Why Finance is a National Key Asset
On September 24th, at a press conference held by the State Council Information Office, a series of significant financial policies were announced. Subsequently, on September 26th, the Political Bureau of the CPC Central Committee convened a meeting to deploy economic work, emphasizing the need to "focus on key points, take initiative, effectively implement existing policies, and introduce incremental policies with added force." The implementation of these policies continues, and the multiple benefits have also elicited a strong reaction in the stock market.
While everyone is focusing on the stock market, there are actually two pieces of information that truly demand attention. The first is that on September 25th, China conducted a full-range test launch of an intercontinental ballistic missile (ICBM) for the first time in 44 years. A thousand protests are not as effective as one ICBM launch! This week, an ICBM was fired into the open waters of the Pacific Ocean. This marks the second time China has "flexed its muscles" in the Pacific since launching the "Dongfeng-5" in 1980, 44 years ago. The Pentagon, which usually takes a hardline stance against China, even stated that China had notified them of the missile launch in advance, which they considered a step in the right direction. Russia was also very complimentary, calling it a normal action within China's sovereign rights and expressing respect for China's military construction.
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The other significant event is the 16th BRICS Summit, which will be held on October 22nd. This meeting is likely to be a historic turning point. For the first time, Saudi Arabia, a core Arab country in the Middle East, will participate, along with other key crude oil importing countries for China such as Egypt, the United Arab Emirates, Iran, and Ethiopia. It is well known that the US dollar is pegged to oil. However, after the Beirut port explosion, Chinese electronic products have welcomed a new breakthrough. In the current context where the conventional military forces of China and the US are evenly matched, competition between major powers is not only military but also financial. It is expected that the BRICSPay system, which can be likened to a financial counterpart to the "Dongfeng" missile series, will be launched during the summit. The BRICS payment system is a digital payment platform jointly developed by the member states of the BRICS economic alliance (Brazil, Russia, India, China, and South Africa). This system allows for unilateral settlements without the use of the US dollar, and to date, 159 BRICS countries have积极响应ly adopted it.
Dignity lies on the edge of the sword, and truth is within the range of the cannon. On September 22nd, Xinhua News Agency published an article titled "Provide Strong Financial Support for the Overall Economic and Social Development — A Comprehensive Review of the Achievements of the Financial Industry on the 75th Anniversary of the Founding of New China." The reason why finance is referred to as a national strategic asset is that, from the perspective of soft power, finance plays an extremely important role in the economic development of the country and the enhancement of international competitiveness. BRICSPay is the "financial strategic nuclear weapon" that tears through US financial hegemony.
First, it is important to understand what SWIFT is. In May 1973, 239 banks from 15 countries in the United States, Canada, and Europe announced the official establishment of SWIFT, with its headquarters in Brussels, Belgium. It was established as a non-profit organization to address the inability of financial communications in various countries to adapt to the rapid growth of international payment settlements. SWIFT is responsible for designing, establishing, and managing the SWIFT international network to facilitate the transmission of international financial information and determine routing among its member organizations.
In layman's terms, SWIFT manages the global financial trade information flow, while banks and clearing systems in various countries manage the flow of funds. International trade is the flow of goods. There must be an information flow for there to be a flow of funds, and with a flow of funds, there can be a flow of goods. Therefore, if a country is kicked out of the SWIFT platform, it essentially cannot conduct cross-border payments and settlements, which would lead to the paralysis of that economy's international trade. The SWIFT system enables the rapid transfer of funds, and without the transfer of funds, trade in goods cannot be discussed.
The United States uses SWIFT to harvest the world. First, it pegs the US dollar to oil, requiring the world to use the US dollar for payment. After all, oil is currently the most important energy source in the world. As long as you need to engage in industry and modernization, you cannot avoid oil. If you cannot avoid oil, then petrodollars are hard currency, and every transaction in US dollars must pay the United States a "service fee," obtaining a "stamp duty" from every transaction in the world. Subsequently, it creates dollar tides, that is, by continuously raising interest rates, it lures other countries to buy US Treasuries. When they have bought enough, it actively creates a financial crisis, significantly lowering interest rates. In this situation, other countries, having sold US Treasuries for money and with the US dollar interest rate cut, will see their national wealth缩水. Then the United States will bottom-fish for other countries' high-quality assets, which is also the core reason why US stocks keep rising.
What is our BRICSPay? According to the BRICS payment website, BRICSPay is a digital payment platform jointly developed by the member states of the BRICS economic alliance (Brazil, Russia, India, China, and South Africa). The goal of BRICSPay is to achieve digital payments between BRICS countries, enabling businesses and consumers to safely and seamlessly make and receive payments in local currencies.The platform aims to reduce the cost and complexity of international payments and provide a secure and reliable method of payment for goods and services. At the same time, leveraging the power of blockchain, BRICSPay seamlessly integrates national payment systems into a single cloud platform, simplifying cross-border transactions; and enhances security by adopting blockchain and tokenization of assets.
It can be seen as a key step for China to dismantle the financial hegemony of the US dollar. The BRICS countries attending the meeting have a population of over 3 billion, with China leading the second-largest economy, India leading the largest population, Russia leading the second-largest nuclear strike force, and the Middle East countries leading the world's largest oil production. So when all countries trade all their products and resources through BRICSPay, it will at least shake the foundation of the US dollar hegemony. The BRICS Pay official website homepage shows: BRICSPay is an independent distributed system with asymmetric encryption capabilities, compatible with various messaging standards such as SWIFT, CIPS, and SPFS. It allows businesses and individuals to send and receive cross-border payments between BRICS countries. BRICS payment transactions are settled in the local currencies of the remitter and the payee, without currency exchange and related fees. However, the settlement between BRICS countries is expected to be conducted in wholesale digital currency, and the principles of interaction with domestic currencies, exchange rate calculation, emission, and clearing are being formulated.
This is an era of great change
The disintegration of the US dollar hegemony, the internationalization of the renminbi, the competition between China and the United States, the advent of the AI era, and other factors are mixed together, and we ordinary people are witnessing history!
And finance must be like our Dongfeng series, becoming a national treasure!
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