by Joseph P. Farrell, Giza Death Star:
Hello fellow Gizars! After an entire day on Sunday trying to fix a problem on the website, thanks to the assistance of Ms. K.M. and Mr. B.H. we were able to locate the problem. But that meant that Sunday, the day I ordinarily try to review emails and select stories to blog about, was wasted, and Monday I had repairmen out to install a new air conditioner condenser. So I appreciate your patience the past two days over the lack of blogs.
That brings us to today’s story, which several people noticed. It’s one of those short but highly significant stories, and the perfect occasion to resume our high octane speculations. Indeed, Mr. B. noticed one of those implications immediately, and that particular implication forms the basis for today’s high octane speculation.
The story is simplicity itself: Russia has become a participant in China’s alternative to the west’s SWIFT system of international financial clearing:
But note what the article actually states, for China’s is not the only emergent alternative to SWIFT; there is also Russia’s SPFS system, which Russia inaugurated some years ago after its “invasion” and “annexation” of the Crimean peninsula and the corresponding denunciations in the West’s mockingbird media:
Meanwhile, the regulator hopes that Chinese counterparts pay more attention to Russia’s own SWIFT (Society for Worldwide Interbank Financial Telecommunication) alternative, SPFS (System for Transfer of Financial Messages), as it can further boost bilateral trade, the official added.
Russia is actively demonstrating the SPFS network, which was created in 2014 in response US threats of disconnecting Russia from SWIFT, to foreign partners, including China after its export version was finished late last year. The first system transaction involving a non-bank enterprise, was made by Russian oil major Rosneft in December 2017. Some 500 participants, with major Russian financial institutions and companies, have already joined.
As Mr. B. put it, this now builds triple redundancy into the system(s) of international financial clearing, the West’s SWIFT, China’s CIPS, and Russia’s SPFS. In a certain sense one might add Japan’s own system, in widespread use in the Pacific, for credit card clearing, which Japan could – and I predict ultimately will – build out into its own fullscale international clearing system. Recall that the Japanese offered to allow Russia to use this clearing system a few years ago when Western, i.e., American, sanctions threatened to remove Russia from access to SWIFT. The Japanese move was not really noticed nor commented upon extensively for its geopolitical message, which was profound: Japan simply was no longer willing to kow tow to Swampington, D.C.’s edicts. Japan had deep reasons to make the offer, namely, it was creating a context of good will for upcoming negotiations with Russia.
Which brings us back to the observation of Mr. B., for if one factors the Japanese system into the mix, this builds quadruple redundancy into the international clearing system (or perhaps, triple-and-a-half redundancy, pending any Japanese build-out of its system). I suspect that the conventional geopolitical and financial explanations for these moves are familiar to most readers here: Russia and China (and for that matter, ultimately India and Japan) need such systems, independent of SWIFT and threats of American sanctions.
This brings me to my high octane speculation of the day, and to consider these moves from an entirely different perspective by removing the standard geopolitical context as the explanation for them. Once one does so, the question then becomes “why would one build quadruple redundancy” into an overall system of international financial clearing? I strongly suspect that the answer is a military one, for redundant and ultimately hardened systems are a hallmark of military preparations to secure essential communications systems – and financial clearing is an aspect of communications – from any potential threat. I pointed out in my book Covert Wars and Breakaway Civilizations, and again at the 2014 Secret Space Program conference in San Mateo, California, that one of the concerns of the Brookings Report (1958) for space development was the use of space-based assets for communications and financial clearing, and that in that context, the UFO, and some apparently hostile activity connected with some UFO reports against airborne and the few space-based assets of the time, raised the issue of financial clearing and redundancy to the level of a national security issue.