Thursday, October 25, 2018

 this author is always in possession of information you'll have trouble finding elsewhere, and in this article he shows you why and how the dollar will be losing its premiere status, and perhaps soon;

According to reports from the last bilateral German-Iran talks in Teheran on October 17, the mechanisms of a so-called Special Purpose Vehicle that would allow Iran to continue to earn from its oil exports, will begin implementation in the next days. At end of September EU Foreign Policy chief Federica Mogherini confirmed plans to create such an independent trade channel, noting, “no sovereign country or organization can accept that somebody else decides with whom you are allowed to do trade with.”
The SPV plan is reportedly modelled on the Soviet barter system used during the cold war to avert US trade sanctions, where Iran oil would be in some manner exchanged for goods without money. The SPV agreement would reportedly involve the European Union, Iran, China and Russia.
According to various reports out of the EU the new SPV plan involves a sophisticated barter system that can avoid US Treasury sanctions. As an example, Iran could ship crude oil to a French firm, accrue credit via the SPV, much like a bank. That could then be used to pay an Italian manufacturer for goods shipped the other way, without any funds traversing through Iranian hands or the normal banking system.A multinational European state-backed financial intermediary would be set up to handle deals with companies interested in Iran transactions and with Iranian counter-parties. Any transactions would not be transparent to the US, and would involve euros and sterling rather than dollars.
It’s an extraordinary response to what Washington has called a policy of all-out financial war against Iran, that includes threats to sanction European central banks and the Brussels-based SWIFT interbank payments network if they maintain ties to Iran after November 4. In the post-1945 relations between Western Europe and Washington such aggressive measures have not been seen before.It’s forcing some major rethinking from leading EU policy circles.
New Banking Architecture
The background to the mysterious initiative was presented in June in a report titled,Europe, Iran and Economic Sovereignty: New Banking Architecture in Response to US Sanctions. The report was authored by Iranian economist Esfandyar Batmanghelidj and Axel Hellman, a Policy Fellow at the European Leadership Network (ELN), a London-based policy think tank.

No comments:

Post a Comment