Glazyev Considers China-Russia ‘Strategic Partnership’ Can Become ‘Nucleus of New World Economic Order’

April 17, 2022 (EIRNS)—It is the sanctions and other financial warfare being conducted by the U.S., EU, and the U.K. themselves, that have “sharply accelerated the ongoing dismantling of the dollar-based economic world order,” Sergey Glazyev asserted in an April 14 interview with journalist Pepe Escobar, published in The Cradle. Glazyev is the renowned Russian economist who is now Minister in charge of Integration and Macroeconomics of the Eurasian Economic Commission, of the Eurasian Economic Union (EAEU).

The lengthy interview covered much of the same ground as earlier interviews and articles by Glazyev on the subject of creating a new global currency and financial system, centered on development rather than speculation; but in it he also elaborated important additional features.

Glazyev stated that “this transition [to a new system] is now reaching its conclusion with the imminent disintegration of the dollar-based global economic system.” A common currency as an alternative to the dollar is required, but “this new currency would be used exclusively for cross-border payments.... Participating countries would instead use their national currencies for credit creation, in order to finance national investments and industry, as well as for sovereign wealth reserves. Capital account cross-border flows would remain governed by national currency regulations.”

Glazyev made it clear that financial obligations under the bankrupt, dollar-based system cannot possibly be met.

“Transition to the new world economic order will likely be accompanied by systematic refusal to honor obligations in dollars, euro, pound, and yen.... In any case, participation in the new economic system will not be constrained by the obligations in the old one. Countries of the Global South can be full participants of the new system regardless of their accumulated debts in dollars, euro, pound, and yen. Even if they were to default on their obligations in those currencies, this would have no bearing on their credit rating in the new financial system. Nationalization of extraction industry, likewise, would not cause a disruption.”

Asked about the timing of the creation of a new system, Glazyev said:

“Recent U.S. and European sanctions imposed on the banking channels have caused a rapid increase in these efforts. The group of countries working on the new financial system only needs to announce the completion of the framework and readiness of the new trade currency and the process of formation of the new world financial order will accelerate further from there. The best way to bring it about would be to announce it at the SCO or BRICS regular meetings. We are working on that.”

China and Russia have a critical role to play, Glazyev stated.

“Sovereign interests of Russia and China logically led to their growing strategic partnership and cooperation, in order to address common threats emanating from Washington.... I hope that the strategic partnership of Russia and the P.R.C., which is enhanced by the coupling of the One Belt One Road with the Eurasian Economic Union, will become the foundation of President Vladimir Putin’s project of the Greater Eurasian Partnership and the nucleus of the new world economic order.”