Source: Global Research
April 24 2016
By Peter Koenig
The Collapse of the Western Fiat Monetary System may have Begun. China, Russia and the Reemergence of Gold-Backed Currencies
On 19 April 2016, China was rolling out its new gold-backed yuan. Russia’s ruble has been fully supported by gold for the last couple of years. Nobody in the western media talks about it. Why would they? – A western reader may start wondering why he is constantly stressed by a US dollar based fiat monetary systems that is manipulated at will by a small elite of financial oligarchs for their benefit and to the detriment of the common people.
In a recent Russia Insider article, Sergey Glaziev, one of Russia’s top economists and advisor to President Putin said about Russia’s currency, “The ruble Is the most gold-backed currency in the world”. He went on explaining that the amount of rubles circulating is covered by about twice the amount of gold in Russia’s Treasury.
CIPS replaces SWIFT
In addition to a financial alliance, Russia and China also have developed in the past couple of years their own money transfer system, the China International Payment System, or the CIPS network which replaces the western transfer system, SWIFT, for Russian-Chinese internal trading. SWIFT, stands for the Society for Worldwide Interbank Financial Telecommunication, a network operating in 215 countries and territories and used by over 10,000 financial institutions.
Up until recently almost every international monetary transaction had to use SWIFT, a private institution, based in Belgium. ‘Private’ like in the US Federal Reserve Bank (FED), Wall Street banks and the Bank for International Settlements (BIS); all are involved in international monetary transfers and heavily influenced by the Rothschild family. No wonder that the ‘independent’ SWIFT plays along with Washington’s sanctions, for example, cutting off Iran from the international transfer system. Similarly, Washington used its arm-twisting with SWIFT to help Paul Singer’s New York Vulture Fund to extort more than 4 billion dollars from Argentina, by withholding Argentina’s regular debt payments as was agreed with 93% of all creditors. Eventually Argentina found other ways of making its payments, not to fall into disrepute and insolvency.
Macri ready to pay Argentina’s illegal debt
All of this changed for Argentina, when Mauricio Macri, the new neoliberal President put in place by Washington, appeared on the scene last December. He reopened the negotiations and is ready to pay a sizable junk of this illegal debt, despite a UN decision that a country that reaches a settlement agreement with the majority of the creditors is not to be pressured by non-conforming creditors. In the case of Argentina, the vulture lord bought the country’s default debt for a pittance and now that the nation’s economy had recovered he wants to make a fortune on the back of the population. This is how our western fraudulent monetary system functions.
CIPS also applied by he remaining BRICS countries, Brazil, India and South Africa
China’s economy has surpassed that of the United States and this new eastern alliance is considered an existential threat to the fake western economy. CIPS, already used for trading and monetary exchange within China and Russia, is also applied by the remaining BRICS, Brazil, India and South Africa; and by the members of the Shanghai Cooperation Organization (SCO), plus India, Pakistan and Iran, as well as the Eurasian Economic Union (EEU – Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan).
Washington trying hard to destroy BRICS
It is said that CIPS is ready to be launched worldwide as early as September 2016. It would be a formidable alternative to the western dollar based monetary Ponzi scheme.
The new eastern monetary sovereignty is one of the major reasons why Washington tries so hard to destroy the BRICS, mainly China and Russia – and lately with a special effort of false accusations also Brazil through a Latin America type Color Revolution.
The Yuan has become an official reserve currency
In addition, the Yuan late last year was accepted by the IMF in its SDR basket as the fifth reserve currency, the other four being the US dollar, the British pound, the euro and the Japanese yen. The SDR, or Special Drawing Right, functions like a virtual currency. It is made up of the weighted average of the five currencies and can be lent to countries at their request, as a way of reducing exchange risks. Being part of the SDR, the yuan has become an official reserve currency. In fact, in Asia the yuan is already heavily used in many countries’ treasuries, as an alternative to the ever more volatile US dollar.
The western dollar-led fiat monetary system is on its last leg
It is no secret, the western dollar-led fiat monetary system is on its last leg – as eventually any Ponzi scheme will be. What does ‘fiat’ mean? It is money created out of thin air. It has no backing whatsoever; not gold, not even the economic output generated by the country or countries issuing the money, i.e. the United States of America and Europe. It is simply declared “legal tender’’ by Government decree.
No pyramid scheme is sustainable in the long run and eventually will collapse. It was invented and is used by a small invisible upper crest of elite making insane amounts of profit on the back of the 99% of us. Since these elitists are in control of the media with their lie propaganda, as well as the warmongering killing machine, US armed forces, NATO, combined with the international security and spy apparatus, CIA, MI6, Mossad, DGSE, the German Federal Intelligence Service (BND) and more, we are powerless – but powerless only as long as we ignore what’s really going on behind the curtain.
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