Tag Archives: AIIB

Time Is Running Out For The U.S. Dollar

Get ready for ground shattering geopolitical changes. At the crossroads of Asia and Europe, it has been decided that the Russian city of Ufa will be the point of convergence for all the initiatives and projects of the Silk World Order of trade and integration that China and Russia are spearheading. Ufa, which is the capital of Russia’s Bashkortostan, is being used to simultaneously host an extraordinary summit for both the BRICS—which has increasing become an alternative forum to that of the G7—and the Shanghai Cooperation Organization (SCO) respectively from July 8 to 9 and from July 9 to 10, 2015.  – The US Dollar/Bretton Woods Are Finished

As many of you know, China has been methodically arranging currency swap structures which enable it to trade bilaterally with trading partners in each country’s respective currency, thereby entirely by-passing the use of the U.S. dollar in trade transactions.

Furthermore, it has become apparent to anyone who is exposed to real news – as opposed to western mainstream propaganda – and has the ability to rub two brain cells together that China, Russia, et al have been systematically setting up financial and geopolitical institutions –  the BRICS bank, the Shanghai Cooperation Organization and the Asia Infrastructure Investment Bank –  which enable the members to conduct their affairs completely divorced from any U.S. hegemonic political and economic influence.  Our clue that these institutions were going to dismember the U.S. global octopus tentacles was when the U.S. openly discouraged certain western ally countries from joining the AIIB.

Gone are the days of unchallenged US domination. The architecture of the post-Second World War or post-1945 global order is now in its death bed and finished. With or without Washington, a Silk World is emerging and its coming is being trumpeted from Ufa as the SCO strengthens and the BRICS institutionalizes itself as the cornerstone of a new multi-polar world order.  – from the link at the top

Russia hosted an international summit this past week in its capacity as the chairman of both BRICS and the SCO.  As the author of the above-linked article from Global Research describes, the summit as an amalgamation of the BRICS, SCO and the EEU (Eurasian Economic Union in order to begin mapping out a new “Silk World Order” which will replace the Bretton Woods Treaty and the world order as governed by the U.S.-dominated IMF and World Banks.

This a fascinating analysis of what transpired at this summit and well worth reading:  The US Dollar and Bretton Woods are Finished: The BRICS/SCO Summits in Ufa Mark the Start of a “Silk World Order.”

VII-Summit

U.S. Dollar Hegemony Further Eroded: Iran Joins The AIIB

Iran has been accepted as a founding member of the new Asia Infrastructure Investment Bank (article link).   China emphasized that the decision was made by existing members including Britain, France, India and Italy. I find it interesting that former staunch political/economic allies of the U.S. – especially Britain and India – supported the decision to include Iran as a founding member of the AIIB. The AIIB is quickly advancing as a significant ecnomic/geopolitical rival to the U.S.-controlled World Bank.

The United States had openly “discouraged” several of its western European/UK allies from joining the AIIB.  Even Japan, which is the United States’ most loyal lapdog country, is considering joining the AIIB.

The U.S. is becoming increasingly isolated both geopolitically and economically from the rest of the world.  Its overt attempts to overthrow the current Syrian Government was bluntly rejected by Russia – with the implicit “background” support of China.

And now several European allies, specifically Germany and France, have been reluctant to further support NATO U.S. efforts to militarize Ukraine with weapons which can be used to attack Russian.

For myself, and many others, the rapid emergence of the AIIB is symbolic of the historic power shift in the global balance of power – economic, political, military – from west to east.  The linchpin of this shift is the massive and ongoing transfer of physical gold from western Central Bank vaults to Asia, primarily China.

As this power shift advances, it further erodes any legitimacy of the reserve status of the U.S. dollar.  As the viability and acceptance of a global economic system based on the U.S. dollar erodes, so does U.S. political hegemony.

History tells us that when a global superpower loses economic and political hegemony, it seeks to maintain its grip on power through military force.  I would suggest that this is what we have been seeing with U.S. military campaigns in the Middle East and Ukraine.  I would also suggest that as the U.S. loses its global power, it will become more dangerous as a global nuclear weapons power…

This Could Be A Game-Changer For The U.S.

Israel applies to become founding member of China development bank (The Asian Infrastructure Investment Bank) The Telegraph UK

The U.S. Government has unsuccessfully tried to pressure its vassal lapdog allies against joining China’s AIIB.  And up until now, Israel had been one of the United States’ closest allies.  The AIIB already includes the UK, Germany, France, Italy and Australia.  The purpose of the bank is to fund infrastructure development projects across Asia.  The bank represents the next step in the economic and social advancement of Asia.  It also is indicative of China’s rise as a global superpower.

The Israeli foreign ministry hailed the AIIB as a “diplomatic achievement” and “one of the most important initiatives in terms of Chinese foreign policy and in particular for President Xi Jinping.”

Notwithstanding the current rift between Israel and the U.S. Government, this move in my opinion underscores the U.S. Government’s rapidly deteriorating ability to impose its hegemonic will on the rest of the world.  It is also indicative of the fact that the United States Government is increasingly isolating itself from the world community.

I find it quite amusing that the article linked above characterizes the AIIB as “controversial.”   The organization is only “controversial” from the U.S. Government’s point of view.   I strongly suspect that all of the new member countries do not consider the AIIB to be at all controversial.  Rather, it’s an opportunity for western countries to capitalize on Asia’s economic expansion by participating in development projects and to advance economic/political relations with China.

The only downside to this is that as the U.S. Government finds itself increasingly isolated, and the U.S. dollar’s role as the reserve currency is increasingly diminished, I believe it makes the U.S. more dangerous.  Let’s not forget that when a rat is cornered it will attack. This particular rat has a lethal arsenal of nuclear weapons and a military policy which believes the U.S. can win a first-strike nuclear war.