And in another sign of imperial decline….
Posted by Charles II on June 24, 2014
China will be forming an international development bank to compete with the World Bank and the Asian Development Bank. The bank is proposed to have $100B in capital, some of which will be from “West Asia”– the Chinese nickname for the Middle East. They plan to focus development investment on the old Silk Road.. all the way to Baghdad.
And, Chinese foreign direct investment abroad will now exceed investment into China. In other words, Chinese are starting to buy the world, rather than the world buying China.
And, China has taken a major step toward turning the renminbi into a reserve currency by creating an exchange outside of areas that it controls (Hong Kong) or strongly influences (Singapore). For three-quarters of a century, the dollar has been the world’s reserve currency. If the renminbi becomes an alternate reserve currency, US power to manipulate the financial system would be undermined.
These are not developments to applaud. They represent American failures, not Chinese successes. They come from extreme American venality, not from Chinese liberality. Heaven help us all.
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