Hong Kong invites Russia to bypass US sanctions and use its new system of international payments
Dec 16, 2014
The US sanctions against Russia are steadily trying to drag us all into a world war, as the Babylonian oligarchs seek to fight against the Kings of the East and retain their dominant position in the world. In this war, the US has chosen to obtain a short-term victory while conceding a long-term defeat.
The US is fighting a currency war against Russia, much like what happened in the mid-1980’s and again in 1997. The difference is that this time Russia has help from its allies around the world, including China, India, Iran, and now Turkey.
Instead of a major change in relations with Ukraine the West will watch Putin as he reinvigorates relations between Russia, China, India, and even Iran. The way Putin is responding to the western sanctions, falling oil, and the declining ruble is going to ensure that Russia is less dependent on the West in the future. History may show that the lesson of the western sanctions was to strengthen the rest of the world and reduce America's influence on Asia.
Putin has articulated, "that the European consumption is increasing too slowly...at the same time, the economies of Asian countries are growing rapidly". That is another way of saying that he is detaching Russian's economy from the West, which, in the end, maybe the true consequence of sanctions.
The latest threat is to block Russia from using the SWIFT system of international payments, which go through the Federal Reserve in New York. Russian government officials have called this “an act of war,” which it certainly is. Last week the US House and Senate almost unanimously approved a lengthy war propaganda bill, which was a de facto declaration of war, according to ex-Congressman Ron Paul.
On December 15 Russia was to begin testing its new national payment system (credit cards) that would eliminate the dollar and bypass the SWIFT system in New York.
Russia’s Rossiya and SMP banks, which fell under Western sanctions, are among the eight lenders that will start testing the country’s new national payment system on December 15.
"The pilot project involves SMP Bank and Rossiya Bank, those for which the story is very critical and important. These are quite large banks,” the head of the Russian National payment system (NPS) Vladimir Komlev said in an interview with Rossiya 24 TV.
The move comes as a part of Russia’s ambitious initiative to move away from the Western dominance of its financial markets. Last month the Russian Central Bank said it would have its own international inter-bank payment system, an alternative to the global SWIFT network up and running by May 2015.
Steadily, the US-dominated system of world trade is being replaced with an alternate system that eliminates the US government’s ability to use it as a weapon of war.
Now Hong Kong is offering Russia the opportunity to conduct international payments through its own system, which was set up recently as an alternative to the SWIFT system controlled by New York.
HONG KONG, December 16. /TASS/. The Hong Kong Special Administrative Region offered Russia to enhance partnership in infrastructure investment projects. In particular, broader bilateral ties envisage prospects for Russia’s use of clearing settlements in yuan to bring down currency risks....
“Russian companies incorporated in Hong Kong can enjoy benefits of the Closer Economic Partnership Arrangement (CEPA) with China being in effect here. The programme grants to Hong Kong an easier access to the mainland market and the right for duty-free commodity supplies,” Tsang noted. He called for Russian companies “to use capabilities of a platform of clearing settlements in yuan effective in Hong Kong that will help reduce risks related with currency exchange rate changes.”
In other words, the threat from New York has produced “currency risks” and “risks related with currency exchange rate changes,” so they are offering Russian companies the option of “clearing settlements” (in international trade payments) through Hong Kong’s facilities, rather than through the SWIFT system.
Hong Kong’s government has recently been challenged by demonstrations funded by US covert actions, and so neither Hong Kong nor China itself are in any mood to go along with US trade sanctions against Russia. Every time the US government pokes them in the eye, the rift grows wider.
The bottom line is that while US sanctions certainly do hurt Russia’s economy, the long-term result will be that the US becomes isolated. The SWIFT system will be bypassed, and the US dollar will be used less and less. In the short term, it hurts Russia and all others that the US has sanctioned. In the long term it hurts the US dollar, as more and more countries find that their dependence upon the SWIFT system makes them uneasy.
The US government is using the SWIFT system of world trade as a weapon of war. So it should not be surprising to find an alternative system being developed and used, which excludes the use the US dollar.
The US propaganda machine insists that Russia caused this problem earlier this year when they accepted Crimea’s overwhelming vote to leave Ukraine and to become part of Russia. The fact is, the US has been treating Russia as an enemy for at least 15 years, even though Russia tried to be friendly and to become part of Europe in international trade. When the US government overthrew the Ukrainian government last February and installed its own puppet Nazi regime, they brought about a civil war in Ukraine and forced Russia to side with the eastern rebels.
Then, of course, they blamed Russia for all the problems in Ukraine. The fact is that the conflict is part of a carefully planned US-sponsored strategy to gain control over Russia’s oil pipelines that go through Ukraine to supply Europe with oil and gas. The Ukrainian people are being used as cannon fodder in the attempt to destroy Russia.
But all of this is only serving to isolate the US economically—and ultimately politically as well. At the present rate of events, the US will soon join Israel in a Pariah Alliance until Jerusalem is destroyed, as prophesied in Scripture (Jeremiah 19:11).
Dr. Stephen Jones