Tag Archives: Asia Infrastructure Investment Bank

The West Is Collapsing As The East Ascends

The 24 Mega Green City infrastructure project in India will connect Delhi with Mumbai, creating a commerce corridor incorporating 21st century technologies and amenities. – Interview with ZincOne Resources’ Jim Walchuck, The Daily Coin

It seems absurd that Asia is willing and able to build high-speed “bullet” trains to connect large population centers while the United States struggles with an antiquated Amtrak rail system often beset with service interruptions and lethal accidents.   The truth of the matter is that the major U.S. metropolitan areas are beset with massive loads of debt, including a ticking-time debt-bomb in the form of several trillion dollars in unfunded public pension funds.

The Delhi-Mumbai Industrial Corridor is a major infrastructure project that India is developing with Japan. The project will upgrade nine mega industrial zones as well as the country’s high-speed freight line, three ports, and six airports. A 4,000 MW power plant and a six-lane intersection-free expressway will also be constructed, which will connect the country’s political and financial capitals.  – The Daily Coin

The 24 Mega City project underscores the economic, political and cultural contrast between the eastern and western hemisphere countries, with the sun setting in the west and rising in the east.  The west is mired in a catastrophic web of Government-heavy economies that exist on the life support of trillions in money printing and debt issuance. True, some countries like China have relatively high debt levels but they are offsetting that form of fiat currency debasement with massive gold accumulation.  The heart of the problem is highlighted by the graphic below (click to enlarge):

The budget for the U.S. Government will primarily be spent on social security, defense, medicare/medicaid and interest on the Government’s debt. Those five items will burn more two-thirds of the Government’s budgeted expenditures in Fiscal Year 2017.

But don’t bother asking how the Government plans on paying for that.   The funds will come from oldest forms of currency debasement: money printing and debt issuance.  And Trump’s proposed spending agenda will accelerate the growth rate of both .

It’s amazing that the U.S. Government seems to have unlimited funds available to spend on guns, bullets and surveillance of the citizenry.   Ranked in order of expenditures, The U.S. spends more on its military than the next 14 highest ranked countries.  “On the books,” the U.S. spent $597 billion in 2015.  That was 4x more than China and 9x more than Russia (source:  International Institute for Strategic Studies).

While the west, led by the United States, advances its collapse with rampant currency debasement and unbridled imperialism, the east is investing its resources in the future – in the advancement of its civilization.  Perhaps the hallmark of this contrast is best represented by the flow of physical gold from west to east.  The Shadow of Truth has devoted today’s episode discussing some of the signs pointing to the collapse of the west and the rise of the east:

SoT – Jeff Brown In Beijing: Why Does The West Fear China?

There are some serious heavy-weight challenges to the Bretton-Woods economic stranglehold on the world that are happening right now. A lot of events are percolating up right now…that should lead to a more equitable use of the world’s resources now.  – Jeff Brown in Beijing on the Shadow of Truth

China has been aggressively accumulating physical gold for a long time.  Anyone with any modicum of knowledge about the global precious metals market dismisses China’s publicly released 1,778 tonnes gold holdings report as readily as they dismiss the United States’ published gold ownership holdings.

Perhaps the most credible estimate of China’s gold holdings is based on research by Alasdair Macleod.  His research shows that China has been stockpiling gold at its Central Bank for a far greater period of time than is commonly assumed.  Further, he suggests that China holds at least 25,000 tonnes – LINK.

On Tuesday China will begin to price gold on its Shanghai Gold Exchange in yuan.  While no one knows if this will have an immediate affect on the ability of western banks to continue their inexorable manipulation of the gold market, it is likely another methodical move by China toward re-introducing gold back into the global monetary system.

The West, especially the United States’  neocon-controlled Deep State, is facing a global reset that is being engineered by China and Russia that is going to nullify the west’s Bretton Woods-based control of the global financial system.

Several other important building blocks for this reset have been or are about to be put  in place.  The establishment of the BRICS’ New Development Bank, which will open for business this month, is seen as an alternative to the IMF.  The Asia Infrastructure Investment Bank, which recently issued a $750 billion yuan-denominated bond, is funding alternative to the World Bank.

Most important is the imminent introduction by China and Russia of a trade settlement system (CIPS) that will enable participants to by-pass the west’s SWIFT system and to settle their trade transactions without using the dollar.

The Shadow of Truth hosted Jeff Brown, author of the China Rising website.  Jeff has been living in Beijing for several years and offers us a view of China that is not distorted by the heavily manipulated United States’ propaganda-infested news apparatus.

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.