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…

6 thoughts on “U.S. Dollar Hegemony Further Eroded: Iran Joins The AIIB

  1. Dave, I find it interesting that Iran has announced it is
    joining the A.I.I.B. It is not surprising but interesting
    from the standpoint that the “Insane Clown Posse”
    led by lead clown John “Swift Boat” Kerry has been
    talking to Iran about lifting sanctions. Of course you
    know that the negotiations have nothing to do with
    nukes. It has always been about putting Iranian oil
    on the dollar. I agree that at this point it seems that
    the U.S. wants a war and they are throwing shit and
    trying to make it stick. Looks like the provocations
    will continue until they finally get their “Hot” war.
    Then blame the collapse on our “enemies”.

    1. Interesting what Bill Holter from Miles Franlik said in that regard: When the possibility of a metal to metal war between NATO (i.e.USA) & Russia becomes imminent Putin may come out with some real evidences that 9/11….was a false flag protected by US governemnt officials. If that news spreads around the globe the criminal US government may become even more isolated and a hot war may be avoided in the last second. I don’t know, but hopefully things will not escalate.

  2. The United States, the standard bearer of the Anglo-American hedgemony, continues to decline. Dying of greed, paranoia and social injustice. It’s death throes drive her to ever more dangerous military feats of brinkmanship throughout the world.

  3. It’s stunning how quickly the situation is going down hill, soon to
    be out of control. Of course TPTB know this better than anyone
    so have plans in place for martial law here at home.
    Unbridled hubris has brought us to this sad state of affairs and
    now it is far too late to reverse course so we stumble forward
    towards a future that is downright frightening. And the sheeple
    haven’t a clue.

  4. Well thought out article. I think its high time we start thinking like a resident of the third world. The number one priority is to protect your assets. I have family in Venezuela and they have been buying Dollars as a safe haven assets and foreign / domestic real estate for the last 25 years. Their Dollar hedges did very well. Their real estate investments in bubblicious Miami were huge disappointments. Their local real estate holdings plummeted, losing to government sanctioned squatters and confiscation by the government itself. Today, the Bolivar is so despised that imported goods such as TVs, food, clothes, appliances, the basics, have become extremely scarce and expensive. Here is an interesting tidbit. The same amount of Bolivares used to purchase my father in-laws home in the 60’s would not even buy a dinner for a family of four.

    Surprisingly, luxury brands such as Channel, Louis Ladron, etc have declined in value. Those retailers put everything on a fire sale closed up shop and left the nation.
    So how does it apply to us? I believe Venezuela is showing us our future. A future we should be prepared for while we have the time and the resources to do so.

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