by Eric Blair
How do you know a dollar collapse is coming? Because the rest of the world is preparing for it.
Western allies are flocking to join the new China-led Asian Infrastructure Investment Bank (AIIB), while the United States and World Bank sit on the sidelines and lecture them about “appropriate” financial governance.
The United States has urged countries to think twice before signing up to a new China-led Asian development bank that Washington sees as a rival to the World Bank, after Germany, France and Italy followed Britain in saying they would join.
The concerted move by U.S. allies to participate in Beijing’s flagship economic outreach project is a diplomatic blow to the United States and its efforts to counter the fast-growing economic and diplomatic influence of China.
Europe’s participation reflects the eagerness to partner with China’s economy, the world’s second largest, and comes amid prickly trade negotiations between Brussels and Washington.
“I hope before the final commitments are made anyone who lends their name to this organization will make sure that the governance is appropriate,” Treasury Secretary Jack Lew told U.S. lawmakers.
It seems many countries are growing tired of the U.S.’s arbitrary economic sanctions, playing politics with the SWIFT system, dollar manipulation of commodities, strangling IMF and World Bank debt with unequal representation in those institutions. Not to mention the ruthless violence used to protect this racket.
China is tired of waiting to be granted more power in international banks so they’re creating their own opportunities around the world. They’re involved in creating the BRICS development bank, an alternative to SWIFT, building a canal in Nicaragua to rival the Panama Canal, and now this new Asian Infrastructure Investment Bank (AIIB). In other words, it’s on.
“If you try to fight the rising power’s peaceful ascent you sow big problems in the future,” Fred Bergsten, a former official at the U.S. Treasury and currently a fellow at the Peterson Institute in Washington told Reuters.
Over the last few years US-imposed sanctions have had less and less effect as nations find ways around them. These new systems will make sanctions essentially worthless, and the biggest losers of sanctions may end up being US companies who’re prohibited from trading in certain parts of the world.
Despite the corporate media’s best efforts to drum up conflict with Russia, sanctions haven’t worked, leading some Western hawks to promote cutting off Russian banks from SWIFT. This was met by Russia threatening retaliation which resulted in Russia being awarded a seat on SWIFT’s board for the first time.
Can you smell the desperation? America dominance in the world economy is clearly waning. The US dollar is also slowly being diluted as the world reserve currency and all the key players know it. In fact, it’s now happening by design.
The dollar is currently enjoying record spending strength in the global economy for no fundamental reason except that oil is measured in dollars. The oil price crash feels like a last-ditch effort to boost demand for dollars. Yet national debt levels, endless wars, and the fake paper economy ensures that this facade will eventually collapse, probably as fast as it was created.
This new alternative system may limit the contagion of a dollar collapse. It’s basically a good thing that the world will have more choice in how it moves money. But, be warned, it is no different than the current fractional-reserve debt-based parasite that currently leaches off most of the planet, save for slightly different board members.
Nevertheless, I bet the establishment will hail them as saviors when the US economy can no longer bail itself out. Tick tock.
Eric Blair writes and curates news for Activist Post. This article is free to repost in full with attribution.
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