Friday, 24 October 2014

China Launches World Bank Rival

In another step to taking over the whole shebang, China has launched a new World Bank rival with a memorandum of understanding signed with 21 Asian countries in Beijing Friday.
The bank is to offer financing for infrastructure projects in Asian countries but Australia, Indonesia and South Korea were absent from the signing ceremony following pressure from Washington.
 The Australian Financial Review said US Secretary of State John Kerry had personally asked Australian Prime Minister Tony Abbott to 'steer clear' from joining AIIB.
"Australia has been under pressure from the US for some time to not become a founding member of the bank and it is understood Mr. Kerry put the case directly to the prime minister when the pair met in Jakarta on Monday following the inauguration of Indonesian President Joko Widodo'.     
Matthew Goodman, scholar at the Centre for Strategic and International Studies in Washington DC believes the Bank 'represent the first serious institutional challenge to the global economic order'.
I'm not sure what this all means but it seems America is obviously rattled by China's latest move to lift itself into the global superpower so it must damaging to its plans.
According to economists, the reserve currency is the big one, remove that from America's greasy paws and the gigs up so this must be a step in that direction which is why Washington are worried.

6 comments:

Keep Life Simple said...

rattled. doubtful.

more like, an obvious and predictable action by china to create economies that need their outputs and can afford them. the west has done this for 100 years.

I would be shocked if anybody in the white house is shocked by this. clearly china is staking its claim over asia, like the US has staked a claim over the western hemisphere.

only problem, American partners south korea, japan, Taiwan, and Australia in the area that china wants to dominate.

then there is india...

Lucy said...

I just assumed it was another chipping away at the US and another step towards removing the reserve currency from ya'll.

India apparently are one of China's partners in this venture.

Keep Life Simple said...

it is another chip. but not unexpected from what I read. I work with many bankers that see bitcoin or something similar becoming the primary exchange mechanism.

Lucy said...

As i rely on you for economic advice i will bend to your experience on it. I am still waiting for advice on what shares to buy so i can retire next year and buy my own island.

Keep Life Simple said...

I cannot legally provide investment advice, other than to say "get advice from a professional investment advisor".

Seriously.

I have 20% of my investments in emerging markets
20% in midterm bonds
15% in shortterm bonds
25% an SP500 index fund
5% in precious metals fund
15% in an aggressive growth fund

Lucy said...

That's the problem right there, when you ask someone in the business they start off by asking if you are looking to invest in aggressive growth funds or maybe a SP500 index fund and you just look at him blankly, shrug and dreams of buying a speedboat and an island evaporate.