SPEAKING OF BANKS… CHINA & INDIA LAUNCH DEVELOPMENT BANK: ...
There's interesting news in the realm of international finance, and this bit of news was shared with us by a regular reader here, Mr. E.O. Yesterday, China and India sponsored the official launch of an East Asia development bank:
China, India launch new Asia Infrastructure Bank
The news here is straight forward enough, as are the motivations behind China and India - two major players within the BRICSA bloc of Brazil, Russia, India, China, and South Africa - for China and India the formation of the bank basically amounts to a protest over the structure of other such banks, with the USA and Japan being heavily weighted:
"China and other emerging economies, including BRICS, have long protested against their limited voice at other multilateral development banks, including the World Bank, International Monetary Fund and Asian Development Bank.
"China is grouped in the ‘Category II’ voting bloc at the World Bank while at the Asian Development Bank, China with a 5.5 per cent share is far outdone by America’s 15.7 per cent and Japan’s 15.6 per cent share."
And of course, the USA and its East Asian satraps, South Korea, Japan, Indonesia, and Australia, are sitting this one out because they have "concerns":
US allies Japan and Australia alongwith South Korea and Indonesia are notable absentees from the list of nations who signed up for the China-led Bank. The AIIB will extend China’s financial reach and compete not only with the World Bank, but also with the Asian Development Bank, which is heavily dominated by Japan.
All this is predictable enough, and indeed, on this website we've long been predicting such moves by the BRICSA bloc nations to establish parallel institutions and international financial clearing to rival the West's. Of these two pillars - parallel institutions such as development banks, and parallel international financial clearing - the former, parallel development banks, are much easier to accomplish than parallel international clearing, which will demand a dramatic increase of those nations' space-based communications systems. It's worth reminding ourselves again, amid all the hysteria about financial collapse and so on, that reserve currency status is always associated with naval power, and in today's modern world, that translates into space power and space-based assets. When one looks at the preponderance of American space-based communications, it is clear the BRICSA bloc is a long way from achieving near parity, and that's not factoring in the space assets of the U.K., France, Germany, Japan, and so on.
So what might the possible picture be? is there possibly a pattern emerging here? While it is too early to tell, I suspect we might be looking at an emerging BRICSA bloc strategy, which will consist of the establishment of regional development banks within the bloc - say between China and Brazil and/or Argentina - just as we see this particular bank being sponsored by the "Big Two" of east Asia, China and India, who appear willing to bury old hatchets to accomplish common regional goals. This in turn can fund, via "infrastructure development," the establishment of ground-based regional clearing systems, a step needed in any case to ensure redundant communications in a system where the ultimate goal is space-based clearing. So the pattern might be this: (1) regional development banks;(2) regional ground-based clearing infrastructure and redundancy, leading ultimately to (3) space-based and genuinely global parallel international financial clearing. Time alone will tell.
See you on the flip side...
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During a trip I saw an interesting broadcast on “France 4” one of the French State TV channels, on Sat. October 25th, regarding the BRICS development bank. They interviewed two economists, one of who a French-speaking Chinese. It was stessed that the funds would be contributed by the governments concerned and that unlike the IMF which demands heavy control over policy in the beneficiary countries, the new bank would “not aim at making a profit” but only at fostering long-term infrastructural development.
This particular programme focused on China’s role, saying very little about Russia and, though the language used was appropriately circumspect, confirmed that the project was needed to make the world economy go forward as the Bretton Woods system faces its inexorable decline.
@”just as we see this particular bank being sponsored by the “Big Two” of east Asia, China and India, who appear willing to bury old hatchets to accomplish common regional goals”
India is actually geographically a “South Asian” rather than “East Asian”, i have never seen India being referred to as an “East Asian” country.
Also this AIIB bank will be available to countries from the broader geographical region of “Asia”, among the initial 21 members, there are countries from “East Asia”, from “Central Asia”, from “South Asia”, from “South-East Asia”, and from “West Asia”. It’s like the “Asian games”, participants are from all over “Asia”, not just “East Asia”.
I have always wanted to see China and India to bury old hatchets, two countries with huge population that accounts for large chunk of humanity, not to mention two nuclear powers, if these two nations can work towards a common goal of peaceful co-existence and prosperity, it will be a positive contribute to world peace.
No wonder the Chinese press were saying that with Prime Minister Narendra Modi Inia-China relations with reach a new level, its also unprecedented to see the Pakistani leader attending Mr.Modi’s inauguration and making a historic handshake,
Not only Mr.Modi appears to be willing to bury old hatchets with its neighbour China but also Pakistan.
Next year, both India and Pakistan are expected to become a formal member of the SCO, the SCO has its own development bank which India could potentially benefit from its initial projects.
“One of the largest infrastructural projects that the bank is eyeing is the financing of a potential $30 billion oil and gas pipeline from Russia to India. Overland hydrocarbon transportation from Russia to India can be organized only through the territory of transit states such as China or Kazakhstan, Turkmenistan, Afghanistan and Pakistan.”
As the proposed Russia to India oil and gas pipeline would be transiting through countries like China and Pakistan, these countries need to “bury old hatchets” in order for such project to realize.
For the moment, the “hope” factor is triumphing over “fear” factor it seems.
i mean “No wonder the Chinese press were saying that with Prime Minister Narendra Modi India-China relations will reach a new level”
Joseph. I don’t understand your obsession with “space-based” communication systems. They are most definitely NOT required for international clearing, nor are they a more efficient communication system than ground-based fiber cables. As a matter of fact, the type of system you are proposing requires satellites’ intra communication to be based on electromagnetic radiation, usually some form of microwave, which produces high variable transmission latencies given the medium in which these waves must travel, through thin-upper atmosphere for satellite-to-satellite links and thick volatile atmosphere conditions from satellite-to-ground-station. These links are not only high latency links, they are low bandwidth links because em waves bleed off energy much quicker than photons through specially constructed and conducive mediums (i.e. fiber cables). The distances involved, and remember the limiting factor is always distance as your transmission speed approaches the limit of the speed of light (as long as we stay with-in the realm of conventional technology), are much greater for satellite systems as you’re adding the overhead of many miles of transmission. Clearly the radius of the Earth is less than the radius of an orbiting satellite system.
Fiber is very low latency, higher bandwidth, redundant, reliable, and orders of magnitudes cheaper to lay than space satellites. The only limiting quality I can see, is that you must control the ground where the cable is laid for absolute control. In space it is much harder for earth humans to interfere with intra satellite communication, but it’s not impossible for all humans (see: X-37B).
Now, if we want to delve off into the realm of speculation and quantum entanglement based methods of communication, well, if they have that, there’s absolutely no need for space or fiber based communications. Theoretically it’s a quicker and safer method of transmitting information and it’s going to be a long while before we can access and manipulate the dimension information travels through under this method.
Space is an extremely harsh environment, one has to wonder if this future space based clearing system might be plagued with “failures” once placed in orbit, if they’re even allowed to reach orbit. Who really knows the capabilities this nation and others actually have orbiting this planet and possibly other bodies within the solar system or even beyond it. TPTB may not so willingly give up the “high ground” if they deem it a serious threat. There are also rogue elements in key positions that may seek to cause strife between nations if it suits their purposes. It will be interesting to see how it all plays out in the not so distant future.
It’s interesting that the two leaders of this new development bank are China and India. Two of the biggest victims of the British Empire in the nineteenth century and Russia who has long memories of the stab in the back of the Napoleonic Invasion and Crimean War in that century.
from “a people” who at one point in there “story” came up with the idea of building “a great wall” and a simple ma thematic slide rule formulae…we take half, of everything, the big dippers….or for laughs and giggles ma’s the matrix.
Chinese dry cleaners…they will clean you out timeservers….money laundering, The simple collusion illusion.
funny this supermacists always trying to be “China-expert” after making a claim “white civilized everyone else”, go back to stormfront.
Henry, he doesn’t speak for this white person. Also, I enjoy your well thought-out postings.