Several key U.S. allies around the globe have “defected” to China in less than six months…
Business Insider reports China’s new international development bank—the Asian Infrastructure Investment Bank (AIIB)—is gaining support from America’s traditional allies at a rapid clip.
[China formed the AIIB as part of its “New Silk Road” initiative. Its goal is to strengthen Chinese trade and investment around the globe.
The AIIB is designed to counterbalance the World Bank (headquartered in Washington, D.C.). It will act as a leading instrument of “soft power” for China worldwide… helping to bring more satellite nations into Chinese “orbit.”]
American allies India and Singapore were among the first to join… followed soon thereafter by the United Kingdom and South Korea. Even stalwart regional allies Japan and Australia indicate they are next.
On Tuesday, Taiwan—an island Beijing has considered a “renegade province” since the Chinese nationalists fled there in 1949—applied for membership.
Taiwan is independent only due to six decades of U.S. military protection. That a virtual “enemy” of Beijing has chosen to partner up with China is telling… American influence continues to plummet worldwide.
As we’ve noted in previous Dailies, this will lead to the eventual end of global U.S. dollar hegemony. The transition in power between the U.S. and China will be rocky. It will send consistent waves of heightened volatility through the global markets.
Bottom line: Our advice remains the same. Make sure your practice appropriate asset allocation. It’s your key to constructing an unassailable “wealth fortress”… one that can withstand any future move in the U.S.-China global chess game.