Russia Responds

I see that Russia is developing an alternative to the SWIFT system of international bank wire transfers. Other nations are interested in this, particularly ones that have companies and banks blacklisted by the USA on the SWIFT system.

It seems to me that the USA has become this giant bully throwing its weight around the world, and this is one of the results. Before the Second World War, the USA had a smaller army than Romania’s, but then grew it to the size needed to defeat Hitler. After that threat, there was concern about the USSR. Reagan defeated that coalition by defense spending that the USSR could not match, though it did try so hard that it bankrupted itself. After that, one might think that the USA could have scaled back its forces to pre WWII levels, but international business needs muscle.

As the only super-power remaining in the world, the USA does what it pleases, but I will not be surprised to see a lot of push-back by normally friendly allies: Germany, Mexico, Australia, Canada……not to exclude those with even more reason: China, Russia and others.

There could be a lot of turbulence in various economies as these forces increasingly clash.