Alasdair Macleod, head of research for GoldMoney, explained to USAWatchdog that America is losing influence in international banking. China is steadily gaining more support for a new bank that would finance major infrastructure projects in developing countries.
The Asia Infrastructure Investment Bank (AIIB) represents enormous investment potential by creating an Asian market enveloping more than half the world’s population. China already has support for the AIIB from countries throughout Asia, the Middle East, and the eurozone. However, it is doubtful that China will ever invite the United States to be a member. In fact, it would probably prefer the US dollar to play no part in the what would be the largest market the world has ever seen.
The US is being left in the dust in other ways as well. While China continues to buy up gold, Macleod warned that almost all Western traders fail to understand the value of the commodity. To compete with the growing economic powerhouses in Asia, the US should adopt a similar strategy of gold accumulation and simultaneously stop flooding the world with dollars that will have to return home one day.
Highlights from the interview:
“The AIIB [Asia Infrastructure Investment Bank] is basically led by China… Now the reason this bank is being set up is twofold. Firstly, China wants, through the Shanghai Cooperation Organization, with Russia, to build the largest internal market the world has ever seen. It will run roughly from Genghis Khan’s Straits of Bering to the gates of Jerusalem. We’re talking over half the world’s population once India joins in… From America’s point of view, she’s losing a huge sphere of influence in the Pacific. You then come over to Europe, where you’ve got NATO. The importance of the AIIB is that NATO’s members have decided that commercial logic is driving policy, as far as they’re concerned, a lot more political logic. Even though they’re still members of NATO, they’re all deserting the ship as far as America is concerned and signing up to join the AIIB… And this is happening outside the control of America, and that is really what is upsetting America… I don’t think America can join this [bank]. I very much doubt China would let her in…
