Zero Hedge: “UK Prime Minister David Cameron came out swinging this morning; not only at ISIS but in calling for European leaders to block Russia from the SWIFT banking transaction system. European leaders have already (via unnamed sources) denied any actual new sanctions will take place (though they will be discussing them at the NATO Summit) but – as we have noted previously – this is yet another unintended consequence-driven nail in the coffin of USD hegemony…
The U.K. will press European Union leaders to consider blocking Russian access to the SWIFT banking transaction system under an expansion of sanctions over the conflict in Ukraine, a British government official said.
The Society for Worldwide Interbank Financial Telecommunication, known as SWIFT, is one of Russia’s main connections to the international financial system. Prime Minister David Cameron’s government plans to put the topic on the agenda for a meeting of EU leaders in Brussels Aug. 30, according to the official, who asked not to be named…
“Blocking Russia from the SWIFT system would be a very serious escalation in sanctions against Russia and would most certainly result in equally tough retaliatory actions by Russia,” said Chris Weafer, a senior partner at Moscow-based consulting firm Macro Advisory. “An exclusion from SWIFT would not block major trade deals but would cause problems in cross-border banking and that would disrupt trade flows.”
Opinion: Possible escalating sanctions is one more reason why Russia is in the process, along with China and the rest of the BRICS (Brazil, Russia, India, China and South Africa) nations, of de-dollarizing trade.
Energy, or lack of it, is the Achilles heel of the European Union and Russia’s weapon.
Excerpts from our (fiction) Chapter 12, Antichrist: The Search For Amalek:
“At 10:00 a.m. New York time, China announced an expansion of its 2013 currency swaps with Australia and Brazil that would now also extend to the EU, Japan, India, and Russia. The transactions were meant to bypass the US dollar in purchasing global commodities and to bring in the Chinese renminbi as the new world reserve currency.
The G8 was fed up with a lack of US fiscal discipline, and with oil at 150 dollars per barrel, something had to be done. Global equity markets cratered again as gold rallied past three thousand dollars. Startled nations began selling Treasury bonds, driving up interest rates.”
I speculated that the fall of the US dollar as world reserve currency would take place after the rapture of the Church and shortly after the beginning of the 7 year tribulation period, since the event would be of apocalyptic proportions to the world’s largest economy.
There is an old Wall Street adage ‘when America gets a head cold the world gets pneumonia.’