ZURICH―-Swiss reinsurance giant Swiss Re AG will begin using HSBC Holdings PLC's Chinese bank for custodian services, a move that further ties Switzerland to China's currency.
HSBC said it's the first custodian bank in China to service a Switzerland-based entity qualified to invest in China's renminbi-denominated markets.
An official at Zurich-based Swiss Re said the development is "an important step in Swiss Re's business aspirations."
Switzerland is vying with other countries, including Germany and the U.K., to become a hub for China's currency, as China seeks to expand the use of the renminbi for global trade and investment. Earlier this year, China extended a program for qualified foreign institutional investors to Switzerland, which included an allocation of 50 billion renminbi ($8 billion).
Last April, Swiss officials disclosed that state-owned China Construction Bank, or CCB, had applied for a banking license in Switzerland. That followed an agreement between the central banks of Switzerland and China last year, which allowed them to buy and sell their respective currencies.
The United States has pursued empire since early in its history, but it was the Soviet collapse in 1991 that enabled Washington to see the entire world as its oyster.
The collapse of the Soviet Union resulted in the rise of the neoconservatives to power and influence in the US government. The neoconservatives have interpreted the Soviet collapse as History’s choice of "American democratic capitalism" as the New World Order.
Chosen by History as the exceptional and indispensable country, Washington claims the right and the responsibility to impose its hegemony on the world. Neoconservatives regard their agenda to be too important to be constrained by domestic and international law or by the interests of other countries. Indeed, as the Unipower, Washington is required by the neoconservative doctrine to prevent the rise of other countries that could constrain American power.
Paul Wolfowitz, a leading neoconservative, penned the Wolfowitz Doctrine shortly after the Soviet collapse. This doctrine is the basis of US foreign and military policy.
The doctrine states:
"Our first objective is to prevent the re-emergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on the order of that posed formerly by the Soviet Union. This is a dominant consideration underlying the new regional defense strategy and requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power."
Notice that Washington's "first objective" is not peace, not prosperity, not human rights, not democracy, not justice. Washington's "first objective" is world hegemony. Only the very confident so blatantly reveal their agenda.
As a former member of the Cold War Committee on the Present Danger, I can explain what Wolfowitz's words mean. The "threat posed formerly by the Soviet Union" was the ability of the Soviet Union to block unilateral US action in some parts of the world. The Soviet Union was a constraint on US unilateral action, not everywhere but in some places. Any constraint on Washington is regarded as a threat.
A "hostile power" is a country with an independent foreign policy, such as the BRICS (Brazil, Russia, India, China, and South Africa) have proclaimed. Iran, Bolivia, Ecuador, Venezuela, Argentina, Cuba, and North Korea also proclaim an independent foreign policy.
This is too much independence for Washington to stomach. As Russian President Vladimir Putin recently stated, "Washington doesn't want partners. Washington wants vassals."
The Wolfowitz doctrine requires Washington to dispense with or overthrow governments that do not acquiesce to Washington's will. It is the “first objective."