You already know about the major lenders like the IMF, The World bank and the Asian Investment Bank.
These lenders are all dominated by the United States of America.
Domination of lenders, just like domination of the reserve currency with its vice like grip on the oil business, have given the US an unquestionable competitive advantage over every other country for the best part of 50 years.
But now, the Chinese are muscling in and the Yuan is all set to become a global currency.
The Yuan and the AIIB is the new kid on the block.
China launched the AIIB (the Asian Infrastructure Investment Bank) in October 2014 and it will compete with the American controlled institutions on a global level. International support for the new Bank has been nothing short of staggering.
The UK, Israel, Germany and Australia have all rushed to support the new venture. Clearly this is the start of a new era in international finance.
You may be wondering what these Banks actually do and where they fit in to the financial landscape. Well, these monster institutions lend on a huge scale. They are not the sort of banks you go to for a car loan. they are more the sort of banks that the likes of Greece would go to for a bail out. The newly created AIIB is owned by China and it will compete with the likes of the IMF and The World Bank for huge infrastructure projects running into billions of pounds.
The AIIB will be lending in Yuan NOT in dollars. The worm has finally turned. The control of money is slowly but surely being taken away from the US. It indicates the demise of the dollar as a reserve currency and the rise of the Yuan as a serious player on the financial world stage.
Where does gold fit in to the Chinese Plan?
The Chinese having been secretly loading up with gold bullion for years, taking advantage of the low prices that prevail in the West. Some say it may have been done with the knowledge of the West in the hope that the Chinese can rescue the global economy when the debt bubble finally pops. Who knows?
I would believe that anything is possible of the Central Bankers. I am hoping for an official update of China’s physical gold holdings very soon. I can
The emergence of the Yuan as a global currency could be one of the biggest changes to global finance in your lifetime. You can expect this story to appear in newspapers and TV news reports in the weeks and months ahead.