Posted on 11/20/2014 5:54:12 AM PST by ilovesarah2012
On Nov. 11, just days after announcing the un-pegging of the Rouble and allowing its free float in the global currency system, Russia is going after the heart of the dollar and the reserve currency by declaring that they will create an alternative SWIFT system that will compete with the Western based inter-bank messaging service. This action by Russia is tied directly to the ongoing sanctions imposed upon them by the U.S. over Ukraine, and will allow the Eurasian state to remove one of the weaknesses to their monetary system that Washington is using as a weapon to restrict Russia's ability to use its currency in banking transactions.
SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication, and is the world's central nexus for nearly all global currency transactions between banks and nation states. It's software and function is to document, validate, and route currency transactions between registered banks, allowing smooth transitions between economies and markets no matter the differentiation in currency values.
As the Western SWIFT system is the primary facility used by the dollar and global reserve currency, the U.S. has vast control over the global monetary system. In fact, it is this control that has lead SWIFT to be used as an economic weapon through differing levels of sanctions now, and in the past, as seen in recent years in countries like Iran and now Russia to limit their ability to perform global banking transactions with their own domestic currencies.
(Excerpt) Read more at examiner.com ...
Why do you hate Kenneth Schortgen Jr?
Smart move by the Russians if they can do it.
I think China is far more likely to challenge the US Dollar at some point.
Just saying.
Go right ahead boys! Take your dirty money laundering activity off our grid, PLEASE!! Makes it easier to trace criminal activity to YOUR payment processes. Also gives us a target to hack into when your ethically challenged infrastructure fails to function properly.
The world will be better off.
Remember Russia, if your new system starts funneling payments to terrorist organizations that you become complicit!
Yes, put your faith in Russia.
“I think China is far more likely to challenge the US Dollar at some point.”
If China screws up the dollar, who are they going to sell all their crap to?
By the time this happens, the ruble should be worth very little. It’s dropped to record lows in 2014. The best solution is for Putin to go back to barter and slavery. That’s the intellectual level where he and his fan club of putinista catamites are most comfortable.
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