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After World War 2 the entire global financial structure was set up to favor the US Dollar, with Wall Street and London as its financial centers. In 1973 The Society for Worldwide Interbank Financial Telecommunication, (SWIFT) was set up in Brussels by the same powers who had created the dollar based universe. SWIFT made especially dollar based money transfers available to the nations of the world, which greatly expedited international trade.
Global dollar domination and SWIFT were supposed to be politically neutral, only there to facilitate a growing global economy. Wall Street and London were supposed to create an honest open global market place for securities, currencies and commodities.
Of course the neutrality and honesty part never happened. And why should it when together these institutions functioned as a global monopoly. When you are a monopoly you write the rules and everyone else plays by them.
After the Cold War, as the US became more and more aggressive militarily, (both overtly and covertly) all around the world, Washington did not hesitate to use this financial system as a weapon of war.
There are relatively minor institutions that derive from the power of the US dollar, (and later its sister currency the Euro) like the IMF, World Bank and many regional “development” banks, but as a whole there are three prongs to the global monopoly, financial power that emanates from Wall Street and London.
The first is the US dollar. This has been based on the world accepting it as a means of globally agreed to portable wealth. That means if you live in Argentina or Indonesia and you want to travel or buy things abroad, the currency most available to you that will be accepted everywhere is the US dollar. The latest study of this in October 2013 showed that 81% of all international business transactions were settled in dollars.
Usually the financial press shows global dollar acceptance by its use as a reserve currency for the world’s central banks. But this is nowhere near as good of a measure of how people value the dollar, as is its use to settle business transactions.
That is because the the reserves of what central banks are allowed to hold can easily be swayed by political pressures. Tourists and business people are only concerned about politics as a potential risk for their travels, or to the transactions that what they want to accomplish. In general they will use the currency that is the most available, stable and accepted where they want to go or by those whom they want to do business with.
The second it the SWIFT system. Since its inception this system has been so successful that today most international business deals are settled through it.
The third part is Wall Street and London. They have effectively set the price of equities, debt instruments, currencies and commodities world wide.
Each of these systems have been used abusively towards the people of the world.
First the US dollar. While the world depends on it for trade, no one but the American Federal Reserve and its member banks can produce it. And the tendency of the Fed is produce dollars as needed for the American economy without thinking much of the world being effectively addicted to it, or its needs. When the Fed produces too many dollars it creates inflation globally. When not enough the world, (as is happening now) heads towards recession.
Secondly the SWIFT system. Washington has used this politically as a weapon of financial war. It first used it against Iran and then made noises about using it against Russia. If you kick a country out of the SWIFT system, then it becomes very difficult for that nation and its people to conduct international business which throws its economy into turmoil.
And finally the Wall Street, London financial institutions have used endless leverage to distort the pricing of everything that they trades. Most notably it distorts the values of commodities like oil or gold making them more expensive or more cheap than the real supply- demand balance of physical buyers would dictate.
Using this system paper players gamble and get rich while ordinary people suffer. A perfect example of that was the artificially high prices for global food supplies in 2007. The results were global hunger especially in poor countries where people typically pay 50% or more of their income for food, and that was before commodity traders drove the prices up.
The Chinese are now creating hopefully honest alternatives to these crooked, rigged and politicized systems.
By now everyone knows that the Chinese intend to launch their currency, the Renminbi (RNB) as a international currency and promote its use for global trade side by side against the US dollar. While in the October 2013 survey the RNB was only being used in less than 9% of world trade, given how aggressively Beijing has been creating agreements to promote it, it is likely that that figure is a least at couple of percentage points higher today.
On the third part Beijing has set up its global financial center in Shanghai. It is of course still small compared to New York and London. Part of that reason however, is that the RMB has not yet really become an international currency, (at least on a par with the dollar) and that will be the main currency of use in the Shanghai center.
China has leaked today that it is going to launch its alternative to the second area of US domination and the one Washington most loves to use as a weapon of financial war, the SWIFT system. It will be called the China International Payment System (CIPS). And unlike SWIFT, CIPS will ostensibly not be monitored by the American NSA, nor will China kick nations out, (or threaten to kick them out) of the system for Geo Political reasons.
While CIPS should be up and running for ordinary users in 2016, it will still be a small embryonic system until China can make its currency widely available pretty much everywhere and get central banks and commercial banks on board all over the world, so that global purchases can easily be made and moneys transferred from one country to another with RMB on the spanking new system.
For example the initial start of CIPS will only be with 20 banks, 13 of which are Chinese with the rest being foreign subsidiary banks also within China. Compare this with the SWIFT system, which in 2010 had 9,000 financial institutions in 209 countries in which payments could be made and received.
But the numbers are a bit misleading. To create both SWIFT and CIPS, meant building a huge and complex financial infrastructure. The most important take away from today’s great news, is that the Chinese have finished theirs at least in a Beta Version and that the first test transactions on it should be ready to roll before the end of this year.
Once CIPS is fully ready, it will just mean increasing traffic on the system which will mean getting the RNB in banks world wide and getting these banks ready to open their businesses for the coming explosion of global transactions settled in RNB and on the new CIPS system.
China working with Russia and many other nations of the TRUE world’s community, is creating alternatives to ALL of the systems set up by the Americans for global imperial control and repression. Below is a graph of the elements of this toxic Anglo 5- EU infrastructure, (Pink) that are in the process of replacement, (Brown).
Thanks to China more than any other country, the day when the Anglo 5 + EU Empire will no longer be able to strangle the world is finally in sight.