De-Dollarization Accelerates As More Washington “Allies” Follow Australia To China-Led Bank

by Phil T Looker

The global de-dollarization trend continues as it appears the UK’s move to join the China-led Asian Infrastructure Development Bank has indeed shown other US “allies” that spurning Washington’s advice is actually acceptable and concerns about the institution’s “standards” may simply be a diversion aimed at undermining China’s attempt to exercise more influence in its own backyard. Here’s more from the NY Times:

Ignoring direct pleas from the Obama administration, Europe’s biggest economies have declared their desire to become founding members of a new Chinese-led Asian investment bank that the United States views as a rival to the World Bank and other institutions set up at the height of American power after World War II.

The announcement on Tuesday by Germany, France and Italy that they would follow Britain and join the Chinese-led venture delivered a stinging rebuke to Washington from some of its closest allies. It also called into question whether the World Bank and the International Monetary Fund, which grew out of a multination conference in Bretton Woods, N.H., in 1944 and established an economic pecking order that lasted 70 years, will find their influence diminished.

The announcement by Germany, Europe’s largest economy, came only six days after Secretary of State John Kerry asked his German counterpart, Frank Walter-Steinmeier, to resist the Chinese overtures until the Chinese agreed to a number of conditions about transparency and governing of the new entity. But Germany came to the same conclusion that Britain did: China is such a large export and investment market for it that it cannot afford to stay on the sidelines.

South Korea, another US ally that the Obama administration has not-so-subtly lobbied to stay out of the AIIB for the time being, is reportedly reconsidering a bid to join and although reports that Seoul had already committed to the venture appear to have been a bit premature, the country will make a decision this month and is expected to discuss specifics this weekend at a meeting with Chinese and Japanese officials.

This change of mind was perhaps triggered by a story just a few days ago:

“Colossal Defeat” For Obama As Australia Joins China’s Regional Bank

Having attacked its “closest ally” UK for “constant accomodation” with China, we suspect President Obama will be greatly displeased at yet another close-ally’s decision to partner up with the Chinese-led Asian Infrastructure Investment Bank (AIIB). As The Australian reports, “make no mistake,” the decision by Australia’s Abbott government to sign on for negotiations to join China’s regional bank, foreshadowed by Tony Abbott at the weekend, “represents a colossal defeat for the Obama administration’s incompetent, distracted, ham-fisted dip­lomacy in Asia.”

This is how Greg Sheridan of The Australian reported the move:

The decision by the Abbott government to sign on for negotiations to join China’s regional bank, foreshadowed by Tony Abbott at the weekend, represents another defeat for Barack Obama’s diplomacy in Asia.

The Abbott government is right to make this decision. It had well-founded concerns about the vague and unsatisfactory governance arrangements of the institution when Beijing first invited Canberra to join.

Those arrangements have ­improved since then and Australia is only signing on to negotiate terms of accession.

If the terms are no good, Australia will ultimately walk away.

Canberra’s move follows similar decisions by Britain, Singapore, India and New Zealand.

Make no mistake — all this represents a colossal defeat for the Obama administration’s incompetent, distracted, ham-fisted, dippy diplomacy in Asia.

The Obama administration didn’t want Australia to sign up for the China-led AIIB. The Abbott government rightly feels that it owes Obama nothing. The American President went out of his way to embarrass the Prime Minister Abbott politically on climate change with a rogue speech at the G20 summit in Brisbane. The speech had been billed as dealing with American leadership in Asia and instead was full of ­material designed to embarrass Abbott.

Since then, the Abbott government has felt absolutely zero subjective good will for Obama. This outlook is shared by many of America’s erstwhile allies. It’s important to get all the distinctions right here.The Abbott government operates foreign policy in Australia’s national interest. But the Obama administration has neither the continuous presence, nor the tactical wherewithal to carry the support of Canberra, or other allies, on non-essential matters.

The Obama administration has tried to convince both its friends and ­allies not to join the China Bank. Washington desperately did not want Australia to sign up for the China-led AIIB because of the influence the Australians weild among south east Asia’s more populous but poorer nations. The Abbott government rightly feels that it owes Obama nothing.

As Sheridan notes in the linked article:

Obama treats allies shabbily and as a result he loses influence with them and then seems perpetually surprised at this outcome. The Asian professionals in Washington regard the Obama administration as particularly ineffective in Asia. The consensus is that the Obama White House is insular, isolated, inward-looking, focused on the President’s personal image and ineffective in foreign policy.

The bottom line is: this is not speculation anymore (nor has it been for a long time despite what Obama worshippers may say). Every shred of objective evidence tells us the dollar’s dominance is coming to an end.

RELATED POSTS:
Back to Contents table

American dollar being dumped
America’s debt disaster
America destoryed by left wing ideologue Obama
Failure of American leadership under Obama
BIS, the bankers bank, is worried by American debt
Turkey and India join Chinese – Russian move to dump Petrodollar
Obama and Russia head to head over Petrodollar
The imminent collapse of the Petrodollar
Russia – Ukraine – Petrodollar
Debt crisis

Latest Posts

Elsewhere: [Boggart Blog]…[Little Nicky Machiavelli]…[Scribd]…[Wikinut] … [Boggart Abroad]

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: