Time to ‘de-Americanize’ the Geopolitical Spectrum

The birth of the ‘de-Americanized’ world
By Pepe Escobar – The Roving Eye – 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. …more