No matter where you look, if you look, you see change. The kind of change driven by the decision to depart the USD in trade and development. This backed not just by China and the BRIC nations; the whole of the G77 is in that space too.
One must ponder the real ramifications of what this means in the west as the role of both the US and the dollar is dramatically lessened. Is it any wonder then why England has abandoned the dollar in trade settlement by directly going to the Yuan? Soon France and Germany will follow and what remains in the world using the dollar will be sorely limited. The big questions are when will:
- China elect to back their currency with gold
- Saudis declare that other currencies are acceptable in payment for oil
Logic suggests that the value of dollar will ultimately fall to reflect these changes which in of itself will mean structural change, especially in North America. In a interconnected world of commerce, no nation is immune to global financial change and thus, the good old days in North America will be just that. America needs to elect Clean Leaders of ability and ethos - clear out the trash.
26 June 2014
China is moving forward with a plan to create its own version of the World Bank, which will rival institutions that are under the sway of the US and the West. The bank will start with $100 billion in capital.
The Asian Infrastructure Investment Bank (AIIB) will extend China’s financial reach and compete not only with the World Bank, but also with the Asian Development Bank, which is heavily dominated by Japan. The $100 billion in capital is double that originally proposed, the Financial Times (FT) reported.
A member of the World Bank, China has less voting power than countries like the US, Japan, and the UK. It is in the ‘Category II’ voting bloc, giving it less of a voice. In the Asian Development Bank, China only holds a 5.5 percent share, compared to America’s 15.7 percent share and Japan’s 15.6 share.
At the International Monetary Fund, China pays a 4 percent quota, whereas the US pays nearly 18 percent, and therefore has more influence within the organization and where loans go.
"China feels it can’t get anything done in the World Bank or the IMF so it wants to set up its own World Bank that it can control itself,” the FT quoted a source close to discussions as saying.