Sanctions Backfire. Goodbye Visa: Russia Will Create Its Own Payment System
This one is truly hilarious (I laughed for 30 minutes), and more to my prediction that USA plays marbles – very badly, while Russia plays chess – very well. I just wonder where do they get the idiots who give them this kind of advice? Americans really, really, really have ZERO idea about anything to do with Russia.
Here’s the spread: US really wants to hurt Russia economically, but struggles to find a way to do so, as economic relations between the two countries are practically non-existent, thanks to the US own restrictions on trade with Russia.
The US finally found a way! The new US sanctions are supposed to block the usage of Visa card in Russia and by the Russian banks. Russian-issued Visa cards will not be accepted for payment. This should squeeze Russia and its consumers, right?
Wrong! For years, Russia has been thinking about developing its sovereign universal payment system. Talks about that have been going on for at least five years; however, in line with Putin/Medvedev’s usual stance, and due to various other priorites, they preferred not to rock the boat and therefore, realization of this plan has been postponed for a more convenient time.
Russian consumer market is quite robust, and compared to the crisis-ridden US and EU, Russian economy is doing well, unemployment is one of the lowest in the world, and Russian tourism to the EU adds a significant stimulus to the EU economy. When Russians travel or shop at Western shops in Russia, they use Visa or MC for their transactions. No MC/Visa credit card transactions mean fewer purchases of Western goods and fewer trips/less shopping in the West, resulting in less profits for the EU/US.
As a result, Visa and MC will get fewer fees, which will cut into their bottom line.
Meanwhile in Russia: Putin has announced that Russia will develop its own sovereign payment system, much like the Chinese and Japanese systems. Initially designed as national systems, both are now widely accepted internationally.
Prediction: Putin never says anything just for the sake of saying it. When he says, “Russia will develop its own payment system,” this effectively means that Russia already started developing this system some time ago, but was keeping it on a back-burner. Now, it’s time to make it official. Only the Russian President has all the information necessary to make the fully informed decision on when exactly to make such new system official. It depends on the situation in the world and the country-wide coordination. However, I won’t be surprised if this happens very quickly – much faster that anyone expects. This is because the system has already been developed partially. It needs tweaking and testing – and then it’s ready to go.
Both Visa and MC spent enormous amounts of money and have done tons of lobbying in Russia in the past to set up their system and to prevent the Russian alternative system from developing and taking a bite out of their profits. The Russian population at large has been wanting to boot Visa out of the country for a while. The population is overwhelmingly in favor of Russia’s sovereign payment system.
As a result of this move, the Russian money will stay in Russia. In other words, it will be sucked out/ stop flowing into the Western system – to this day, the drain on Russian resources is a big problem due to the Western-oriented set-up of credit and loans in Russia, which is a vestige of the harmful system that was established in Russia by the West and oligarchs in the 90s. While the acceptance of the new Russian payment system within Russia, as well as Belarus and Kazakhstan, is assured immediately, its international acceptance is something that will happen overtime. The West and the rest of the world will have to start accepting it gradually, once Russian tourists and oligarchs start using it.
Now, due to the incredible stupidity of Western sanctions, Visa and MC will lose not only their present and future profits, but also all of their past investments in Russia.
This is an enormous victory for Russia – and notice without Russia doing anything. Not only it takes the Western financial interestes out of the country – of their own volition (normally it’s impossible to boot them out), but it also galvanizes the Russian society. Observers have noted that no one can remember this kind of unity in the country. As someone commented, if Putin continues like this, he’s sure to get 100% of votes in the next election.
And this is just the start! After this is done, the following steps for Russia will be: 1. the long-overdue repatriation from the West of business and corporate loans, which will be done through the adjustment of interest rates in the country; 2. nationalization of the ruble and kicking out of the country the Fed-based monetary system; 3. changing the Russian Constitution to reflect the real interests of the country – the present Russian constitution is the 1990s absolete Frankenstein creation by the US “advisors,” which was approved by drunk Yeltsin.
Presently, there is a very different leadership in Russia. The tide has turned around. As I predicted in my previous articles, anything US or EU do will only benefit Russia in the long run and will hurt the US/EU in the long run. Notice, Russia is doing absolutely nothing; no aggressive moves, no provocative, accusatory, or threatening statements. All the threatening and aggressive behavior originates from the West and Kiev. Yet the result is consitently opposite of what they are trying to achieve.
Prediction: Russia is effectively sitting back and watching what the West does, and then reacts appropriately and very mildly. This trend will continue as Putin and the Russian leadership will continue turning around the seemingly negative situations into positive ones, and there is really nothing US/EU can do about that.
Russian citizens are also starting to vote with their wallets. More Russian consumers opt to buy Russian products instead of Western products.
Video: Russian President Vladimir Putin, in his non-confrontational and diplomatic style, announces that Russia will develop its sovereign payment system (Rus). Путин: Россия создаст свою национальную платежную систему.
Someone posted this joke on YT:
На встрече большой восьмерки, Ангела Меркель чтобы позлить Путина, сказала:
— А мне сегодня приснилось, что меня назначили президентом Земли!
— А мне приснилось, что меня назначили президентом Вселенной!
Путин медленно отпивает кофе и спокойно отвечает:
— А мне приснилось, что я никого не утвердил.
At a G8 meeting, Merkel says to tease Putin:
– I had a dream that I was nominated as the president of the Earth!
Obama pipes in:
– I had a dream that I was nominated as the president of the Universe!
Putin takes a sip of his coffee and responds:
– I had a dream that I didn’t confirm either of these nominations.
P.S. The above lighter note notwithstanding, I want to stress again that we should not get complacent. We certainly are very far from any semblance of a peaceful and normal situation in the world. Due to the aggressive and corrupt policies of the US, UK, EU and their handlers and backers, we are still teetering on the brink of a nuclear war. We are not in the clear by any measure! This is why I will continue writing and speaking to educate people and to bring the truth into the open.
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Posted on March 27, 2014, in Economy & Investment, Empire Collapse, Predictions 2014 & Long-Term, Russia and tagged credit crisis, Crimea, crisis in Ukraine, joke about Putin Obama and Merkel, Obama, predictions by Lada Ray, Putin, Russia, Russia to develop its own credit payment system, sanctions against Russia backfire, Ukraine, US and EU sanctions against Russia, Visa /MC ban in Russia. Bookmark the permalink. 23 Comments.