In the global proxy war for economic domination, most eyes have been focused on Europe and the West as economic sanctions in 2014 have been primarily fixated against Russia. But on Oct. 24, China added a new wrinkle to this economic Cold War by signing a Memorandum of understanding with 21 nations to form the Asian Infrastructure Investment Bank (AIIB), which will compete directly with the U.S. dominated World Bank.
This new AAIB is the brainchild of a collaboration between China and India, and is bringing on board nearly two dozen Asian economies that wish to function autonomously outside of Western hegemony. And perhaps not ironically, the only major states which chose not to join in this coalition all reside as allies with America, and were likely to have been pressured by the U.S. to abstain from signing this agreement, and legitimize their current loyalties to the dollar and the Western backed global banking system.
China and India are backing a 21 country $100 billion Asian Infrastructure Investment Bank (AIIB) to challenge to the World Bank and Asian Development Bank.
Memorandum of understanding were signed with 21 Asian countries in Beijing Friday. Australia, Indonesia and South Korea were absent following hidden pressure from Washington.
The development bank was proposed a year ago by Chinese President Xi Jinping, and is to offer financing for infrastructure projects in underdeveloped Asian countries. – RT
The primary purpose of the World Bank, along with this new AAIB, is to provide financial and technical assistance to emerging and developing countries in the hopes of bringing them forward as industrial nations. However, like with many instances in the past when nations borrow money or seek guidance from the World Bank and their sister organization, the IMF, the Western controlled entities often impose draconian conditions, with many strings attached that in the end, profit the banks much more than it does the nations seeking aid.
And it is from these historical lessons learned from decades of interaction with the World Bank and IMF that the AAIB and the BRICS banks were born, with their primary goals being that of aiding Asian and Eurasian countries without the stigma of forced austerity and loss of sovereign power.
Oct. 24 is another red letter day in the paradigm shift from the West to the East, as not only did China and India create a new banking foundation to replace the World Bank and IMF, but Russia opened its new natural gas exchange in St. Petersburg (SPIMEX) which will seek to dislocate the pricing of natural gas from the petro-dollar, and leave oil as the primary energy source still tied to the reserve currency. And as more and more nations begin to conduct trade in currencies other than the dollar, it appears that both China and Russia are quickly preparing for the day when the debt based global economy collapses, and countries rush to markets and platforms that do not require them to give up their own self determinations.