In One SWIFT Move

Normally a State of the Union address focuses on what’s supposed to be…the State of the Union.  But O’Biden used it as a financial weapon in one swift move.

And I’m referring to his banning of Russia from the SWIFT system.

After thinking about this for almost a day I’m convinced it’s one of the worst decisions ever made by any president…ever.

And banning the sales of Russian energy is a toss-up for the second worst decision.

The runner-up with that is how O’Biden is considering the confiscation of all Russian assets.

Don’t get upset about what I’m about to say.

But, imposing sanctions – like what O’Biden is proposing – is an act of Financial War on the entire world.

Huh?

Think for a minute.

Has anyone considered what happens to many pension funds AND mutual funds that own Russian companies?

Translation:  You may unknowingly own Russian assets that will also be seized and you’ll suffer the consequences of these incredibly bad decisions.

And before I get off this rant, please don’t tell me how so many people are becoming unified over supporting Ukraine.

Why?

Ironically (or NOT) the same people who took all the covid jabs and wore a mask – without the slightest resistance – are posturing like they’d go to war with Ukraine.

Meanwhile, they didn’t even defend their own freedom.

But that’s another topic for another time.

One Bad SWIFT Move

Banning Russia from the SWIFT system is motivation for China to accelerate their CIPS monetary system as an alternative to SWIFT.

They’ve been developing it over the last two decades.

And many Russian banks are already connected to China’s CIPS system.

Here’s how it works:

If someone wants to buy Russian oil and gas with CIPS, payment must be in the Chinese yuan currency.

CIPS is independent of SWIFT.

So, these stupid actions banning Russia can be critical in shifting the balance of power within the global monetary system.

A recent Bloomberg article summed up the collective fears of Major US Banks: (Namely JP Morgan and Citigroup)

“Booting Russia from the critical global system – which handles 42 million messages a day and serves as a lifeline to some of the world’s biggest financial institutions – could backfire, sending inflation higher, pushing Russia closer to China, and shielding financial transactions from scrutiny by the west. It might also encourage the development of a SWIFT alternative that could eventually damage the supremacy of the US dollar.”

Adding hypocrisy to injury over sanctions, China is buying 700,000 barrels of Iranian oil every day…which is a clear violation of US sanctions.

(crickets)

So, do you think the markets have been crazy this past week?

Fasten your seatbelt!

This is going to be a wild ride.

And you can learn how to prosper AND thrive during these Turbulent Times by reading our “…In Plain English” newsletter (HERE).

Share this with a friend…especially if they own mutual funds or have a pension fund that might be at risk.

They’ll thank YOU later.

We’re Not Just About Finance.

https://www.financialsmatter.com/category/in-plain-english/

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