Share on Google Plus Share on Twitter Share on Facebook 3 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 5 (8 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Article Stats   4 comments

OpEdNews Op Eds

The Birth Of The "De-Americanized" World

By (about the author)     Permalink       (Page 1 of 1 pages)
Related Topic(s): ; ; ; ; ; ; ; , Add Tags Add to My Group(s)

Well Said 1   Supported 1   Inspiring 1  
View Ratings | Rate It

opednews.com Headlined to H2 10/15/13

Become a Fan
  (97 fans)
Source: Asia Times



This is it. China has had enough. The (diplomatic) gloves are off. It's time to build a "de-Americanized" world. It's time for a "new international reserve currency" to replace the US dollar. 

It's all here, in a Xinhua editorial, straight from the dragon's mouth. And the year is only 2013. Fasten your seat belts -- and that applies especially to the Washington elites. It's gonna be a bumpy ride. 

Long gone are the Deng Xiaoping days of "keeping a low profile." The Xinhua editorial summarizes the straw that broke the dragon's back -- the current US shutdown. After the Wall Street-provoked financial crisis, after the war on Iraq, a "befuddled world," and not only China, wants change.  

This paragraph couldn't be more graphic:
"Instead of honoring its duties as a responsible leading power, a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas, instigating regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies."
The solution, for Beijing, is to "de-Americanize" the current geopolitical equation -- starting with more say in the International Monetary Fund and World Bank for emerging economies and the developing world, leading to a "new international reserve currency that is to be created to replace the dominant US dollar."  

Note that Beijing is not advocating completely smashing the Bretton Woods system -- at least for now, but it is for having more deciding power. Sounds reasonable, considering that China holds slightly more weight inside the IMF than Italy. IMF "reform" -- sort of -- has been going on since 2010, but Washington, unsurprisingly, has vetoed anything substantial. 

As for the move away from the US dollar, it's also already on, in varying degrees of speed, especially concerning trade amongst the BRICS group of emerging powers (Brazil, Russia, India, China and South Africa), which is now overwhelmingly in their respective currencies. The US dollar is slowly but surely being replaced by a basket of currencies. 

"De-Americanization" is also already on. Take last week's Chinese trade charm offensive across Southeast Asia, which is incisively leaning towards even more action with their top commercial partner, China. Chinese President Xi Jinping clinched an array of deals with Indonesia, Malaysia and also Australia, only a few weeks after clinching another array of deals with the Central Asian "stans."  


Chinese commitment to improve the Iron Silk Road reached fever pitch, with shares of Chinese rail companies going through the roof amid the prospect of a high-speed rail link with and through Thailand actually materializing. In Vietnam, Chinese Premier Li Keqiang sealed an understanding that two country's territorial quarrels in the South China Sea would not interfere with even more business. Take that, "pivoting" to Asia. 

All aboard the petroyuan

Everyone knows Beijing holds Himalayas of US Treasury bonds -- courtesy of those massive trade surpluses accumulated over the past three decades plus an official policy of keeping the yuan appreciating very slowly, yet surely. 

At the same time, Beijing has been acting. The yuan is also slowly but surely becoming more convertible in international markets. (Just last week, the European Central Bank and the People's Bank of China agreed to set up a US$45-$57 billion currency swap line that will add to the yuan's international strength and improve access to trade finance in the euro area.) 

The unofficial date for full yuan convertibility could fall anywhere between 2017 and 2020. The target is clear; move away from piling up US debt, which implies, in the long run, Beijing removing itself from this market -- and thus making it way more costly for the US to borrow. The collective leadership in Beijing has already made up its mind about it, and is acting accordingly. 

The move towards a full convertible yuan is as inexorable as the BRICS move towards a basket of currencies progressively replacing the US dollar as a reserve currency. Until, further on down the road, the real cataclysmic event materializes; the advent of the petroyuan -- destined to surpass the petrodollar once the Gulf petro-monarchies see which way the historical winds are blowing. Then we will enter a completely different geopolitical ball game. 

We may be a long way away, but what is certain is that Deng Xiaoping's famous set of instructions is being progressively discarded; "Observe calmly; secure our position; cope with affairs calmly; hide our capacities and bide our time; be good at maintaining a low profile; and never claim leadership." 

A mix of caution and deception, grounded on China's historical confidence and taking into consideration serious long-term ambition, this was classic Sun Tzu. So far, Beijing was laying low; letting the adversary commit fatal mistakes (and what a collection of multi-trillion-dollar mistakes... ); and accumulating "capital."  

The time to capitalize has now arrived. By 2009, after the Wall Street-provoked financial crisis, there were already Chinese rumblings about the "malfunctioning of the Western model" and ultimately the "malfunctioning of Western culture."  

Beijing has listened to Dylan (with Mandarin subtitles?) and concluded yes, the times they-are-a-changing. With no foreseeable social, economic and political progress -- the shutdown is just another graphic illustration, if any was needed -- the US slide is as inexorable as China, bit by bit, spreading its wings to master 21st century post-modernity. 

Make no mistake; the Washington elites will fight it like the ultimate plague. Still, Antonio Gramsci's intuition must now be upgraded; the old order has died, and the new one is one step closer to being born. 

 

Pepe Escobar is the roving correspondent for Asia Times. His regular column, "The Roving Eye," is widely read. He is an analyst for the online news channel Real News, the roving correspondent for Asia Times/Hong Kong, an analyst for RT and (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Why Putin is driving Washington nuts

It was Putin's missile?

All aboard the New Silk Road(s)

Where is Prince Bandar?

Why Qatar wants to invade Syria

Welcome to the Kurdish Spring

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
3 people are discussing this page, with 4 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

We will see how Chapiteau Hill will react, especia... by Ethan Hollow on Wednesday, Oct 16, 2013 at 12:37:55 AM
Nah, if that's what he was consuming, he'd be a pe... by Samson on Wednesday, Oct 16, 2013 at 5:42:56 PM
Of course, the New York Times referred to that Xin... by mhenriday on Wednesday, Oct 16, 2013 at 3:31:17 PM
I saw today that Obama approved $11 billion in spe... by Samson on Wednesday, Oct 16, 2013 at 5:45:13 PM