SWIFT is merely Convenience, But Visa and Master Stings: Russian banks rush to switch to Chinese UnionPay card operator’s system – March 6, 2022,
The Society for Worldwide Interbank Financial Telecommunication(S.W.I.F.T.) is a Belgian cooperative society providing services related to the execution of financial transactions and payments between banks worldwide. Although some might imagine that SWIFT is U.S-owned, it’s not, what SWIFT is really, is that it’s a gateway into what people know as the Eurodollar market.
With that said, SWIFT is convenient, what it’s not is this almighty payment facilitator that can’t be replaced, Visa and Mastercard aren’t almighty either, but LOSING access to credit makes you poorer overnight. As I like to point out, ECONOMIC inflation is myth, and financial inflation exists primarily because of the government’s relationship with money.
I get a lot of hate, because I write all the time that I don’t want a gold standard, why? Because gold standards have NEVER stopped governments from spending beyond their means. What I’ve observed with Gold Standards is that you could be granting the government permission to enter your home and confiscate your gold if your government goes bankrupt. Don’t for a moment imagine that your fellow countrymen won’t support the government’s seizure of your gold if the politician convinces your fellow countrymen that your gold hoarding is causing problems for the entire country.
REAL Financial education doesn’t exist in Western Schools and for this reason, I say use the fiat monetary standard until humans get smarter. What’s that you say, tyranny is inevitable under a fiat monetary system? Well, duh and what are you doing about it? The goal to improve the human condition is to educate and this situation with Russia and Ukraine should be used to educate.
So Putin invades Ukraine with the hope you can take over strategic territory and I’d assume put in his own Ukrainian President to serve his interests. So fat Russia taking over Ukraine has proven to be more difficult than Putin imagined. If Joe Biden didn’t have his stupid energy policies, which currently punishes U.S energy producers for producing energy Joe Biden’s administration considers against his agenda, Russia couldn’t even finance this war.
Instead, Russia is flush with cash and I assume was also counting on the existing financial infrastructure to keep the money flowing into Russia. Well, SWIFT, Visa, and Mastercard aren’t making it easy for Russia to finance its war efforts and I personally think it will have an effect because Russia’s economy is very small for its population and that says a lot when you’re on a fiat monetary system.
But in China, it’s a well-known fact for Chinese people NOT to hoard their money in Chinese banks, in fact, most Chinese people tend to hold foreign currencies in their PHYSICAL forms. What the Canadian Prime Minister couldn’t do is seize fiat money that was in Cash form, why I bring this up is that the world is watching these events take place and it’s exposing a lot of vulnerabilities in this current DIGITAL banking system and a lot of it equates to economic DEFLATION.
The shift of what I see in the future will revolve around assets, meaning that financial institutions are setting themselves up to have their systems put into question. The current progressive agenda revolves around its current infrastructure financing future progressive social spending and based on what I’m observing, the GLOBAL economy is deflating in front of our very eyes. A reminder that most of the U.S dollars in circulation exist via DEBT!
When Visa and Mastercard cut off an entire country from using their credit system, ignore China in all of this, you have to think about economic activity, which could slow down as fewer people can transact using these debt-based systems of payment, all of which exist by granting their customers credit lines so they can charge their customers all sorts of fees.
All of that financial activity is going to be SUSPENDED until further notice and human behavior is such that people will scramble to find an alternative and the longer people get comfortable with that alternative the less likely they’ll return to other forms of credit. Making matters worst, similar to Justin Trudeau’s move to freeze the bank accounts of his political opponents, moving forward, people will who understand how much power governments have, will seek out alternative ways to hide their wealth, this too is deflationary.
Russian banks rush to switch to Chinese card system | reuters.com
Interesting times ahead