Asian Infrastructure Investment Bank and their plans to dethrone the dollar.

Asian Infrastructure Investment Bank and their plans to dethrone the dollar.

WRITTEN BY BRIAN FORD
The International Monetary Fund (IMF), the 188-member organization to promote global economic stability, approved a reform plan in 2010 to double its funded capital and increase voting rights to emerging nations. China would have seen its voting rights, now 6th behind several European countries, jump to 3rd behind the U.S. and Japan.
Asia is expected to account for 40% of the global economy by 2017, nearly double the 25% it amounted to in 1990. While the U.S. has been the steward of growth in the region for more than seven decades, China wants to solidify its dominance over the region before it can go on to a larger global role.
Proposed changes were not enough for China and it has promoted its own international organization in the most blatant move yet to solidify its own global power. Already 33 countries have acceded to the new organization, moving the focus of power from the U.S. dollar to the Chinese Yuan and the Communist Party of China. With a new international lending organization in place and party leaders in charge, China will be one step closer to dethroning the U.S. dollar and making the Chinese Yuan the world’s reserve currency.
What is the Asian Infrastructure Investment Bank (AIIB) REALLY?
Launched at a ceremony in Beijing in October 2014, the Asian Infrastructure Investment Bank was proposed by China under the guise of investing in regional infrastructure and resource projects. The bank is operating under the slogan of “One Belt, One Road,” a reference to the 4,000-mile Silk Road that spread Chinese culture and economic power throughout the known world from 100 years before Christ.
Initial capital to the bank of $50 billion is expected to be doubled at its first meeting. China is looking to dump some of its $3.8 trillion in foreign reserves, mostly in U.S. Treasuries, to fund the bank’s capital and is hoping that interest in regional development will establish the Chinese Yuan as a reserve currency.
China initially held explicit veto power on projects but gave up the right to lure more members from Europe. The problem is, even without explicit power over the AIIB, China will still dominate the bank and funded projects. China will dominate the bank’s funding through an implicit control over other regional members as well as its own voting power.
Initial rules state that the 12-member voting board will be composed of nine regional seats from Asian countries and three non-regional seats. Non-Asian countries are precluded from holding more than 25% of the AIIB’s shareholding rights and board seats. China singularly holds 30% and will have considerable power through its strong-arm of the other regional players.
Beyond the official voting rights that give China power over the board, the AIIB will not have a full-time board, as with other institutions. Instead, it will give significant power and loan approval to senior staff run by the Chinese. This sets the whole structure up to be nothing more than a puppet bank for the Chinese Communist Party.
How China Plans on Using the AIIB to Dominate the Global Economy
There are already international institutions like the IMF and World Bank to make developmental loans, so you have to question China’s true motives for establishing its own investment bank. The only purpose of this is that China is planning on using the AIIB to spread its cultural and economic power, much the same way it used the Silk Road in the past.
It already has an implicit dominance over the region, forcing its will through trade and negotiations. After China and Japan, the next ten largest countries in Asia carry a GDP of just $6.86 trillion, less than two-thirds the size of China’s $11.2 trillion economy.
For years, China has been building this implicit domination throughout Asia and across the developing world with resource loans.  The Rand National Defense Research Institute published report in 2013 on China’s Foreign Aid and Government-Sponsored Investment Activities (FAGIA). Until the new AIIB, foreign aid and investment has been the primary source of foreign manipulation and dominance by Chinese party leaders. In just the first decade of the 21stcentury, the country began loan initiatives in 93 countries. Besides creditor ownership of valuable natural resources, loans impose requirements that goods purchased by the debtor are 50% Chinese origin.
Newly-pledged “aid” in 2011 of $189.3 billion was more than 100-times the amount pledged in 2001. Natural resource projects account for 42% of loans, followed then by infrastructure projects (40%), essentially meaning China owns the resources and their distribution. Latin America has received the majority of funds, 44% of the total, mostly to countries contentious with other international institutions like Venezuela, Ecuador and Argentina.

Asian Infrastructure Investment Bank and their plans to dethrone the dollar

With the AIIB, China is ready to move to Stage 2 of its plan to return the Middle Kingdom to global dominance. The new AIIB will give it explicit institutional dominance to spread its message across the region and then to the rest of the world.
And that message isn’t going to be friendly to Western countries, most of all the United States.
China has long held a deep hatred for the West, biding its time until it can regain control of global monetary and political power. The Old Summer Palace, burned by the British in 1860 after the death of a foreign correspondent, is a historic landmark and part of the Chinese government’s “patriotic education” program. The site constantly appears in popular films and people are taught a deep resentment to foreign influence in the country’s history. Chinese officials are currently spending more than $4.6 billion to construct a replica of the Old Palace for a film studio to make propaganda videos.
China is about to establish its power in Asia with Stage 2 of its plan to shift global control from the U.S. to its own political view. Once this is complete with the new Asia Infrastructure Investment Bank, it will effectively control 40% of the world’s economy as well as significant resources in other regions. From there, it is only a matter of time before the Yuan becomes the world’s reserve currency of choice and China reveals its plan for global domination in the 21stcentury. It would be wise to buy some gold and silver directly, so I suggest stocking up on metals and consumable goods, because if the Yuan dethrones the U.S. dollar as the world’s reserve currency, you could be using your dollars as wallpaper.  

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