Does the world change today?
Dec 29, 2014
Russia is set to launch its new internal payments system, independent of the Fed’s SWIFT system. Russia’s system was made necessary when US sanctions were imposed last summer denying Russian banks access to the Fed’s trading system. This forced Russia to set up a competing system, which will only grow from its birth today.
With holiday chaos, traveling and families getting together for Christmas, many may have missed an announcement that will change the world as we know it, where China has announced the launch of Yaun trading with Russian Rubles, set to begin on Monday, December 29, 2014!
As is explained in the Zero Hedge article discussing this announcement and the ramification of it, this will "not only enable and make direct currency trading more efficient by sidestepping the dollar entirely, but also allow Russian companies to budget in Chinese Yuan terms.
The Zero Hedge article referenced above is at this link:
So what does this mean?
First off, China is the real winner in this war that the US government has declared against Russia. China is able to import cheap oil, which helps to grease its economy and increase its clout at a much faster rate.
Everyone else directly involved in this war is a loser. The new shale oil industry in North Dakota is being cut off at the knees. The Saudis are discovering that they have been pawns in someone else’s game and are on the brink of revolution just as they are being threatened by ISIS.
Russia, of course, has taken a big hit, as most people know. Iran and Venezuela, too. But Britain and Norway are also reeling from the low prices for North Sea oil, since they are now making only about $2 per barrel of oil extracted from the North Sea. They are considering stopping production, as it only uses up resources and makes almost no profit.
How long will it take before the US policies against Russia will make Europe throw up?
The big story, however, is that the Fed and the US dollar continue to be shunned in international trade. Much of this has been the direct result of US policy itself, for by using the dollar as a weapon of war, they have made other nations take steps to diversify their payment systems, so as not to depend on the Fed’s SWIFT system. This reduces their need for dollars, while increasing their need for yuan.
All of this takes time, of course, but the steam roller moves on, crushing anything in its path.
December 30 is also the 1480th anniversary of the Little Horn’s legal system that was enacted first in 529 A.D. and finally made effective on Dec. 30, 534 A.D. It appears that today’s launch of the alternate payment system in Russia might be the most significant sign of the Little Horn’s demise. At least, that is how Zero Hedge is treating this event.
For further information, see: