Saturday, December 05, 2015

Commentary - AIIB and Global Capitalism

The NYT article about AIIB says 'essentially Americans misjudged China's willingness to put some serious political & economic weight' behind the Chinese idea of a global bank. That part is true - Obama Administration needed to show the fortitude and wisdom in realizing the potential of this Chinese venture, especially why countries around the globe will get attracted to it. Ten or twenty years down, no one is even sure American Economy will remain atop the pyramid, quite possibly displaced by Chinese Economy in an emphatic manner. It is 'common business sense' for rest of the countries of the world to hedge their bets. Business friendly Republicans in Congress should be able to understand this business necessity.

Does that mean, Americans should pick up the long standing invitation of Jin Liqun and join AIIB? Talk to House Speaker Paul Ryan. What would he say in the end? My guess is he would say "Export Import Bank is all what I can fund, beyond that private American Capital would suffice". In other words, so far as American Tax Payers are considered, World Bank and International Monetary Fund; those are 'enough' commitments for Americans. Otherwise 'asinine fame' chief of Wells Fargo and 'ever charming' Jimmie Demon of JP Morgan are America's best answers for Global Capitalism. Sure, these infamous Wall Street Bankers are with zero credibility with Americans; but remember these are 'our bastards', much more preferable than 'so called benevolent, state sponsored central planners' circa Soviet Union. 

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