The decision has been made to ban Russia from the SWIFT banking system.
Germany, the United States, France, Canada, Italy, Great Britain and the European Commission agreed to cut Russia out of the SWIFT global payment system and include limiting the ability of Russia's central bank to support the rouble https://t.co/m2tkvpMT9v pic.twitter.com/iwmE14XxmB
— Reuters (@Reuters) February 27, 2022
It’s essentially a declaration of war as has been pointed out by many.
“It’s the closest thing to a declaration of war from a financial perspective," said Ross Delston, a U.S. lawyer and former banking regulator, on the SWIFT announcement.
"It’s going to result in Russia being viewed as radioactive by U.S. and EU banks.”— Phil Stewart (@phildstewart) February 27, 2022
This is yet another dumb decision on par with the decision to wage cyber warfare against Russia.
Cutting off Russia from this payment system only means that the price of gas supplies for Europe is going to go through the roof. It effectively eliminates Russia’s ability to do any sort of meaningful business or trade with the West.
This guy had a solid observation.
Baerbock on German television: “We buy 50% of our #coal from Russia. If we exclude Russia from #SWIFT the lights in #Germany will go out.”
Here is an idea: keep our #nuclear power plants running longer instead of burning coal. Less CO2 and less money to #Russia.— Christian Vollmann (@calroo1) February 25, 2022
Germany has been decommissioning nuclear power plants and have relied heavily on energy supplies from Russia. What are they going to do now?
Clearly, this is going to cause more economic damage to the West than Russia.
I have no idea how they plan on managing this situation. They’re just doing things without thinking through any of the consequences of them.
