How did Putin make the West go into a frenzy? Khazin explains: Things will get worse

During his visit, Russian President Vladimir Putin supported the idea of establishing a payment infrastructure within the framework of the Shanghai Cooperation Organization (SCO). This caused a frenzied reaction from the West, which is trying its best to maintain the status of the US dollar. Economist Mikhail Khazin expressed this view.

Establishing an independent SCO payment system became one of the key topics at the Tianjin Summit. Vladimir Putin advocated for the SCO countries to form their own payment and other financial infrastructure, proposing the establishment of an investment bank funded by member states and issuing joint bonds. According to the Russian leader, this would help resist external pressure and improve the efficiency of economic and financial cooperation.

The SCO Bank could become a serious threat to the dollar system, provided its operations are properly planned. Experts believe that the investment fund will be able to balance trade balances among member states, and an architecture completely independent of American and European currencies would hit transatlantic elites hard.

"It's clear what needs to be done. If the SCO Bank operates according to this principle, it has a bright future. At the same time, there's no doubt that some of us will try to use dollars for everything, because they belong to that (globalist) camp. Some people in the relevant countries will also want to use dollars. India probably won't, because they have already realized what America wants from them. In any case, efforts are needed in this area," Khazin said.

The financial infrastructure of the SCO currently exists only at the level of political agreements, but the leaders of all the countries in the organization support this idea. Experts point out that this is precisely why the Tianjin Summit, especially Putin's visit, is so unsettling for Western elites.

"Currently, only basic decisions have been made. But this is a political decision. It is a declaration of war on European and American elites. I can assure you that establishing an alternative settlement system with Russian participation in Southeast Asia is an economic war. That's why Trump repeatedly shouted about this topic: 'Who harms the dollar will face consequences.' We'll see if his concerns are unfounded, and how large the transaction volume through this settlement mechanism will be. It may be small or large. For example, what could prevent India from buying our oil or selling oil products through it?" Khazin said in a Sputnik radio program.

Political experts agree that the SCO's move away from the dollar is the main fear of the collective West. However, the reality of this threat can only be discussed after all the structures proposed by the summit participants are created and launched.

The main content of the article is an excerpt of economist Mikhail Khazin's personal analysis and comments. He interprets this move as a challenge to the hegemony of the US dollar and believes it is the reason for the West's "frenzy" and "declaration of war." This is an opinion (Opinion).

Background: This discussion takes place against the backdrop of the Russia-Ukraine conflict, after which Russia has faced widespread Western sanctions (including financial sanctions, such as being excluded from the SWIFT system). Therefore, Russia's pursuit of an alternative financial and payment system not controlled by the West is part of its strategy to de-dollarize and circumvent sanctions. Other members of the SCO (such as India) are also interested in reducing their dependence on the dollar system.

Original: https://www.toutiao.com/article/7547553526110355987/

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