Credit Suisse Freezes $5 billion of Russian Money due to U.S. Sanctions – A Recipe for Accelerated De-Linking from the Dollar Economy

A few days ago, Reuter reported that Switzerland’s second largest bank, Crédit Suisse, has ‘frozen’ about 5 billion Swiss francs, or about the same in US-dollars, for fear of falling out of favors with Washington – and being ‘sanctioned’ in one way or another. Crédit Suisse, like her bigger sister, UBS, have been amply punished already by Washington for facilitating in the US as well as in Switzerland tax evasion for US oligarchs. They want to be good boys now with Washington.

Switzerland’s banking watchdog, FINMA, does not require Swiss banks to enforce foreign sanctions, but has said they have a responsibility to minimize legal and reputational risks. Crédit Suisse is cautious. In 2009, it reached a $500 million settlement with U.S. authorities over dealings with sanctions-hit Iran. And most every major bank remembers the 2014 settlement of France’s BNP Paribas for a record $8.9 billion fine for violating U.S. sanctions against Sudan, Cuba and Iran.

When asked, two other Swiss banks, UBS and Julius Baer, who are known to deal with Russian clients, declined a straight forward answer whether they too will resort to sanctioning their Russian customers. An UBS spokesman said evasively, they were “implementing worldwide at least the sanctions currently imposed by Switzerland, the U.N., the EU and the U.S.”

What doesn’t stop amazing me, is how the western world just accepts such horrendous US fraud, or better called, outright theft of other countries resources, be it monetary or natural resources. And all that is possible only because the entire western world and all those African and lately again, Latin American countries – many of them developing countries, including some of the major oil producers – are still tied to the US dollar.

All international money transactions, regardless whether they concern the United States, or simply two completely independent countries, have to transit through a US bank either in London or New York. This is what makes it possible for the US to implement financial and economic sanctions in the first place.

A few days ago, the German Foreign Minister, Heiko Maas, dared proposing that the EU detach itself from the international, totally privately run, Belgium registered SWIFT transfer system, as it is fully controlled by the US banking oligarchy, is operating in more than 200 countries and territories. He suggested that the EU create an independent transfer system, much like Russia and China have done, to free themselves from the financial slavehood to Washington.

The reaction of one of his rightwing German countryman and parliamentarian was swift – it was not the right time to even think of de-coupling the EU from Washington, now where Russia is in dire straits and Germany and the rest of Europe needs the US more than ever. – Can you imagine!

In this pathetic, gutless Europe, it is highly questionable whether Mr. Mass’s excellent idea will survive and actually gain support. Hardly at this stage.

Irrespective of the spineless behavior of the EU and the Swiss Government, the latter unable even to stand up to its own neutrality – let them rot in their submissiveness to empire and its EU vassals – gutlessness, which by the way they, the Swiss Government, has also demonstrated vis-à-vis Venezuela – more important, much more important is, what does this all mean for Russia?

To begin with, the Crédit Suisse ‘frozen’ 5 billion dollars, you may as well call it what it is in reality: Totally illegally “confiscated” Russian assets. It is rare, if ever, that the US government returns so called ‘frozen’ assets of any sanctioned country.

And under the current scenario, Trump and his masters and the pressure of the corrupt Hillary swamp, will not let go of demonizing and ‘sanctioning’ Russia, regardless of the real impact of these sanctions, and regardless of the total lawlessness of these actions, regardless of the manufactured and lie-based reason for these sanctions, regardless of the fact that everybody with a half-brain knows about the manipulated and false pretexts for sanctions, and regardless of another fact, namely that these actions are contributing to an ever accelerating suicide of the empire and its corrupt system that eventually will drown in its own Washington swamp. – Good riddens! The sooner the better.

And the impact of these sanctions is hardly what they pretend to be. They are foremost a call on the Atlantists – or call them Fifth Columnists, of which there are still too many embedded in the Russian financial sector – to counteract the internal measures Russia is taking to escape the dollar slavehood. They will not succeed. The vessel is turning and turning ever faster; turning from west to east.

Despite the constant demonization of the ruble, how it lost 50% of its value because of the sanctions, the Russian currency is worth way more than all the western fiat currencies together. The western dollar-dependent moneys are based on hot air, or not even – on zilch, nada, zero; they are literally produced by private banks like casino money. The ruble is doubly-backed by gold and by Russia’s well-recovered economy – and so is the Chinese Yuan.

So, what does a 50% loss of the ruble mean? – Loss against what? Loss against the US dollar and the currencies of Washington’s vassal allies? – With a delinked Russian economy from the western economy, the western concept of ‘devaluation’ is totally meaningless. The ruble doesn’t need to compare itself anymore to the western dollar-enslaved currencies.

So, the urgent call by the nature of things for Russia to delink from the western economy, from the western fraudulent dollar-based monetary system, is being heeded by Russia. – I cannot but repeat and repeat again that the dollar economy and the enslaving monetary system it produced, is an absolute fraud. It is a crime that would be punishable by any international court that deserves the name of a court of law, that is not bought and whose judges are not threatened if they don’t fold to the dictate of Washington.

But upholding the laws of ethics and moral – the laws that our more honest and humble forefathers not too long ago crafted, is a thing of the past. The corruption in everything accompanied by intimidations and coercions, have been accepted by just about everybody as the new normal. This in itself is not normal. It creates a pressure cooker that eventually will simply explode.

To move away from this ever-increasing stench of cultural decay – a de-dollarization is a must, is a recipe for survival. And survive, Russia will. Russia is buying massively gold, shedding US treasury bonds from its reserves, replacing them with gold and Chinese Yuan, an IMF-accepted official reserve currency. In July 2018 Russia purchased a record 26 tons of gold, leading up to gold reserves of close to a total of 2000 tons, quadrupling her gold inventory since 2008. This makes Russia the world’s fifth largest gold holder.

As Mr. Putin said already a few years ago, the sanctions are the best thing that happened to Russia since the collapse of the Soviet Union. It forced us to rehabilitate and boost our agricultural production for food self-sufficiency and to rebuild and modernize our industrial park.

Today Russia has a cutting-edge industrial arsenal and is no longer dependent on “sanctioned” imports. Russia is not only food-autonomous but has become the world’s largest wheat exporter. And take this – according to Mr. Putin, Russia will supply the world with only organic food, no GMOs, no toxic fertilizers and pesticides.

Russia has clearly and unstoppably embarked on an “Economy of Resistance”: Local production for local markets with local money based on and for the development of the local economy; trading with friendly nations who share similar cultural and moral values – it’s called, regaining economic sovereignty.

That’s key. That’s what most countries in the west under the yoke of the US empire and its puppets, enforced by NATO, have lost in the steadily increasing stranglehold of globalization. Russia, China, Iran, Venezuela, Syria, North Korea, Pakistan, soon Mexico – and others are breaking loose from the fangs of the Washington Consensus that brought the world almost three decades of pure misery, exploitation and monetary enslavement.

Russia is strengthening her ties with China, with whom she has already for years a ruble-yuan swap agreement between the respective central banks, indicating a strong economic and trading relation. Both are members of the SCO – Shanghai Cooperation Organization.

And Russia is also an integral part and link in President Xi’s Belt and Road Initiative – BRI – a multi-trillion-yuan economic development scheme for the next at least hundred years, that will span the world with several transport routes, including shipping lines, ports and industrial expansion, as well as cultural exchange, education and research centers on the way.

Members of the SCO encompass half the world’s population and account today already for about a third of the globes GDP – and growing fast, both in members as well as economic output.

Russia as part of this block of sovereign nations doesn’t need the west anymore, doesn’t need the Crédit Suisse confiscated 5 billion dollars anymore. Freedom is priceless. Sanctions are like the fiat currency they are based on; not more than rotten smelling hot air, and dissipating fast into oblivion.

 

Peter Koenig is an economist and geopolitical analyst. He is also a water resources and environmental specialist. He worked for over 30 years with the World Bank and the World Health Organization around the world in the fields of environment and water. He lectures at universities in the US, Europe and South America. He writes regularly for Global Research; ICH; RT; Sputnik; PressTV; The 21st Century; TeleSUR; The Vineyard of The Saker Blog, the New Eastern Outlook (NEO); and other internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe. He is also a co-author of The World Order and Revolution! – Essays from the Resistance.

 

The 21st Century

2 Replies to “Credit Suisse Freezes $5 billion of Russian Money due to U.S. Sanctions – A Recipe for Accelerated De-Linking from the Dollar Economy”

  1. Isn’t the seizure of Russian money by the US really going to be seized by Wall Street bankers for loans they have been unable to collect for decades ?? And to punish Russia for their opposition to Wall Street’s obsession to put a pipeline through Syria ? Or the resistance to WS’s seizure to Ukeraine ? Has the control of WS over US foreign policy been funded by nefarious acts of the Federal Reserve become obvious ??

    XXXX

    The pasted writing is a tribute to my professor who taught a graduate course of Money and Banking.  His revelation has been confirmed with TreasuryDirect documentation, GAO reports, and other sources.  Perhaps the research may be of interest.
     
    Are the real beneficiaries of Stephen Mnuchin’s, whoops, Trump’s Budget with the humongous increases in National Debt, similar to programs that Stephan’s cronies at Goldman Sachs have used for decades to impoverish nations (including Greece), clearly visible to you? They are identified below.
     
    Have you ever wondered how the New York banks have been so successful that they can give million dollar bonuses and buy interlocking director control of Fortune 500 companies –especially military suppliers ? The source of the purloined funding is detailed below.
     
    Or how the Federal Reserve system conceals billions of dollars of profit in accounts that are not audited ? The specific accounts and methods used are identified.
     
    How these funds have been used for decades to the detriment of society, and the documented plan to collect on the $21 trillion U.S. national debt (as in Greece), is identified in footnotes 17 and 18.
     
    The future of the United States may be in your hands.
    Olde Reb

    ***************
    THE FEDERAL RESERVE: A DIFFERENT VIEW
     

    “What difference does an increase in the National Debt make? We owe it to ourselves.” virtually every congress-critter has declared. Such a paraphrased statement, reflecting on the exoskeleton structure of the Federal Reserve, ignores the inner historic mechanisms of Rothschild banking, the intense subterfuge and arm-twisting of the Fed’s creation, and the proven destructive forces inherent but hidden therein. 1

    The medieval Rothschild Banks established a line of credit for the King provided the King issued a written promise to pay gold, with interest, to the bank at a time in the future. The book-entry Rothschild credit was used to pay for obligations incurred by the king and the credit continued to be circulated in the kingdom between merchants. The bankers sold the king’s interest bearing promise of gold to investors. The promise was renewed by the king on its maturing date and was perpetually rolled-over. 2

    VOILA !!! The king made the suppliers of services happy with Rothschild credit; the bankers had the gold from investors; the investors had a promise the king would eventually pay them in gold—which would never happen. 3 Everything went smoothly as long as the bankers could sell the promise and the investors did not demand the gold. 4 As Benjamin Ginsburg has lamented in FATAL EMBRACE; (bankers) AND THE STATE 5, eventually the schemes, which stole the wealth from the people with book-entry fiat money, would come to a catastrophic climax. 6

    The Federal Reserve 7 does the same thing for the U.S. government’s deficit spending. Their wizard is hiding behind Frank Baum’s curtain as obscurant to any public inquiry.8

    The Federal Reserve Bank of New York will grant credit (not “create money”) in an account of the US government with an amount that the government will pledge. 9 The government will expend the book-entry-credit account (deficit spending) to pay for goods and services consumed by the government. The suppliers are content. Evidence that the supplier has received a credit voucher is obvious. [It is touted to the public as a loan.] The heading of the currency given to the supplier by a local commercial bank is Federal Reserve Note; i.e., a debt obligation of the Federal Reserve also identified as a “tender” (substitute) required by law to be accepted for an imprinted number of dollars. 10

    To sell the pledge from the government (the Treasury security) at the highest price, the Federal Reserve will hold an auction but will camouflage it as an auction by the government.11 Acceptance of bids, determining the interest rate, and the amount of deficit spending permitted is controlled by the BOG.12 Government regulations clearly establish the funds from the auctions are controlled exclusively by the FRBNY; i.e., a franchisee of the BOG. 13

    In addition to the approximate $1 trillion annually auctioned for deficit spending (new cash), the roll-over of approximate $10 trillion debt from prior years (publicly held maturing) is annually auctioned and disbursed by the FRBNY. 14

    The difference in handling of the two accounts is the supreme camouflage. Funds for roll-over securities are credited by the FRBNY to a government account. The FRBNY then pays the Primary Dealers (from the government account) for their task in collecting the maturing securities from the public. There is no increase in the National Debt nor is there any inflationary resultant from these transactions.

    If the funds from deficit spending securities were to be used in redeeming Treasury securities in the market (i.e., paid by the FRBNY to the government), it would eliminate any increase in the National Debt. It would also eliminate any increase in money in circulation (inflation). That clearly does not occur.

    WHERE DO FUNDS FROM THE AUCTIONS OF DEFICIT SPENDING SECURITIES GO ??

    The only viable dispersal of funds identifiable to this writer is the funds are commingled with funds to select Primary Dealers. If the Primary Dealers include shareholders of a privately held incorporated Board of Governors of the Federal Reserve, they would not have to reveal corporate records.15 The profit could be completely hidden from view. 16 The deficit spending amount 17 would be clear profit for the owners of the BOG.

    The statutory charter of the Federal Reserve stipulates profit of the operation belongs to the government. Concealment of funds that belong to the government appear to be embezzlement, among other crimes.

    Various theories abound on how the purloined funds have been utilized to the detriment of society. 18

    If the scheme is not exposed, Wall Street internal memos identify collection of the $20 trillion debt is the “ultimate goal” and would reduce the United States to the status of Greece. 19 Wall Street’s objective in Greece 20 is not to exploit, but is to destroy the nation. 21 Indeed, national sovereignty has been acquiesced by Greece to the Troika (financiers) as the terminal end of Goldman Sach’s “shitty” three billion Euro debt. 22

    The proposed Goldman Sachs government budget (whoops, Trump’s budget) includes huge deficit spending increases (increased military spending with cuts in social programs) with unrealistic increases in national productive/tax base.23 This is the same scheme Wall Street and the CIA have used to bankrupt other nations for four decades. 24 The psychopathic Wall Street warmongers demand a humongous deficit busting military expenditure, but this statement may reverse cause and effect. 25 The people will submit to anything if they are induced to fear a foreign threat.

    Get ready to kiss your 401(k), your government benefits, your pension, and your bank accounts goodbye, with strikes prohibited, health care costs escalated, perpetual war, mass layoffs (including government personnel), and economic chaos—among other dire occurrences. 26 This is the utopian government controlled by bankers that David Rockefeller 27 so proudly promised for the world in his autobiography MEMOIRS and Carroll Quigley touted in TRAGEDY AND HOPE.

    We can rest assured the same scheme is used by the ECB with the Euro.

    The U.S. has two options:
    The entire situation can be ignored with the public meekly submitting to Wall Street’s collection of the fraudulent $20 trillion National Debt and accept the fate of Greece [Greece has surrendered national sovereignty control to Goldman Sachs/Troika. Approval by Troika is required for all government actions.];
    or
    They can assert public pressure on congress-critters to audit relevant accounts and indict Wall Street. The GAO has authority to review the handling of government funds by any entity. It has made at least two reviews of the FRBNY’s handling of funds [but not audits] from auctions of Treasury securities. The FRBNY has exclusive handing of such funds…. Ref. 31 CFR 375.3…. All that is required for the GAO to review the handling of government funds is a request by a Congressional committee chair.

    PS: How can banks with (deficit spending) liquidity that borrowers will not accept for loans laundry the money? Well, they can buy stocks (and watch the price go up and say the corporations are buying their own stock) or they can buy bonds (and watch the yield go down as demand increases). Have you seen any evidence of this happening ?

    Footnotes are available at https://thedailycoin.org/2018/08/16/a-look-at-the-federal-reserve-through-a-different-lens/. if they are deleted by software or they can be emailed to an address.

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