The era of U.S. dollar dominance is coming to an end as the East takes control over the West.
The next domino to fall is trade between India and Russia, which is now being conducted almost exclusively with local currencies (rupees and rubles) rather than Federal Reserve Notes (FRNs).
Because of Western sanctions that prohibit Russia from using the international SWIFT system for cross-border payments and settlements, Russia came up with the System for Transfer of Financial Messages (SPFS), which works as a viable alternative.
Wanting in on the action, India is considering using the SPFS as well, which would completely exclude the United States and other Western powers from all trade that takes place between India and Russia.
The Reserve Bank of India (RBI) is reportedly in talks with Russia and its central bank to discuss how the arrangement might work. The goal is to not just replace SWIFT but also to make trade between India and Russia faster and much more efficient, giving the two countries another edge over the West.
(Related: Did you hear? Turkey, a key NATO ally, wants to join BRICS in a marked shift away from the Western alliance.)
The West talks a big game, but can it still bring the action?
It turns out that both Russia and India have been sidestepping Western sanctions for years as they covertly trade underneath the radar.
Western media claims that Russia has been purchasing "sensitive goods" from India for a while now to help support its war efforts in Ukraine. It is the same thing the U.S. and other NATO members are doing to fund and arm Ukraine, but Russia is not supposed to do it because the West has said no, you cannot.
Confidential plans were drafted in October 2022 that allow Russia to purchase about $1 billion in critical electronics via channels that Western governments do not monitor.
The West, as you probably know, loves to spy on everyone else in order to control everyone else. This includes the Western desire to stop Russia from trading with whomever it wishes by cutting Russia off from what up until now was the global standard for international trade.
Rather than kowtow to Western demands, Russia, for better or for worse, is creating new global standards that most developing countries seem keen on joining. The only countries that seemingly oppose what Russia is doing either already are, or are becoming, post-developed economic and social wastelands controlled by delusion and wishful thinking.
In this case, Western sanctions no longer hold any power now that Russia and its allies can simply build their own systems to bypass those sanctions. The only thing the West can do is throw a tantrum and wage another war, but even that is now laughable since the powers that be jumped the shark by destroying their host countries so badly that there is nobody left who is able and willing to fight any more wars.
This does not mean that the dying dog has lost its bark as well as its bite. U.S. Treasury Deputy Secretary Wally Adeyemo just issued another threat that any foreign institution that does business with Russia's military-industrial base "risks being sanctioned itself," this aimed at scaring the world into obedience. Does this kind of stuff still work in the advanced digital age, we wonder?
Russia is reportedly setting up a "closed payment system between Russian and Indian companies" that will operate completely outside the control and monitoring of Western countries, "including by using digital financial assets." This suggests that the plan is to incorporate cryptocurrencies rather than traditional currencies into the system, allowing for even more privacy from probing Western eyes.
Dedollarization is inevitable. Learn more at DollarDemise.com.
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