Monday, June 29, 2015

Welcome AIIB (update)

The Asian Infrastructure Investment Bank, AIIB, (亚洲基础设施投资银行 or 亚投行) had their official signing ceremony today.

Read here (link) about bitter bickering behind the launch.

We wish them well. Generally, more capital investments are highly welcome, especially in the poorest parts of the world.

The USA and Japan have thus far refused to participate - believing the new AIIB rivals their own entrenched leverage over the World Bank / IBRD and Asian Development Bank. But although the US urged its allies to spurn & boycott the new bank, most signed-up. Perhaps most notably, even Israel ignored Uncle Sam's guidance and turned its back on America.

Other nations perhaps realize that the USA has greatly overextended its resources & talent. American towns and cities are beggared by endless foreign wars. Over-reliance on the US defense industry to drive the economy has resulted in entrenched corruption and underinvestment in education and domestic infrastructure. Key human capital has been sidelined by incestuous linkages between US politicians, military, and heavy industry.

It's a momentous day - (sad too!) - a shift in Great Power relationships.