Wikipedia – The Asian Infrastructure Investment Bank (AIIB) is an international financial institution proposed by the government of China. The purpose of the multilateral development bank is to provide finance to infrastructure projects in the Asia region. AIIB is regarded by some as a rival for the IMF, the World Bank and the Asian Development Bank (ADB), which are regarded as dominated by developed countries like the United States.
Who has the money calls the shot. That is what China is now doing. Not many nations have that kind of financial muscle like China has today. Most western nations are dead broke. The implications are that their banking systems are in similar limbo, threading on the brink of insolvency. Yet, some of the most powerful financial institutions are intricately supported by these zombie banks and countries. The US sponsored IMF, World Bank and ADB have all about to lose their clout and glory. Will China’s strategic foray with the AIIB be the final death knell on the coffin of western banking power?
Many pundits seem to think so. The days of the almighty USD are numbered. The petrol-dollar game is about to play the Last Bugle as the Saudis begin a new alignment with the East. Once the petrol dollar, aka USD is laid to rest, the status of the USD being the reserve currency of world trade will naturally die. Is it then China’s turn to edge the Yuan into the world’s trading mechanism, thus becoming the second, if not the prime reserve currency of world trade?
After failing to stall its allies from participating in the AIIB, USA has conceded defeat as country after country defected to join AIIB. With its closest ally, UK turning its tail, the US Treasurer Jacob Lew was compelled to play to China’s tunes as the sounds of the Last Bugle fades into oblivion. Lew flew to China to “cooperate” with the AIIB, just a day before the deadline for or countries to apply to become founding members of the AIIB. China Daily reports:
US Treasury Secretary Jacob Lew said on Monday that the United States is looking forward to cooperating with the Asian Infrastructure Investment Bank (AIIB), as it welcomes and supports proposals that are helpful to infrastructure construction.
The cooperation can be carried out through the China-US Strategic and Economic Dialog (SED), the World Bank and the AIIB, and any other mechanisms accepted by the two countries, Lew said in his talks with Chinese Premier Li Keqiang earlier on Monday, according to Chinese Vice Minister of Finance Zhu Guangyao.
Zhu told Xinhua after the hour-long talks that Lew also welcomes China playing a bigger role in international economic affairs.
Lew, representing a bankrupt country, in an about turn and face-saving measure, told his rich creditor that the USA is now looking forward to cooperate with the AIIB. What hubris! The Chinese smiled, and humbly mumbled “谢谢“.
1 Samuel 2:3
Talk no more so exceeding proudly; Let not arrogancy come out of your mouth; For Jehovah is a God of knowledge, And by him actions are weighed.