Results 1 to 5 of 5

Thread: Everyone on board except the US.

  1. #1
    Administrator Ross's Avatar
    Join Date
    Sep 2012
    Posts
    1,159
    Thanks
    1,024
    Thanked 1,292 Times in 777 Posts

    Everyone on board except the US.

    US holds out against new Asian Infrastructure Investment Bank.

    WHEN people try to pinpoint the start of a ‘new world order’ they could look to March 2015.

    This week, Australia announced it would sign on to China’s plans to create a new Asian Infrastructure Investment Bank to rival global institutions like the World Bank and International Monetary Fund.

    But far from being some boring economic plan, the bank — which aims to address the $8 trillion infrastructure gap and provide $100 billion for new roads, bridges and ports in Asian economies — could usher in a new phase of regional influence for China without US involvement.

    UNSW’s Institute of Global Finance director Fariborz Moshirian said China’s massive foreign exchange reserves and desire for more power have driven Beijing’s plan.

    “China is trying to use economic muscle and also in a sense it’s a reaction to the Bretton Woods institutions like the IMF and World Bank. They are seen as US and European children and China wants to make their own mark.”

    “It’s sort of a byproduct of the rise of the financial strength of China ... We’re going to see more of this kind of influence because China can afford now to take part of this kind of activity.”

    Overnight, Japan, Taiwan and Egypt expressed interest in become founding members taking the total number of countries involved to more than 40. They’re the latest in a flood of traditional US allies who have signalled intention to join including Australia, Britain, New Zealand, France, Germany, Switzerland and South Korea.

    It leaves the US the only major economy not involved, a decision described as “problematic at best and churlish at worst” by Brookings Institution analyst Jonathan Pollack. It comes after the US waged a lobbying campaign against the plan citing concerns over how the bank will be managed.

    Professor Moshirian said the fact the US is now the only holdout is a clear sign US allies are not willing to stand by at the expense of their own economic development, with many European partners saying “if you can’t beat them, join them.”

    “They don’t want to be isolating themselves. They’ve got very close links with China in terms of trade and investment and why shouldn’t you? If money is being thrown about by China why shouldn’t they grab it? China is becoming strong so why should you isolate yourself?”

    Australian Institute of International Affairs’ Ashley Rogge said the mass influx has left the US feeling “embarrassed” after stalled IMF reforms mean the US missed an opportunity to give China greater say in existing organisations.

    “If there’s any reason for them to be embarrassed it’s for that reason,” she said. “They had the opportunity to encourage China in a cooperative manner [but] they kind of forfeited that as these reforms have stalled.”

    “These new institutions are now being created because they have dropped the ball. Now they’ve created this opposition which is the total opposite of they wanted.”

    Details over where the bank will based and how it will work are still underway with more discussions expected before countries formally sign on. However joining the negotiations early means they will receive a greater say in how the bank is shaped.

    Prime Minister Tony Abbott said on Sunday progress in terms of transparency and governance prompted Australia’s late decision to apply for membership. However he stressed that key matters like authority over major investments and who has ultimate control still need to be resolved.

    Treasurer Joe Hockey said interest from other countries also helped.

    “(It) has been encouraging for Australia to know that it truly is a global organisation,” he said. “We could massively increase our exports of iron ore to India if there were better port facilities.”

    Overnight, US Treasury Secretary Jack Lew said Washington wants the new AIIB to partner with other Washington-based institutions on projects, with officials still worried about how lending will take place.

    Professor Moshirian said while the door is likely to remain open to US involvement, the reality is China has the money and partnerships to do it anyway.

    “China will go ahead regardless of US. If the US joins it fine, if not China will set the tone for this entity anyway.”

    Chinese President Xi Jinping said China will spend more than $640 billion investing in other countries in the next five years and “being a big country means shouldering more responsibility for world peace and development.”

    The deadline for countries to apply to join the bank is 31 March.

    http://www.news.com.au/finance/econo...-1227286037463

  2. The Following User Says Thank You to Ross For This Useful Post:

    Bethany (04-01-2015)

  3. #2
    In Memory Fredkc's Avatar
    Join Date
    Apr 2012
    Posts
    567
    Thanks
    108
    Thanked 1,035 Times in 443 Posts

    Re: Everyone on board except the US.

    Quote Originally Posted by Ross View Post
    It leaves the US the only major economy not involved, a decision described as “problematic at best and churlish at worst” by Brookings Institution analyst Jonathan Pollack. It comes after the US waged a lobbying campaign against the plan citing concerns over how the bank will be managed.
    The "concerns" being the fact that the moneyed gentry here in the US won't have control of it. They're hip deep in what they've got going, and China has said, "Ok then, we'll just move the game over here, and you are welcome to bring along any spare cash you might have." But China will be setting the tone, and garnering the international power in this group. The US has had that power in the WB, amd IMF, since the bulk of the money put into it has come from the large US banks that wanted the influence that brings.

    Australian Institute of International Affairs’ Ashley Rogge said the mass influx has left the US feeling “embarrassed” after stalled IMF reforms mean the US missed an opportunity to give China greater say in existing organizations.
    Now that's funny. Reforms? Why in hell would they do that? The people who control the World Bank, and IMF won't do anything but cosmetic chicanery. See, to those people it doesn't need fixing. It IS fixed! It's exactly how they want it.

    The deadline for countries to apply to join the bank is 31 March.
    So that's today here, and yesterday, there. I wonder if we joined?
    Fred
    "Life IS mystical! Its just that we're used to it." - Wolf, the movie
    "Dad, if God is everywhere then, when he's in a piece of paper, is he squished?" - My daughter, age 7

  4. The Following 2 Users Say Thank You to Fredkc For This Useful Post:

    Bethany (04-01-2015),Ross (03-31-2015)

  5. #3
    Administrator Ross's Avatar
    Join Date
    Sep 2012
    Posts
    1,159
    Thanks
    1,024
    Thanked 1,292 Times in 777 Posts

    Re: Everyone on board except the US.

    Your guide to the global business landscape is here.

    China:

    The FORBES Global 2000 is a comprehensive list of the world’s largest, most powerful public companies, as measured by revenues, profits, assets and market value. We weight the four numbers equally to come up with a composite score, in pursuit of our goal to best capture the full picture of corporate size.

    This year, the Global 2000 companies hail from 62 countries, up from 46 in our inaugural 2003 ranking. In total, they raked in revenues of $38 trillion and profits of $3 trillion, with assets worth $161 trillion and a market value of $44 trillion. All those totals are higher than a year ago, with the largest growth being in market value (up 13% year-over-year). These firms employ 90 million people worldwide.

    For the first time, China is home to the world’s three biggest public companies and five of the top 10. State-controlled Chinese bank ICBC holds onto its No.1 spot for a second consecutive year, while China Construction Bank takes second place and Agricultural Bank of China moves up five spots to third. They’re joined in the top 10 by the other member of the “Big Four” Chinese banks, Bank of China, at No.9.

    As China gains ground, its best frenemy – the United States – account for the other half of the top 10 spots. Berkshire Hathaway and Wells Fargo WFC -0.68% both move up four spots to No.5 and No. 9, respectively. J.P. Morgan slides to fourth place as its total composite score slipped behind Agricultural Bank of China. Say goodbye to the two Europe-based companies in Top 10 last year, Royal Dutch Shell (No.11) and HSBC Holdings (No.14).

    The list presents an annual snapshot of the ever-changing global business landscape. The U.S. holds onto its crown as the country with the most Global 2000 companies: 564. Japan trails the U.S. with 225 companies in aggregate, despite losing the most members (26) this year. China (mainland and Hong Kong) adds 25 to the list this year, more than any other country, for a total of 207. Two countries debut on the list this year: Mauritius and Togo.

    Since FORBES published the first Global 2000 list in 2003, the power dynamics between the West and the East have shifted dramatically. This year we break down the list to seven regions to take a more nuanced look at regional differences. With 674 members in total, Asia easily takes the lead, leaving North America (629 members) and Europe (506 members) behind. That’s a stark contrast from 11 years ago when North America dominated the list with over 50% more than Asia’s total number. Emerging markets, especially Middle East and Central & South America, also gained significant shares in the past decade with 265% and 76% growth respectively. While Africa still has the least Global 2000 members, the continent has made slow progress, adding seven companies to the list. Four of the African newcomers are based in Nigeria, giving it a total of five.

    Take a peek at the top of each metric, and you will find the best of the biggest. Apple AAPL -1.5%, which stays at No.15, is again the world’s most valuable company. Wal-Mart Stores WMT -0.34% remains the world’s sales leader, despite a steep drop in profit. Six years after being bailed-out in the financial crisis, mortgage giants Fannie Mae and Freddie Mac finally bring some good news to their investors. Fannie Mae not only consolidates its top spot in terms of total assets, but also has become the most profitable company. With a record $84 billion in profit, its accumulated payments to the federal government have now exceeded the amount it received during the 2008 bailout. Its competitor, Freddie Mac, also shines as the second most profitable company thanks to a 345% jump in profit ($49 billion).

    There are 179 newcomers to this year’s Global 2000. Many household names make their debut thanks to the steadily rising equity market, the return of corporate deals, and a new wave of IPOs. With a 561% year-over-year surge of market value, investors’ darling Tesla Motor is defying skeptics of its $5 billion Gigafactory investment. Japanese beverage giant Suntory (No. 1083) stunned the world by buying Jim Beam for $13.6 billion in cash, creating the largest food and beverage company on this year’s Global 2000. Quite a few notable newcomers have joined the list thanks to their successful IPOs, such as Hilton Worldwide (No. 700), Twitter (No. 1645) and Australia’s Nine Entertainment (No. 1749).

    If you are looking for big jumps in rank, you can start with some familiar personalities and the companies behind them. Thanks to Mark Zuckerberg’s newfound yen for helping Facebook make money, the social network has moved up 561 spots to No. 510 this year with 55% growth in sales and 2711% growth in profits. In a turnaround led by Meg Whitman, Hewlett-Packard, one of the biggest losers from last year (No. 438 in 2013), has returned to profitability and climbed 358 spots to No. 80. Media mogul John Malone, who made headlines with his bid to gobble up the rest of Sirius XM, also had a good run with Liberty Media LMCA +0.21%, which moves up 440 spots to No. 651 thanks to big jumps in profit and market value.

    More here: http://www.forbes.com/sites/liyanche...p-three-spots/

  6. #4
    In Memory Fredkc's Avatar
    Join Date
    Apr 2012
    Posts
    567
    Thanks
    108
    Thanked 1,035 Times in 443 Posts

    Re: Everyone on board except the US.

    Hmmm....
    9 hours ago, in the New York Times...
    TOKYO — Japanese leaders indicated on Tuesday that their nation would not become a founding member of a new Chinese-led Asian development bank but instead remain loyal to the United States, which has urged its allies to refrain from joining. Link
    And yesterday, at CNBC....
    Japan is likely to join the Asian Infrastructure Investment Bank within a few months, according to the country's ambassador to Beijing, a move that would see Tokyo break ranks with Washington and leave the US as the only big holdout. Link
    Evidently there's some words being exchanged on this. Maybe by tomorrow we'll know how it turned out.
    "Life IS mystical! Its just that we're used to it." - Wolf, the movie
    "Dad, if God is everywhere then, when he's in a piece of paper, is he squished?" - My daughter, age 7

  7. #5
    In Memory Fredkc's Avatar
    Join Date
    Apr 2012
    Posts
    567
    Thanks
    108
    Thanked 1,035 Times in 443 Posts

    Re: Everyone on board except the US.

    A Global Financial Reset Is Coming: ‘A Deal Is Being Made Between All The Central Banks’

    There is an unprecedented reset coming to world financial markets, and if you’ve been paying attention it’s impossible to ignore the signs. In fact mega-investment funds, governments and central banks have been secretly buying up and storing physical gold in anticipation of an event that will leave the U.S. dollar effectively worthless and governments around the world angling for a new global currency mechanism, according to mining executive Keith Neumeyer.

    But before the reset can happen Neumeyer, who recently founded First Mining Finance and has partnered with billionaire alternative asset investors like Eric Sprott and Rick Rule, says that foreign creditors must first deleverage their U.S. dollar debt, a move that is happening right now and is evidenced by the recent strength of the U.S. dollar.

    Once these U.S. debt holders unwind their positions, however, the dollar will be allowed to crash and we should prepare for a total financial, economic and monetary realignment.

    With the central banks now buying gold… which is quite unique… we haven’t seen that in our lifetimes… they’ve always been sellers of gold and now they’re buyers of gold… I think there will be a reset of the financial industry…

    "I think China is being allowed to accumulate gold purposefully by the American government… I believe that the Chinese need to own at least the same amount as the U.S. owns before this reset occurs. I think that there’s some kind of deal that’s being made between all the central banks behind the scenes and that’s why you’re seeing governments accumulating the metal.

    I do believe there will be some kind of new currency created with the backing… and it might not be a direct backing of the metal… but it’ll be some kind of blend of currency.. it could be through SDR’s… Special Drawing Rights… or some type of mechanism… I think that’s where we’re going.

    And when that reset occurs I think gold will be left to rise… and I wouldn’t be at all surprised to see three…four… five thousand dollar gold over the next five years." - Keith Neumeyer

    You can read the rest here

    Its just one opinion, but since Ross started this thread, I've seen a few people talking about the central banks, doing a "reset" with, or without the US.

    Fred
    "Life IS mystical! Its just that we're used to it." - Wolf, the movie
    "Dad, if God is everywhere then, when he's in a piece of paper, is he squished?" - My daughter, age 7

  8. The Following User Says Thank You to Fredkc For This Useful Post:

    Ross (04-06-2015)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •