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Former chancellor of Exchequer (British revenue collector) Lord Lamont of Lerwick is warning the world that if BRICS creates its own separate banking system separate from the U.S. dollar, all Western sanctions against Russia and its allies will be rendered completely useless.

With growing talk about the BRICS countries – Russia, China, India, Brazil and South Africa are the five original members – developing a U.S. dollar alternative, Lamont is warning that a new rival payment system represents a “major threat to the Western-led financial system,” which is in the throes of serious decline.

Lamont’s words came after Russian President Vladimir Putin last month announced plans to completely de-dollarize the global economy.

“While the idea of a BRICS payments system, which was announced by Mr. Putin at the Kazan BRICS conference, may seem rather fanciful and a long way off, nevertheless it needs to be taken seriously,” Lamont said to the House of Lords this week.

“If it ever happened, it would be a major threat to the Western-led financial system, but above all it would make it impossible for the West to impose sanctions on countries like Russia, China or Iran or other malign countries.”

(Related: Have you checked out our report about Western sanctions on Russia and why they are not working but are only making BRICS stronger?)

Western overlords clawing to maintain control

Lord Livermore, the financial secretary to the British treasury, spoke as well about the United Kingdom’s plans to maintain “an integrated global financial system” to fuel “global prosperity and financial stability.”

“Fragmentation is damaging to the global economy, whereas deep liquid markets boost economic efficiency,” Livermore said. “That is why we will continue to work with our international partners to strengthen the rules-based international system and our interconnected financial and economic systems.”

Livermore avoided speaking directly about the proposals made by BRICS and how they might impact the global economy, instead focusing on the status quo and how wonderful he thinks it is.

“What I will say is the Government believes very much that the current international model of the financial system works effectively and that we will continue to work with our international partners to maintain an interconnected financial and economic system,” Livermore said.

“On the question of sanctions effectiveness, of course we continue to believe that economic sanctions are an important and effective tool and will continue to utilise those sanctions where necessary.”

Should BRICS try to undermine Western hegemony, the UK will pull in its allies to “maintain the interconnected system” and “reduce opportunities for the circumvention or evasion of international sanctions.”

Concerning the matter of a new BRICS payment system relying on technology from the Bank of International Settlements (BIS), there are rumors that BIS is developing a new cross-border payment platform called Project mBridge, though BIS denies this.

“mBridge is not the ‘BRICS bridge,'” claims BIS general manager Agustin Carstens. “I have to say categorically: mBridge was not created to cater to the needs of the BRICS. It was put together to satisfy broad central bank necessities.”

“We at the BIS – I think this an opportunity to set the record straight – we always try to be a good global citizen. And the BIS does not operate with any countries, nor can its products be used by any countries that are subject to sanctions. This will continue to be the case.”

“And all central bank members are in this mindset that we need to be observant of sanctions and whatever products we put together should not be a conduit to violate sanctions.”

The latest news about the global shift in power from West to East can be found at Collapse.news.

Sources for this article include:

PeeblesshireNews.com

NaturalNews.com