By Ray White, CEO LIPR London
The White House has announced that the United States and allies agreed to block select Russian banks from SWIFT, the global financial messaging system.
In a joint statement with leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada, the officials said Russia being excluded from SWIFT ensures “that these banks are disconnected from the international financial system and harm their ability to operate globally.”
The announcement comes after President Joe Biden told reporters that the penalties from the latest round of sanctions against Russia are “maybe more consequence than SWIFT.” The European Union and the U.S. would finalize the list of which particular banks will be cut off from SWIFT, the White House said.
In an interview, the Chairman of US Reserve Bank, Mr. Powell said, “Since the US has taken such an act, by kicking Russia out of this SWIFT System, no country will ever trust any organisational system, set up by the US anymore. That means that US could just kick out Russia from the UN too.
SWIFT is basically a messaging system for banks. It works by linking up banks using standardised codes for payments. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has been around since the 1970s. SWIFT is owned by its member financial institutions.
The RUSSIANS are thankfully able to bypass the Visa Card, by using the *Chinese Unionpay”, which has operations in 180 countries. Soon, all Asian, and ASEAN countries will also use this newly formed bank payments messaging system. Japan, Australia and New Zealand who are in such a trading grouping too, will have to come up with an alternate paying system.
Since China is the biggest trading nation on Earth, with turnover of more than US$ 6 trillion, almost 3 times that of the US Trade Volume, China will now encourage Asian countries to trade, using a basket of Asian currencies, bypassing US Dollar.
This will be the start of the US Currency decline, in the world trading system, as a reserved currency. Joe Biden wouldn’t have an iota of brain cells, to fathom such a scenario.
Of course, US and other Western Allies, like Australia, will suffer a huge loss, in the end.
Our world will end up in a very different scenario from what we are witnessing and experiencing today. You can say our world will end up in Two Economic and Militarily sphere of influence, one led by China and the other led by US.
The ultimate scenario one day may be that China will have an economy twice bigger than the US. Since China has 1.4 billion people, as soon as her GPD per person reaches even $30,000 per person, when that final goal is completely accomplished. US Hegemony has almost ended right now.