Loading...

Is Joe Biden responsible for the downfall of US dollar?

TL;DR

  • Economist Jim Rickards blames President Biden’s administration for potentially weakening the US dollar as a reserve currency.
  • A proposed common currency for the BRICS bloc (Brazil, Russia, India, China, South Africa) could challenge the dollar’s global standing.
  • The merger of BRICS and the Shanghai Cooperation Organization (SCO) could further pressure the dollar’s status as a primary reserve and transactional currency.

The monetary strategy of President Joe Biden’s administration has been under a blistering microscope, with claims that the future of the US dollar as a reserve currency could be in jeopardy.

Prominent economist and renowned author, Jim Rickards, is at the forefront of this critique, attributing potential damage to the dollar to Biden’s leadership.

Rickards, whose investment expertise spans over three and a half decades, has boldly presented a case that connects Biden’s administration to the weakening of the US dollar as the world’s reserve currency.

BRICS bloc presents a formidable rival for the dollar

Underneath the dollar’s fluctuating global standing is the proposed emergence of a common currency uniting the economic efforts of Brazil, Russia, India, China, and South Africa – collectively known as the BRICS bloc.

Rickards posits that this BRICS common currency, reportedly backed by gold, is set for initial introduction on August 22 and will be established progressively.

Although the Russian embassy in Kenya seems to corroborate these claims, Leslie Maasdorp, the vice president and chief financial officer of the New Development Bank (also known as the BRICS bank), paints a more gradual picture.

Maasdorp conveys that the move towards a common currency is a “medium to long-term ambition,” rather than an immediate directive.

The merger of global economic blocs

Rickards also anticipates an impactful unification between the BRICS and the Shanghai Cooperation Organization (SCO) – two of the world’s most powerful economic blocs.

According to Rickards, this amalgamation is predicted to stimulate similar alliances globally, creating a substantial economic entity that could potentially diminish the dollar’s standing as a reserve and transactional currency.

Subsequently, Rickards envisions the dollar being side-lined into a secondary role, while multiple currencies rise to dominance. This is a scenario he thoroughly explored in his 2011 best-seller, “Currency Wars: The Making of the Next Global Crisis.”

Notably, Rickards isn’t the only one who’s raising the alarm about the dollar’s future. Investment strategist Jim Rogers, who foresaw the 2008 financial crisis six years prior, also cautioned about the impending repercussions of the dollar’s demise.

He underscored that the resulting inflation and debt issues could inflict severe economic suffering on the country.

In conclusion, the potential decline of the dollar as the world’s reserve currency has sparked critical discourse about Biden’s monetary policies.

With the proposed emergence of a BRICS common currency and the anticipated unification of significant global economic blocs, the US dollar could face immense competition.

While the immediate downfall of the dollar is debatable, these developments indicate a complex and uncertain future for this cornerstone of global finance.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Shiba Inu
Cryptopolitan
Subscribe to CryptoPolitan