Could Russia, China and India form a second parallel economic system?

What will the Russians do next now that they have thrown down the economic gauntlet and the dispute over the annexation of Crimea has evolved into a showdown between the Russian will and the world economic system?

“(T.E. Lawrence just extinguished a match between his thumb and forefinger. William Potter surreptitiously attempts the same)
William Potter: Ooh! It damn well 'urts!
T.E. Lawrence: Certainly it hurts.
Officer: What's the trick then?
T.E. Lawrence: The trick, William Potter, is not minding that it hurts.”

From the movie Lawrence of Arabia

Russia it seems is on a similar course, a painful one, and the trick is not minding that it hurts. From a nation that once broke the German war machine’s back on the anvil of Stalingrad I expect much. My hopes and prayers are with them, although I fear the worst. We still live in a uni-polar world as far as the economy is concerned. Some would argue that we didn’t get to where we are now in terms of the free flow of digital money via plastic to back track now! Or maybe it is time to reorganize the world economic system.

The dominance of American payment companies, whether Visa or MasterCard, in this regard is not an accident, neither is the US dominance over the World Bank and IMF. We operate in an economy run by the US and the West for the benefit of US and Western interests. All those outside this system wishing to be allowed admittance must pay due homage and bow to the political will of the Western alliance. This is what came out of the total defeat of Germany and Japan in World War Two. To the victors went the spoils, but they also got to write the rules. It’s unfair, true, but no one said life was going to be fair.

No one country can step too far out of line in this system without risking economic sanctions and ostracism. The meaning of ‘out of line’ is strictly defined by the Western powers. Even Russia, the great bear, once red now white, red and blue, is not immune it seems as the G8 are now the G7. A permanent Security Council member, the owner of one of the world’s largest nuclear arsenals and the supplier of gas to Europe is treated thus! Is it possible? Well, it turns out it is very possible because the next war may very well be an economic one, one with just as many casualties and tragedies and fallen heroes as a real shooting war would have.

Survival in such a war could be down to one simple thing, the ability to withstand the pain, the sheer economic calamity inflicted on a population under Western sanctions. One option could be a second parallel economic system one that would ideally include Russia, China and India. Such a system would isolate the US and Europe and deny them access to their markets. Now that would be an effective and painful broadside to Western arrogance. That would be checkmate indeed for a US government in hock to the Chinese. It would mean the West is denied access to China’s irreplaceable manufacturing muscle, Western factories there would have to close down and move back to their home countries. Prices of manufactured goods will go up exponentially which is bad news for the consumer class and the retail banking operations that finance them. For China too it’s not all good, its options of trading partners will be limited to Russia and India, both countries it has at different stages in history been at war with.

For the rest of us in the smaller crumb States of the world, whether in Asia, Arabia, Africa or South America, it may not be too bad as both economic blocs will compete for our business, our resources, our markets, and competition would be a welcome change. It would certainly make the world a more level playing field. But life was not meant to be fair, and disputes between major national actors are no longer played out on battle fields, military or economic, most problems are resolved with smiles and handshakes. The only question now is, is Russia in the mood to shake hands and is the West in the mood to shake back?