The widespread endorsement of the China led Asian Infrastructure Investment Bank (AIIB) may mark a major shift away from a US dollar centric global financial system. This has major implications for global financial markets and the pace of these developments seems likely to accelerate.
The most significant news just over the last few weeks has been the endorsement of the AIIB by the UK and across Europe, despite obvious US objections. Furthermore, the Petrodollar is looking increasingly fragile in a world where Saudi Arabia’s biggest customer has become China.
Financial geopolitics is closely intertwined with global financial markets, which have become heavily distorted at least partially as a consequence. This interview with Alasdair Macleod does a great job of explaining how it all fits together.