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China Makes It Official, Launches The Bank That Humiliated Washington
In March, China was “handed a propaganda coup” (to use WSJ’s words), when the UK decided, in the face of loud protestations from Washington, to support Beijing’s efforts to launch a new development bank aimed at filling the gaps left by traditional post-war multilateral institutions such as the IMF and the ADB.
The US claims it has concerns about governance and adherence to international norms around corruption and environmental protocol, but as even the most casual observers are well aware, the real concern in Washington (and in Tokyo) is that China will use the bank as an instrument of foreign policy and as a means of embedding the yuan in global investment and trade.
Here's a helpful recap, excerpted from "China's Global Ambitions Take Shape As AIIB Structure Revealed":
The AIIB is funded by 57 founding member countries (the US and Japan have not joined) and will serve to upend traditionally dominant multilateral institutions which have failed to respond to the rising influence and economic clout of their EM membership. This failure has been exemplified of late by Washington’s steadfast refusal to reform the IMF in order to ensure the Fund reflects the economic clout of its members. Although the failure falls largely at the feet of Congress — US lawmakers’ utter inability to legislate has left reform measures stalled — it recently manifested itself at the Presidential level when President Obama had an opportunity to change the structure of the IMF (for the better) without congressional approval but chose not to do so. Importantly, Obama’s decision not to act was not made out of reverence for Congress. Rather, The White House believed that supporting the reform agenda would have jeopardized the US veto, which US officials at all levels view as sacrosanct.
As China builds its own multilateral institutions, Beijing has been keen to dispel the notion that it seeks to supplant the Bretton Woods order with its own brand of Eastern hegemony and although one can certainly question the degree to which China’s aims are rooted purely in an inclination to be benevolent towards nations in need of fixed asset investment, Beijing is making an effort to distance itself from the way the US governs the institutions under its control.
Despite the best efforts of The White House, US ally after US ally pledged their support for the China-led effort and four months after the UK opened the flood gates, the new bank has become a reality. WSJ has more:
On Monday, the Asian Infrastructure Investment Bank was launched with representatives from 57 countries gathered in Beijing. The bank came together in less than two years amid strong global interest.
Lou Jiwei, China’s minister of finance, called the launch of the China-backed bank a “win-win for Asia” at the bank’s signing ceremony at Beijing’s Great Hall of the People. Mr. Lou said he thought the bank would start operating toward the end of the year. Of the 57 nations present, 50 signed the agreement
Monday with another seven holding out for potential signing later in the year.
Beijing has effective veto power over major decisions via a more than 25% voting share, and some are concerned about how the organization will be managed.
In the lead-up to the launch, China has pledged to operate a transparent, socially conscious development bank that helps meet the shortfall in Asian infrastructure funding and works with existing multilateral organizations.
China has vowed to bring to the bank some of the speed with which it has gotten work off the ground at home. It has also pledged to decrease the bureaucracy that slows projects at existing multilateral lenders such as the World Bank and the Asian Development Bank.
To cut costs and minimize political jockeying, the AIIB will have a nonresident board and focus on technical decision-making, according to founding documents and people close to the bank.
And here's a bit more color from The Washington Post on the signing ceremony:
Underscoring its growing global heft, China launched an infrastructure bank for Asia on Monday, receiving the backing of 50 countries for an initiative that seeks to boost the region’s economy but also put Beijing at the center of its development.
Representatives from Britain, Germany, South Korea and Australia were among those who took part in a ceremony to sign the articles of association in the Great Hall of the People, with the United States and Japan the most notable absentees.
Many U.S. allies joined the Asian Infrastructure Investment Bank (AIIB) on Monday — despite Washington’s initial objections — in what was seen as a major diplomatic victory for President Xi Jinping.
Finance Minister Lou Jiwei said Monday’s ceremony was a milestone and “a first step in an ‘epic journey,’ ” meant to deepen regional cooperation, boost Asia’s infrastructure and support the global economic recovery.
Among the other big investors are India, which has a 7.5 percent vote share, and Russia with 5.9 percent, followed by Germany and South Korea. Major decisions require 75 percent agreement, giving China veto power, but this may change if shares are diluted as more countries join.
(the Russian delegate signs on the dotted line)
And so, it is now official. China has created and launched a supranational lender aimed directly at supplanting the US-dominated institutions that have defined the global economic order for more than a half century. Despite criticism at home and abroad, the US has largely clung to a strategy that aims to undercut the bank by casting aspersions and claiming the institution has little relevance beyond what is says about Chinese ambition.
As we said earlier this month, "in the AIIB, the US faces a far greater threat to its position in the global economic order than anyone in Washington dares to admit. The smear campaign (that's really the only way to cast it) aimed at painting the new bank as relatively small and meaningful only to the degree that it symbolizes China's global and regional ambitions is profoundly misleading. This is not a pet project for Beijing and the founding members are not pledging hundreds of millions so they can play a part in petty Chinese theatrics. The bank is real. The sooner Washington recognizes and accepts this, the better off it will be in terms of helping to repair the reputational damage the IMF and ADB have suffered as a result of American and Japanese belligerence."
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First client Greece!
SCOTUS legalized all illegals voting in the next federal election. Everything that happens henceforth is moot....
Welcome to the Chinese century.
Remember: it was the Chinese that invented paper, paper money, printing, and money printing. You ain't seen nothing yet.
China is the originator of Capitalism and it's rightful master.
and gunpowder to back up all that paper.
Plus the compass to guide the army.
The 21st century is going to be so epic.
Chinese also invented being invaded by foreign powers like the Mongols and the Manchu, made to shave their hair funny as an act of submission, then ruled for centuries by non-ethnic Chinese that lived on EBT while the Han were too pussy to revolt.
And only then do we begin talking about Japan and European masters... China has spent more time in servitude to foreigners than free. I doubt you even know what to do without a master.
Last Chinese attempt at warfare was Vietnam in 1979, and lost 60 thousand dead in three weeks. Lol.
Can I have a roan to BTFD?
They actually are, you know. From -4.6% to +4.3% so far. I guess those umbrella factories make some good stuff. Who knew?
Interesting that they also knew how to build a wall.
being invaded by foreign powers is not an invention
. Moreover they are not the first one to be invaded . In past weak nations were nations were always prone to invasion .
But Han China invented a particular style of how to be conquered. Meekly and for centuries. No other ethnicity had ever allowed themselves to be enslaved like that.
Did you know that the Manchu ethnicity families in the Qing period were paid a tribute in silver each year, having to do no work to feed themselves... for centuries? Meanwhile the Han Chinese had to support their conquerors. It probably wasn't much different in the Yuan, either.
Westerners never know this, because they think all Asians look alike, and therefore no one conquered China before them!
some comments here, like Dindu Nuffins', pose the serious question of the age and level of education of their authors.
Twelve? Only TV?
The fact that you have no idea what I'm talking about suggests that you are American-born and American-educated. Eat a doniut and get gay-marriaged. Leave intellectual stuff to your Jew masters.
Yes and say bye bye to the Jewish century!
Israel is in the list of 'other non-regional members'. I wonder ow much the US has ponied up so Israel can join? (<< $3.4 billion)
This was today. SCROTUS is totally compromised like the rest of Amerika.
If you have a kid or relative in the military then you are a fool to let them stay in there.
China and BRICS new bank to - ZWO Nuland - F You!
You can not save the mass, they will fight to protect the system that is detroying them.
What they're really fighting for is to keep their own pensions solvent.
Maybe for you in the USSofA.
I can well imagine Valerie Jarrett and Barry Soetoro dancing a insane jig around the Oval Office. They have succeeded. The destruction of America is now complete. Saul Alinsky and Frank Marshall Davis would have been so proud.
say..., how is that "Hope and Change" working out for you?
But can I transfer my existing card balance to AIIB Platinum Card with 0% APR for the first 24 months?
No? Then fuck you.
Not even a toaster?
It is already laughable to watch the US spin this...
Start connecting the dots people.
You can forget QE, CB market support, etc. The US is destined for the trash heap.
Maybe the US can join, get in on the action, they have a few chairs left all the way at the back, China gets the veto vote, Asia partners will vote as a bloc, so Kerry or Lew or whoever we send can maybe try to drum up support from France (lol) or Saudi (lololol) or maybe Iran (lololololol)
I'll join. Do they have an ATM in Pittsburgh?
No, but they are opening a few in Athens.
Awesome!! Another central bank. This should fix everything.
The U.S. hasn't joined, yet it's capitalization is described as $100,000,000,000. ( in U.S. currency)
Seems odd.
maybe not so odd considering that China might want to divest a bit from the few trillion USD in US treasuries it holds.
actually just about $1.263 trillion
.....adherence to international norms around corruption....."
This is where I stopped reading. Can you imagaine this coming from the mouth of the Kenyan?
No I can't believe that.
But it reminds me ... I did get an email a few days ago from a young Nigerian, son of a wealthy family, whose $20 million is somehow trapped in government red tape and he [most generously] requested my help to get it out and I would be rewarded with half of that amount.
All I have to do is send him all my bank account information, ss#, dob, grandfather's middle name, and my zh user name and password, and forward the meager sum of $1,000 [for paperwork].
Can you beleive THAT!
oi vey
the wh says they're worried about banking corruption? that's the funniest thing i've ever heard.
They're worried it's not corrupt enough.
It's been a bad week for the West, and it's still Monday!
Doesn't the world have enough communist/socialist bankers already?
Excellent point.
Ours are better, though. You see, we have LGBT communist/socialist/totalitarian bankers/politicians!
CLIENT: I want to take out a loan to open an Obamaphone store.
WESTERN BANKER: What can you put up as collateral?
CLIENT: Well, I have two assmaster butt-plugs and an original John Holmes sensa-feel dildo.
WESTERN BANKER: Do you have a 'rainbow' bumper sticker on your car?
CLIENT: NO, but I voted for Obama, twice, and Hillary's my choice this time.
WESTERN BANKER: Have you ever heard of Mr. Janet Yellen?
CLIENT: 'Tee-hee-hee!' Is she REALLY from the Tribe?
WESTERN BANKER: Sign here, please.
Obama coffee... weak, and black.
. Dammit, Scotty. Would you get those WARP Drive Engines fixed, so we can beam up and get TFOOH?
OCH!
I've GOT to have a space-dock, and AT LEAST THREE MONTHS with this garbage-hauling HULK! Do ye excpect a MIRACLE from me, Captain? I'm only ONE MAN!
However,
I DO have one bank of Phasers recharged. Would THAT help ye?
future historians will label the end of American Empire with today's date.
Plus or minus a leap second...
Here in the CONUS, we will only get this news after Brian Williams, LIVE from Bejing, has issued the official story.
Did you know that his helicopter was hit by a Russian-made RPG used by Al-Quaeda AND ISIS while on the flight over 'enemy territory'? it was a harrowing 15 minutes of fame, but we expect that he is all right.
(CUT to theme, with drum-roll and typewriters):
https://www.youtube.com/watch?v=ydQBSB6sDjc
:)
The Queen's revenge.
yes Britain, you can play them all off against each other.
I know you have influence with Russia. Act as a facilitator for a Russian rapprochement to the EU, use that as a bargaining chip to extract very favorable conditions ahead of your "Brexit" referendum. Keep the US at bay by threatening to move closer to China.
You are holding a good hand of cards. Play it well.
The last thing Russia needs is help from Nazi-supporting UK (aka US poodle). German business leaders are furious with Merkel over the destruction of Russian-German trade, so reapprochment will come automatically once Merkel/US falls apart. Europe also regards the UK as the agent of the US in any EU discussions.
It sucks rooting against your own country.
It does, that. But then again, I'm not rooting "against my own country" because what has the same name seems more a lawlessness feudal fiefdom which I all but don't even recognize from a moral and ethical standpoint, anymore.
So I'm not rooting against my country. I'm actually rooting for what I would like it to be, as it was.
Think Obama can dig up that old " Mission Accomplished " banner that Bush strung up on the carrier?
Or would he just order a new one, Made in China?
A new one? Flag or carrier?
Time passes here on Earth, and the empires of the world crumble to dust.
Each successive one was more hopeful and promising than the last, but yet ended up doing more harm than the last one did.
I WOULD that this truth could be different than the REALITY, 'knukles'.
The NEXT one, the RISING BEAST from the EAST, will be the END of this timeline. It's not a strange notion, if you study TRUE world history (for as long as Mankind has occupied it). The principles and laws of the Constitution and Declaration of Independence have been overrun by those whose long-term strategy was to DESTROY them. LOOK, and BEHOLD, the CURRENT SENATE passing authority for Obama the Usurper to negotiate the TPP! How many MORE examples would you like to see?
The way it 'was' was actually pretty good for Mankind (UNTIL the FEDRES usurped all Constitutional Power and bought the politicians and put the populace under the 'spell' of 'riches and control'). There was a SPARK of hope (but it is quenched).
Of course, it was predictively programmed. LISTEN from a 1977 release from BMI:
https://www.youtube.com/watch?v=cnijc9wNpV4
I'll have to dig out this album again, and listen once again (like I did back then). Bunch of crazy tin-foil-hat-wearing left-right 'conspiracy theorist' underground 'one-hit' wonders...
BEST ENDING RIFF known to mankind, 'Zippy the Pinhead'!
I'm right there with you (I got your six). if I take Point, I hope you will be there on my six.
It never hurt to root for the Washington Generals but you always put your money on the Globetrotters.
I'd love to see America's ship righted, but I got to put my money on China. I have said it before here, China may be hailed as "free" America's savior when the world shakes out of this turmoil.
Yep your bad news is great news for the rest of us. Well not everyone you've still got Israel and Lithuania rootin' for you.
Israel is a non-regional member. So it's down to Lithuania.
Mr. Franklin..we have lost the Republic.
Ironmann - The founders knew this was inevitable, especially Thomas Jefferson. What they didn't realize was that technology that government controlled would get so powerful that the only revolutions that could be successful would be ones like the Russians where pretend pay is met with pretend work.
In other words the vast majority becoming so poor the jackals largely focusing elsewhere for more fertile grounds to loot. We get to further become like Mexico but a still big military or have a world war with nukes.
Either way I'll keep dancing until the slowing music stops and continue to hedge. I like the commentator that states that chance favors the prepared. Also have gotten a lot healthier and mentally hope for the best but prepared for the worst. I'll still have a little fun too in this dark carnival cycle.
Man is on the verge of some incredible break-throughs. I would like to see a few implemented before the great dirt nap.
Every dog has its day. Or for 2015 should I Say goat?
with all of the big guns in europe joining in the face of US advising against it and all the US sabre rattling towards russia and china, one really has to question how the sides will be drawn if the ziocons ever get their newest world war, perhaps germany and france wont fall into place as expected.
Europeans have been murdered in war$$$ for centuries by the z-banksters$$ZZZ.
Maybe they will wake up and start finding out the who those zoligarchs are and start dealing with them.
Very very soon, the United States will stand alone in the world, completely naked.
Naked not as Uncle Sam or Lady Liberty but as Kaitlan Jenner. Pathetic country.
Keep watching TV and Zollywood's shit. Your viewership supports them.
pfft. have fun with your bank.
a little late to the party...just in time for everyone to figure out that mega debt can never be fully repaid due to mathematical impossibilities.
everyone else is going to be developing an alternative to banks and banking.
It's not about earning money off the megadebt here at all.
AIIB is all about having mass-international support to show legitimacy when jumping into infrastructure projects. Guess who will be winning bids? Guess where the projects will be done? Guess who will give debt forgiveness as a political tool? The west won't be able to bitch about it much because there are western stakeholders. China will get the new silk road built, it will have "international support" the entire way, and in the end China will essentially own it. China put in $30b to get $100b of finance for what will primarily be China-led and China-built projects in the interest of China.
Debts will end up being paid off by China, either directly for power plays, or indirectly with the debtor nation paying it off with resources. It's still a LOT better than the fucking imf or world bank or any of that other vampire shit.
I'm rooting for the white walkers
I find the name 'Asian INFRASTRUCTURE INVESTMENT Bank' quite interesting.
I am wondering what infrastructure is to be invested in; and where. You know, 'roads and bridges' and stuff like that.
PERHAPS, they are working on an 'IMF', part two. YOU KNOW, get poor nations to take out loans at exorbitant interest, and then forment an overthrow and societal chaos, and then call the note (with an offer to take over the entire nation on behalf of the corporate entities that built the 'infrastructure' for 'debt forgiveness'). CIA, where ARE you?
PERHAPS, they are building a BANKING infrastructure. YOU KNOW, taking over the issuance of currency worldwide, with the initial backing of gold and silver; only to create a 'crisis' and buy politicians to give 'emergency order' edicts that outlaw the use of the metals (FDR, 1933, and the FEDRES).
PERHAPS, it is investment of the currency infrastructure to fund the coming one-world totalitarian socialist government model (they tried it in CONUS and almost succeeded, but there was, ultimately, too much resistance by people who were clinging to their God and their Guns).
SINCE BRITAIN is in on it, I ASSUME that the ROTHSCHILDS (owner/operators of the Bank Of England) are at least agreeable (if not promoting it). IN FACT, they are hedging their bets, and intend to ultimately use the PLA like an aggresive ('roided') man uses a two-bit whore (but don't let the Chinese know!). AH, the CHINESE have such LONG memories... the OPIUM WARS seem to have been forgotten, though (at least in the foolish minds of the planted 'eastern Zionists' who have run the country since '48 or so).
TMI?
PERHAPS, it's all speculation on my part.
Have you ever heard of WTC7?
Yuan it, or don't Yuan it.
I think the 'You Wan' has rather a nice ring to it, wavver Dan dohwha!.
....a rather nice wing to it.
Fify
We had better start toning this shit down. Our new masters might not think its funny.
They've been known to hack.
"A rather nice wing to it"
I wish I'd said that
"you will Oscar you will"
Ta for the fify
Mick ('the Lip') Jagger and the 'Stones' understand your dilemma.
You can't always get (what?) Yu'an(t).
If you try sometimes, the expression 'YO! WANG!' will be when you 'get what you need'.
I see a bipolar exit from two of the PIIGS nations (Greece, and Italy, almost in harmony). Iceland left a long time ago (and is currently hanging the bankers). Portugal and Spain are, well, like two fat lesbians on disability, looking for their i-phones in the mounds of flesh that they call 'bodies' in order to send an 'SOS' to Frau Merkel.
I see that FRANCE is falling quickly, as well. SHIT.
I was going to link to the Rolling Stones song, but these guys were way too compliant, even when they 'sang'.
HERE is a little QUEENSRYCHE, instead:
https://www.youtube.com/watch?v=YVWxrlc6eOg
In honor of those masses in Greece who decided to Grexit one second AFTER the emergency.
100 billion is nothing. The will go towards whores and partying up. If China starts a war with Washington they will regret it, and will go back to the century the US decided to pick them up from after saving their ass from Japan.
i bet the true owners of the US have bets on China's gonna win the war.
hey already have their luxury apartments lined up.
I understand there are entire cities available...
Meanwhile, back in the US, the popular conversation centers around gay people getting married and the confederate flag hung up in South Carolina.
In a very real way, China is doing what the US should be doing and the US is instead waging wars, trying to set up global corporate government surreptitiously and calling people names.
Impotent things are impotent.
'THIS' is 'THIS'.
It ain't 'THAT'.
I'm glad that's settled.
NOW, would someone FINALLY tell me what the definition of 'IS' is (legalistically and shit)? I've been waiting since the 1990's!
GOD, I'm SO stupid... The PTB's are SO MUCH SMARTER than I am... White Horse attorneys, and especially Billary Rodham...
Ain't nothing going on but the rent in America.
Americans are too broke and angry to take the mainstream seriously anymore.
30 round pitchforks and molotov torches may not be far off.
Molotov nothing.
It's against the law to put class one combustibles into glass containers.
That's not very much.
https://www.youtube.com/watch?v=cf7uJDhVZIE
BarackHomObamma : "OhMyAss, The AIIB bank has chemical weapons , the weapons of mass destruction, WMD, which is a grass violashun of yummaan rites, derefore , bom' China , and grab deir gold , an' shut down de bank".
As Western nations we need to make sure that the cabal is involved with the entire process - especially as it relates to who gets bank financing, who controls the press releases, and the "international composition of the bank's leadership" to ensure that the interests of ALL parties are represented. That's why the IMF and the world's central banks have been so successful.
China needs to evolve into a multi-cultural society or it will die, and it needs the cabal to help it embrace diversity.
The cabal will be resented for this leading role in the transformation, but without cabalist leadership, China will not survive.
I wonder if Barbara Spectre is free?
https://www.youtube.com/watch?v=MFE0qAiofMQ
Thats a great news. Notice Ukraine missing in the list ;). Also east european countries but those may rejoin later. I am also surprised whole south america isnt covered already, they should all join. But overall its a good start. At the end of day it will be US, Japan and Ukraine against rest of the world lol ;).