US "Isolated" As Key Ally Japan Considers Joining China-Led Bank

Tyler Durden's picture


Well, that escalated quickly.

Just a week ago it appeared Washington had managed (for the time being at least) to convince the US’ closest allies to refrain from joining the Asian Infrastructure Investment Bank, a sinocentric institution aimed at promoting development across Asia that is meant to rival the US/Japanese-led ADB and begin a seismic shift away from the world’s traditionally US-dominated institutions such as the World Bank and the IMF. Then, much to the chagrin of Washington, the UK joined as a founding member calling it an “unrivaled opportunity.” 

As we and many other observers correctly noted at the time, the move by Britain could well embolden other countries who had expressed an interest initially but been deterred by pressure from Washington to reconsider their bids for membership. In (very) short order, everyone from Germany to Australia to Luxembourg was suddenly ready to cast their lot with the Chinese despite US warnings that the bank won’t adopt the proper operational standards. As we said yesterday, the world is now wise to the fact that US criticism of the new venture is very likely nothing more than an attempt by The White House to undermine Chinese regional ambition: 

...and that means in short order Australia and South Korea will likely be on board and at that point, the stigma the US has created around membership will have completely disappeared (if it hasn’t already), opening the door for other US “allies” to join despite the bank’s alleged “low” standards.

Now, it appears the last valuable friend the US has in the bid to keep China from undercutting the ADB is beginning to consider a bid to join up. Here’s more from Reuters

Japan's foreign minister signaled cautious approval of the institution that the United States has warned against…


The opposition to the AIIB began crumbling after Britain said earlier this month that it would join the institution, saying it was in its national interest. France, Germany and Italy swiftly followed suit.


Australia now appears close to joining, although no formal decision has been made, and Beijing said Japan and South Korea were also considering the possibility. Asked about the three countries joining the bank, China's Foreign Ministry said it was "open" to it.


"They have all already expressed that they are contemplating the issue at hand," ministry spokesman Hong Lei told a daily briefing. "We are open to them making the relevant decision."


Japanese Finance Minister Taro Aso said Tokyo could consider joining the China-led bank if it could guarantee a credible mechanism for providing loans.

Make no mistake, they’ll still be plenty of officials in Japan who will stick to the script and fight the proposal, but the fact that the country is openly considering it when relations with China are rocky at best and when Japan is so influential in what is pretty clearly a competing institution speaks volumes about the extent to which US hegemony is waning. For his part, PM Abe is still hanging onto the same tired rhetoric: 


As for BoJ Gov. Kuroda, he was apparently too busy buying stocks to comment.

Via Bloomberg: 

Asian Development Bank and World Bank have accumulated experience in helping Asia improve infrastructure, Bank of Japan Governor Haruhiko Kuroda said Friday, declining to comment on whether Japan should participate in a new China-led lender.


Kuroda said he couldn’t respond directly when asked whether Japan should join Asian Infrastructure Investment Bank.

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Fri, 03/20/2015 - 08:31 | 5909243 Monetas
Monetas's picture

That's why Michelle went to Japan .... Obama is grooming her to replace him .... first black tranny Prez !

Fri, 03/20/2015 - 08:36 | 5909253 Smegley Wanxalot
Smegley Wanxalot's picture

Absolutely Mooch's appearance in Tokyo was the trigger.  Pretty sure the Japanese Prime Minister saw her fat garantuan ass stumble and thought "do I really want my nation associated with these classless assholes?"

Don't blame him - if I could disassociate with that shitsucking fucking freak obamas I would too. 

Fri, 03/20/2015 - 08:38 | 5909262 smithcreek
smithcreek's picture

Obama:  "Special... uh.... relation... uuuuuh....ship with the ...uh... Brits?  Fuck that ....uh.... shit, I aaahhhh... just tell 'em what to do."

Fri, 03/20/2015 - 08:48 | 5909303 Divine Wind
Divine Wind's picture




Wow. Shinzo Abe was supposed to be the first Japanese PM to address a joint session of US Congress in April.

10:1 this gets cancelled and Japan is moved to the turd list.

Que petulant democrats in 3...2....1

Fri, 03/20/2015 - 08:52 | 5909313 Latina Lover
Latina Lover's picture

The USSA has economically screwed too many countries too often.... it's bad when even the servile Japanese are starting to bail.

But at least the USSA has the toadying Canadians and Mexicans under control...for now.

Fri, 03/20/2015 - 09:35 | 5909444 BaBaBouy
BaBaBouy's picture

Better Get Your GOLD Stash In Order... Bitchies
These Guys Will No Doubt Be Pro-Pro-Pro GOLD.

Fri, 03/20/2015 - 09:38 | 5909453 BaBaBouy
BaBaBouy's picture

"" Japanese Finance Minister Taro Aso said Tokyo could consider joining the China-led bank if it could guarantee a credible mechanism for providing loans.""

mmm mmm ==> "Loans"...
MORE LOANS... Me Wants To Join Too...

Fri, 03/20/2015 - 09:40 | 5909456 NoDebt
NoDebt's picture

Guys, Japan is likely joining so that they can RECEIVE loans, not give them.  They're in deep shit money-wise.  They need all the friends they can get.


Fri, 03/20/2015 - 09:41 | 5909457 Almost Solvent
Almost Solvent's picture



Wake me up when SWIFT is no longer used.



Fri, 03/20/2015 - 09:58 | 5909530 BaBaBouy
BaBaBouy's picture

Speakink Of GOLD ... Yahoo Top Story ...

Yahoo Finance
Peter Schiff: 'The dollar is going to crash, buy gold'

The dollar has been on a roll. But EuroPacific Capital's Schiff remains steadfast in his bearish view on the buck, and bullish view on gold.

Fri, 03/20/2015 - 10:49 | 5909624 Save_America1st
Save_America1st's picture

and the paper PM's are having a slight parabolic moment so far this morning.  Upward manipulation is just as bad as the usual downward manipulation.  Why is the Cartel allowing PM's to go up this morning so quickly?

They must want the PM's up at a certain level for some reason today and then they'll either cap it at that level or smash it down again.


I'm waiting for the monkeys to be set forth for some hammering before the end of the day.  

As always:  BTFD

Fri, 03/20/2015 - 11:09 | 5909798 BaBaBouy
BaBaBouy's picture

GUESS WHO Is Calling $15 Oil.?. LOL... Oil Bottom Must Be In???

CNBC Gartman: Crude could hit $15.

Here's why Commodities King Dennis Gartman says a combination of supply issues and a stronger dollar will cause a "stunning" decline for crude prices.

Fri, 03/20/2015 - 12:35 | 5910161 LostandFound
LostandFound's picture

If Oil goes to $15, the entire world will be chaotic Sir. Not something i want to see!

Fri, 03/20/2015 - 09:46 | 5909460 COSMOS
COSMOS's picture

'despite US warnings that the bank won’t adopt the proper operational standards'  Standards as in everyone running the bank being a member of the J-mafia?  We seem to have those AIPAC operational standards all over our government and FED.

We know that the AIPAC jobs program works at all levels, not just FED chairs and secretaries of Treasury and numerous govt Czars.

Wonder what the minimum wage is for these fucks.

Fri, 03/20/2015 - 10:37 | 5909659 Keyser
Keyser's picture

And the jews have done such a bang-up job of managing the world's finances and markets, we should give them kudos and tickle their arse with a feather... Fuck that, let's just hope they don't turn off the lights when shown the door... 

Fri, 03/20/2015 - 12:24 | 5910113 Herd Redirectio...
Herd Redirection Committee's picture

Samson option, the only reason we haven't already, IMO!

Fri, 03/20/2015 - 11:15 | 5909811 thx111
thx111's picture

Japan is in deep shit money-wise.  That's true.  But at the same time, Japan is the biggest creditor nation too.  Japan should sell all the worthless US Tresury bills (almost $1T), before they ask for any loans.

Fri, 03/20/2015 - 11:37 | 5909894 mrdenis
mrdenis's picture

"chickens coming home to roost "

Fri, 03/20/2015 - 10:43 | 5909686 Kprime
Kprime's picture

Don't blink

Fri, 03/20/2015 - 11:34 | 5909842 scrappy
scrappy's picture

Agreed Latina Lover.

It leaves us only one avenue.

Change ourselves.

Reestablish confidence and trust.

It's a matter of trust.

That's the key, we still have what it takes, but we must adapt.

We need to fix our home.




Fri, 03/20/2015 - 11:41 | 5909911 Bananamerican
Bananamerican's picture

ah, but we DON'T have what it takes anymore.

we're not even "cool" anymore (quite the opposite).

amerika is a dark Tijuana bucket shop, busily dismantling the engine of American prosperity one bolt at a time.

I heard a story recently on "Snap Judgement" about all these returning veterans with PTSD coming back & independantly claiming to be followed by black demons...(& getting exorcisms etc)

What if they aren't imagining it? 

Fri, 03/20/2015 - 12:28 | 5910133 Herd Redirectio...
Herd Redirection Committee's picture

I guess its true, if you look into the abyss, it looks back!

Fri, 03/20/2015 - 10:18 | 5909593 Fukushima Fricassee
Fukushima Fricassee's picture

Ugly man

Fri, 03/20/2015 - 08:36 | 5909256 SethDealer
SethDealer's picture

If Japan joins this group we are screwed.

Fri, 03/20/2015 - 08:46 | 5909276 Smegley Wanxalot
Smegley Wanxalot's picture

Actually, we are screwed whether or not they do. 

It's what we get for being overlorded and NSA'd by the retard convention going on 24/7 in DC.

Fri, 03/20/2015 - 11:09 | 5909795 Tall Tom
Tall Tom's picture

Japanese Finance Minister Taro Aso said Tokyo could consider joining the China-led bank if it could guarantee a credible mechanism for providing loans.


Japanese Finance Minister Tear An Asshole? Yeah? Really?  As long as they have a credible mechanism for providing loans to Japan?


This story has got to be right out of the Onion.




Thanks for the humor Tyler.

Fri, 03/20/2015 - 08:41 | 5909278 drendebe10
drendebe10's picture

How so?

Fri, 03/20/2015 - 08:55 | 5909325 Chupacabra-322
Chupacabra-322's picture

Pssssssst, we're Governered by Children, Criminals & Psychopaths / Sociopaths.

Fri, 03/20/2015 - 10:12 | 5909565 Sages wife
Sages wife's picture

Children are innocent, thoughtful, honest, and full of truthiness. Please let's don't lump them in with those sick, evil, traitorous, bloodsuckers.

Fri, 03/20/2015 - 11:45 | 5909934 KingGenius
KingGenius's picture

US Hegemony is being questioned. That is good. Maybe we can get the manufacturing domestically to create actual jobs that aren't based on stocks, internet, fiat, know tangilbe creation for us and by us. Robots are not capable of taking over the human worker....yet.

But the loss of US financial hegemony will not go w/o a fight:

What I see from this article is that we are going to attempt to have the same debt, tax, and fiat system. Have our goods cheaply produced in Latin America by major corporations that do not offer us jobs but still import and sell us cheap shit, instead of China doing it for us. PS if you shop at Walmart you are wrong!! Buy local and put your money where your mouth is.

Fri, 03/20/2015 - 12:03 | 5909900 scrappy
scrappy's picture

I disagree, they have demographic and cultural challenges.

They are ok as trading partners if you all are for substandard parts, reserve currency? Ha! Sure. Only if we fail, and we are presently.

We need to learn our lesson, and then we will be fine, have patience. Perhaps this is our nations rebirth. (Painful)

We have allowed some of the worst of our vices to take us here.

It will take work and real change to get back on track.

Don't give up.

Good things require leadership, sacrifice, and wisdom.

It can be done, it's up to us.

Fri, 03/20/2015 - 12:05 | 5910015 2handband
2handband's picture

Grow up. Big systems == rule at gunpoint by people with deep pockets. Period. It isn't going to get any better than this.

Fri, 03/20/2015 - 12:39 | 5910174 scrappy
scrappy's picture

We are a young country.

Next stage I hope, sweet madam blue.

Fri, 03/20/2015 - 08:37 | 5909257 GetZeeGold
GetZeeGold's picture



Oh didn't.


We're gonna get phone calls...

Fri, 03/20/2015 - 08:40 | 5909274 drendebe10
drendebe10's picture

Hahahaha. More foreign policy success by the divisive corrupt incompetent arrogant narcissistic illegal indonesian kenyan alien muslim sociopathic pathological liar community organizer fudgepacker.    

Fri, 03/20/2015 - 12:04 | 5910011 eatthebanksters
eatthebanksters's picture

drendebe, tellus how you really feel...  ;-)

Fri, 03/20/2015 - 08:55 | 5909321 lakecity55
lakecity55's picture

Yes, America, why vote for an old, worn out YT hag when you could have a True First Negro Tranny President?!?

Fri, 03/20/2015 - 10:07 | 5909553 BullyBearish
BullyBearish's picture

The West's HUBRIS looks to be heading for a BLOW OFF TOP

Fri, 03/20/2015 - 08:33 | 5909248 dirtyfiles
dirtyfiles's picture

new friends no one wants to play with bully

Fri, 03/20/2015 - 08:34 | 5909249 LawsofPhysics
LawsofPhysics's picture

What part of all fiat will go to zero don't people understand?

Fri, 03/20/2015 - 08:38 | 5909261 cossack55
cossack55's picture

The "all" part.  Not to mention most folks think fiat is a piece of shit Italian car thus expecting it to be worthless.

Fri, 03/20/2015 - 08:44 | 5909285 Chupacabra-322
Chupacabra-322's picture

And, so it begins again. Another Bankruputcy Collapse. Well, itherorectorically we've been slowly collapsing since the last Bankruputcy when the Banking Emergecy Act of 1933 was instituted.

Fri, 03/20/2015 - 08:46 | 5909295 LawsofPhysics
LawsofPhysics's picture

yes, when all Americans and future Americans became tenants.

tick tock motherfuckers...

Fri, 03/20/2015 - 08:50 | 5909304 Chupacabra-322
Chupacabra-322's picture

You left out Enemies of the Crminal State.

Fri, 03/20/2015 - 11:39 | 5909872 Tall Tom
Tall Tom's picture

Japan has the intention of breaking the new system. They will borrow from the development fund and then they will play the role of Greece.


They hate China. Jeeez. No worries.


In fact most Asians are much more racist than any average Deep South KKK order. The Japanese have traditionally believed the Chinese and Korean...especially Korean, to be inferior. It is likewise with those cultures attitudes against the Japanese.


This will not last...

Fri, 03/20/2015 - 09:48 | 5909487 Scoobywan
Scoobywan's picture

Uh...Fiat is a piece of shit Italian car..

But it's also what everyone else here knows it is.

Fri, 03/20/2015 - 10:40 | 5909676 MartyFlesh
MartyFlesh's picture


Fri, 03/20/2015 - 09:26 | 5909415 Panafrican Funk...
Panafrican Funktron Robot's picture

Given this, on a relative basis, China's currency being backed by actual gold is probably trumping the USD backed by tungsten.

Fri, 03/20/2015 - 10:41 | 5909679 Kprime
Kprime's picture

USD is backed by Murder in every form.

Fri, 03/20/2015 - 12:00 | 5909996 Kirk2NCC1701
Kirk2NCC1701's picture

Technically it comes close to zero, but stops at its intrinsic value as TP or fire kindling.  One enterprising Irishman even used bricks of shredded Euros to build a house.

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