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France, Germany, Italy to join China-led infrastructure bank

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German and Italian authorities could not be reached for an immediate comment.

Italy already confirmed officially:

http://www.ilsole24ore.com/art/finanza-e-mercati/2015-03-17/l-italia-entra-banca-sviluppo-sponsorizzata-cina--124835.shtml?uuid=ABFD5VAD

It's a fact, a big failure for the US.

-2 ( +2 / -4 )

Pfff. Losers from Italy say the US is going to lose. Well I guess it takes someone in a failed economy to know what it looks like.

-4 ( +1 / -5 )

Losers from Italy say the US is going to lose.

It's not only Italy who is seeing how the US is losing to China, it's the whole world. For this reason not only Italy, but also Germany, France, UK joined AIIB, and soon probably also Australia will do it, despite Washington doesn't like this at all. Everyone knows China is the future, while the US is a mess. ;)

-1 ( +3 / -4 )

S&P 500 was down 0.33% on the news. I don't know how we will ever recover. Lol.

Will it protect the rights of workers, the environment, will it deal with corruption issues appropriately?

H**l no. Presumably the Europeans know this going in.

-1 ( +1 / -2 )

Bearing in mind that British created Breton Woods with the Americans, have the Saudi's in their pockets, print money and join petrodollar wars, isn't it possible that they, the British, joined the Chinese bank to destroy it from the inside? Don't Westerners have a vested interest in protecting the dollar that can be printed, so that they can have Chinese products for free.

1 ( +2 / -1 )

There's quite a lot that can be read into this, although I would point out that I really don't think European standards of corruption and human rights would have too much of an impact on the AIIB, as it's completely dominated by China. The US does need to make sure that the IMF and World Bank still retain their dominance though

-1 ( +0 / -1 )

Once Americans start flocking to glorious China to live, breath clean air, and happily go about their lives, that's when we can declare China has "won" and the US's reign as world superpower has ended.

I've really no idea, but I'd be surprised if it were the case that the US is losing to China in these migration statistics at the current time. The US is probably losing to some places, like Singapore I would guess, but China? Maybe someone can surprise me.

1 ( +2 / -1 )

The US is probably losing to some places, like Singapore I would guess, but China? Maybe someone can surprise me.

If we are speaking about standard of life, the US loses to many countries, but not to China, for now, even though some places in China could be already better than some places in the US.

But as a world superpower, the US is losing to China for sure. Maybe you are not able to get the huge implications of this event (the most important European countries joining AIIB). It's a big news worldwide for some reason, you know.

-1 ( +2 / -3 )

Looks to me the European countries have decided that USA has lost its credibility by its agreeing to the reforms at I.M.F. but unable to make good on its promises. This is caused by obstruction by the Republican Party members in the US Senate and the House of Representatives. It is possible the rest of the world will proceed with the I.M.F. reforms in spite of and override a veto by USA.

1 ( +1 / -0 )

The quantitative easing by the US has irked many US allies. It keeps the value of the dollar low. This benefits US exporters at the expense of Japanese and European exporters. Now Japan and European Union are both doing quantitative easing, much to the embarassment of the US government which has stopped quantitative easing. I am not surprised that the European Union has decided that US did things in its own best national interests without regard to the national interests of its allies.

-1 ( +1 / -2 )

Alex80,

It's a big news worldwide for some reason, you know.

As a foreign relations story it might be big news, but I don't see it as much more than that for the moment.

Economically the US is doing the best and will continue to too, I think, thanks to it's energy production boom.

Don't think I'm anti-China or anything. I even owned some Renminbi a while back, but I already sold them. I still have US dollars though.

2 ( +2 / -0 )

The quantitative easing by the US has irked many US allies. It keeps the value of the dollar low. This benefits US exporters at the expense of Japanese and European exporters.

@ Yamiko Otokawa: That is why the US dollar is at an all time high against the Euro and a multi-decade high against the Yen? Get your facts straight

0 ( +2 / -2 )

To dcog9065 : The present continuing quantitative easing by Japan and European Union have caused the value of the yen and euro to drop against the US dollar. The US has stopped quantitative easing many months ago. That is why its value is going up against yen and euro. You need to do your homework before you write.

-3 ( +1 / -4 )

De-dollarization, right before your very eyes.

1 ( +2 / -1 )

The SCO (China and Russia) have a plan to pull the rug right from under the Petrodollar. This isn't the beginning of the end, it's merely the end of the beginning.

Stay tuned for more folks.

0 ( +4 / -4 )

The present continuing quantitative easing by Japan and European Union have caused the value of the yen and euro to drop against the US dollar. The US has stopped quantitative easing many months ago.

@Yamiko Otokawa: You do understand that the Eurozone's QE only started last week right? Yet the Euro has dropped against the USD for months, even during the US QE. Nothing in Economics is black and white like you're naively assuming likely based on 5 minutes reading Wikipedia. In the case of the US, interest rates play a far more important role than QE.

Also, you mention that the US should be "helping out its allies" with its currency? You can't possibly be serious about this can you?

0 ( +0 / -0 )

I posted this originally in CogitAsia:

The Washington posture on AIIB has been muddled from the beginning, hampered by the fact that the Americans blocked China and other would be contributors to the World a Bank and the ADB from gaining a greater share of the governance structure of those established institutions.

That China has chosen to go a bank approach rather than its own direct ODA is pretty shrewd because the AIIB would demonstrate that China is contributing to the “public goods” — which is something that the Americans are supposed to want, or do they? Part of the muddle also seems to be to support their good friend Abe Shinzo, whose dislike for the Chinese (and Koreans) is also palpable.

At the end of the day American allies will be in, including the Aussies and Koreans, Japan will remain aloof and glad the Americans sang to its tune, the Chinese will look good (especially so if they do adjust the governance structure and principles), and the Americans will again prove they only like good ideas if they invent them.

2 ( +3 / -1 )

Good luck to them. An alternative bank is more difficult than one thinks:

http://www.economist.com/news/finance-and-economics/21607851-setting-up-rivals-imf-and-world-bank-easier-running-them-acronym

Like huge aid donations to disaster areas, there's always big talk of doing big things, but in the end, not much action come out of it. Remember the BRICS announced their own development bank back in 2014 - have ya heard anything about it since? Big talks; let's see if the cat walks.

0 ( +1 / -1 )

@lostrune2 - Like huge aid donations to disaster areas, there's always big talk of doing big things, but in the end, not much action come out of it. Remember the BRICS announced their own development bank back in 2014 - have ya heard anything about it since? Big talks; let's see if the cat walks.

It takes time son. Plus it was just 2014. NYC is still trying to complete a small extension to a subway line. 8 years and it's still not complete.

1 ( +2 / -1 )

At least there's some work going on it currently, but the other we haven't even heard a peep since. It's vaporware - countries do this big talk all the time.

-1 ( +0 / -1 )

Buy Yuan?

0 ( +0 / -0 )

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