In fact, many commentators say the AIIB is less about anything wrong with the ADB or the World Bank and more about China’s efforts to increase its voice in global development and financial governance, and even to reshape the financial world order itself.
With Tuesday marking the deadline for nations wishing to join as “founding members” of the new multinational lender, here are the four things you need know about the AIIB… Continue reading
When such a newsletter comes from an institution such as Guggenheim, the soon-to-come problems America faces couldn’t be more surreal.
As economic growth returns again to Europe and Japan, the prospect of a synchronous global expansion is taking hold. Or, then again, maybe not. In a recent research piece published by Bank of America Merrill Lynch, global economic growth, as measured in nominal U.S. dollars, is projected to decline in 2015 for the first time since 2009, the height of the financial crisis.
In fact, the prospect of improvement in economic growth is largely a monetary illusion. No one needs to explain how policymakers have made painfully little progress on the structural reforms necessary to increase global productive capacity and stimulate employment and demand. Lacking the political will necessary to address the issues, central bankers have been left to paper over the global malaise with reams of fiat currency.
This could end up turning into a scenario where, like Japan, Saudi Arabia develops breakout capacity in order to go nuclear in as little as three months if needed. Now that the Obama administration’s reckless policies have started a nuclear arms race in the Middle East, things are going to get extremely dangerous for Israel. With its back against the wall it may have no choice but to strike or even use the Samson Option should it be attacked.
Saudi Arabia will not rule out building or acquiring nuclear weapons, the country’s ambassador to the United States has indicated.
Asked whether Saudi Arabia would ever build nuclear weapons in an interview with US news channel CNN, Adel Al-Jubeir said the subject was “not something we would discuss publicly”.
Pressed later on the subject he said: “This is not something that I can comment on, nor would I comment on.”
The Maritime Self Defense Force in Japan made a little bit of history Wednesday by taking delivery of the largest Japanese warship since World War II.
At 813 feet long, the Izumo is the size of approximately eight football fields and has a crew of 470 sailors. Continue reading
Power VisionChinese President Xi Jinping’s vision of achieving the same great-power status enjoyed by the U.S. received a major boost this month when the U.K., Germany, France and Italy signed on to the Asian Infrastructure Investment Bank. The AIIB will have authorized capital of $100 billion and starting funds of about $50 billion.
Canada is considering joining, which would leave the U.S. and Japan as the only Group of Seven holdouts as they question the institution’s governance and environmental standards. Australian Prime Minister Tony Abbott’s cabinet approved negotiations to join too, according to a government official who asked not to be identified as the decision hasn’t been made public. Continue reading
China and Russia have taken the lead in establishing the Asian Infrastructure Investment Bank (AIIB), seen as a rival organisation to the World Bank and the Asian Development Bank, which are dominated by the United States with Europe and Japan.
These banks do business at the behest of the old Bretton Woods* order. The AIIB will dance to China and Russia’s tune instead.
The geopolitical importance was immediately evident from the US’s negative reaction to the UK’s announcement this week that it would join the AIIB. And very shortly afterwards France, Germany and Italy also defied the US and announced they might join. In the Pacific region, one of America’s closest allies, Australia, says she is considering joining too along with New Zealand. The list of US allies seeking to join is growing. From a geopolitical point of view China and Russia have completely outmanoeuvred the US, splitting both NATO and America’s Pacific alliances right down the middle. Continue reading
Earlier this month, the BoJ surveyed 40 dealers and discovered something shocking: buying the entirety of JGB gross issuance has had a rather dramatic effect on liquidity. In fact, two thirds of the firms who participated reported having “some or a lot” of problems and described bid-asks as “not very tight.” Today, an internal report from the central bank indicates officials are slowly coming to accept the fact that their actions have consequences although as you can see from the following, the fact that the BoJ is literally buying all of the bonds is still low on the list of factors the central bank figures might be negatively affecting liquidity… Continue reading
According to the Japan Nuclear Regulation Authority, Fukushima was reassessed a year prior to the tsunami. It was determined that the plant needed to be retrofitted to withstand a much stronger earthquake. Had the plant been offline or retrofitted, the accident may have been far less severe.It is already known that Diablo Canyon, operated by Pacific Gas and Electric Co. in San Luis Obispo County, may be subjected to 30 percent more ground shaking from nearby faults than Fukushima experienced. The first of several ongoing studies, published last week, states ground shaking at Diablo Canyon can exceed plant design. It is anticipated this will lead to years of more study. The Nuclear Regulatory Commission will then consider ordering upgrades. Continue reading
Although most analyses have focused on the PLA’s command structure, training, lack of combat experience and less modern hardware, Chen believes the Chinese military would be likely to win a war against Japan given China’s economic scale and the fact that the PLA’s military budget has been at least double that of Japan and may keep increasing in the future. Chen also predicted that China would be second only to the US in terms of military hardware in the future.
We’re watching America being abandoned by a German-led Europe in real time.
European officials tell the Financial Times their countries will join the institution, ignoring reservations expressed by the United States about how the new lender will be run
France, Germany and Italy have agreed to follow Britain’s lead and join the Asian Infrastructure Investment Bank, a major setback for Washington, the Financial Times reported.
The state-run Xinhua news agency in China said South Korea, Switzerland and Luxembourg were also considering joining. Continue reading
Ekaterina Blinova – Russia is growing its maritime potential, signaling its intention to regain geopolitical power as a naval force, according to experts.
In the midst of withstanding NATO expansion in Eastern Europe and closely observing its national interests in the Middle East, Russia is also strengthening its military presence off its eastern coasts – in the Pacific region – where the geopolitical interests of Moscow and Beijing are overlapping.
Experts point out that for Russia and China the American pivot to East Asia and the Asia-Pacific poses a serious challenge. At the same time both Moscow and Beijing are in territorial disputes with Tokyo; with the balance of power in the Korean peninsula also viewed by the two global players as a guarantee for stability in the region. Continue reading
Highly classified SS papers, which were only issued to a secretive unit called Kommandostelle S, have revealed the full horror of the bombings.They show how Germans died at the hands of their own leader in 1944 and 1945 – who then blamed the carnage on Allied Forces. The rockets were launched during the closing months of the Second World War as Hitler’s last role of the dice.
(NaturalNews) U.S. Navy sailors exposed to radioactive fallout from the Fukushima nuclear disaster have been falling ill, even as the Defense Department insists that they were not exposed to dangerous levels of radiation. Many of the sailors have now joined in a class action lawsuit against Fukushima operators and builders Tokyo Electric Power Company (Tepco), Toshiba, Hitachi, Ebasco and General Electric.
Even if they wanted to — which many do not — the sailors would be unable to sue the Navy. According to a Supreme Court ruling from the 1950s known as the Feres Doctrine, soldiers cannot sue the government for injuries resulting directly from their military service. Continue reading
China must continue to develop aircraft carriers to maintain the security of its Indian Ocean routes, says People’s Liberation Army hawk Yin Zhuo.
The 69-year-old rear admiral made the comments Monday, a day before the commencement of the annial “two sessions” of the National People’s Congress and Chinese People’s Political Consultative Conference (CPPCC) in Beijing. Continue reading