlash as they also start acting childish with other past memories coming back to haunt them in the case of RU 1989 the fall of the wall and the collapse of their union still plagues them so they make moves to reclaim old lost countries as no one will stop them they did not think past being angry either so the domino effect continues he said she they said. Well sticks and stones but people do not forget so let it lie no need to rack it up whatever it is as other things surface. Sanction are all well and good if everyone has thought it through which no one does like getting a second chance to do the right thing no one ever takes it the Ego has taken over and the loss of face thing which people in the west or east for that matter understand. As no one else can cause loss of face but the individual themselves was the original meaning but that was a hundred years ago before the revolution in china when these old saying meant something now used to get their own way do not let me lose face they say, well here the cycle continues people will react if pushed if for no other reason than not to lose balance they will hang on normal reaction i guess.



  2. Blue Dragon Lord on October 16, 2014 at 12:06 am

    Gold (Au) reserves back most currencies around the world but not USA that was the point ‘BRICSA’ as a group can back basket of cash with real assets that have value. This has countries that have continual mined gold South Africa for example has been mining before the new history and event before the Sumarian version of them being gods version when the bell ring stone circles were used to use harmonics to create vortex to send gold up which was then used for conversion into exotic matter for traveling faster than the speed of light you know about this right? Sorry got off the subject the shadow men who with bad guy from else where did not include any of the BRICSA so they may have made their own connections there are plenty of other races up there not many bother to interact as some silly rule about freedom of choice or free will which can be annoying stops them. So these countries want to play as grown ups in the game as they should have been invited to do so before now but not in the shadow bankers interests so kept out now they go alone without sanction from those who try to control the world and why not.



  3. shasta on October 15, 2014 at 12:10 am

    Great analysis Dr. Farrell. And how coincidental that the current events mysteriously coincide with Brzezinski’s “Grand Chessboard” nonetheless…it will tip to…
    “Although China is emerging as a regionally dominant power, it is not likely to become a global one for a long time to come-and paranoiac fears of China as a global power are breeding megalomania in China, while perhaps also becoming the source of a self-fulfilling prophecy of intensified American-Chinese hostility.” P.206

    Is this all too clumsily played out, or is someone up there really know what the heck they are doing?



  4. Blue Dragon Lord on October 14, 2014 at 8:56 pm

    Couple of things first banking system needs the flow of funds with ease so it makes perfect sense for this group to want to play in the big pond but having been kept out for so long having only recently got into world trade organization they had no choice but to come up with alternatives. So with swift replacement or joining in S.D.R. and even alternative to world bank and IMF if that is what it is makes commercial sense after seeing how the two institutions have being part of the shadow bankers club manipulated loans and so called rescue packages to faltering countries and then the trouble they get into after is only the repayment schedule or austerity measures which did not make sense at the time either but another matter on seeing this they wish to look like the good guys and help out by using their own excess funds to set up same thing. School yard politics if the kids will not let you play with the ball you go get your own eventually. Here we see simple maths at play and it is better to trade openly with all as those not let in will remember and go their own way they are big players in their own right and would have been stronger partners as now they are opponents which does no one any good but what choice did they have. The thing to remember is cause and effect water will find its way to the sea no matter what obstacles are put in front of it will go over under around or through but whatever the law of nature will get to the goal in mind. This is a vast subject matter and much more can be said but think first then act



  5. jedi on October 14, 2014 at 4:44 am

    Oh boy, what do they have planned. Shark hunter just came out with another HitlerArgentenia connection. The BrEton agreement, which basically was what ww2 was about, a bankster war. With the us holding gold reserves for the world…..which fort Knox was cleaned out of its gold. South Africa is presumably in the banksters hands….and there track record is solving problems by massive genocides…..



  6. yankee phil on October 14, 2014 at 1:34 am

    Slowly but surely the Nazi’s running the U.S. intelligence network ,therefore everything else, are driving the U.S. to confront everyone in the world using their own self made crisis machinery such as ISIS,Gladio(the christian version of ISIS) to destabilize economies and governments,manipulating politics in a way everyone can see the lies and hypocracy,laying waste to all the good will america has attempted to create in the past,not withstanding the rockefellers and vanderbilts,and bushes. The U.S. is being made to look the fool in the worlds eyes so no one will mourn her demise. Such a shame no one can fight the electronic warfare technology that affords the paperclip trainee’s such control over so many truly good americans who,left alone, on their own would do the right thing. All the collaborators of WWII (the fed banks)are still collaborating with our enemies today. MK ULTRA technologies must be made public,not only their use but the finer points of the technical applications.



  7. nobodyouwantoknow on October 13, 2014 at 10:51 pm

    Dear Russia & China

    There’s no need to delay this process. You are welcome to send your payments to me @ Paypal — I will forward the funds for you immediately for a mere 0.001% fee.

    I remain @ your service, &c…

    Signed

    Will Fargo



    • yankee phil on October 14, 2014 at 1:37 am

      Paypal is like 14% interest charges last time I used it.



  8. emlong on October 13, 2014 at 10:35 pm

    You can’t kill off America too quickly. A sudden collapse of American demand would have a huge impact on Chinese exports, and then China would have as big a problem managing their imploded socioeconomic situation as they have managing BRICSA.



  9. DownunderET on October 13, 2014 at 1:28 pm

    So what is the United States of Amnesia going to do to counter this monstrous financial hand shack between two countries who have like ideas? The neocons will be burning the midnight oil to figure out a counter measure. But in the end, Russia and China are now “too big” to mess with, Russian sanctions flopped, Putin checkmated them at every turn and STILL the elites pursue a financial ball buster to break their spirit.
    Well I’m afraid that Russia and China will do “whatever it takes” to get away from the clutches of the evil western elites, and it seems it wont be long until the US dollar will be finished.



  10. Cassandane on October 13, 2014 at 1:25 pm

    In today’s New York Times there was an article about Russia strengthening financial ties with China and I was entertained by the completely different spin that was put in it there than Dr. Farrell’s take, which I read afterwards. Apparently, the New York Times wants people to believe Russia turned to China because the sanctions imposed by the US are “working”. In their haste to shoot themselves in the foot, the idiots in power have forgotten the maxim that, in order to hang on to power, one should keep one’s friends close and one’s enemies closer, not give one’s enemies more reasons to get closer to one another! It looks like Dr. Farrell’s assessment that the elites are also getting dumber is quite likely.



  11. marcos toledo on October 13, 2014 at 11:40 am

    2018 will be the centennial end of the War to End All Wars and the beginning of the quadricentennial of the Thirty Years War. Which devastated Germany and Central Europe in the seventeenth century. I think if I lived in Germany another blood festival in my neighborhood would be the last thing I would be wishing for an a alliance with Russia-China would great to me.



  12. Robert Barricklow on October 13, 2014 at 9:58 am

    There has been & is needed a counterrevolution to the monopoly of power, the monopoly of money, the monopoly of media, the monopoly of energy, and the monopoly of a neoliberal globalism.

    Enter The Dragon.



    • Robert Barricklow on October 13, 2014 at 11:07 am

      Also, in same online magazine dated 10/13/20014 is a continuation of the titled article, with a sine qua non sanction blunder of magnanimous proportions, by the Obama Administration. An off-the-charts HUGE oil discovery in the Artic, of which Exxon Mobile was set to rake in some Major BIG Buck$$$…

      But wait Batman…
      Holy Sanctions BATMAN!

      http://williamengdahl.com/



  13. Aridzonan_13 on October 13, 2014 at 5:33 am

    People don’t understand that there is no such thing as competition. We have defacto monopolies in every address space of the economy. Merger-mania / globalization have been the chief mechanisms that killed real competition. Now, it appears the BRIIICSAA 105 nation alliance might be getting ready to practice Capitalism. Can war be far behind? Expect all the stops to be pulled out to keep fair play and a level playing field from appearing on the world stage.



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