A Bank Too Far?

Disir

Gold Member
Gold Supporting Member
Joined
Sep 30, 2011
Messages
22,724
Reaction score
5,116
Points
290
What is the Asian Infrastructure Investment Bank and what are its goals?

The AIIB is a regional international financial institution originally proposed by the Chinese government in 2013 and launched in October 2014. The objective of the bank is to finance road, rail, port, and other infrastructure construction projects. More than twenty countries joined the AIIB at the start, but leading G7 economies, as well as South Korea and Australia, initially declined to join. Over the past several months, more countries have signed on, and with the decision of the UK and three eurozone economies to join, there are now about thirty members. The bank was established with $50 billion in capital, making it roughly one-third the size of the Asian Development Bank (ADB), but that capital is expected to grow to $100 billion as more countries join. The AIIB expects to make its first loan late this year.

...
The Chinese-led AIIB hopes to do infrastructure better, while also pledging to work closely with other institutions. Still, there is little doubt that the initiative also exposes Chinese frustration with global institutions, the failure of these institutions to reform to provide a greater voice to emerging powers, and the United States’s inability to pass International Monetary Fund (IMF) quota reform. From this perspective, the AIIB—along with its companion BRICS bank [comprising Brazil, Russia, India, China, and South Africa]—is a challenge to the existing global economic order and a clear statement of intent from China that it desires to play a leading role in defining new rules of the game for investment in Asia.

Why is the decision by four G7 economies to join the bank significant?

In the fall of 2014, the U.S. government caught many by surprise when it made an aggressive and public effort to persuade countries not to join the Beijing-led institution. The United States clearly had concerns about the economic and political implications of a new multilateral lending agency led by China, and in any event, it was highly unlikely that the U.S. Congress would approve a financial contribution allowing the United States to participate. The Obama administration’s efforts led a number of countries to hold back from signing on the the AIIB. The decision by the UK, and subsequently, France, Germany, and Italy, to participate is therefore significant not only because they will be major shareholders, but also because the decision by traditional U.S. allies signals that Washington is increasingly isolated.

http://www.cfr.org/global-governance/bank-too-far/p36290

Should the US join?
 

Derideo_Te

Je Suis Charlie
Joined
Mar 2, 2013
Messages
20,461
Reaction score
7,960
Points
360
What is the Asian Infrastructure Investment Bank and what are its goals?

The AIIB is a regional international financial institution originally proposed by the Chinese government in 2013 and launched in October 2014. The objective of the bank is to finance road, rail, port, and other infrastructure construction projects. More than twenty countries joined the AIIB at the start, but leading G7 economies, as well as South Korea and Australia, initially declined to join. Over the past several months, more countries have signed on, and with the decision of the UK and three eurozone economies to join, there are now about thirty members. The bank was established with $50 billion in capital, making it roughly one-third the size of the Asian Development Bank (ADB), but that capital is expected to grow to $100 billion as more countries join. The AIIB expects to make its first loan late this year.

...
The Chinese-led AIIB hopes to do infrastructure better, while also pledging to work closely with other institutions. Still, there is little doubt that the initiative also exposes Chinese frustration with global institutions, the failure of these institutions to reform to provide a greater voice to emerging powers, and the United States’s inability to pass International Monetary Fund (IMF) quota reform. From this perspective, the AIIB—along with its companion BRICS bank [comprising Brazil, Russia, India, China, and South Africa]—is a challenge to the existing global economic order and a clear statement of intent from China that it desires to play a leading role in defining new rules of the game for investment in Asia.

Why is the decision by four G7 economies to join the bank significant?

In the fall of 2014, the U.S. government caught many by surprise when it made an aggressive and public effort to persuade countries not to join the Beijing-led institution. The United States clearly had concerns about the economic and political implications of a new multilateral lending agency led by China, and in any event, it was highly unlikely that the U.S. Congress would approve a financial contribution allowing the United States to participate. The Obama administration’s efforts led a number of countries to hold back from signing on the the AIIB. The decision by the UK, and subsequently, France, Germany, and Italy, to participate is therefore significant not only because they will be major shareholders, but also because the decision by traditional U.S. allies signals that Washington is increasingly isolated.

http://www.cfr.org/global-governance/bank-too-far/p36290

Should the US join?
It would be foolish not to join. Without a seat at the table the US will have no say at all.
 

B. Kidd

Gold Member
Joined
Jun 15, 2010
Messages
24,552
Reaction score
7,143
Points
280
Location
Western Lands
Should the U.S. join.......hmmmm........why do you ask? Are you starting to feel, uhhh..... isolated?
 
OP
Disir

Disir

Gold Member
Gold Supporting Member
Joined
Sep 30, 2011
Messages
22,724
Reaction score
5,116
Points
290
Should the U.S. join.......hmmmm........why do you ask? Are you starting to feel, uhhh..... isolated?
I'm asking because I'm looking for intelligent discussion.
 
OP
Disir

Disir

Gold Member
Gold Supporting Member
Joined
Sep 30, 2011
Messages
22,724
Reaction score
5,116
Points
290
Should the U.S. join.......hmmmm........why do you ask? Are you starting to feel, uhhh..... isolated?
I'm asking because I'm looking for intelligent discussion.
The ironic aspect of the AIIB is that China is probably funding it's share on money owed to it by the USA. :D
I would not be surprised in the least. I think the "concerns" and "reservations" are very child like. More tantrum than concern.
 

Derideo_Te

Je Suis Charlie
Joined
Mar 2, 2013
Messages
20,461
Reaction score
7,960
Points
360
Should the U.S. join.......hmmmm........why do you ask? Are you starting to feel, uhhh..... isolated?
I'm asking because I'm looking for intelligent discussion.
The ironic aspect of the AIIB is that China is probably funding it's share on money owed to it by the USA. :D
I would not be surprised in the least. I think the "concerns" and "reservations" are very child like. More tantrum than concern.
Yup, business is business and it will continue with or without the US's participation. The pragmatic thing to do is to belly up and take a seat at the table. Then if something comes up that might be a "concern" raise it with specifics so that it can be addressed by the adults in the room.
 

Manonthestreet

Platinum Member
Joined
May 20, 2014
Messages
25,105
Reaction score
9,786
Points
980

B. Kidd

Gold Member
Joined
Jun 15, 2010
Messages
24,552
Reaction score
7,143
Points
280
Location
Western Lands
And, as usual, our MSM has completely ignored this story, keeping muppets in the dark over this potentially game changing development. Oh, and the Saudis have already joined too.
 
OP
Disir

Disir

Gold Member
Gold Supporting Member
Joined
Sep 30, 2011
Messages
22,724
Reaction score
5,116
Points
290
Should the U.S. join.......hmmmm........why do you ask? Are you starting to feel, uhhh..... isolated?
I'm asking because I'm looking for intelligent discussion.
The ironic aspect of the AIIB is that China is probably funding it's share on money owed to it by the USA. :D
I would not be surprised in the least. I think the "concerns" and "reservations" are very child like. More tantrum than concern.
Yup, business is business and it will continue with or without the US's participation. The pragmatic thing to do is to belly up and take a seat at the table. Then if something comes up that might be a "concern" raise it with specifics so that it can be addressed by the adults in the room.
Exactly. But, we aren't going to do that. We are going to kick back and watch them shift and then wait for someone to act persecuted and then pout.
 

Derideo_Te

Je Suis Charlie
Joined
Mar 2, 2013
Messages
20,461
Reaction score
7,960
Points
360
Should the U.S. join.......hmmmm........why do you ask? Are you starting to feel, uhhh..... isolated?
I'm asking because I'm looking for intelligent discussion.
The ironic aspect of the AIIB is that China is probably funding it's share on money owed to it by the USA. :D
I would not be surprised in the least. I think the "concerns" and "reservations" are very child like. More tantrum than concern.
Yup, business is business and it will continue with or without the US's participation. The pragmatic thing to do is to belly up and take a seat at the table. Then if something comes up that might be a "concern" raise it with specifics so that it can be addressed by the adults in the room.
Exactly. But, we aren't going to do that. We are going to kick back and watch them shift and then wait for someone to act persecuted and then pout.
:lmao:

Yup, can't wait until we have the adults back in charge again. :D
 

EdwardBaiamonte

Platinum Member
Joined
Nov 23, 2011
Messages
34,535
Reaction score
2,090
Points
1,100
Should the U.S. join.......hmmmm........why do you ask? Are you starting to feel, uhhh..... isolated?
I'm asking because I'm looking for intelligent discussion.
The ironic aspect of the AIIB is that China is probably funding it's share on money owed to it by the USA. :D
I would not be surprised in the least. I think the "concerns" and "reservations" are very child like. More tantrum than concern.
Yup, business is business and it will continue with or without the US's participation. The pragmatic thing to do is to belly up and take a seat at the table. Then if something comes up that might be a "concern" raise it with specifics so that it can be addressed by the adults in the room.
Exactly. But, we aren't going to do that. We are going to kick back and watch them shift and then wait for someone to act persecuted and then pout.
can anyone give an example of how not joining might hurt the USA?? If not who cares about this?
 
OP
Disir

Disir

Gold Member
Gold Supporting Member
Joined
Sep 30, 2011
Messages
22,724
Reaction score
5,116
Points
290
I'm asking because I'm looking for intelligent discussion.
The ironic aspect of the AIIB is that China is probably funding it's share on money owed to it by the USA. :D
I would not be surprised in the least. I think the "concerns" and "reservations" are very child like. More tantrum than concern.
Yup, business is business and it will continue with or without the US's participation. The pragmatic thing to do is to belly up and take a seat at the table. Then if something comes up that might be a "concern" raise it with specifics so that it can be addressed by the adults in the room.
Exactly. But, we aren't going to do that. We are going to kick back and watch them shift and then wait for someone to act persecuted and then pout.
:lmao:

Yup, can't wait until we have the adults back in charge again. :D
Well, it's a two-fer. Obama and congress. The Republicans refused to pass the IMF reforms.
China expresses regret at U.S. failure to pass IMF reforms Reuters

It was completely short sighted. That move will cost us.
 
OP
Disir

Disir

Gold Member
Gold Supporting Member
Joined
Sep 30, 2011
Messages
22,724
Reaction score
5,116
Points
290

B. Kidd

Gold Member
Joined
Jun 15, 2010
Messages
24,552
Reaction score
7,143
Points
280
Location
Western Lands
can anyone give an example of how not joining might hurt the USA?? If not who cares about this?
Influence. This is an empire. You should be aware of this.
Actually, I was thinking it was just one more step on the road to de-dollarization. But, it is too early to tell. In the long run tho', might give new meaning to the phrase 'Chinese Take-Out'.
 
OP
Disir

Disir

Gold Member
Gold Supporting Member
Joined
Sep 30, 2011
Messages
22,724
Reaction score
5,116
Points
290
can anyone give an example of how not joining might hurt the USA?? If not who cares about this?
Influence. This is an empire. You should be aware of this.
Actually, I was thinking it was just one more step on the road to de-dollarization. But, it is too early to tell. In the long run tho', might give new meaning to the phrase 'Chinese Take-Out'.
I think that is the current game plan.I don't think that was the original intent. But, I do think this will add to it.

I came across an opinion piece in a Russian newspaper by a very upset individual with an outlined little plan of precisely that. I don't know if I can find it again. Even so, I'm a bit skeptical because it was translated into English.
 
Last edited:

kaz

Diamond Member
Joined
Dec 1, 2010
Messages
60,942
Reaction score
10,564
Points
2,040
Location
Kazmania
What is the Asian Infrastructure Investment Bank and what are its goals?

The AIIB is a regional international financial institution originally proposed by the Chinese government in 2013 and launched in October 2014. The objective of the bank is to finance road, rail, port, and other infrastructure construction projects. More than twenty countries joined the AIIB at the start, but leading G7 economies, as well as South Korea and Australia, initially declined to join. Over the past several months, more countries have signed on, and with the decision of the UK and three eurozone economies to join, there are now about thirty members. The bank was established with $50 billion in capital, making it roughly one-third the size of the Asian Development Bank (ADB), but that capital is expected to grow to $100 billion as more countries join. The AIIB expects to make its first loan late this year.

...
The Chinese-led AIIB hopes to do infrastructure better, while also pledging to work closely with other institutions. Still, there is little doubt that the initiative also exposes Chinese frustration with global institutions, the failure of these institutions to reform to provide a greater voice to emerging powers, and the United States’s inability to pass International Monetary Fund (IMF) quota reform. From this perspective, the AIIB—along with its companion BRICS bank [comprising Brazil, Russia, India, China, and South Africa]—is a challenge to the existing global economic order and a clear statement of intent from China that it desires to play a leading role in defining new rules of the game for investment in Asia.

Why is the decision by four G7 economies to join the bank significant?

In the fall of 2014, the U.S. government caught many by surprise when it made an aggressive and public effort to persuade countries not to join the Beijing-led institution. The United States clearly had concerns about the economic and political implications of a new multilateral lending agency led by China, and in any event, it was highly unlikely that the U.S. Congress would approve a financial contribution allowing the United States to participate. The Obama administration’s efforts led a number of countries to hold back from signing on the the AIIB. The decision by the UK, and subsequently, France, Germany, and Italy, to participate is therefore significant not only because they will be major shareholders, but also because the decision by traditional U.S. allies signals that Washington is increasingly isolated.

http://www.cfr.org/global-governance/bank-too-far/p36290

Should the US join?
Sounds like another opportunity to waste billions, why should we pass up on that?
 

EdwardBaiamonte

Platinum Member
Joined
Nov 23, 2011
Messages
34,535
Reaction score
2,090
Points
1,100
What is the Asian Infrastructure Investment Bank and what are its goals?

The AIIB is a regional international financial institution originally proposed by the Chinese government in 2013 and launched in October 2014. The objective of the bank is to finance road, rail, port, and other infrastructure construction projects. More than twenty countries joined the AIIB at the start, but leading G7 economies, as well as South Korea and Australia, initially declined to join. Over the past several months, more countries have signed on, and with the decision of the UK and three eurozone economies to join, there are now about thirty members. The bank was established with $50 billion in capital, making it roughly one-third the size of the Asian Development Bank (ADB), but that capital is expected to grow to $100 billion as more countries join. The AIIB expects to make its first loan late this year.

...
The Chinese-led AIIB hopes to do infrastructure better, while also pledging to work closely with other institutions. Still, there is little doubt that the initiative also exposes Chinese frustration with global institutions, the failure of these institutions to reform to provide a greater voice to emerging powers, and the United States’s inability to pass International Monetary Fund (IMF) quota reform. From this perspective, the AIIB—along with its companion BRICS bank [comprising Brazil, Russia, India, China, and South Africa]—is a challenge to the existing global economic order and a clear statement of intent from China that it desires to play a leading role in defining new rules of the game for investment in Asia.

Why is the decision by four G7 economies to join the bank significant?

In the fall of 2014, the U.S. government caught many by surprise when it made an aggressive and public effort to persuade countries not to join the Beijing-led institution. The United States clearly had concerns about the economic and political implications of a new multilateral lending agency led by China, and in any event, it was highly unlikely that the U.S. Congress would approve a financial contribution allowing the United States to participate. The Obama administration’s efforts led a number of countries to hold back from signing on the the AIIB. The decision by the UK, and subsequently, France, Germany, and Italy, to participate is therefore significant not only because they will be major shareholders, but also because the decision by traditional U.S. allies signals that Washington is increasingly isolated.

http://www.cfr.org/global-governance/bank-too-far/p36290

Should the US join?
Sounds like another opportunity to waste billions, why should we pass up on that?
you're right, there is an economist who worked at the world bank named Easterly who wrote a couple of books about what a disaster the World Bank and IMF
have been. His point was that it was charity or welfare lending rather than capitalist free market lending so the money was wasted rather than sustainably invested to help countries grow.
 

Most reactions - Past 7 days

Forum List

Top