Lagarde said the IMF needs to make reforms but the U.S. has been blocking them. The IMF is suppose to be headquartered in the largest economy and that is going to be China in the future. Lagarde said the U.S. is blocking China, India and Brazil who are coming up strong from having a voice in the IMF.
The International Monetary Fund' s headquarters may one day move from Washington to Beijing, aligning with China' s growing influence in the world economy, the fund' s managing director Christine Lagarde said early this month.
Lagarde also pointed out that the U. S. government is an" outlier" among theG20 in refusing to approve IMF reform, and the IMF was trying to give emerging economies like China and Brazil a bigger voice through reform.
According to Lagarde, on the part of countries like China, Brazil, and India, there is frustration with the lack of progress in reforming the IMF by refusing to adopt the quota reform that would give emerging economies a bigger voice, a bigger vote, and a bigger share in the institution. “ I share that frustration immensely,” she said.
The U. S. is the only member with control weight in the voting; meaning that any major reform must be approved by the United States.
Now with Lagarde who is head of the IMF even saying the U.S. has waning influence besides saying the headquarters will most likely be in Bejing, that shows the writing is on the wall for the U.S.
Not just that. It appears that China is now making deals with Britain. The Premier of China is there today on official business. I have read these type statements before in the Chinese news websites. They don't say it directly but it typically means, they are securing deals in trade eliminating the U.S. dollar. Just read between the lines.
China, for its part, has a huge market, large foreign exchange reserves and a competitive manufacturing sector, Li said, pointing out that the complementary strengths of the two countries mean they have many areas for collaboration.
" We look forward to stronger cooperation in finance, infrastructure construction, among others, and more robust exchanges in research, education, and culture," Li said. " We look forward to win-win engagements."
UPDATE 6/19/14 - China reached a Yuan trade deal with the UK. U.S. dollar bypass.
Just as I thought and read between the lines in the Chinese article. The UK has reached a trade deal with China where the U.S. dollar will not be used.
While four other nations had already signed such accords withChina, the U.K.’s deal yesterday made it the first European country to do so. London has been competing with cities includingFrankfurt to become Europe’s offshore yuan hub. Direct trading of the yuan-pound pair is scheduled to start today.It appears those that had never dared stepped on the U.S. toes previously are not worried about it now. There must be much more going on that we as the public are not aware of.
“Given the sheer pace and scale of growth in renminbi trade, the opportunity for London cannot be overstated,” Peter Sands, group chief executive at Standard Chartered Plc in London, said by e-mail yesterday. “The appointment of an official clearer is a logical step in London’s development as a leading offshore renminbi center.”
This is saying the U.S. is going downhill where as other countries are becoming the leaders and more financially stable and prosperous.
I can only imagine how upset those in the top tier of the U.S. government were upset at Lagarde making this admission in the public and if our closest ally is securing trade with China, without the dollar possibly.
I don't believe a single media outlet in the U.S. will relay this statement and information to the public. This is not something CNBC will broadcast.
China will be the largest economy in the world very soon. Why does the U.S. continue to piss them off? China has been turning away from the dollar in their trade. They have a very tight relationship with Russia now. We all know what is happening with our relationship with Russia.
The writing is on the wall and now even those organizations that the U.S. has had the most influence with are frustrated due to the U.S. grasping at the melting straws.