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China "Is Not Another US", Does Not Seek "Yuan Hegemony"
Regular readers are by now well versed on the recent developments surrounding the launch of the China-led Asian Infrastructure Investment Bank, but for anyone needing a refresher, here is what it’s all about:
...the China-led development bank essentially marks an epochal shift away from traditionally US-dominated multinational institutions like the IMF and the ADB. Meanwhile, it also represents an implicit attempt by the Chinese to usher in a kind of sino-Monroe Doctrine and solidify their regional — and, to a certain extent their international — ambitions. In a desperate attempt to undermine the effort and preserve what’s left of US hegemony, Washington aggressively lobbied its allies last year to refrain from supporting the effort. Then the UK decided to join calling the bank an “unrivaled opportunity.” That effectively opened the floodgates and in short order, a bevy of Western nations and close US allies suddenly reversed course and indicated they were likely to support the new institution.
Over the past week or two, the mainstream media have picked up on this narrative and repeated it ad naseum, making clear to anyone who’s picked up a newspaper in the last 14 days that the Bretton Woods era and US dollar hegemony are now squarely confined to the annals of history. While we think it’s certainly important for everyone to wake up to the fact that a tectonic shift is taking place among the world’s multinational institutions, we suspect that for China, the cat may have gotten a little too far out of the bag. You don’t, for instance, want to risk alienating the Western nations who have just recently thrown their support behind the venture by reinforcing the idea that the whole endeavor is nothing more than a $100 billion Chinese foreign policy instrument (especially when it is). To this end, The Global Times (a paper run by the state-controlled People’s Daily) is out with a story which purportedly describes China’s benign intentions and altruistic aspirations from the AIIB.
From The Global Times:
The establishment of the Asian Infrastructure Investment Bank (AIIB) has been depicted by a few overseas media outlets as if China is building its own version of the Bretton Woods system.
The bank is not yet in operation, and it will take time for people to come to grips with its purpose. However, overblown hype from foreign media claiming that China is seeking financial hegemony could create preconceived notions for people who are not familiar with it…
Some foreign observers claim that the AIIB is the beginning of the Chinese yuan's hegemony. What they are actually trying to imply is that "China is another US."
This kind of statement is nonsensical, which uses historical experience to fool readers. It is divorced from the truth and shows no common sense and doesn't stand up to any scrutiny.
Through the Bretton Woods system, the US was able to wield supreme influence over its allies which had been severely battered during the war. China today is in a totally different position.
Founding the AIIB is only a China-led initiative. Over 30 countries from Europe and Asia have so far applied to join, some of which even have territorial disputes or political divergences with China. They are not courting Beijing, or pushing yuan hegemony. What they are pursuing is the win-win principle of cooperation.
The AIIB will not confront the WB or IMF, nor will it turn the current international monetary order upside down. The spirit of the AIIB is diversity and justice.
International relationships are entering an era of democracy that means pursuing hegemony is a wrong path whether one is an existing power or a rising power.
China always maintains a low profile when it comes to showing the strength of our nation. Moreover, the Chinese media resists the hype over describing China as "number one" or a "superpower”...
The Bretton Woods system is a product of the old days. The new global trends created the AIIB and there is no room to look back to the old days of one currency's hegemony.
So to summarize, China is not seeking to establish yuan hegemony and doesn’t seek to upset the existing balance of power in the world and in fact, doesn’t even like to be called “number one.” While some of this may be true, one needs to consider the source here as this certainly appears to be an attempt on China’s part to make all of the bank’s new Western recruits comfortable with the their decision to join in the face of Washington’s “you’ll be sorry” rhetoric.
Of course actions, as they say, speak louder than words, and on that note, we’ll leave you with the following from Bloomberg:
China plans to push for yuan to take prominence in loans under the Asian Infrastructure Investment Bank and the Silk Road Fund, people familiar with the matter said.
China may encourage $100b AIIB and $40b Silk Road Fund to issue loans directly in yuan or set up yuan-denominated funds under the two institutions, according to the people, who ask not to be identified because deliberations are private.
People’s Bank of China didn’t immediately respond to faxed request for comment.
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De-dollarization is complete.
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Not yet.
Right. Another take on I promise I won't cum in your mouth.
LOL, "they will just put the tip in to see how it feels"....
China is not seeking to establish yuan hegemony and doesn’t seek to upset the existing balance of power in the world and in fact, doesn’t even like to be called “number one.”
Said the spider to the fly.
LMAO
To fight and conquer in all our battles is not supreme excellence; supreme excellence consists in breaking the enemy's resistance without fighting.
Sun Tzu
The other side of the coin, (pardon the expression), is that China is probably pretty tired of seeing its #1 customer devaluing the currency used to pay it by not insignificant percentages.
"No, I think you'll be using "house money" from now on."
It's just the beginning of no longer taking crappy markers from your junkie customers.
So what happens when you peg your currency to your customer's shitty currency?
You do that so your products don't rise in price of your customers' currency. It only works for a while, but it works long enough to a) wipe out the manufacturing competition in your customers' home country and b) sell your rpoducts until your customers' currency becomes irrelevant, (coming to a country near you real, real soon). After that, it won't matter. You use the customers' piles of currency to buy their country out from under them.
It's not impossible that the statement is true. The key here is yuan hegemony. You know, if the international reserve currency switched to something that wasn't the yuan or USD and China just happened to have a big stockpile of that reserve currency... They wouldn't be lying.
Triffin dilemma anyone?
That's a difficult promise to make, Knuckles.
Speaking of knuckles... Which one is Rocky & which one is Drago?
Them Damn Sneaky Chineee...
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
China knows this shit show will fall on it's own trajectory, no need to interrupt it's path.
The gentle force approach will be much deadlier to the dollar than the forceful way. Everyone has had it with the US throwing its weight around, if this is seen as a more benign alternative dedollarization will happen within months.
Dunno why the fall of the dollar is seen as a shock. No currency dominates indefinitely, and the US dollar is no exception. They fall from grace for a multitude of reasons...er, most of which are playing out in the US right now.
Move along, nothing to see here.
china-nachi cheez
So is it or is it not a "threat"? Constant disinformation and contradictory information just pours out of the "news" 24/7. That IS the system. http://www.thetruthaboutthelaw.com/they-promote-every-side-to-constantly...
Sounds like it is time to move in with swat teams, navy seals and paramilitary forces to arrest the FED and prosecute them for treason.
AIIB, China's push for Asia-Pacific economic development
A basket of commodities. Nothing else makes sense.
Over the past week or two, the mainstream media have picked up on this narrative and repeated it ad naseum, making clear to anyone who’s picked up a newspaper in the last 14 days that the Bretton Woods era and US dollar hegemony are now squarely confined to the annals of history.
I thought Annals were round.......
Duh. They quietly seek world military and economic domination. Currency hegemony will simply be the by-product.
The plan is that China and Russia are to conquer the West. Simple as that. Then Russia will betray China and we will then have the long-planned World Soviet.
This because the vast majority of the world want nothing to do with God and His good commandments. Therefore, they can have, full measure, the slavery and horror that results from excluding their Creator. And this in an effort by God to call them back to Him.
See, now, I think I'm going to have to go ahead and disagree with your thesis. I highly doubt that God is interested in today's geopolitics. That smacks of the radical Muslim view, which I'm absolutely sure is garbage.
'Murikans can only think in terms of hegemony, "moar" and "me, me, me first".
The Chinese only want to make plenty of money. They've never wanted to dominate anyone and can't even see what domination is good for, when win-win trade makes more dinero.
See the problem? It's another culture, and if there is one thing 'Murikans can't understand, it's another culture. Anything that's not them is beyond their mental capacities.
Why did the Chinese .... aggressively invade North Viet Nam .... at the end of the Viet Nam War .... brotherly love ?
China "Is Not Another US", Does Not Seek "Yuan Hegemony"
Wait until the Rothschilds sink their fangs into them.
......Sure whatever you say.
This paragragh pretty much sums things up. Capitalism at it's best, from a communist country. Survival of the fittest, and the most cost effective, & efficient ways of bringing quality product to market, are the hallmark of CAPITALISM! Not to be confused with crony capitalism, or political favoritisms.
Founding the AIIB is only a China-led initiative. Over 30 countries from Europe and Asia have so far applied to join, some of which even have territorial disputes or political divergences with China. They are not courting Beijing, or pushing yuan hegemony. What they are pursuing is the win-win principle of cooperation.
ah yes....
the old "needle wrapped in silk and shoved up the US's bitch ass routine...."
lovin it.
1915 Russian peasants discover Communism .... 2015 Canadian students discover Communism .... 2015 China toys with Capitalism .... after being deceived by Russian Socialist idiots !
2015 America starts WWIII for no better reason than it can.
Why can't the Japanese government .... protect it's citizens .... from Hiroshima/Nagasaki .... and Fukushima .... haven't they learned anything ? They knew the bombs were coming .... but they didn't warn the people .... to save face .... but the people lost faces .... Chernobyl was another despicable cowardly deception !
Equating Hiroshima/Nagasaki with Fukushima is ridiculous. That said, why did the US drop two bombs on Japan (and, please, no crap about saving 1,000,000 American lives)?
As for Fukushima, as I pointed out in a different article, the Japanese government is controlled by the US. Few want to remember, but there was tremendous pressure from the US and the nuclear industry to downplay the incident, especially the aftermath in order to protect the nuclear industry. Evacuation was delayed and attempts to promote the safety of the area was premature.
Of course, Japan's nuclear industry was pushed on it by Eisenhower who stated that the Japanese were ignorant about the benefits of American nuclear technology and created a policy of propaganda to make the people accept it, even as people were still walking the streets of Japan with scars and illnesses from those bombs. One can argue that they were not that ignorant after all. The Japanese leaders of the time literally owed their lives and careers to the Americans and so they sold out their people in repayment (all by post-war design).
Japanese leaders are still tethered to the US. The last PM who wanted to change the alliance was ridiculed by Obama and run out of office by the American hands in Tokyo.
Having briefly explained this to you, what does Japan have to do with this article and, specifically, my comment in response to yours? Or is this just your lame attempt to demagogue me and my comment?
Lastly, why didn't Roosevelt warn Pearl Harbor? He knew about it in advance, didn't he?
"De-dollarization is complete."
People keep saying/writing that. And yet, I have done 100% of my transactions in the past year in dollars, including the transactions I did physically in Mexico and with merchants in other countries, I have not even *seen* any other currency, and I live a couple of hours from the Canadian border where we get regular visits from serious Canadian shoppers. Whenever companies, even multi-national ones, want payment for something, not only do they prefer dollars but there simply isn't anything else they will take in most cases.
Yet, of course. It'll happen, at least in part. But people saying it is already complete are, I think, getting ahead of themselves. By a lot.
I used to shoot the breeze with like-minded people who all subscribed to some version of the prediction that there would be some sort of big crack-up, but had vastly different ideas about how it would go down. This started in maybe 2006 or 2007. At that time I figured it would be a sharp, fast, grand kerboom that would take our breath away. And yet here we still are, as then, with the hyperventilating alt-media assuring us that the dollar is dying or dead, the blue helmets will be invading any day now, the debt is understated by 243 kastrillion bucks, and all the other same old themes. I've gotta say, my opponents in those debates were right on the money. This is dragging out in the longest, most painful possible way possible. In 2008 we could have let the fireworks go off and by now we'd be approaching "normality" again. As it is, we've papered things over so much and it's still rolling along...I have to wonder if this can't go on for decades longer before something snaps in a final way to herald the Grand Reset.
Eh. Just as well. If things had gone as I had expected in 2008, my family probably would have been totally screwed. If it happened now, we migh tmake it but it would be very tough. Give me a few more years and if all goes as planned, we'll actually be comfortable for the duration (unless it lasts 10 years or something). There's something to be said for a long, slow fall.
Any commodity is valued at the margin, including currencies.
Adding another reserve currency into the mix reduces the demand for the other reserve currencies, currently four (soon to be five):
Li vows reforms to help Yuan be World's 5th Reserve Currency | The BRICS Post
http://thebricspost.com/li-vows-reforms-to-help-yuan-be-worlds-5th-reserve-currency/#.VRE4I-FE5f0
aardvarkk, IMHO, FRN will be internal "dollar" for a while......until US (not USA corp) decouples from the Fed.
Some new Bullshit "dollar" will play outside our borders. Amero...or what ever.... That's pretty much the only way tptb can get by without tanking everything.
Even playing nice the FRN is gonna get a 30% haircut minimum.
Transitory. China is not ready today to be a trade deficit nation. In that sense the Yuan could not replace the $ for quite some time. But the world managed to live without a reserve currency for 4 billion years, it can survive without one again.
Certainly not, especially with a...em,...cough.. Trillion & half surplus of fizzling US T/Bills.
"The spirit of the AIIB is diversity and justice."
Yeah, okay. But a word to the wise, the soap? Don't even think about it...
The American Ponzi is awesome .... and we are not done with the stupid socialist world just yet .... and when hard money returns .... we will be the vanguard .... it's just not fair .... American Spring is coming !
Yuan Hegemony .... Yawn Hegemony !
It doesn't matter what the Chinese says the IMF and WB both know that their days are numbers.
Reserve ? Currency ? Isn't that an oxy-moron .... like Later Now ? Yen baby, help me .... I'm flailing ! I feel like Fonestar .... at a meeting of economists !
The Ukraine, South Korea, Japan and Viet Nam need our protection .... from the Russian Bear and the Chinese Dragon !
china could give 'two-shits' about being #1... period!!!
it waits patiently as the ussa gets bogged down in the ME, af/pak, esp. iraq...? russia, for its part is working its magic in the former satellites, and has for now all that is needed in eastern ukraine!
think? yes, the 'second persian gulf?' right smack in the s. china sea with its malacca straits which gives china the maritime-sextant into the indian ocean... just over the horizontal-event in ?australia?.... from prying ussa exceptionalism.this is no secret, or mystery i'm talking but what foreign affairs strategist have talking since the year 1949? this is called today, the 'asian mediterranean', and for a 'know?good!reason', other than the ussa caribbean/ panama/monroe doctrinairy?
eventually china will become the regional hegemony of the entire eastern-hemisphere-- and, quite content with just that! also think geopolitical-strategic-geography if and when taiwan and japan bubbles-pop... throwing in the towel, esp., if japan and taiwan have a sub-pression with the only economic savior being china. today, taiwan does ~35% of its trade with china with ~42% of its exports going to the mainland only one-hundred miles away. japan also counts on china but not in the trade-monstrousity of taiwan.
cheers
jmo
ps. the ussa has nothing to worry about except denial of lost history, opposed too rethinking the 21st century and the dynamics of geopolitical evolution...
The Malacca straits are not the same choke point that The Strait of Mormuz is.
Put simply, Malacca is just the shortest route for transit. You can go south around Indonesia ... at a slightly higher cost. But the Strait of Hormuz is the only route available for 17% of the worlds oil ...
a no-brainer indeed! what i'm talking is the 'island chains... aka. #1 & #2', of future contention. china must smooth out diplomacy with floating islands known today as countries, but still just a consolidation of 'poke-a-dots on the 'world map'... as is indonesia's archipelago? japan and taiwan are huge for their future.
'patients is a virtue', and the chinese have an abundance of it!
today... 3/27/15 "Joint Statement on Strengthening Comprehensive Strategic Partnership between the PRC and the Republic of Indonesia"
http://www.noodls.com/view/8885CEAFAF48E2F55CA0248E3D8C24D1009B3AC3?7274xxx727426205
The IMF's SDR will be the new World Reserve currency which consists of a basket of currencies. Everything China is doing is designed to be included in WB/IMF SDR Basket. China just requested to be included in the SDR basket. Read about it here: http://thebricspost.com/li-vows-reforms-to-help-yuan-be-worlds-5th-reser...
The other world leaders are sick of the America's Hegemony and they want an alternative to the USD. Also, other world leaders don't want to crash the system either. The alternative is the multilateral SDR through the IMF / WB.
Watch, China will UNPEG from the USD this year between May and Oct. The IMF wants the new system running by Jan 1st 2016. Not sure that will happen but that is what they are striving for. Also, keep an eye out for the USA losing it's VETO in the World Bank.
Remember back in May 2014 when Christina Lagarde gave that strange speech about the magic number 7. I'm pretty sure that part of what she was referring to is the number of world currencies that the WB / IMF wants in the SDR basket.
So this has to mean that Wall Street's principal carpetbaggers are once again packing those bags and heading off to more profitable times in Beijing. Nothing left in NY for them now but the husk.
Most folks are not aware that the Bretton Woods agreements did NOT establish a dollar hegemony. It was a fixed-rate regimen with settlement of net ending balances in gold. At that time trade volume was a tiny fraction of today's, and most govrnments maintained exchange rate and capital flow controls. Naturally, the dollar was pre-eminent and many countries fixed their exchange rates in terms of dollars. It was not until the late sixties that the US trade deficit became so large as a result of Lyndon Johnson's guns and butter policy that Nixon decided to cut all ties to gold settlement and let the dollar float freely in a regimen of free and fluctuating exchange rates. It was only at that point that dollar hegemony began, wiith the aid of Saudi oil pricing. I mention this to demonstrate that the US can "live" in a world not dominated by the US dollar as the sole reserve currency. To return to the system of the 50's would be not only possible, but desireable, even though it would, on a medium term basis, be very disruptive.
Not only live, but thrive, and in accordance with its original raison d'etre, not to those of its late 19th and 20th century proggie "imports".
No surprise that Eastern propaganda and lies are the same as Western propaganda and lies.
They're all Junckers in the end.
In for a penny, in for a pound. Even if they don't have designs for it now. Somethign down the road would "force" them to take the leadership role (hegemony).
The New millennium starts in 2016
with dollar gone
Bullshit. They want to be the world's new reserve currency.
I was not China invading Vietnam. It's the other way around. Veitnam invded China's border after the Vietnam war with the help of China. China fought back and pushed Vietnamese back to the original border (quick in and out).