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BRIC and mortar
China's Underdeveloped Development Bank

China is moving ahead with its plans to create a development bank that can serve as an alternative to what it sees as the Western-dominated World Bank and IMF, but its plans have not gone off without a hitch. The Wall Street Journal reports:

[M]any of the countries that China’s government hoped would join the Asian Infrastructure Investment Bank won’t be present at the signing of a preliminary agreement in Beijing.

U.S. officials have attempted to sway countries not to join, publicly raising concerns about China’s ability to ensure international standards of governance at the institution. […]

No developed countries will be present on Friday, according to an Indian government official. India will sign the agreement—a step toward the later formal establishment of the bank—along with roughly 20 other countries from across Asia, the official said.

Beijing was betting on the participation of Australia, a major trade partner which relies on Chinese demand for its natural resources and is currently negotiating a trade pact with China. An Australian government official said the country hadn’t decided whether to join and was unaware of the agreement to be signed Friday.

China wants to have it both ways. It wants to reap the profits of working within the bounds of the liberal international order as it grows, but longs to challenge that order and set itself at the center of a new system. For a detailed look at these contradictory aims, we encourage you to read Bruce D. Jones’s excellent July essay.

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  • Anthony

    “As long as the US remained competitive and productive, currencies that were pegged to the dollar benefited considerably.” Related information:

  • Jacksonian_Libertarian

    Now that the foreign investors and businesses are abandoning China, China sees that they were entirely responsible for uplifting China out of abject poverty. And without their free market developed cutting edge technology and creativity, China’s rise will now be followed by China’s fall. Muwahahaha, no doubt the stupid Government Bureaucrats thought they were responsible for China’s rise, just look at them desperately flailing about for a substitute.

    The “Feedback of Competition” there is no substitute.

  • Sibir_RUS

    Tyler Durden. ZeroHedge. USA
    Asian De-Dollarization Explodes
    «Everyone realizes that the present system is on its way out and are taking appropriate measures. The Germans, the French, the Brits, the Canadians, the Koreans…»

  • Sibir_RUS

    The Guerilla Economist. USA
    «The Collapse of the American Economy Has Begun»
    “The process of undermining the US dollar is well on schedule as well; more
    than 105 countries have decided that the dollar no longer works for
    them, joining Russia, China and other BRICS nations in leaving the
    dollar as the entire world comes to the realization that America’s
    leaders are insane. Their recklessness and evil ways have left
    tremendous shame upon our nation. Though there has been much
    manipulation and propping up, but that is only setting us up for the
    inevitable massive crash»

  • Sibir_RUS

    In an exclusive interview with “Money Morning” Jim Richards volunteered
    to warn the American people that left very little time to prepare for
    the coming crisis, the loss of which he evaluates in 10 trillion

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