Washington will seek partnership with China-led development bank!
WASHINGTON (PNN) - March 22, 2015 - Don’t look now, but Washington just blinked. Pressure has been building steadily for the Fascist Police States of Amerika 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 FPSA/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 applications.
Because the AIIB effectively represents the beginning of the end for FPSA 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 operate in accordance with the proper standards. Now, with 35 nations set to join as founders, it appears Washington may be set to concede defeat
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 FPSA-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. Meanwhile, developed economies 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.
With that, one more leap towards de-dollarization is now in the books.
