I meant the countries joining China being debtor nations. Not China.
End of day, China will take financial control away from US. There will be many many smiles around the world. Of course, China may not be in much of a position to capitalize on it if TSHTF there.
Unemployment is flat or almost @ around 3.5%. Problem is there are lot more McJobs here than there used to be...so not much real progress. Prices are holding so far.
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Originally Posted by RummyBoy
China is a creditor nation (the largest in the world) and not a debtor nation i.e. the debt is not sovereign debt (at this stage). Japan, along with the US, is one of the largest debtor nations in the world.
The yen is being printed to extremes - by the way, are you experiencing any inflation over there yet? How are people handling the yen devaluation?
The AIIB is more about a move away from US unilateralism, the IMF, the ADB and the US dollar as a reserve currency. China is developing a competitor to SWIFT, acquiring gold as well as gradually internationalizing the RMB with swap arrangements around the world in moves that may eventually lead to the RMB or some alternative becoming the reserve currency.
It just means is that 15 to 20 years from now, it "might" be more difficult for the US to impose sanctions on countries which are operating trade via the new system, such as Russia, or impose fines against other country institutions as happened with the big fine on BNP Paribas in France which they objected to and which is part of the reason they jumped on board so fast.
It doesn't mean Russia can ignore the other countries or financial institutions can run riot, it just means that it goes to the members of the AIIB and under a new system China is dominant and probably has the final word. These are just the first steps but it takes a very long time to go from being a trade currency to being a reserve currency.
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