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SWIFT Spells Trouble for China, BRIC Nations in Fight for Global Dominance

SWIFT Spells Trouble for China, BRIC Nations in Fight for Global Dominance


China is in trouble

By: Julian Phillips / Financial Sense.com / April 2, 2012

Excerpt:

“What is being realized slowly is that the actions that come out of this conference may well mark a watershed in the shift of power from West to East and the significant reduction in the power of the U.S. as the globe’s main financial influence. Consequently, these nations will have to lower the influence of the U.S. dollar on their affairs if they are to achieve real financial independence. This has to be a future and extremely negative influence on the international value of the U.S. dollar.”

“While the SWIFT settlement system is a Belgian-based international banking settlement agency, the U.S. influence over it was sufficient to halt all Iranian interbank transfers. It is not the system that is faulty but the influence of the U.S. over it that is the danger to the BRIC nations.”

“The latest moves by the U.S. are deeply disturbing to China, as they have the power to directly hurt the spread of the Yuan on a global basis, if the U.S. so decides. Consequently, China is threatened right now! China has been working on alternatives so far, but the moves on the SWIFT system by the U.S. have made the issue urgent as she now faces a security threat. As China continues to develop, she will face a massive demand to be able to provide financing for expensive capital goods. China can no longer afford to depend on the U.S. dollar as the financing currency for its goods, as it is technically possible, although unlikely at the moment, to face threats from the U.S. even on this subject.”

Excerpts taken from:

http://www.financialsense.com/contributors/julian-phillips/swift-spells-trouble-china-bric-nations-global-dominance

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