This has HUGE ramifications and is a direct slap in the face to the Federal Reserve.
U.S. urges allies to think twice before joining China-led bank
(Reuters) - The United States urged countries on Tuesday to think twice about signing up to a new China-led Asian development bank that Washington sees as a rival to the World Bank, after Germany, France and Italy followed Britain in saying they would join.
The concerted move by U.S. allies to participate in Beijing's flagship economic outreach project is a diplomatic blow to the United States and its efforts to counter the fast-growing economic and diplomatic influence of China.
Europe's participation reflects the eagerness to partner with China's economy, the world's second largest, and comes amid prickly trade negotiations between Brussels and Washington.
European Union and Asian governments are frustrated that the U.S. Congress has held up a reform of voting rights in the International Monetary Fund that would give China and other emerging powers more say in global economic governance.
Washington insists it has not actively discouraged countries from joining the new bank, but it has questioned whether the Asian Infrastructure Investment Bank (AIIB) will have sufficient standards of governance and environmental and social safeguards.
Apparently no one choked to death laughing at the bald faced irony of that last statement.
Make no mistake, there is a monstrous power shift underway right now in the economic sphere and we are taking it on the chin.
The lines have been drawn and China is actively and rapidly manouvering to get the U.S.Dollar replaced as the worlds reserve currency.
This little drama unfolding here is just the latest move in that drama.
I will leave it to folks who follow these things to explain it better but this has immense ramifications down the line.
The Federal Reserve has been put on notice, this is basically a vote of no confidence in them.
H/T to the Rightful Liberty Report for the link.
You are reading this every day now, right?
4 comments:
Personally, I am all for the Chinese bankrolling corrupt governments in thrid world countries instead of us doing it.
It would also be nice if Diplomats would stop looking at the world like a huge game of Risk where one country's gain is your loss. Can't we look at China's prosperity as a cause for celebration and give them a cheerful applause instead of an envious glare?
You make a good point.
You also just reminded me that there may be a real positive side to this that has so far been overlooked,
China executes corrupt businessmen.
China Executes corrupt businessmen... only if they are not sufficiently connected to corrupt political officers.
Don't believe anything a Chinaman tells you. Their economy is built on a house of cards. Let the turd world invest their gains in their bank. It'll disappear eventually.
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