by Bill White
China, working
with the governments if the United Kingdom and other European powers, has to
moved further boot U.S.-controlled
institutions like the International Monetary Fund and the World Bank
from Asia, another sign of declining U.S. financial power.
In March, the United Kingdom declared that it would join China and 27 other nations including India, Australia,
New Zealand, Indonesia, Thailand,
Vietnam, the Philippines, Qatar
and Iran,
in founding the Asian Infrastructure Investment Bank, an instrument of Chinese
foreign policy in the region. Days later, the UK
was joined by Germany, France, and Italy. Led by China members of the bank would lend money to
developing nations in Asia for roads, ports,
and other infrastructure projects.
The bank builds
on expanding Chinese influence in Asia, including Chinese government funded
projects to develop a “New Silk
Road” through Central Asia, and, Chinese government
invests in ports in Sri Lanka
and East Africa. China
has also been working with Russia,
Brazil, India and South Africa to develop the BRICS
system, bank and currency investment agencies which would operate outside of
the Bretton Woods system. The long term goal of these investments is to reduce American
power as the world’s creditor nation and make China independent of the Bretton
Woods system established after World War II, that made the world dependent on
the U.S. dollar as the medium of global exchange.
Part of this
growing independence has also been allowing Central Banks in nations from Australia to Switzerland to issue denominated
Yuan. Previously, many Chinese trade transactions had to be conducted in
dollars and were dependent upon the Federal Reserve System.
The United States responded to its rapidly
diminishing power in East Asia, by demanding
that allied nations repudiate their agreements with the Chinese. American
concern about diminishing power was cloaked in concern about “banking standards,”
with the U.S. claiming that
the Chinese will use the banks as the U.S. uses the IMF-World Bank, as an
instrument of foreign policy.
“We hope and
expect that the UK
will use its voice to push for the adoption of higher standards.” Patrick
Vertrell, a spokesman for the National Security Council, told the press.
Britain’s
decision to join the AIIB followed the failure of the Unites States to prevent
its ally, Australia,
from joining. Australia
initially embraced the bank, then reversed position after a personal appeal
from Barack Obama. Now, Australia
stated it intends to go forward in joining the bank.
Similarly, U.S. ally South
Korea, who had been pressured to repudiate the AIIB,
seems likely to repudiate America
and join.
The continued
economic reorganization of the United
States has followed from the country’s 2008
economic collapse and the failure of African-born President Barack Obama to
revive the economy. While some major employers have recently raised wages in
highly publicized moves, the U.S.
economy has entered a deflationary period, with prices now falling at a rate of
0.5% per month, matching an 8% fall in wages since 2008 and a strengthening U.S.
dollar internationally. The U.S. Federal Reserve had been staving off deflation
by issuing trillions of dollars in additional currency, but, with that having
ended, deflationary forces have taken over. Deflation is deadly to usury based
economies, particularly ones as heavily in debt as that of the United States,
because it makes debts more difficult or impossible to pay.
The rise of
Chinese and other banking alternatives has also mirrored the reversal of U.S.
power on the ground. Since 2008, the Chinese have pushed the U.S. and its allies back 200 miles from Chinese
shores, while Iran’s
effectively pushing the U.S.
and its allies out of Iraq
and Syria, and, Russia has successfully resisted a U.S.-Jewish
coup in the Ukraine.
To distract Americas from
these failures, the U.S.
government and its mass media have incited racial problems devoting most TV and
print news coverage to largely imaginary negro grievances.
