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Russia in Negotiation with China for alternative SWIFT Bank system…

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Sanctions. Again…

Russia and China, the two strategic Eurasian nations, are moving clearly to ultimately break free of the stranglehold of the Dollar System. On September 10 high-level talks took place between the two countries discussing establishment of an interbank money clearing system independent of the US-controlled SWIFT payments system. If enacted it would represent a major step in being able to defend their economies from Washington’s newly-developed weapon of financial warfare against a country that does not behave just as certain powerful circles want.

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.”

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.

The Society for Worldwide Interbank Financial Telecommunication, SWIFT, is one of Russia’s primary links to the international financial system. Bloomberg reported that on August 30, ironically just after Russia had proposed in Minsk terms of a ceasefire between the Kiev Government and east Ukraine rebels, Prime Minister David Cameron’s government proposed that the EU escalate its Russia sanctions warfare by blocking Russian banks from SWIFT clearings.

Were that to happen, it would be tantamount to a declaration of full economic war between the EU and Russia. The consequences for the EU would clearly be devastating, something Washington or leading Wall Street circles would, no doubt, chuckle about in a kind of Schadenfreude. Already US-imposed EU sanctions against Russia have begun hurting the German economy significantly.

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