Europe Unveils “Special Purpose Vehicle” To Bypass SWIFT, Jeopardizing Dollar’s Reserve Status

Sigh. Please read more than one sentence of wikipedia before challenging one of my opinions please . See below. This action pissed off the ultra conservative muslims and eventually ended up with them overthrowing the shah. IE we did it. I could have been more specific in my original post I apologize but this is common knowledge

Mohammad Reza came to power during World War II after an Anglo-Soviet invasionforced the abdication of his father, Reza Shah Pahlavi. During Mohammad Reza's reign, the Iranian oil industry was briefly nationalised, under Prime Minister Mohammad Mosaddegh, until a US and UK-backed coup d'état deposed Mosaddegh and brought back foreign oil firms.[6]

https://en.m.wikipedia.org/wiki/Mohammad_Reza_Pahlavi

 

Did Iran agree?

 

To jeopardise the Dollars status as prefered reserve currency all you have to do is provide a more stable currency.

ROFLLMAO.

Mr Rofloffagus.

All the dingbat anti capitalists and America haters dream of this.
The ****ing EU, the currency disaster people. How we all trust in you.

 

Once the dollar loses it global reserve currency status the Pentagon system will thereafter be forced to contract and the present US projection of military force across the world will correspondingly retract.

That will spell the end of US military hegemony.

"We now think these oil [-producing] countries, who are selling oil into these contracts and are getting paid in yuans, are starting to recycle their profits back into Chinese government bonds, and this is going to continue for decades.”

https://www.mintpressnews.com/global-de-dollarization-spells-jolts-and-crises-for-us-economy/250111/

 

Trump's ass-ish nature will result in more of this. He does seem to be getting results on the trade front, but how long these results benefit us remains to be seen. His nature and attitude tends to inspire people to find ways to work around him, not with him, even if they have to work with him in the short-term.

 

Swift is european, to be more precise : belgian.

 

Your Wikipedia page doesn't support your assertion.

 

Yes it is Belgian, therefore European.

But it's been penetrated, controlled and manipulated by the US because a sizeable and profitable element of its business is dollar denominated clearing. I presume you haven't you read anything about this in the past.

Swift has tried to wrestle back its independence but the problem will always be that clearing dollar transactions brings it within the purview of the US government sanctions. Either the US government needs to commit not to flex its muscle in penalising international entities and nations clearing dollars for settlement, or else another completely independent (of US meddling) architecture will be created and operated that accepts that dollar clearing will not form part of its business model to avoid that meddling.

That is now happening.

A quick recap (using Wiki) for you:

 

Thx, but I largely knew the situation have worked in banks for quite a while. Its not as bad as those articles pretend but yes the US due to agreements has some inlfuence there.

My point was that instead of setting up a new "swift" just change the one thats working very well to be more conform european norms.

To just transfer funs you really dont need another swift the problem remaisn the same : US boycots anyone dealing with iran.

 

Well, the problem is that SWIFT is a private company and the EU cannot force it to change its business model and stop clearing US dollar transactions, which is a significant profit stream for it. So they're now looking at establishing an alternative clearing architecture that the US cannot thwart.

Meanwhile, Russia has, for some years, been working up its own alternative to SWIFT. Besides this Russia along with China, Iran and Pakistan now settle transactions in their local currency eschewing the US dollar entirely.

I focus on this subject because it has become starkly obvious that the more the US tries to throttle and sanction trade between nations it chooses as enemies the more self-damage it does to itself in the longer term. This, for me, is the consequence of having neocon / neoliberal ideologues running foreign policy; they cannot see beyond their own zealot noses.

 

Thats just going to run into the same problems swift has.

Swift doesnt use dollar either if you dont want it to, and I really dont trust a russian clearing.

Its a difficult topic, take iran it does support a whole load of terrorism and sends a lot of money around in support of that, so of coruse you wouldnt want swift(or any clearing system you have) to be used for that .

 

Why would that happen if the new entity doesn't ever clear US dollars or have assets or entities in the US? There's no leverage for the US to exploit.

Of course, the US can sanction or embargo other nations that do business with that other entity, but pretty soon that would mean the US would be almost completely isolated in the worldas a consequence of its own mad policies.

This is getting a bit silly. SWIFT does clear dollars, that's the whole point of seeking an alternative.

So does the US. Your point?

 

Touché??

 

Us boycots companys. AGain if governements wants to transfer money they have plenty of channels and not need a clearing.

And yes any new system setup for the private amrket would just run into the same issues swift has.
µ

Not my point, my point was that swift doesnt route everything trough the US nor in dollars. You can use whatever currentcy you want.

Nice whataboutism. Its perfectly udnerstandbale there is a boycot against iran or russia for example. Its not ebcause the US is for this this turns automaticly into something evil and nefarious.

 

As one of the poor low income unwashed American masses living in poverty I really do hope the United States economy does collapse soon in that the last seventeen years has been pure hell to endure mentally and physically. [Pushed to the edge of sanity more like it.]

Nonetheless there is a large worry of mine that those that control or own the United States government will set fire to the entire world before ever relinquishing power.

Best of luck to us all I guess.

 

Does Israel allow any inspections of their nuclear program?

 

Very good answer and post, my respect!

Correct!
And we all know with thanks to Edward Snowden how the US governemnt and their secret services monitor the complete SWIFT issue and so every damned payment in the world!

You know ... attention irony now ... the one side calls them terrorists, the other side calls them "heroic freedom fighters"

 

Asserting something does not amount to a fact. Explain in clear terms why you consider an offshore entity that doesn;t clear or accept dollar/s clearing would run into the "same problems" and what, exactly are those "same problems" you refer to?

It probably bears pointing out here that I know how SWIFT works. In a prior life I was an international banker and very familiar with international treasury operations - in all their guises. I was present at the dawn of the international dollar market - what used to be known as Eurodollars (representing offshore US dollars). So please let's not trespass on this issue again - you are becoming repetitive with no point ensuing from your repetition.

The impression I now have is that you, like many others here, have activated your ego on this matter. Meanwhile, I am not in the slightest bit interested in discussing the minutiae of international treasury operations. It's boring and a waste of everyone's time.

There's nothing nice about it whatsoever. My comment stands as a clear example of your hypocrisy and double standards. You hold up Iran as a vile terrorist nation whilst intellectually blind to the fact that an even bigger sponsor of terrorism is the USA itself.

 

Its the same issues brexit is running into.

If you want to be an international entity then you have to accept certain rules if you want to do bussines inor with the main economic blocks. If you want to deal witht he EU you have to follow EU norms, same for the US.

If you would try to create such an entity and dont want to follow US norms then most likely no US company or company that has US links will want to work with or trough you.

Look at the comment in what some companies give why they do not want to do anything with iran after US reinstalled its boycot : either they are or have links or do bussines in the US and as a result they dropped whatever they were or wanted to do in iran in favor of not loosing what they have in or with US companies .

It seems your grudge is political and against the US. I have nothing against either US nor iran just poiting out why creating a new clearing isnt going to happen on the private market, that leaves the EU or a country itself that creates this.

 

Obviously, you do not have.

 

What most concerns me about this is that it seems to coincide with a somewhat similar plan by China:

https://www.aljazeera.com/programme...tro-yuan-dollar-hegemony-180331091248813.html

China's 'petro-yuan': The end of the dollar hegemony?
Shanghai is reportedly taking the first steps to pay for imported oil in reminbi, or yuan, instead of the US dollar.

and perhaps even Russia as well:

http://theeconomiccollapseblog.com/...g-it-russia-is-actually-abandoning-the-dollar

Russia Is Doing It – Russia Is Actually Abandoning The Dollar


Personally..... I think that one of the best responses to all this may lie in Israeli technology...... and arid Australian real estate........


Should Sorek 2 be in Australia or California?