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...
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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...
This comment has been removed by the author.
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...
This comment has been removed by the author.
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.