This story first came to light just last week during the annual United
Nations General Assembly meeting. The European manufacturers are having to
forego a large part of their sales base in order to accommodate the United
States, you know their “number one ally”. Well, it seems as the members of
the U.S. Congress and Senate scream about President Trump issuing tariffs
against the Europeans for doing business with the supposed enemies of the
state – namely Russia and Iran – the Europeans still want to continue to
enjoy having tax free access to the American market, while at the same time
charing the U.S. huge tariffs or refusing to accept our goods and farm
products.
In other words, Europe wants it’s cake and to it eat as well. Sorry, but
nothing in the world has ever worked like that, nor is that likely to change.
Now we learn the Iranians are working to make this “Special Purpose
Vehicle” a reality and make is happen as quickly as possible. This could
create serious problems for the Federal Reserve Note, U.S. dollar and the
American economy at large.
Iran “Finalizing” Mechanism To Bypass SWIFT In Trade With
Europe
Just days after Europe
unveiled a “special purpose vehicle” meant to circumvent SWIFT and US
monopoly on global dollar-denominated monetary transfers – and potentially
jeopardizing the reserve status of the dollar – Iran said it was finalizing
mechanisms for the oil trade to bypass US sanctions against the country, said
Iranian Deputy Foreign Minister Abbas Araghchi.
According to RT,
Araghchi said that Tehran is not ruling out the possibility of setting up an
alternative to the international payments provider SWIFT to circumvent
sanctions imposed by Washington.
“As we know, Europeans are also trying to see how SWIFT can
continue working with Iran, or if a parallel [financial] messaging system is
necessary… This is something that we are still working on,” Araghchi
said.
According to the Iranian diplomat, the independent equivalent of the SWIFT
system that was earlier suggested by the EU to protect European firms working
in Iran from US sanctions will be available for third countries.
“This is the important element in SPV (Special Purpose Vehicle)
that it is not only for Europeans but other countries can also use this. We
hope that before the re-imposition of the second part of the US sanctions
[from November 4], these mechanisms can be in place and be functional,” said
the official.
One can see why: the Iranian economy has been hit hard in recent days, and
the Rial has plunged to all time lows, amid fears that the sanctions will
cripple Iran’s most valuable export resulting in a shortage of hard currency,
eventually leading to a replica of Venezuela’s economic collapse.
Separately, Iran’s Foreign Ministry spokesman Bahram Qassemi said that “after much
negotiation over a clear mechanism with Europe, we have neared certain
understandings; and for sure, US sabotage in that regard will fail.”
On September 24, Iran and its five partners released a joint statement
announcing the setting up of a “Special Purpose Vehicle” to facilitate
continued trade with Iran, bypass the US’s financial system, and avoid any
impact of America’s secondary sanctions. That statement did not provide
details. And EU foreign policy chief Federica Mogherini said technical talks
would ensue.
Qassemi said details would remain undisclosed to protect national
interests and to preempt potential attempts to undermine Iran’s work
with its partners. But he did say “the mechanism for cooperation” was
being finalized.
The Federal Reserve Note, U.S. dollar and the mechanism of global trade
have dominated, and dictated, global trade for almost seventy years. The
world is growing weary of this system as it gives the U.S. entirely too much
power over the global economy and, more importantly, over individual nation
states. These nation states are ready to take back their sovereignty and have
access to global markets without fear of sanctions or other financial weapons
that can potentially wreck their economy, literally, overnight.
The next 3 weeks will be interesting to see how this plays out as the
pieces come together. November 4th will be here within the blink-of-an-eye.
The Iranians, Russians and Europeans all stand to gain a little a ground if
this new payment mechanism is up and running. How will the U.S. and the U.K.
respond is the next question as they are the nations with the most to lose.
