As long predicted, the dollar’s dominance on the world’s economic stage is wavering and likely to completely collapse soon given the move away from the dollar by Russia, Iran, and China.
Many have been predicting it. This writer spoke of it as early as 2004. The elite have dreaded it. It’s finally happened. The dollar is soon to be removed as the trading currency for oil and other commodities among Russia, Iran, and China. The effect on the U.S. economy will be catastrophic. However, in the long run it will serve to force the U.S. into a regional, rather than a global role.
The Industrial and Commercial Bank of China (ICBC) began operations in Moscow starting in mid-March 2017. The sole purpose was to act as a new intermediary for international commodity and energy trade. Iran has already declared its interest in following suit.
At the end of 2015, the Russian central bank officially announced China’s currency, the yuan, as a reserve currency. It took several more years to build the infrastructure to handle a radical shift of this kind.
The U.S. cannot but act militarily, and its buildup of forces is unprecedented. It has no financial weapons to answer the massive drop in demand for the dollar once this is made operational.
Russia has the mechanisms in place to build its own SCO-BRICS banking system. SCO-BRICS refers to the Shanghai Cooperation Organization—an intergovernmental organization founded in Shanghai on June 15, 2001 by China, Russia, Kazakhstan, Kyrgystan, Tajikistan, and Uzbekistan—and the economic arrangement between Brazil, Russia, India, China, and South Africa. The two groups have held several summits over the years with the intent to foster economic and political cooperation.
Compounding the situation is the fact that, since the big credit cards pulled out of Russia, local alternatives have been exploding. Whatever dependency and Western control Russia’s banking had faced is now gone. The current SWIFT system—the computer module that governs international trade and credit—is controlled by Western bankers in Belgium. It is a manifestation of the cooperation of the globe’s financial elites. Since these are deeply in debt and largely criminal enterprises, removing Russia from their system is a positive thing. Already, Russia has its own system in place, the MIR, which is used by almost 400 banks. It is also used by members of the SCO on most occasions.
Any nation under American sanctions no longer uses the SWIFT system. Quietly, American Express and Citibank have joined the MIR, as have most Northern European banks. Profits are more important than oil company demands, and a faction of the elite realize that there is no future in Western debt. As of May 2017, they are the only two Western financial institutions to be included in the new system.
Russia is misinterpreted in Western financial analysis. It is not a petroleum-based economy. Roughly 20% of its foreign exports is in this sphere. It is a powerful actor, but it is not dominant. In truth, Russia is the 26th most complex economy in the world, meaning that it is not dependent on just one thing. For a little perspective, Canada is 11th. While the U.S. is an important importer, it is not an important export destination for Russians. Asia and Northern Europe are far more important. In other words, Russia does not need the U.S.
A massive revolution is taking place right under the West’s nose, and very few understand its nature. Liberalism itself is being directly challenged.
Russia’s removing itself from the domination of the dollar means the end of American “superpower” status.
Full article: Russia and China Move to Dump the Dollar, Threatening the New World Order (American Free Press)