jackovesk
1st April 2015, 03:58
http://d1in1v57myx5v.cloudfront.net/pics/Images/558000003457602.JPEG
US holds out against new Asian Infrastructure Investment Bank
This story was published: 20 hours ago March 31, 2015
WHEN people try to pinpoint the start of a ‘New World Order’ (http://www.aljazeera.com/indepth/opinion/2015/03/asian-infrastructure-investment-bank-150329074949552.html) they could look to March 2015.
This week, Australia announced it would sign on to China’s plans to create a new Asian Infrastructure Investment Bank to rival global institutions like the World Bank and International Monetary Fund.
But far from being some boring economic plan, the bank — which aims to address the $8 trillion infrastructure gap and provide $100 billion for new roads, bridges and ports in Asian economies — could usher in a new phase of regional influence for China without US involvement.
UNSW’s Institute of Global Finance director Fariborz Moshirian said China’s massive foreign exchange reserves and desire for more power have driven Beijing’s plan.
“China is trying to use economic muscle and also in a sense it’s a reaction to the Bretton Woods institutions like the IMF and World Bank. They are seen as US and European children and China wants to make their own mark.”
“It’s sort of a byproduct of the rise of the financial strength of China ... We’re going to see more of this kind of influence because China can afford now to take part of this kind of activity.”
http://resources3.news.com.au/images/2015/03/31/1227286/038051-897f5736-d68e-11e4-91d8-f0bc1d307f16.jpg
Treasurer Joe Hockey said the bank will be a truly global institution: Picture: Photo: Tim Marsden Source: GoldCoastBulletin
Overnight, Japan, Taiwan and Egypt expressed interest in become founding members taking the total number of countries involved to more than 40. They’re the latest in a flood of traditional US allies who have signalled intention to join including Australia, Britain, New Zealand, France, Germany, Switzerland and South Korea.
It leaves the US the only major economy not involved, a decision described as “problematic at best and churlish at worst” by Brookings Institution analyst Jonathan Pollack. It comes after the US waged a lobbying campaign against the plan citing concerns over how the bank will be managed.
Professor Moshirian said the fact the US is now the only holdout is a clear sign US allies are not willing to stand by at the expense of their own economic development, with many European partners saying “if you can’t beat them, join them.”
“They don’t want to be isolating themselves. They’ve got very close links with China in terms of trade and investment and why shouldn’t you? If money is being thrown about by China why shouldn’t they grab it? China is becoming strong so why should you isolate yourself?”
http://resources1.news.com.au/images/2015/03/31/1227286/038105-3c060bcc-d69c-11e4-91d8-f0bc1d307f16.jpg
The Asian region is home to some of the world’s fastest growing economies and is home to nearly 1 billion middle income consumers. Picture: WANG ZHAO. Source: AFP
Australian Institute of International Affairs’ Ashley Rogge said the mass influx has left the US feeling “embarrassed” after stalled IMF reforms mean the US missed an opportunity to give China greater say in existing organisations.
“If there’s any reason for them to be embarrassed it’s for that reason,” she said. “They had the opportunity to encourage China in a cooperative manner they kind of forfeited that as these reforms have stalled.”
“These new institutions are now being created because they have dropped the ball. Now they’ve created this opposition which is the total opposite of they wanted.”
http://resources3.news.com.au/images/2015/03/31/1227286/038131-a8c84252-d69c-11e4-91d8-f0bc1d307f16.jpg
The bank plans to raise more than $100 billion for regional infrastructure projects. Picture: AP: Source: News Limited
Details over where the bank will based and how it will work are still underway with more discussions expected before countries formally sign on. However joining the negotiations early means they will receive a greater say in how the bank is shaped.
Prime Minister Tony Abbott said on Sunday progress in terms of transparency and governance prompted Australia’s late decision to apply for membership. However he stressed that key matters like authority over major investments and who has ultimate control still need to be resolved.
Treasurer Joe Hockey said interest from other countries also helped.
“(It) has been encouraging for Australia to know that it truly is a global organisation,” he said. “We could massively increase our exports of iron ore to India if there were better port facilities.”
Overnight, US Treasury Secretary Jack Lew said Washington wants the new AIIB to partner with other Washington-based institutions on projects, with officials still worried about how lending will take place.
Professor Moshirian said while the door is likely to remain open to US involvement, the reality is China has the money and partnerships to do it anyway.
“China will go ahead regardless of US. If the US joins it fine, if not China will set the tone for this entity anyway.”
Chinese President Xi Jinping said China will spend more than $640 billion investing in other countries in the next five years and “being a big country means shouldering more responsibility for world peace and development.”
The deadline for countries to apply to join the bank is 31 March.
http://www.news.com.au/finance/economy/us-holds-out-against-new-asian-infrastructure-investment-bank/story-e6frflo9-1227286037463
PS - This ((Entire System)) is getting 'More & More' ((Confusing & Complicated)) isn't it...:faint:
You virtually need a ((Quantum Computer)) in your home office to make any sense out of these forever changing alliances...:shocked:
PSS - Lets see what ((Zero Hedge)) has to say...
http://www.zerohedge.com/sites/all/themes/newsflash/images/logo.png
http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg Submitted by Tyler Durden on 03/22/2015
China and Russia have taken the lead in establishing the Asian Infrastructure Investment Bank (AIIB), seen as a rival organisation to the World Bank and the Asian Development Bank, which are dominated by the United States with Europe and Japan.
These banks do business at the behest of the old Bretton Woods order. The AIIB will dance to China and Russia's tune instead.
The geopolitical importance was immediately evident from the US's negative reaction to the UK's announcement this week that it would join the AIIB. And very shortly afterwards France, Germany and Italy also defied the US and announced they might join. In the Pacific region, one of America's closest allies, Australia, says she is considering joining too along with New Zealand.
The list of US allies seeking to join is growing. From a geopolitical point of view China and Russia have completely outmanoeuvred the US, splitting both NATO and America's Pacific alliances right down the middle.
This is much more important than political commentators generally realise. We must appreciate that anything China does is planned well in advance. Here is the relevant sequence of events:
• In 2002 China and Russia formally adopted the founding charter for the Shanghai Cooperation Organisation, an economic bloc that today contains about 35% of the world's population, which will become more than 50% when India, Pakistan, Iran, Afghanistan and Mongolia join, which is their stated intention. Russia has the resources and China the manufacturing power to develop the largest internal market ever seen.
• In October 2013 George Osborne was effectively summoned to Beijing because China wanted London to be the base to develop renminbi-denominated financial instruments. London has served China well, with the UK Government even issuing the first renminbi-denominated foreign (to China) government bond. The renminbi is now on the way to being a fully-fledged international currency.
• The establishment of an infrastructure bank, the AIIB, will ensure the lead funding is available for the rapid development of road, rail, electric and electronic communications throughout the SCO, ensuring equally rapid economic development of the whole of the Asian continent. It could amount to the equivalent of several trillion dollars over time.
The countries that are applying to join the AIIB realise that they have to be members to access what will eventually become the largest single market in the world. **America is being frozen out**, the consequence of her belligerence over Ukraine and the exercise of her hegemonic power through the dollar. America's allies in South East Asia are going with or will go with the new AIIB, and in **Europe commercial interests are driving America's NATO partners away from her**, turning the Ukraine from a common cause into a festering liability.
The more one thinks about it, the creation of the AIIB is a masterstroke of tactical genius.
The outstanding issue now is China and Russia will need to come up with a credible plan to make their currencies a slam-dunk replacement for the dollar. We know that gold may be involved because the SCO members have been accumulating bullion; but before we get there China must manage a deliberate deflation of her credit bubble, which will be a delicate and dangerous task.
Unlike the welfare-driven economies in the west, China has sufficient political authority and internal control to survive a rapid deflation of bank credit. When this inevitably happens the economic consequences for the west will be very serious. Japan and the Eurozone are already facing economic dislocation, and despite over-optimistic employment numbers, the US economy is faltering as well. The last thing America and the dollar needs is a deflationary shock from China.
The silver lining for us all is a peace dividend: it is becoming less likely that America will persist with a call to arms, because support from her allies is melting away leaving her on her own.
http://www.zerohedge.com/news/2015-03-22/new-order-emerges
PSSS - I get the need to fund the 'Upgrade' of the world's failing ((Infrastructure)) and try and weazle-out some much needed 'GROWTH' but what I don't get is where the ((OLD CABAL)) fits into the picture...:noidea:
US holds out against new Asian Infrastructure Investment Bank
This story was published: 20 hours ago March 31, 2015
WHEN people try to pinpoint the start of a ‘New World Order’ (http://www.aljazeera.com/indepth/opinion/2015/03/asian-infrastructure-investment-bank-150329074949552.html) they could look to March 2015.
This week, Australia announced it would sign on to China’s plans to create a new Asian Infrastructure Investment Bank to rival global institutions like the World Bank and International Monetary Fund.
But far from being some boring economic plan, the bank — which aims to address the $8 trillion infrastructure gap and provide $100 billion for new roads, bridges and ports in Asian economies — could usher in a new phase of regional influence for China without US involvement.
UNSW’s Institute of Global Finance director Fariborz Moshirian said China’s massive foreign exchange reserves and desire for more power have driven Beijing’s plan.
“China is trying to use economic muscle and also in a sense it’s a reaction to the Bretton Woods institutions like the IMF and World Bank. They are seen as US and European children and China wants to make their own mark.”
“It’s sort of a byproduct of the rise of the financial strength of China ... We’re going to see more of this kind of influence because China can afford now to take part of this kind of activity.”
http://resources3.news.com.au/images/2015/03/31/1227286/038051-897f5736-d68e-11e4-91d8-f0bc1d307f16.jpg
Treasurer Joe Hockey said the bank will be a truly global institution: Picture: Photo: Tim Marsden Source: GoldCoastBulletin
Overnight, Japan, Taiwan and Egypt expressed interest in become founding members taking the total number of countries involved to more than 40. They’re the latest in a flood of traditional US allies who have signalled intention to join including Australia, Britain, New Zealand, France, Germany, Switzerland and South Korea.
It leaves the US the only major economy not involved, a decision described as “problematic at best and churlish at worst” by Brookings Institution analyst Jonathan Pollack. It comes after the US waged a lobbying campaign against the plan citing concerns over how the bank will be managed.
Professor Moshirian said the fact the US is now the only holdout is a clear sign US allies are not willing to stand by at the expense of their own economic development, with many European partners saying “if you can’t beat them, join them.”
“They don’t want to be isolating themselves. They’ve got very close links with China in terms of trade and investment and why shouldn’t you? If money is being thrown about by China why shouldn’t they grab it? China is becoming strong so why should you isolate yourself?”
http://resources1.news.com.au/images/2015/03/31/1227286/038105-3c060bcc-d69c-11e4-91d8-f0bc1d307f16.jpg
The Asian region is home to some of the world’s fastest growing economies and is home to nearly 1 billion middle income consumers. Picture: WANG ZHAO. Source: AFP
Australian Institute of International Affairs’ Ashley Rogge said the mass influx has left the US feeling “embarrassed” after stalled IMF reforms mean the US missed an opportunity to give China greater say in existing organisations.
“If there’s any reason for them to be embarrassed it’s for that reason,” she said. “They had the opportunity to encourage China in a cooperative manner they kind of forfeited that as these reforms have stalled.”
“These new institutions are now being created because they have dropped the ball. Now they’ve created this opposition which is the total opposite of they wanted.”
http://resources3.news.com.au/images/2015/03/31/1227286/038131-a8c84252-d69c-11e4-91d8-f0bc1d307f16.jpg
The bank plans to raise more than $100 billion for regional infrastructure projects. Picture: AP: Source: News Limited
Details over where the bank will based and how it will work are still underway with more discussions expected before countries formally sign on. However joining the negotiations early means they will receive a greater say in how the bank is shaped.
Prime Minister Tony Abbott said on Sunday progress in terms of transparency and governance prompted Australia’s late decision to apply for membership. However he stressed that key matters like authority over major investments and who has ultimate control still need to be resolved.
Treasurer Joe Hockey said interest from other countries also helped.
“(It) has been encouraging for Australia to know that it truly is a global organisation,” he said. “We could massively increase our exports of iron ore to India if there were better port facilities.”
Overnight, US Treasury Secretary Jack Lew said Washington wants the new AIIB to partner with other Washington-based institutions on projects, with officials still worried about how lending will take place.
Professor Moshirian said while the door is likely to remain open to US involvement, the reality is China has the money and partnerships to do it anyway.
“China will go ahead regardless of US. If the US joins it fine, if not China will set the tone for this entity anyway.”
Chinese President Xi Jinping said China will spend more than $640 billion investing in other countries in the next five years and “being a big country means shouldering more responsibility for world peace and development.”
The deadline for countries to apply to join the bank is 31 March.
http://www.news.com.au/finance/economy/us-holds-out-against-new-asian-infrastructure-investment-bank/story-e6frflo9-1227286037463
PS - This ((Entire System)) is getting 'More & More' ((Confusing & Complicated)) isn't it...:faint:
You virtually need a ((Quantum Computer)) in your home office to make any sense out of these forever changing alliances...:shocked:
PSS - Lets see what ((Zero Hedge)) has to say...
http://www.zerohedge.com/sites/all/themes/newsflash/images/logo.png
http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg Submitted by Tyler Durden on 03/22/2015
China and Russia have taken the lead in establishing the Asian Infrastructure Investment Bank (AIIB), seen as a rival organisation to the World Bank and the Asian Development Bank, which are dominated by the United States with Europe and Japan.
These banks do business at the behest of the old Bretton Woods order. The AIIB will dance to China and Russia's tune instead.
The geopolitical importance was immediately evident from the US's negative reaction to the UK's announcement this week that it would join the AIIB. And very shortly afterwards France, Germany and Italy also defied the US and announced they might join. In the Pacific region, one of America's closest allies, Australia, says she is considering joining too along with New Zealand.
The list of US allies seeking to join is growing. From a geopolitical point of view China and Russia have completely outmanoeuvred the US, splitting both NATO and America's Pacific alliances right down the middle.
This is much more important than political commentators generally realise. We must appreciate that anything China does is planned well in advance. Here is the relevant sequence of events:
• In 2002 China and Russia formally adopted the founding charter for the Shanghai Cooperation Organisation, an economic bloc that today contains about 35% of the world's population, which will become more than 50% when India, Pakistan, Iran, Afghanistan and Mongolia join, which is their stated intention. Russia has the resources and China the manufacturing power to develop the largest internal market ever seen.
• In October 2013 George Osborne was effectively summoned to Beijing because China wanted London to be the base to develop renminbi-denominated financial instruments. London has served China well, with the UK Government even issuing the first renminbi-denominated foreign (to China) government bond. The renminbi is now on the way to being a fully-fledged international currency.
• The establishment of an infrastructure bank, the AIIB, will ensure the lead funding is available for the rapid development of road, rail, electric and electronic communications throughout the SCO, ensuring equally rapid economic development of the whole of the Asian continent. It could amount to the equivalent of several trillion dollars over time.
The countries that are applying to join the AIIB realise that they have to be members to access what will eventually become the largest single market in the world. **America is being frozen out**, the consequence of her belligerence over Ukraine and the exercise of her hegemonic power through the dollar. America's allies in South East Asia are going with or will go with the new AIIB, and in **Europe commercial interests are driving America's NATO partners away from her**, turning the Ukraine from a common cause into a festering liability.
The more one thinks about it, the creation of the AIIB is a masterstroke of tactical genius.
The outstanding issue now is China and Russia will need to come up with a credible plan to make their currencies a slam-dunk replacement for the dollar. We know that gold may be involved because the SCO members have been accumulating bullion; but before we get there China must manage a deliberate deflation of her credit bubble, which will be a delicate and dangerous task.
Unlike the welfare-driven economies in the west, China has sufficient political authority and internal control to survive a rapid deflation of bank credit. When this inevitably happens the economic consequences for the west will be very serious. Japan and the Eurozone are already facing economic dislocation, and despite over-optimistic employment numbers, the US economy is faltering as well. The last thing America and the dollar needs is a deflationary shock from China.
The silver lining for us all is a peace dividend: it is becoming less likely that America will persist with a call to arms, because support from her allies is melting away leaving her on her own.
http://www.zerohedge.com/news/2015-03-22/new-order-emerges
PSSS - I get the need to fund the 'Upgrade' of the world's failing ((Infrastructure)) and try and weazle-out some much needed 'GROWTH' but what I don't get is where the ((OLD CABAL)) fits into the picture...:noidea: