PODCAST: Europe Turns to China

On today’s show, economist and FTMDaily.com founder Jerry Robinson explores Europe’s recent decision to join Beijing’s Asian Infrastructure Investment Bank, a sworn challenger to both the Western-dominated World Bank and Asian Development Bank. The Obama administration, which had previously attempted to prevent its Western allies from joining the ambitious Chinese lending institution now finds itself running out of friends. The West’s attempts to deny the rise of China is exploding in Washington’s face.

Plus, an update on the Federal Reserve’s closely watched meeting this week and a new way to identify buy signals on gold, silver, palladium, and platinum.

Listen to today’s podcast to hear all of Jerry’s analysis…

Later, Precious Metals Advisor, Tom Cloud, provides a cutting-edge update for gold and silver investors.

– The latest shocking decisions by European governments to integrate more closely with China… despite U.S. objections.

– Why this week’s Federal Reserve meeting could be one of the most important since the 2008 financial crisis.

– A new way we are tracking precious metals trends — and how you can receive them.

According to an explosive piece released in today’s Financial Times, it has now been confirmed that Britain, Germany, France, and Italy have all accepted positions as founding members of the new Beijing-led Asian Infrastructure Investment Bank, also known simply as the AIIB.

For those looking for the next crack in America’s facade, this is it.

For years, the U.S. has dominated infrastructure lending in the Far East both through its Asian Development Bank, based in the Philippines, and through the Washington-based World Bank.

But last year, China unveiled its own Asian Infrastructure Investment Bank. The bank boasts $50 billion in initial capital and seeks to invest heavily into greater Asia’s massive infrastructure needs. Investors should note that many of the AIIB’s planned investment projects will benefit the region’s transportation, energy, and telecommunications sectors.

China is no stranger to empire and is moving according to a very carefully laid timeline. Its aim with the AIIB is simple: To regain economic dominance in the region, and enhance its standing within the global economy.

Of course, China’s goal of regaining regional hegemony directly conflicts with America’s own aspirations of economic dominance within the region.

The situation has placed the U.S. in yet another awkward foreign policy dilemma. Initially, the U.S. pushed back against the new Chinese-led lender and urged traditional U.S. allies to avoid joining the bank.

(Washington’s publicly stated concerns over whether the new Chinese-led bank will maintain “high standards of governance and environmental and social safeguards” is ironic — and quite simply hysterical — given the fact that the World Bank, and other Western lending institutions like the IMF, have an atrocious track record of harming those they claim to “help.”)

It would appear that Europe has seen the writing on the wall for America, and is now rushing to join the bank including, Britain, Germany, France, and Italy.

Think of it as Europe’s “Plan B.” It’s a smart move on Europe’s part. If they can balance relations between the two elephants in the room, they will greatly benefit.

There are also unconfirmed rumors that South Korea, Switzerland, Luxembourg, and even Australia were casting off U.S. pressures and are reportedly considering joining the AIIB.

But they will need to decide quickly as Beijing is only giving nations until the end of this month to join as “founding members” of the new institution.

We’ll continue to monitor this story and provide updates on our news feed.

After keeping interest rates near zero for nearly eight years, many economists now expect the Federal Reserve to begin allowing interest rates to rise, perhaps as early as June 2015. Others expect an interest rate hike to come later in the year, perhaps in September.

Obviously, U.S. and global investors are very interested in knowing when the interest rate hike campaign will begin.

All of us may have a better idea on Wednesday of this week, after the FOMC releases its statement.

Be advised that this is perhaps the most closely-watched Fed meeting that I can recall since the 2008 economic crash. For this reason, the markets could get very volatile this week if the Fed’s language contains anything that strays from current expectations.

While gold, silver, palladium, and platinum have all suffered in recent years, we believe that the current downtrends will eventually end and give way to a new major uptrend.

As we anticipate these new uptrends, FTMDaily has begun providing weekly precious metals trend analysis to all of our FTM Insiders and Pro Traders.

Our weekly trend analysis on gold, silver, palladium, and platinum will keep you “in the know” on the metals. You will know the current trend at all times.

And when the new major uptrend begins, you will know immediately.

This means more profits and a better entry price for the next leg up.

You can learn more specifics about our new precious metals trend analysis here.

Here at FTMDaily, we believe that gold and silver are the best forms of money. We also believe that the current paper money system is going to eventually implode due to unsustainable debt levels. The beneficiaries of such an implosion would include hard assets like precious metals, commodities, and other tangible investments.

Most Americans have never purchased investment grade precious metals. FTMDaily seeks to inform the public on the benefits of owning precious metals. We have created many educational resources that will help any investor — whether novice or advanced — to better understand how to buy gold at the best time, and at the best price.

Thanks for joining me again this week. Have something you’d like to share with me or one of our guests? Leave a note in the comment section below!

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Recent Podcasts by Jerry Robinson

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• PODCAST: Market Mayhem – Unraveling the Recent Sell-Off
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• PODCAST: America’s Looming Debt Crisis

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