China’s Infrastructure Investment Bank
If you ever wondered why the US ‘pivoted’ to Asia, it’s for the same reason as it attempted to destabilize Russia: to defend the dollar. Both countries have announced their intention to de-dollarize the world and, from this snippet and the article from which it’s taken, you can see how quickly and comprehensively they’re moving:
Last month, Beijing inaugurated the China Infrastructure Investment Bank or, by its official name, the Asian Infrastructure Investment Bank (AIIB), a direct challenger to the Asian Development Bank, which is based in Manila and sponsored mainly by the US and Japan. Neither country was invited to join the AIIB. Nor was India. China’s finance minister Lou Jiwei notes that Beijing’s own China Development Bank already ‘is far bigger than the ADB and World Bank combined’. AIIB is touted as a multilateral ‘Asian-led’ agency. But much, if not most, of the funding will be Chinese. As one researcher said: ‘Now China has the ability to show the real money’: the China Infrastructure Investment Bank.
After the desperately poor showing of the Western credit rating agencies in foreseeing theUS sub-prime mortgage crisis, China has since promoted its own. One of them, Dagong,gleefully downgraded America’s sovereign rating last year. The same thing is happening withcentral bank support agreements, trade agreements, and security partnerships: Beijing is creating a parallel architecture of global governance to the US-led one. Its financial otherworld is both complementary and competitive. Read more…