Jim Willie has announced that the Chinese government has reported successful testing of the Chinese Interbank Payment System, a rising threat to the dollar denominated SWIFT system used to handle domestic and international interbank payments.
The significance of this development is that SWIFT will no longer hold a monopoly on international banking transactions, and will result in diminished stature for the dollar.
Willie opines that the dollar will vanish, and while that statement is a bit extreme, it is certainly the case that the dollar's role in international trade will diminish, and in time be replaced by gold based transactions.
The appearance of CIPS represents another financial milestone in Chinese economic and financial puissance which will deprive the United States of another political tool it uses to impose its international tyranny.
It is hard to say how much time will be required before CIPS is fully functional and a prominent competitor to SWIFT, but once online, it will draw much traffic from nations who are chafing under the bit of American hegemony.
The implication to Americans is higher prices for imported goods since de-dollarization will devalue the US currency which has held undisputed rank in international commerce and finance since Bretton Woods.
Copyright 2016 Tony Bonn. All rights reserved.