Immediate Trade

The End of the Dollar….

Cover Image for The End of the Dollar….
Greg P
Greg P
Posted underBRICSChinaCurrenciesDEBTDedollarizationIndiaPatrick BoylePeter ZeihanRussiaStraight Arrow News
Geopolitical strategist Peter Zeihan discusses the concept of de-dollarization and its potential risks for the US dollar. He dismisses the idea that countries like Brazil, Russia, India, and China (BRICS) will pose a significant threat to the dollar’s status as the dominant reserve currency. Zeihan points out that previous attempts at de-dollarization have never amounted to anything significant, and the decrease in the dollar’s share as a reserve currency is more due to the decline of the euro. He also highlights the power of the dollar as a tool of control through financial sanctions. While de-dollarization is a topic of discussion, Zeihan believes the US dollar’s status is unlikely to be significantly affected in the near future.

Econ Professor and Portfolio Manager Patrick Boyle thinks a common currency for the BRICS nations is unlikely to happen anytime soon because China would not want to give up control to become a reserve currency, and India would not want to give power to China. In addition, all BRICS countries aim to run Surplus economies, increasing dependence on China and creating a flawed common currency. Therefore, diversification of reserves and adoption of alternative solutions, such as buying commodities, may not be successful due to the US dollar’s global dominance.

TaggedBrazilfederal reserve

More Stories

Cover Image for Sept 11

Sept 11

Greg P
Greg P
Cover Image for The Gold Vault

The Gold Vault

The federal reserve, the referee of all banks, completed this building in 1924 to house most of their gold holdings. After five years of construction It symbolizes the power and stability of the Federal Reserve System. 80 feet below street level, built on bedrock, 6000 tons of gold is stored in the NYFed vault, the […]

Greg P
Greg P