Posted on 02/26/2022 5:14:03 PM PST by upchuck
NOTE: See video embedded in article.
As Western allies levy increasingly harsher economic sanctions against Russia for its invasion of Ukraine, the latest target involves Russia's access to SWIFT.
An acronym for Society for Worldwide Interbank Financial Telecommunication, SWIFT is a messaging system founded in 1973 that allows large financial institutions to send money to each other.
The Belgian-based cooperative is used by more than 11,000 banks and financial institutions in more than 200 countries and territories, including Russia. It handles 42 million messages a day, facilitating trillions of dollars worth of transactions. Russia accounted for 1.5% of SWIFT transactions in 2020, according to the Financial Times.
The White House announced Saturday evening that the U.S. will be disconnecting some Russian banks from SWIFT in partnership with the European Commission, France, Germany, Italy, the United Kingdom and Canada and are "imposing restrictive measures that will prevent the Russian Central Bank from deploying its international reserves in ways that undermine the impact of our sanctions."
"This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally," the White House said in a statement.
(Excerpt) Read more at abcnews.go.com ...
Excuse me? At least deal in facts.
The DXY proves you completely wrong:
https://www.marketwatch.com/investing/index/dxy
Not even the beginning of close...
The formats are irrelevant, the real issue is trust and the weight of the real economy, both shift from the US and Europe to China in international conscience.
Even if you’d apply the technical analysis, the chart doesn’t look bright in the long run.
Russia, China, and India are part of the BRIC. They are factory nations.
They will not survive without outsiders buying their goods. They will become "also-rans" in the global economy.
For them to attempt trading with just each other would be a recipe for disaster, but fun to watch as they implode.
China is currently in a slow-rolling financial implosion, due to their real-estate bubble.
That bubble is what's going to drive the world's next great recession.
Can their central bank hide it through massive quantitative easing? We shall see - but it's picking up a lot of steam.
China will not be ruling anything economically. They will be fortunate to survive the financial calamity that is upon their heads.
What proof do we have it is this amount? I believe it could be a lot more. Where would you hold your vast energy-surplus wealth if all your USD was subject to political whim in Washington DC?
For example, for years China didn't make any changes in its announced gold reserves. In 2016 they simply announced "its double what we told you before." and they hardly haven't made any changes since.
The DXY will rocket up when China finishes losing control of their real-estate bubble. It hasn't even come close to the worst of it.
And they were coming regardless of the Ukraine situation.
Three things to note:
They are not cutting Russia from SWIFT — they are cutting off many Russian banks but not the ones that deal with energy. LOL.
Wait for countersanctions — I do not think this would take long. There are very interesting options for Putin.
And yes, $10 gas is coming this year. Maybe, $20.
You can try to convince yourself, but do you remember China or Russia punishing the investors by confiscating their assets over political issues or limiting trade in their jurisdictions?
For all the talk of communism in the above places, it is the US, UK, and EU who did it and are planning more.
The world is watching.
Cutting off access to SWIFT means the Russian Government, Russian Oligarch's and Putin himself can no longer move, receive or send money.
Why the Biden Administration, Germany and others have resisted cutting off Putin, Russia, the Oligarch's etc.. from SWIFT is beyond me. Unless Putin/Biden is getting a payoff, there's no other reason why it hasn't happened.
How does DXY correlate to commodity prices? You have single-digit inflation in retail, double-digits in wholesale and triple-digit in commodities. How do you think it is going to end?:)
Seriously?
You do know what caused the China real-estate bubble, right?
It was the Chinese government building massive ghost cities that nobody lives in. Housing that has no sewer or electricity going to it.
Then normal Chinese "investors" were lured into playing "the greater fool", thinking they could buy a real-estate holding that was absolutely worthless and sell it to some other poor schmuck down the road for a tidy profit.
Would this be considered "punishing" these "investors"?
Don't get me started on Russia and their punitive oligarchs...
Foot meet shoot. Oh the folly.
Depends on the commodities you're referring to. I'm assuming you're a goldbug, since you debate like one.
Remember 2007-2008? Remember the price inflation? Remember the economic deflation?
Price inflation does not always equal monetary inflation. It also occurs in many places during monetary deflation.
Remember when we were told that oil was going to $300/barrel, while precious metals were ready for a rocket ride?
It never happened, in fact, the opposite happened.
Why? Because most investors can't recognize the signs of a coming global recession.
China's real-estate bubble is that sign in our current times. It's massive...
God are you naive
Yes, russia saw none of this coming and there are no ways around this.
smh
American will FLIP WHEN THEY have to start paying EVEN MORE for the crap that is made here.
those sanctions will be limited and plenty of accommodations made for purchases from russia and china
The only banks affected are those that were already sanctioned. This is nothing, only designed to placate those calling for further punishment. Let’s see if they cut off the banks handling the oil and gas trade, then I might take notice.
C’mon man...how long do you think industrial Europe will last without Russian energy exports?
Germany alone relies on Russia for 50% of its energy needs and India + China can easily take up that slack.
Start messing with SWIFT and pretty soon Europe will implement an alternative settlement system based on Euros, and then where will the United States be?
Who needs SWIFT? Who could possibly doubt that an alternative Russian controlled interbank financial transaction system would be the apex of reliability and honesty?
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