A New Sense Of Optimism In Offshore Finance (Coupled) With The Decline Of American Power
Working in Geneva, I walked into my office on Friday and my employees seemed to have an infectious spring in their step―coupled with being in a state of optimism.
Something I always like to see
It soon became clear that what had everybody buzzing was the possibility of a gold-backed Ruble. Of course, this is not the first time this subject has been brought up in our industry. What was different this time was the radical changes in the geopolitical reality and the weakening grip of US power.
And quite honestly a new system of money is tantalizing
The prospect of a hegemonic competing monetary system is long overdue and the idea of holding gold-backed Rubles sounds far better than the unknown risks of the US dollar. Even better is a new money movement system that is outside SWIFT that gives multi-jurisdictional fund managers more than one option.
It is no joke, that all of us within multi-jurisdictional finance have existed within this system under the iron grip of the United States; at the same time bowing to its interests. Now it seems that the American money system is changing permanently― with new prospects and possibilities.
What many do not understand is when money is moved around the world. This is done generally by the SWIFT system. SWIFT is (in all but name) an American system. This being the case, all the money movement globally is indirectly controlled by the United States. This means the foggy bottom “jackals” can stop this money from moving– especially if it meets American foreign policy interests.
Fortunately, the American system has a new competitor.
When President Putin started his campaign on the Caspian Steppe both President Putin and the Russian Duma understood that their country was going to be sanctioned by the west before they started, regardless. And given the fact that NATO is incapable of stopping any Russian offensive. The American’s only option was to sanction Russia. Unfortunately for the United States, this meant they were going to fall into a trap.
If the United States sanctioned Russia this meant President Putin could blame the United States for his country’s temporary economic disruptions. At the same time rolling out a new Central Asian monetary system.
Yes, you guessed it, the gold-backed Ruble.
Like an American tragedy– two-thirds of the world’s population jumped right on board. Including China and long-time American ally India. Not only was Russia offering lower prices for their oil. Russia had a new settlement system outside of SWIFT. Unsurprisingly, the countries that (could)– jumped at the deal!
Look at it this way. if you pulled up to fuel the car. Would you pay 30% more for the price of fuel than the station across the street? Or if you had gold in your left hand and paper in your right what would you keep? It’s just that simple.
— Roman
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