The New Cold War Will Be Fought With Finance

Nukes are passé, war is now a financial game and that of nanotechnology, and if that is not big enough current enhanced conventional weaponry has nuke capability.



Are Putin and Jinping trying to weaken the supremacy of the dollar?

Worldcrunch
By Holger Zschäpitz
11 June 2014

BERLIN — Russia and China are working on a powerful weapon to stand up to the West. This isn't a new rocket system or a cyber-espionage satellite — the two nations have launched a frontal attack on Western financial might to achieve equal power on the markets.

Until now, the two countries had been powerless against Western countries on this front. From the leading currency (dollar) and global monetary transactions of Visa and Mastercard to the all-powerful rating agencies, the financial markets tick entirely to Western time. Countering those markets is part and parcel of becoming political and military superpowers.

So Russia and China plan to change the status quo by forming their own rating agency. The two countries have signed an agreement to that effect. In a first step, the new institution will evaluate joint investment projects, Russian Finance Minister Anton Siluanov announced during a recent visit to China. The agency will be built based on existing models.

"Our idea is for ratings to be completely apolitical," a statement released by the Ministry of Finance read.

Russia and China have been jolted by the three big established American credit rating agencies, Standard & Poor's (S&P), Moody's and Fitch, whose ratings currently dominate financial markets. The agencies rate credit worthiness of both states and companies. Their grades play a decisive role in determining the conditions under which money can be borrowed on the markets.

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