Iran To Be Dropped From Swift System in Belgium

[Ares]

February 17, 2012, at 5:01 pm
by Jim Sinclair in the category General Editorial | Print This Post Print This Post | Email This Post Email This Post

My Dear Friends,

Iran is to be dropped out of the Swift system in Belgium. That means Iran could neither send or receive bank money wires.

That would slam Iran’s economy.

This is economic war at the highest level of conflict. This could start a greater move of central banks with fears of the West to increase and retrieve their gold positions. It certainly puts cash reserves held by central banks (which are computer entries anyway) into serious question as to security.

This is as serious as it gets in nuclear and economic terms. The only weapon that can be effective against Iran’s nuclear industry is Western nuclear deep penetration bunker busters.

Hold tight to your insurance investment positions.

Regards,
Jim


http://www.jsmineset.com/2012/02/17/iran-to-be-dropped-from-swift-system-in-belgium/

[Ares]

THIS IS HUGE!!!!

Confirmation from AP

Global clearinghouse ready to evict Iranian banks

By ANNE GEARAN and SLOBODAN LEKIC
Associated Press

BRUSSELS (AP) - A financial clearinghouse used by virtually every country and major corporation in the world agreed Friday to shut out Iran from its respected network, an unprecedented escalation of global economic pressure to halt Iran's suspected drive for nuclear weapons.

Quicker than a succession of slow-acting economic sanctions, expelling Iran from the banking hub could put a sudden choke hold on its oil-dependent economy. The move was made under strong pressure from the United States and the European Union, which are looking for ways to derail Iran's nuclear program quickly without a military strike.

"If SWIFT follows through on its public commitment to ban Iranian banks, it could sever the Iranian regime's financial lifeline," said Mark Dubowitz, an Iran sanctions expert advising the Obama administration. "It would also be a significant political embarrassment for the regime: Iran would be the first country in SWIFT's history to be expelled from what is the financial equivalent of the United Nations."

The European Union is expected to act within weeks to effectively cut off major Iranian banks from participation in The Society for Worldwide Interbank Financial Telecommunication, known as SWIFT. It's a move of last resort, with risks ranging from huge inflation and financial hardship for ordinary Iranians to disruption and price increases on the world oil market. Iran could also retaliate in unpredictable ways.

The EU has already imposed the first embargo on Iranian oil, to take effect this summer. The strongest-yet U.S. sanctions on Iran's lifeblood oil sector are due later this year.

SWIFT said in a statement on its web site that it will comply with the expected instruction to cut off Iranian banks. SWIFT has previously brushed off international efforts to use its network to target countries or companies, telling enforcers that it does not judge the merits of the transactions passing through the portal.

SWIFT's statement said the decision essentially to kick out a member country "reflects the extraordinary and highly exceptional circumstances of significant multilateral international support for the intensification of sanctions against Iran."

The rapid expansion of what had been a gradual, yearslong effort to deter a weapons program reflects rising alarm that Iran may be on the brink of developing a nuclear weapon. Israel, which takes seriously Iran's threat to eradicate the Jewish state, is openly considering a military strike on Iranian nuclear processing facilities.

Some U.S. lawmakers are pushing for sanctions on SWIFT itself if it were to keep up its services to Iran. SWIFT lawyers were coming to Washington next week for meetings with Congress, and Friday's announcement was widely seen as a way to head off that action.

The Obama administration wants to see Iran barred from using the financial passthrough, which is used by virtually every nation in the world and overseen by major central banks, but it has no direct leverage over SWIFT. Washington was keen to see Europe act first, or to have SWIFT act on its own.

A U.S. Treasury Department official, speaking on condition of anonymity because SWIFT's action is still pending, said that the U.S. welcomes the move. The official said the U.S. will continue to urge the EU to act quickly.

The Brussels-based organization is a little-known but essential way station for international transactions, electronically converting currencies and processing payments such as those for Iran's crude oil exports. SWIFT handles cross-border payments for more than 10,000 financial institutions and corporations in 210 countries.

SWIFT's announcement came as the United States and European Union on Friday expressed cautious optimism that Iran is serious about returning to talks with world powers over its nuclear program.

Secretary of State Hillary Rodham Clinton and European Union foreign policy chief Catherine Ashton said they were continuing to study Iran's response this week to a proposal to restart the stalled negotiations. However, they said they welcomed Iran's professed willingness to hold talks as soon as possible without preconditions.

"We must be assured that if we make a decision to go forward, we see a sustained effort by Iran to come to the table to work until we have reached an outcome that has Iran coming back into compliance with their international obligations," Clinton said following a meeting with Ashton at the State Department.

She was referring to the risk that Iran could be stringing along world powers with a promise to return to talks, while continuing to assemble the means for a weapon.

Ashton is the point of contact for the five permanent members of the U.N. Security Council and Germany, who are demanding that Iran freeze all uranium enrichment.

SWIFT said Friday that it stands ready to stop services to sanctioned Iranian financial institutions once it has clarity on what new rules will require.

There was no immediate response from Iran. Tehran insists its nuclear program is for peaceful purposes only. U.S. officials say they believe Iran hasn't yet decided whether to build a nuclear weapon.

There are potential avenues for Iran to go around the expected cutoff, but they would be difficult, costly and time-consuming. More than 40 Iranian banks and institutions use SWIFT to process financial transactions, but not all are under European Union sanctions. The new move involving SWIFT is expected to apply first to banks already under sanction.

SWIFT, as a European entity, must comply with EU regulations.

It unclear whether the SWIFT ban would apply only to new transactions with overseas buyers or whether it would prevent payment on existing oil contracts that go through sanctioned Iranian banks. Also uncertain was whether the powerful Central Bank of Iran would be covered at the outset.

http://www.kusi.com/story/16959571/global-bank-hub-ready-to-implement-iran-sanctions

[Ares]

Bump

[madfranks]

I had a conversation with my parents tonight about all of this. They continue to contend that Iran is an evil, dangerous threat to world peace and they must be stopped. I don't know what else to tell them, it seems so clear to me that the US is the one threatening them at all angles, and if they defend themselves they will be seen as the aggressors. It just makes me sick, I don't know what else to say...

[gunDriller]

I had a conversation with my parents tonight about all of this. They continue to contend that Iran is an evil, dangerous threat to world peace and they must be stopped. I don't know what else to tell them, it seems so clear to me that the US is the one threatening them at all angles, and if they defend themselves they will be seen as the aggressors. It just makes me sick, I don't know what else to say...

how about sending them that map of US military bases surrounding Iran ? it was somewhere here on the forum.

it makes the point clearly, Iran's desire to defend themselves is quite reasonable.

[zap]

Don't feel like the lone ranger madfranks, my mom believes the same thing, (oh poor Israel) is surrounded by the evil ones.

[Uncle Salty]

All this will do is force Iran to barter with other countries or use other currencies than the world's reserve currency, the US Dollar. That will show the world that you don't need US Dollars to transact. We are going to be hoisted by our own petard. Ha ha ha.

Heck, Iran could start an alternative SWIFT system with China, Russia, India, and others to circumvent the Western dominated financial system.

Plus, Israel will get its ass kicked if they fuck with Iran.

[Twisted Titan]

QFT Salty

Capital Flows to where it is most appreciated..........PERIOD end of story.

[madfranks]

Don't feel like the lone ranger madfranks, my mom believes the same thing, (oh poor Israel) is surrounded by the evil ones.

Oh, I know zap. I felt like Ron Paul, after he said we should pursue the golden rule when it comes to foreign relations - don't do to others that we wouldn't want them to do to us, and he was booed! Honestly, I don't give Iran a whole lot of thought or consideration in my daily life, but it bugs me how much we're prodding them on all levels (these brutal sanctions we're imposing likely will cause families to starve) and if they respond they're the bad guys. Drives me nuts!