In quick succession, the U.K., France, Italy, and Germany all agreed to become founding shareholders of the AIIB, a sign that they are eager to cozy up to Beijing and its $4 trillion in foreign reserves. Once upon a time, “the world was said to bow down before the mighty dollar. These days, even many of America’s closest allies have renminbi signs in their eyes.”
This is an impressive “soft-power victory for China,” said the editors at Bloomberg View, and “Washington largely has itself to blame.” The U.S. has long called on China to take more of a role in international financial institutions, “without making room for it to do so.” Congress has repeatedly “blocked efforts to dilute U.S. dominance of the World Bank” or give China more influence at the IMF, where Beijing’s voting share is just 4 percent versus Washington’s 17 percent. Republicans have also shot down President Obama’s attempts to increase U.S. funding for the World Bank and IMF, said Charles Kenny at Bloomberg, leaving those institutions “undersize compared with the demands they face.” But if the Obama administration can’t persuade the GOP to put up the cash needed to underwrite development projects that will save lives and foster global growth, “it should at the very least get out of the way of other countries willing and able to lead.”
Everyone needs to learn that actions have consequences, even countries and that is what is beginning to happen to the U.S. For all of this millennium we have increasingly turned over our industrial production to China because of their lower labor costs. Too many people just focused on getting things a little cheaper and failed to look at the bigger picture. Now, the consequences of these actions are starting to manifest themselves.
Of course we know that those actions have resulted in a severe reduction in the middle class of America. Due to constantly lower wages being earned by so many American families we have come to depend on getting our “stuff” cheaper. The second consequence is that China now has trillions of our dollars in their banks and that is resulting in them taking over the financial matters of the world. We have always been a debtor nation but never so much to just one country. Our past actions this millennium have consequences and I’m not really sure that is a bad thing.
Yes, it is fearful to see a country that is driven by a very different mentality gaining more power. Lets face it, communism is a very scary matter to capitalist nations. But if this current consequence results in our country to step back and look at what is going on with us lately maybe good will come from it. We need to realize that our very dysfunctional government is doing us grievous harm. We are ignoring things that need to be fixed because we refuse to get along together. We spend soooo much more on our military than anyone else in the world and that is draining our economy and making enemies throughout the world. We will learn that one country with less than 5% of the world’s population and, and really shouldn’t, be the policemen of the world. It is time to share that responsibility.
Maybe good things will come from us no longer being “The” political and economic power in the world….
A little humility is a good thing….