{"id":53943,"date":"2015-02-23T12:00:52","date_gmt":"2015-02-23T12:00:52","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=53943"},"modified":"2015-05-05T21:26:04","modified_gmt":"2015-05-05T20:26:04","slug":"russia-creates-its-own-payment-system","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2015\/02\/russia-creates-its-own-payment-system\/","title":{"rendered":"Russia Creates Its Own Payment System"},"content":{"rendered":"

15 Feb 2015 – Almost 91 domestic credit institutions have been incorporated into\u00a0the new Russian financial system, the analogous of\u00a0SWIFT, an international banking network.<\/em><\/p>\n

The new service, will allow Russian banks to\u00a0communicate seamlessly through\u00a0the Central Bank of\u00a0Russia. It should be noted that Russia\u2019s Central Bank initiated the development of\u00a0the country\u2019s own messaging system in\u00a0response to\u00a0repeated threats voiced by\u00a0Moscow\u2019s Western partners to\u00a0disconnect Russia from\u00a0SWIFT.<\/em><\/p>\n

Much of the West\u2019s power comes from our financial hegemony. Our ability to cut people off from loans, payments and so on.\u00a0 Since this new system is Russian only, it isn\u2019t, right now, that big a deal.<\/p>\n

But start connecting other countries to it, say China, Iran, India and so on, and it becomes a way of breaking financial blockades.\u00a0 Include some calculable financial law (less of a challenge than it used to be as New York and London courts make increasingly punitive decisions), and start lending in Yuan (with which one can buy much of what one needs in the world, since the Chinese make so much of it), and you have a fully credible financial system.<\/p>\n

The key is to get one major manufacturing country in.\u00a0 Most of the nations the West is punishing these days, financially, are oilarchies ( Venezuela, Iran, Argentina).\u00a0 They need the ability to buy manufactured goods.\u00a0 The obvious country is China.\u00a0 If China agrees to go in, Western financial hegemony is broken.\u00a0 Japan could work; India could almost work, and Japan or India have a lot more to gain from it than it might seem (as we watch the Japanese economy implode.)<\/p>\n

Even before then there are deals which can be cut.\u00a0 Say Greece wants to buy Russian oil.\u00a0 Russia can lend them Rubles, the use those rubles to buy Russian oil, in exchange Russia gets use of Greek ships and ports and access to the EU.<\/p>\n

This is, then, in one sense, not a big deal.\u00a0 As long as its only Russia, it\u2019s a defensive move of somewhat limited utility.<\/p>\n

But if it expands beyond Russia, well then, it\u2019s earth-shaking.<\/p>\n

Get out the popcorn and watch it develop.<\/p>\n

______________________________<\/p>\n

Ian Welsh has been blogging since 2003.\u00a0 He was the Managing Editor of <\/em>FireDogLake<\/a> and the <\/em>Agonist<\/a>. His work has also appeared at <\/em>Huffington Post<\/a>, Alternet, and <\/em>Truthout, as well as the now defunct Blogging of the President (<\/em>BOPNews). In Canada his work has appeared in <\/em>Pogge.ca<\/a> and <\/em>BlogsCanada<\/a>. He is an editor, writer and social media consultant who currently lives in Toronto.<\/em><\/p>\n

Go to Original \u2013 ianwelsh.net<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

15 Feb 2015 – Domestic credit institutions have been incorporated into the new Russian financial system, the analogous of SWIFT. The new service will allow Russian banks to communicate through the Central Bank of Russia in response to repeated threats by Moscow\u2019s Western partners to disconnect Russia from SWIFT.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[146],"tags":[],"class_list":["post-53943","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/53943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=53943"}],"version-history":[{"count":0,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/53943\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=53943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=53943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=53943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}