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China "Can't Believe Its Luck" On Investment Bank
A few weeks back, we noted that China (via a state-run media outlet) appeared to be adopting a more conciliatory approach when it comes to describing Beijing’s vision for the Asian Infrastructure Investment Bank. The venture, which Washington did its best to undermine last year, has made an unlikely run at taking center-geopolitical-stage even as other, more ostensibly newsworthy events (such as the veritable collapse of the Yemeni state and the ongoing crisis in Greece) vie for the market’s very limited attention span.
And while we, more than perhaps any other news outlet, have gone to great lengths to demonstrate the importance of what is not only a move by Beijing to inaugurate a sino-Monroe Doctrine but to simultaneously start the world on the path to yuan hegemony, we were also quick to note that there’s such a thing as being too successful, especially when it comes to making sure a whole cohort of Western nations who have just gone out on the proverbial limb in defiance of The White House, are left with some assurance that there’s at least some part of the institution which is actually aimed at promoting infrastructure development rather than operating solely as Beijing’s newest foreign policy tool.
Sure enough, as both the NY Times and FT report, China “can’t believe its luck.”
Via NY Times:
The sudden rush to join China’s new Asian development bank by this week’s deadline, including last-minute applications by countries hardly considered Beijing’s best friends, astonished even the Chinese.
Few in Beijing had believed that Taiwan, still considered a breakaway territory by China, would want in. Same for Norway, whose relations with the Chinese have been chilly since its decision five years ago to award the Nobel Peace Prize to a dissident Chinese writer.
But after the deadline, China announced that it had attracted 46 founding members for its new Asian Infrastructure Investment Bank. Among the surprises: While China had expected mainly to be joined by its neighbors, the final tally of countries clamoring to participate included 14 advanced economies of the Group of 20, many of them — like Brazil, France, Germany and Russia — from outside Asia.
“Such wide and warm support was unexpected,” said Jin Canrong, professor of international relations at Renmin University in Beijing.
The last-minute surge to join the bank is considered a major victory for China in a rare public showdown with the United States, which opposed the bank, as the two powers try to outmaneuver each other for influence in Asia. It was also a recognition of economic reality; China has deep pockets and the institutions backed by the United States have not met the growing demands for roads, railroads and pipelines in Asia.
...and here’s FT:
The Chinese government can scarcely believe its own luck. Heaping Asian insult upon Capitol Hill injury, last week Benjamin Netanyahu committed Israel to join Beijing’s new Asian Infrastructure Investment Bank.
While there is no love lost between the Israeli prime minister and US President
Barack Obama, who was embarrassed by Mr Netanyahu’s congressional address on March 3, Beijing could not have expected to attract such a longstanding American ally to the AIIB when it first conceived of the institution at least two years ago.
What began as a seemingly quixotic defection to the AIIB by the UK — the first US partner to turn a deaf ear to American protestations about the bank — has turned into an unalloyed strategic triumph for Beijing.
In other words, the only one tilting at windmills now is Washington, which is stuck between persisting on the idea that this institution is somehow lacking when it comes to Western underwriting “standards” and executing a completely humiliating mea culpa which isn’t really an option given The White House’s steadfast refusal to support the Chinese venture.
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Yeah, whole world swimming in Bucky's!
Who-hoo!
Ain't nobody buying that shit paper! (Insert 150 to 1 leverage here.)
F the Chinks. Out of respect, I did capitalize the word Chinks.
The Chinese should offer the US a non-voting observer only status seat on the board.
The let's see who fucking walks the walk, huh?
Remember, it's all about "face' over there. Like Obamie's photo op out of the main frame with the ladies. "Ouch"
How dare the Chinese harm our beloved Federal Reserve Note! >:-@
50 bucks says Israeli will prove to be the veritable 'Trojan horse' in this dealio...
If only we could do a Grexit style exit from the FRN, and declare our own "Drachma" and only allow land purchases in that denomination.
Plus the Chinese are going to have to learn Hebrew in order to talk to their new banks Chairman...
Talking of languages, "Drachma", from Ancient Greek ?????? (drakhm?, “a drachma”), from ????????? (drássomai, “to grasp, seize”)
UK defection to AIIB happened right after failed apparent US / UK Moscow Spring coup attempt against Putin:
http://www.safehaven.com/article/37130/alleged-russian-coup-attempt-leading-to-breach-of-us-european-alliance-global-currency-market-turbulence
http://www.thenation.com/blog/203193/stephen-cohen-ukraines-last-best-ch...
I (We) have known about the AIIB, the Shanghai Cooperation Organization, BRIICS, and CHIPS (anti-SWIFT), and everything else for months and years. Jim Willie most of all has been telling us about all of this for like the last 3 years and was ahead of everyone I read and listen to about the AIIB all along.
And we've known what these scumbag banksters have been up to for years. We also have known for years what the ultimate plan is with our treasonous government and mafia bankster system: Wipe America out...destroy all freedom and liberty...and pretty much kill hundreds of millions of people, etc. etc. etc.
And of course we all know what Kyle Bass said about killing the dollar: https://www.youtube.com/watch?v=9cjbbt__78U
The destroyed dollar is dead...murdered on purpose as planned from the very beginning....we know the entire world is ditching it because the criminal Fed Res cartel of private owners are purposely putting an end to the dollar after a little ovre 100 years so that they can destroy America and Capitalism completely all together and move the power structure East while taking over the U.S. and the rest of the world...kill nearly everybody while ruling over the few that are left over who will have no fucking concept of liberty and freedom.
Geez, isn't anyone else paying attention?
The Fed Res Note is slavery. The sooner its death and devaluation, the sooner our liberation. But we must first untie our assets from it. It is not America. It is not capitalism. It is tied to the derivatives hairball which shorts actual wealth, including and especially labor, and keeps America enslaved.
China will soon learn that the people wishing to join the bank are mostly there to mooch i.e. borrow big and then fail to pay back.
Debt is wealth creation on both sides according to "hairball" logic.
Macchendra,
I hate the "debt is wealth creation" or "a zero sum game as well" Here are my thoughts:
http://www.debtcrash.report/entry/debt-taken-on-by-fools
China's investment bank is a major blow to US homogony, but to assume the US is going to just fall apart during the next monetary shift is probably a mistake.
http://www.debtcrash.report/entry/us-strength-in-the-upcoming-monetary-s...
pretty accurate summary. whats your point?
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Regarding the topic of China and BRICS abandoning the dollar and Treasury's...
http://econimica.blogspot.com/2015/03/brics-blink-or-more-correctly-wink-and.html
Regarding what China, Russia, OPEC, etc. did with all those excess trade surplus dollars
http://econimica.blogspot.com/2015/02/fundamentally-flawed-chapter-8-10000.html
rats swimming -towards- a sinking ship.
lol^
They cannot help it. All shiips are sinking, some just faster than others.
>> If only we could do a Grexit style exit from the FRN, and declare our own "Drachma" and only allow land purchases in that denomination.
It's called gold. A bank that receives deposits and makes "pay bearer check" payments in millgrams of gold metal (coin), pays no interest and makes a modest (i.e. small) charge each month for having the account.
Oh, yes, I was forgetting, we used to have that. It was called money in current accounts. It ended when the Federal Reserve came into being and money ceased being precious metal coinage.
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
this jerk is like the greeks^
F the Greeks.
Lazy, corrupt, STUPID SOBs will live in poverty for next 100 generations...and we will be laughing
all the way.
living in poverty... drinking cheap wine on the isle of lesbos, watching the action
ah, poverty, what a curse
There is subtle encouragement for the Greeks to become a Nuclear power.
We had to Yuan some folks......
We had to Yuan some folks......
The US earned the loss of the US dollar as the monopoly world reserve currency the easy way: they just went with the philosophy of ME, ME, ME and screw everyone every chance you can.
It's this simple: who has REAL AGGREGATE DEMAND, WINS!
I applaud the author of this post for avoiding racist speech and diction jokes like AIIB, "Can't berieve it's Ruck"
if the chinese will lend the us gubbermint a trillion dollars then yes, their standards are lax and generally suck ass.
A very good point, what is the total Chinese debt? In total, China owns about 8 percent of publicly held U.S. debt. Of all the holders of U.S. debt China is the third-largest, behind only the Social Security Trust Fins's holdings of nearly $3 trillion and the Federal Reserves nearly $2 trillion holdings in Treasury investments, purchased as part of its QE program to boost the economy. http://usgovinfo.about.com/od/moneymatters/ss/How-Much-US-Debt-Does-Chin... What's 8% of $20Trillion, quick?
Round Eye with Black Eye
Maybe they'll offer Obama a seat at the side table, and a plastic wiffle gavel.
Stoopid, repeat post, ADMIN please delete.
China is really missing the boat by excluding the US.
Even the Europeans want Obama and the NSA kicked in the ass. Hell everyone does.
Yes, they are playing a long game of Chinese Chess verse Obama's Checkers, but the leadership really does not understand the vaccum the Fed illegitimacy has created.
The under 40 crowd in the CPS get it, but they have to wait before the hammer falls.
Everything will be fine! Think of all the fast food joints, strip malls, gas stations and Wal Marts Merikastan can put up as infrastructure!! Our monies will crush AIIB! The world just can't compete with our infrastructure!!
Merikastan #1!!!
Unfortunately, it isn't Obama they don't like and it isn't Obama that is gonna get kicked in the ass.
Who really runs the show? Federal Reserve and their owners.
Who is gonna get kicked? US.
You'll never catch these CRIMINALS eating crow...now would you?
we gotta save face boy's...no matter what the price
"many of them — like Brazil, France, Germany and Russia — from outside Asia."
Russia is so FUCKING BIG that it shares borders with Europe the Middle East and Asia.
Sharing 3000 miles of border, as well as Russia's VAST resources, makes them logical and geographical partners.
Talk about "blowback." Zion, using fraudulent-reserve banking and the stock "market," stole the world only to find China in possession of it.
Am I the only one that sees the hilarity?
The banksters need to repay us.
Wealth is to return as loot is to flee.
Yuan: 1 USD: 0(and failing)
Given that Bibi now gives annual addresses to the US Congress, and has them visiting him in Tel Aviv, the US will also be represented at the AIIB via Israel.
Nice. To say we are uninvolved would be a lie.
Who'da thunk it.
Get rid of Washington. Make it a colony of Somalia.
some of those countries have to be moles with a mission to sabotage the bank. there is no way asia will ever make the mistake of letting western banking interests dictate their growth model. that includes all the asian countries. even japan is looking for a way out.
it is funny how the bet seems to be 1% of something is better than 100% of nothing.
do you think israel will be able to get china to protect them?
sometimes good luck follows by bad luck,, by keeping more hope on this bank,, is lot pressure as well as lot countries wants low cheap loans n dont even pay bank n bankrupt,, particularly these european nations having strong history of attacking n looting other countries,, by giving loans to those countries only brings bad luck
I can't believe you people!
I don't care what anybody says, the USA is not out there by itself, tilting at windmills.
Japan is right there with us, tilting away.
But who cares?
What are the IMF and World Bank but a way for big corporations to rip off their own taxpayers? Now the Chinese government has their own bank for ripping off Chinese taxpayers (or whatever they have there) to pay off the big Chinese corporations - and politicians. Whoopee.
And you know why the US has dropped out? Because all the money to be spend on infrastructure development in South Camelcookie was only going to buy Chinese manufactured equipment anyway. So let the Chinese rip themselves off for it.
WHO CARES?
The US 'did not drop pout', they were never in-get your fats straight.
Let me rant just a bit more. I suppose it's a way for a rich country to buy a poor country, to fund development there and establish dominance.
But here's the thing, the Chinese now have the money, and the "responsibility" to do this kind of crap goes with the money. China has always been a bit retarded, in the modern world, about money. They don't know what to do with it. They have no tradition of foreign adventurism, they build walls and live inside.
God bless them, they've volunteered for a turn in the barrel. The US has opted out, for good or bad reasons. We had a pretty good run, as history goes. We're not quite dead yet, but we're strangling ourselves in a closet, for one final thrill. Go for it, China, and good luck.
Howsoever big a star is, ultimately it gets crushed under its own weight. Explodes and then becomes a black hole , unknown.
46 applied, but only 35 will be chosen, 28 in Asia and 7 not in Asia...
yeah but they all will be part of AIIB anyways . those remaining 11 will too going to be part of aiib just with different designation thatsit .
Sometimes ONE question and its Answer END the Discussion:
CHINA is going to back up its $ 25-30 + TRILLION FIAT with What ?
If "Billy Bob" owes $ 100 Million, but only has $ 1 Dollar and Cheng Owes ONLY $ 10 Million, and only has $ 10 Dollars =
Distinction without a Difference.
Then, as always in Human History it comes down to this:
Which Nation has the Fewest People and Most Resources.
Or to paraphrase another here:
Who can Produce the Most "Consumable Calories"/Population.
By the Ultimate Metrics of "Consumable Calories", EROEI, and Resources/Population, who has the REAL Problems Going Forward ?
You See, End of Discussion.
Definitely not with another paper
You forget that China & India combined hold most of the gold in the world.
As well as Goods , Services, Manufacturing, Food Production , Technology
And dont forget the nukes baby.
And BTW , Russian backing is the ultimate insurance
A middle finger for the bankrupt, rotten ,gay , criminal
Western World