The conflict between Russia and Ukraine has entered its second month with the world bracing for supply chain disruption and price hikes. This comes on the back of the worst of the ongoing pandemic which the global economy is starting to recover.
As you are aware Russia and Ukraine between them are responsible for a significant supply of food and energy commodities. In addition, sanctions imposed by the West will add to the havoc on global trade for god knows how long. The blogmaster listened to the message you communicated to the region yesterday while speaking at the opening ceremony of the 2022 Caribbean Nations Security Conference at the Hilton Barbados Resort. There is no denying we have to brace for the inevitable fallout as the effect of the conflict starts to take hold.
Here is a what if scenario for your consideration.
What if Russia is successful in the implementation of a new global currency settlement mechanism that presents an alternative to the traditional system? This will have disastrous consequences for Barbados given our monetary system. Prime Minister, it maybe worthy of urgent consideration to lead a conversation at home and in the region the importance of hedging against such an eventuality. The blogmaster is aware it must be a difficult undertaking to lead a small island developing state given the severe challenges at play BUT to whom much is given, much is expected.
Sergey Glazyev is a respected Russian politician and a principal player in the financial arena of Russia for many years. In a recent interview he shared amazing insights you will not see highlighted in traditional media. Below is a snippet from the interview to support the importance of Barbados and the region looking urgently at repositioning our currency in the event an alternative settlement system should emerge.
Please read the following article translated from a Russian newsfeed which explains a disjointed flow in parts.
— How do you see the world after the disappearance of the dollar monopoly?
— We are currently working on a draft international agreement on the introduction of a new world settlement currency, pegged to the national currencies of the participating countries and to exchange-traded goods that determine real values. We won’t need American and European banks. A new payment system based on modern digital technologies with a blockchain is developing in the world, where banks are losing their importance. Classical capitalism based on private banks is a thing of the past. International law is being restored. All key international relations, including the issue of world currency circulation, are beginning to be formed on the basis of contracts. At the same time, the importance of national sovereignty is being restored, because sovereign countries are coming to an agreement. Global economic cooperation is based on joint investments aimed at improving the well-being of peoples. Trade liberalization ceases to be a priority, national priorities are respected, and each state builds a system for protecting the internal market and its economic space that it considers necessary. In other words, the era of liberal globalization is over. Before our eyes, a new world economic order is being formed — an integral one, in which some states and private banks lose their private monopoly on the issue of money, on the use of military force, and so on.A snippet from the article relevant to the possible emergence of a new world settlement system which could to destabilize traditional banking system – Blogmaster
Credit: BU Contributor Pachamama