![]() ![]() ![]() Sadly, most alternative news outlets will end their analysis here, as if the creation of this alternate payment system in opposition to the US/EU/NATO/Israeli superpower’s hegemon is an unmitigated good. Rather than having to clear yuan payments through correspondent banks in China or through specially designated clearing houses in Hong Kong or Europe or elsewhere, payments will now be nearly instantaneous through any CIPS-listed financial institution anywhere in the world. It’s hard to underestimate just how important CIPS will be to making the yuan a major player on the global stage. And finally, it further solidifies China as the center of the worldwide “resistance bloc” to the current status quo. Secondly, it brings the yuan one step closer to being a fully-convertible currency, something that Beijing has been scrambling to achieve since the currency was rejected from the IMF’s SDR basket following the last reconsideration of that basket in 2010. Firstly it provides the Kremlin and other US/EU/NATO/Israeli enemies a potential alternative safe haven from the crippling sanctions that hang over their head in the current environment. If and when CIPS is launched, the results could be world historical in nature. Called the China International Payment System, the CIPS network is meant to facilitate cross-border transactions specifically in yuan and the latest reports suggest that the system is already in place and could be launched as early as this September. Now it seems that talk is materializing into something very real. ![]() In practice, however, SWIFT put up no resistance whatsoever and obligingly complied with the Iranian sanctions request despite the fact that the blockade was repeatedly ruled illegal by the EU’s own courts. Does anyone doubt that, despite their protestations to the contrary, they would do any different if push came to shove with Russia? This is precisely why Moscow, Beijing and other countries in the cross hairs have been floating ideas of their own, namely the creation of an alternative payment network that bypasses SWIFT. Of course, SWIFT is nominally “independent” from any government entity and thus does not have to follow the dictates of Washington or anyone else pursuing their own personal vendettas in the financial arena. Throughout the recent tensions between the US bloc and Russia over the civil war in Ukraine, the idea that SWIFT could similarly de-list Russian banks has been repeatedly floated as a potential next step for the US and its allies. In 2012, SWIFT agreed to de-list 30 Iranian financial institutions (including the central bank) from their network as part of the US/EU-led sanctions on Tehran, a move that was meant to stop billions of dollars’ worth of oil and export sales from being repatriated into the country and bring Iranian business to a standstill. This is why de-listing from the SWIFT network remains one of the primary financial weapons wielded by the US and its allies in their increasingly important financial warfare campaigns. Still, given the system’s near universality in the financial system, it means that virtually every international transaction between banking institutions goes through the SWIFT network. ![]() New reports indicate that China is ready to launch its SWIFT alternative, and for those who have their ear to the ground this is the most significant move yet in the unfolding process of de-dollarization that is seeing the BRICS-led “resistance bloc” breaking away from the financial stranglehold of the US-led “ Washington Consensus.”įor those who don’t know, SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication and is shorthand for the SWIFTNet Network that is used by over 10,500 financial institutions in 215 countries and territories to transmit financial transaction data around the world.SWIFT does not do any of the clearing or processing for these transactions itself, but instead sends the payment orders that are then settled by correspondent banks of the member institutions. Far and away the most important economic story of the week is one you won’t find on the front page of Bloomberg or MarketWatch. EMF Harmonized (Cell Phone, Wi-Fi, Radiation Protectionįorget all the nonsense and hoopla about the Apple Watch or the GM stock buy-back.Barbara H Whitfield RT and Charles L Whitfield MD. #Cips cny swift share archive
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