In an interview given by Jim Sinclair on KingWorldNews, he makes a good point, that a recent move by the US against Iran using the SWIFT system could seriously backfire on the US dollar. Although the SWIFT system is based in Brussels, it is mainly a tool owned by the US. Jim makes the point that it simply is like a telephone exchange for financial transactions with strong security. As a result it wouldn’t be too difficult for countries to set up their own system and to settle financial transactions in non US Dollar currencies. In fact Iran is now looking to trade in other currencies as well as using gold. It already has set up an oil bourse which trades in anything other than US dollars. Jim says your bond market and currency are a nuclear target and obviously you don’t want anything to attack this so why stop other countries access to the SWIFT system when they can setup their own and trade using gold etc an ultimately harm you.

Long term, Jim Sinclair sees this misuse of SWIFT (which is a financial weapon of sorts) as having opened the door to the US weakness. It’s a weapon that will massively backfire and ultimately hurt the dollar. He said “it will go down in history as possibly the most dumbest thing we could have done”.

To listen to full interview click here.