When the Western sanctions were put into place over the Ukrainian mess, you'll recall that part of the pressures hinged on the fact that some wanted to deny Russian access to the international financial clearing system of SWIFT, based in Brussels. As I and many others then noted, this step, plus the emergence of the BRICSA bloc and the founding of the BRICSA development bank, only meant that in time, those nations would be forced to erect their own financial clearing systems.
Russia, in fact, undertook such measures almost as soon as western sanctions were imposed, and as the talk about denying it access to the SWIFT system began to be aired. Almost immediately, that nation's Duma passed laws forbidding Visa to operate inside of Russia unless its physical clearing center was located in that country. Additionally, Russia began the process of creating its own system. More recently, and in a highly significant move, it also joined the Japan Credit Bureau's clearing system in the western Pacific and East Asia, a clearing powerhouse in the region.
Now, in case you missed the story on Faux news or CNN or SeeBS, the Russian clearing system is up and running, in this article shared by Ms. M.W.:
There are a number of things to note here, and they all portend trouble for the belieagured international system of western finance:
Earlier TASS reported with reference to Central Bank Chief Elvira Nabiullina that an equivalent of Belgian SWIFT has “practically” been created in Russia. “As far as financial messages transmission is concerned, we have practically set up a SWIFT equivalent in Russia,” Nabiullina said.
The system contemplates competitive tariffs and the regulator is ready to develop and improve this service, she added. Several dozen banks are ready to use it, Nabiullina said. Head of the Central Bank said that the SWIFT equivalent was developed with maximum use of Russian IT technologies. “Many complained our microelectronics is poorly developing and so on, but the demand is needed to develop domestic production. We are generating such a demand,” Nabiullina said.
One cannot put it more plainly than that: the chief opposition or criticism within Russia to the start up of such a system was Russia's pour information technology industry, which has consistently lagged behind America's and the West's. The solution? Create the demand for the development of the industry, by (1) using Russian technology throughout, (2) stimulating the further indigenous and independent Russian growth of the industry as money pours in fore research and development.
The reasons for such a move are also self-evident, in that hardware entirely generated in Russia to support such a system bypasses and removes the ever-present danger that chips and hardware obtained from the west are compromised by backdoors in the software and hardware.
But there;'s a hidden story here as well, and herewith the high octane speculation, for note that the story is dated Sept 21, 2015, roughly the same time as the Russian intervention in Syria began.. Which raises an interesting point: US policy and involvement in the Syrian situation and with Syrian extremists it was hoping to use as proxies to drive Mr. Assad from power was in play for the past four years. Mr Putin could have presumably intervened prior to this point. Indeed, he did intervene, diplomatically, when the US was calling for Mr. Assad's ouster over his use of chemical weapons, allegedly, against his own population. Mr. Putin, you'll recall, simply brokered a deal whereby the chemical weapons were removed from the Syrian arsenal, forestalling further US intervention.
But that was a far cry from the sort of Russian intervention - and now Chinese - that we are witnessing now. Mr. Putin could have, conceivably, intervened in this fashion at any point in the last two or three years.
So why now?
I suspect, and suspect strongly, that it has much to do with the financial clearing system being in place, and functional, and that this implies, furthermore, that this system has been militarily hardened against all manner of external interference, from hacking, to other means of the disruption of communications. And as we have also pointed out, China's own system itself has recently come online, as has Chinese intervention in Syria...
See you on the flip side...