Washington Blinks: Will Seek Partnership With China-Led Development Bank

Tyler Durden's picture

Don’t look now, but Washington just blinked. As we’ve documented exhaustively over the past week, pressure has been building steadily for the US to strike some manner of conciliatory tone towards China with regard to the Asian Infrastructure Investment Bank, a China-led institution aimed at rivaling the US/Japan-backed ADB. Britain’s decision to join China in its new endeavor has prompted a number of Western nations to throw their support behind the bank ahead of the March 31 deadline for membership application. Because the AIIB effectively represents the beginning of the end for US hegemony, the White House has demeaned the effort from its inception questioning the ability of non-G-7 nations to create an institution that can be trusted to operation in accordance with the proper “standards.” Now, with 35 nations set to join as founders, it appears Washington may be set to concede defeat. Here’s more, via WSJ:

The Obama administration, facing defiance by allies that have signed up to support a new Chinese-led infrastructure fund, is proposing the bank work in a partnership with Washington-backed development institutions such as the World Bank.

 

The collaborative approach is designed to steer the new bank toward economic aims of the world’s leading economies and away from becoming an instrument of Beijing’s foreign policy. The bank’s potential to promote new alliances and sidestep existing institutions has been one of the Obama administration’s chief concerns as key allies including the U.K., Germany and France lined up in recent days to become founding members of the new Asian Infrastructure Investment Bank.

 

The Obama administration wants to use existing development banks to co-finance projects with Beijing’s new organization. Indirect support would help the U.S. address another long-standing goal: ensuring the new institution’s standards are designed to prevent unhealthy debt buildups, human-rights abuses and environmental risks. U.S. support could also pave the way for American companies to bid on the new bank’s projects.

 

“The U.S. would welcome new multilateral institutions that strengthen the international financial architecture,” said Nathan Sheets, U.S. Treasury Under Secretary for International Affairs. “Co-financing projects with existing institutions like the World Bank or the Asian Development Bank will help ensure that high quality, time-tested standards are maintained.” 

So essentially this is just the old “if you can’t beat ‘em, join ‘em” strategy disguised as an attempt to bring the AIIB into the fold of US-dominated multinational institutions.

But make no mistake, this is at best an example of Washington cutting its losses and at worst an outright surrender, as no one should pretend that the AIIB, which is starting with $50 billion in capital, will remain subservient to the ADB which, after five decades, has barely three times that amount: 

Infrastructure needs around the world are enormous. Emerging countries need new ports, railways, bridges, airports and roads to support faster growth. Developed economies, meanwhile, must replace aging infrastructure. The Asian Development Bank estimates its region alone faces an annual financing shortfall of $800 billion a year. The consulting firm McKinsey & Company estimates global infrastructure-investment needs through 2030 total $57 trillion.

 

By comparison, the Asian Development Bank has just $160 billion in capital and the World Bank-which has co-financed with other regional institutions for years—has around $500 billion. The China-led bank plans to have a $50 billion fund to start.

And with that, one more leap towards de-dollarization is now in the books.

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y3maxx's picture

Uhhhmmmmm...Look for the USSA and Israel to "Stuxnet" this new banking system into overnight oblivion.

dsty's picture

One conspiracy is as good as another.

Perhaps the Rooskies will nuke it and place an aritcle in the ZH well read RT about the US nuking it.

Just say'n

Anusocracy's picture

They need some Goldman Sachs experts.

Pladizow's picture

The Obama administration wants to, "address another long-standing goal: ensuring the new institution’s standards are designed to prevent unhealthy debt buildups,"

What a crock of shit!

This has been the sole goal of the IMF and World Bank since inception!

new game's picture

lol'g big time. only one goal -stiffle competition. oh, yea, great partner to have on board. moar crony banksters in the same room. fucking joke. if they were smart they would tell dc to fuck off. we'll see...

Pladizow's picture

Perhaps by "unhealthy", they mean too little?

SWRichmond's picture

Yeah the part about "high quality time tested standars" made me laugh, too

 

smlbizman's picture

...ever been at a party...everybody laughing having a good time...then fucking waldo walks in....

JamesBond's picture

Excuse me sir,

You still have egg on your face.

nidaar's picture

The bully got punched on the mouth!

Theosebes Goodfellow's picture

What's the fucking surprise here? Hasn't Obama's main focus been to "take America down a peg or two" all along? Did you really think he wasn't dead-ass serious about his vision of "Hope and Change"? How do you like it now, bitchez?

strannick's picture

The grotesque euphemisms here is.what's most nauseating.

With pejorative language, the birch author describes US as a benign entity promoting time honored internationalism, with China as the shift duplicitous schemer.

Save_America1st's picture

believe it that all this is and has been according to plan.  Taking down the dollar and America has always been the plan eventually.  And don't forget what Kyle Bass was told:

 

"We're just going to kill the dollar."

https://www.youtube.com/watch?v=9cjbbt__78U

 

And it appears they're succeeding on all fronts.

nope-1004's picture

The article above references the US and their ambitions to join the AIIB, but no where do I see any Chinese reference or confirmation accepting that proposal.

 

TeamDepends's picture

Good thing Barry is more flexible now.

Divine Wind's picture

 

 

I can see the Chinese having *some* ties, if for no other reason than keeping your enemies close...

Under no circumstances do I see Chinese authorities giving up any aspect of power or control, which is why a military confrontation is probably already being drawn up at the Pentagon.

 

 

 

Tall Tom's picture
Washington Blinks: Will Seek Partnership with China-Led Development Bank

 

Washington Blinks: Will Seek Domination of China-Led Development Bank

 

FIFY Tyler

 

The only way to have infulence over this is to corrupt it from within.

Farqued Up's picture

A hint to the wise is sufficient, we should act accordingly. As I heard recently, the Titanic hit the iceberg, the USD was in the stern, others were aft, and when it nosed down it lifted the stern high out of the water. The end result was that all were on the bottom about 13,000 ft under.

No expert in the world has this figured out, a real mess it is. The Neikki exchange is about to climb back above 20,000 again. Of course the Yen has fallen by about 100% so I believe I'm painting myself in a corner so I sure don't have it figured out. I do know that the Yen once was above 300 and their exchange was over 40,000. That was over 20 years ago and things are still screwed.

Japan tells me that this punch bowl can survive with a floating turd for decades. I'm thinking immediate collapse may not be the path it unravels, we may need an extended time lapse camera to fully detect the rotting corpse in the steel and concrete canyons. Shit if I know.

Real Estate Geek's picture

As far as the Chinese are concerned, Obama has no face left.

Squid-puppets a-go-go's picture

im a bit bored by these claims of things that represents the beginning of the end for US hegemony 

first it was saddam and gaddafi selling oil for euros. then it was china-other country currency swaps. then it was the russian and chinese SWIFT alternatives. now its this. Its just another brick in the wall

Cheduba's picture

All part of the Hegelian Dialectic.  Not happy with the IMF, BIS, and World Bank?  Check out this new bank that totally isn't run by the same globalists to make people think they have a "choice".

logicalman's picture

I don't care where you are from.

If you have something I want and I have something you want, let's deal.

Currency is, in essence, a way of making this possible between more than two participants, nothing more.

Once a small group has control of currency there are bound to be problems.

Money is a whole other ball game.

A82EBA's picture

as long as it's gold-backed they should be good

Icelandicsaga...............................................'s picture

Agreed.... if the Chinese accept it ... they rae idiots... another bunch of crooked banksters playing in Asia .. to squeeze it dry .. impoverish billions and like the US two party system .. two wings of the same vulture picking our bones clean.

silverer's picture

Your comment is worth repeating without being flagged as a double post.

RevIdahoSpud3's picture

Debt really is not really unhealthy until you get past 18 trillion or so they say?

new game's picture

i thought the magic number was 20 trillion. fubar. growth baby growth. ha, we can grow the fed balance sheet, green shoots. moar debt to service to keep the private fed reserve growing. taxes going up- oh yea. policy tools anyone. policy tools to keep us beat the fuck down. and how did the fed get these policy tools, ha, about 1913 the whole scheme was hatched. here we all sit - helpless, subserviant to a handfull of policy tools administered to keep us hammered down, complict with about 430 or so treasonus liars. sums up our lot...

and if you or i get out of line, out comes the violence squad, the irs, of course.

pay up fuckers, april 15th is right around the corner, ha, and don't forget to pay your ACA penalty. what a lovely country we live in, ha again.

silverer's picture

Don't know, but they have the Union Pay credit card.  I hear it gets good reviews.  It has and will continue to transact outside the US dollar system.

Pladizow's picture

Wish there was a way to open an account without having to visit an Asian bank

e_goldstein's picture

The AtMs are what got O'bozo behind the plan

(and I ain't talking about the machines).

Colonel Klink's picture

In Obama's case it's actually MtA.  It's been that way his hole (sic) life.

daveO's picture

Just following the CFR's plan. De-dollarization leading to Yuan reserve currency. 

Renfield's picture

heh - sometimes I like to browse the CFR site for a snort and a horselaugh.

So far they haven't seemed that thrilled about China's latest dastardly scheme. It looks to me like China got the jump on them and now they are realising that Barky may not have been the best messenger on this one:

http://blogs.cfr.org/asia/2015/03/16/the-aiib-debacle-what-washington-sh...

<<In the fall of 2014, the U.S. government caught many by surprise when it made an aggressive and public effort to persuade countries not to join the Beijing-led institution. The United States clearly had concerns about the economic and political implications of a new multilateral lending agency led by China, and in any event, it was highly unlikely that the U.S. Congress would approve a financial contribution allowing the United States to participate. The Obama administration’s efforts led a number of countries to hold back from signing on the the AIIB. The decision by the UK, and subsequently, France, Germany, and Italy, to participate is therefore significant not only because they will be major shareholders, but also because the decision by traditional U.S. allies signals that Washington is increasingly isolated.>>

http://www.cfr.org/global-governance/bank-too-far/p36290

<<From all accounts, the Obama administration has expended serious energy trying to dissuade its allies from joining the bank at least until greater clarity is offered as to the decision-making structure of the institution. With the defection of the UK, however, it appears likely that Washington’s carefully constructed coalition will gradually unravel—both Australia and South Korea are apparently reconsidering their earlier reluctance to join the bank and could well use the UK’s decision as political cover for deciding to join the bank.>>

This article warns that it is unlikely for Congress to agree to be part of this thing:

<<The Beijing-backed bank appears to be gaining momentum for its expressed goal of addressing wide infrastructure gaps in Asia. But the bank also reflects Beijing’s dissatisfaction with existing global institutions and its desire to play a leading role in the Asia-Pacific, says CFR's Robert Kahn. Though it would be a positive step for Washington to join the bank, Kahn says that there is little chance that Congress would approve U.S. participation.>>

Marching orders?

And by the way, watch out, Canada & Mexico. Your bosses seem to have a plan to get you to jump aboard the USA Titanic to make the whole place into one giant police-state slum, where YOUR resources are about to be -- what's that word pollies love so much? -- "SHARED":

<<The Task Force proposes a comprehensive set of recommendations for deepening North American integration, concentrating on four pivotal areas—energy, economic competitiveness, security, and community. These include: ... Bolstering economic competitiveness through the freer movement of goods and services across borders. Upgrading infrastructure and policies across borders would interconnect national economies securely and efficiently. Recognizing trilateral economic interests, the United States should also include Canada and Mexico in its negotiations for the Transatlantic Trade and Investment Partnership (TTIP) and other free trade agreements. ...Capitalizing on North America's promising energy outlook. The North American countries need a regional energy strategy ... Strengthening security through a unified continental strategy and "continuous border innovation." While working toward the goal of a unified security strategy for North America,... Fostering a North American community through comprehensive immigration reform, workforce development, and the creation of a mobility accord to facilitate the movement of workers. The U.S. Congress should pass comprehensive immigration reforms. To better aid the movement of North American workers, the three countries should also create a North American Mobility Accord... >>

http://www.cfr.org/north-america/north-america/p33536

Prends garde a toi, Canada and Mexico. That bloated fat mess of a fascist state has its sights on YOU, and yer stuff. Time to hit the lifeboats, or sink with it.

Gerb00's picture

I will lose all respect for China/Russia if they fold like boner & POTUS....

There is a club see......and you ain't in it..............LOL

WE are tired of FATCA, NSA, TSA, CIA, FBI, and any other INITIALS so go over there in the corner and fuck yourself....and Pelosi and boner and anyone else you can talk into bending over....

king leon's picture

I am sorry Mr Obama, we can't let you join us until you are free of your national debt. Now, could we interest you in a 18 Trill$$$ loan with an extortionate rate, what do you have in collateral? 

Chauncey Gardener's picture

Once upon a time, Cankles visited Beijing as
her first official duty as Secretary of Stare
to reportedly offer the Continental US as
collateral for more loans. Been there, done
that.

We be fucked, bitches.

Renfield's picture

Only thing worse than a Washington pivot to Russia/Middle East/Asia, will be a Washington pivot to North America.

Manifest Destiny is about to become the next nightmare for freedom-loving people, but this time the ROW will be the ones with the popcorn.

Chickens about to come home to roost, along with HEAPS of unwanted USian dollars and angry, underemployed USian military fascists. Canada and Mexico had better decide whether they are willing to get pulled into the gutter with the Land of the Free, and they better do it soon. When the Zionists get kicked out from everywhere else, they'll descend right here like the proverbial plague of locusts.

Russia and China aren't going to slay the beast for us. They'll be happily looking after their own borders, and enjoying worldwide trade. It's time for us on this continent to turn off the TV and start looking after our own. That is, if we like drinking our own water and growing natural, wholesome food...

August's picture

Actually, we're all looking forward to accessing those nice, pristine Canadian rivers and lakes to make Nevada, Arizona et al. bloom as never before.

Maybe we'll even share with the Mexicans, too.

Renfield's picture

Mexicans I can't speak for, as I've never been there. I live in Canada just now.

But if Canadians are complacent and stupid enough to lose their pristine resources to a bunch of fat American fascists, free shit army parasites, and freeloading police 'officers' playing war, then I say they don't deserve a country of their own anyway. We'll see if the cunt queen is willing to do some kind of share program with the vatican vampires.

My guess? They'll miss the new 'laws' integrating their continent into one giant nasty slum, too busy watching MSM diversity and terror programming. They won't know a thing about the new police state, until the door gets kicked in by some team of filth with a No-Knock. Or until the next 'routine traffic stop'...

new game's picture

they don't recognize borders. they don't give one shit about you or i or our sov. borders. they want it all. they met their match. china just playing the same game with a stronger hand, handed to them by nafta ect. now the gutting of america starts to become poverty for the majority. they could care less. look no further than the mic. all that money could have paved the streets with gold. infastructure, rebuilding the grid. high speed rail coast to coast. the money is now debt we get to service administered to us by treasonus liars, all 430 of them.

china built their infastructure on a mountain of debt, but at least they have a moderized country. what do we have? f-35's, drones, and the best bombs money and technology can produce. great plan for our kids...

FUBAR

poverty baby poverty...til the dollar swirls into the hole, then the fsa comes out of the woodwork looking for some food. shit gets real pretty soon. hungry, skillless downtroden folks...

Icelandicsaga...............................................'s picture

Renfield.. I think the integration of North America began over a decade ago .. NAFTA was just the beginning .. then came SPP . Security Partnerhsip pshed by Le Shrub with Harper and Fox in about 2007 or 06 .....the SPP . its got all kinds of security arrangements integrating Canada and US systems ... http://www.globalresearch.ca/continental-integration-of-military-command... The creation of Northcom in 2002 . that is what this is about .. 911 was used at the rationale . but this unification was in the works long ago .. right after the Cold War ended .. articles began to appear in CFR publications and even US Army pubs about this unification of command structure .. Anway .. '''''The creation of NORTHCOM announced in April 2002, constitutes a blatant violation of both Canadian and Mexican territorial sovereignty. Defense Secretary Donald Rumsfeld announced unilaterally that US Northern Command would have jurisdiction over the entire North American region. Canada and Mexico were presented with a fait accompli. US Northern Command’s jurisdiction as outlined by the US DoD includes, in addition to the continental US, all of Canada, Mexico, as well as portions of the Caribbean, contiguous waters in the Atlantic and Pacific oceans up to 500 miles off the Mexican, US and Canadian coastlines as well as the Canadian Arctic.'''''''''''

OldPhart's picture

Look for China/Russia to tell US to go fuck themselves.

StychoKiller's picture

Aye, China and pretty much everybody else, is tired of playing USA CalvinBall!