FYI lines being drawn, potentially big changes in world monetary & trade relations
tldr: a bunch of countries might get shut out of the dollar as soon as this summer and maybe even build an IMF of their own while the US shoots itself in the foot and quickens its own destruction
If you haven't been following the development of the Iran sanctions, recently the US State Department declared a secondary boycott on Iran, particularly on their oil sales. This basically means that the US is not only stopping trade from Iran directly but is also threatening to sanction other countries who continue doing business with them.
The banksters recently shut Iran out of the SWIFT system, which is something like a financial internet linking major banking communications around the world. This might not be a huge deal by itself to Iran because they've been harassed with sanctions like this for 30 years and they're pretty well used to it. But it does show that the banksters are not making idle threats and the secondary boycott extending beyond Iran makes it a potentially serious issue. Large scale secondary boycotts are comparatively rare, particularly these days in the global economy.
The State Department said a few weeks ago in so many words, if you keep doing business with Iran then you will either stop or face sanctions. This is stupid on its face for a lot of reasons IMO, but whatever you think of it countries are now lining up on either side of the issue.
The countries who have got in line and are not subject to the pending secondary boycott are Belgium, Czech Republic, France, Germany, Greece, Italy, Japan, Poland, Netherlands, Britain, Spain
There are twelve countries who have not yet fallen in line at the moment and it looks like they are China, India, Pakistan, South Korea, South Africa, Indonesia, Malaysia, Turkey, Taiwan, Philippines, Singapore, Sri Lanka
This is a huge chunk of the world and dollars settle a massive amount of all international trade, including a lot of trade in these countries. This secondary boycott could start as early as summer.
There are a lot of big political and economic considerations surrounding the issue for sure, and right now it's hard to see how far the secondary boycott measures would extend. Could be a selective trade embargo of some kind, but it could also be as big as shutting the countries out of all dollar based markets entirely.
The thing to keep in mind for now is that there's a real chance, however slight, that in the not so distant future some of the above countries' currencies may not have a direct means of exchange with the dollar and vice versa, and/or the exchange will take on a new dynamic if the countries come together and create some kind of counterweight. This could be important for expats in SE Asia, people with international bank accounts, people doing forex, importers, contracting outsourced labor, etc.
This all could come to nothing, but it could become very interesting. The BRICs are meeting later this week and they're planning to talk about ways to create a permanent mechanism for settling accounts outside of the dollar. Essentially making competitors to the IMF and the BIS.
Hope this is of use to some of the gay webmasters here.
tldr: a bunch of countries might get shut out of the dollar as soon as this summer and maybe even build an IMF of their own while the US shoots itself in the foot and quickens its own destruction
If you haven't been following the development of the Iran sanctions, recently the US State Department declared a secondary boycott on Iran, particularly on their oil sales. This basically means that the US is not only stopping trade from Iran directly but is also threatening to sanction other countries who continue doing business with them.
The banksters recently shut Iran out of the SWIFT system, which is something like a financial internet linking major banking communications around the world. This might not be a huge deal by itself to Iran because they've been harassed with sanctions like this for 30 years and they're pretty well used to it. But it does show that the banksters are not making idle threats and the secondary boycott extending beyond Iran makes it a potentially serious issue. Large scale secondary boycotts are comparatively rare, particularly these days in the global economy.
The State Department said a few weeks ago in so many words, if you keep doing business with Iran then you will either stop or face sanctions. This is stupid on its face for a lot of reasons IMO, but whatever you think of it countries are now lining up on either side of the issue.
The countries who have got in line and are not subject to the pending secondary boycott are Belgium, Czech Republic, France, Germany, Greece, Italy, Japan, Poland, Netherlands, Britain, Spain
There are twelve countries who have not yet fallen in line at the moment and it looks like they are China, India, Pakistan, South Korea, South Africa, Indonesia, Malaysia, Turkey, Taiwan, Philippines, Singapore, Sri Lanka
This is a huge chunk of the world and dollars settle a massive amount of all international trade, including a lot of trade in these countries. This secondary boycott could start as early as summer.
There are a lot of big political and economic considerations surrounding the issue for sure, and right now it's hard to see how far the secondary boycott measures would extend. Could be a selective trade embargo of some kind, but it could also be as big as shutting the countries out of all dollar based markets entirely.
The thing to keep in mind for now is that there's a real chance, however slight, that in the not so distant future some of the above countries' currencies may not have a direct means of exchange with the dollar and vice versa, and/or the exchange will take on a new dynamic if the countries come together and create some kind of counterweight. This could be important for expats in SE Asia, people with international bank accounts, people doing forex, importers, contracting outsourced labor, etc.
This all could come to nothing, but it could become very interesting. The BRICs are meeting later this week and they're planning to talk about ways to create a permanent mechanism for settling accounts outside of the dollar. Essentially making competitors to the IMF and the BIS.
Hope this is of use to some of the gay webmasters here.
