Veteran investor Jon Wolfenbarger says that the success of BRICS could have serious effects on the US dollar and the living standards of Americans.
Wolfenbarger, a former investment banker at JPMorgan and Allianz, writes in a new article for the Mises Institute that throughout history, all empires have ultimately failed, and the US likely won’t be an exception.
[adinserter block="1"]He says that BRICS nations, which refers to the economic coalition of Brazil, Russia, India, China and South Africa, now have the power to dethrone the US after decades of irresponsible economic policy by the American government.
Says Wolfenbarger,
“If the BRICS are successful and the US does not change its policies to focus on a stronger dollar, less spending, and peace instead of war, it is possible the dollar will slowly lose its ‘reserve currency’ status.
This would hurt US living standards and lead to less power for the US government, similar to the weakening of the UK after World War II. All empires in history have failed, and the US will not likely be an exception – if the BRICS can create a successful hard currency to compete with the dollar.”
The investor, who founded investment research service Bull And Bear Profits, says that BRICS nations still have a big hill to climb if they’re serious about competing with the greenback.
According to Wolfenbarger, the BRICS can forget about taking the USD’s hegemony if it plans on creating another fiat currency that is created out of thin air.
“The US has the largest and safest government bond market, no capital controls, and a reputation for enforcing the rule of law. By contrast, the BRICS countries are hardly known for respecting laws or having strong currencies.
Perhaps more importantly, non-US entities have $12 trillion of US dollar-denominated debt that they need to pay back with dollars, so abandoning the dollar would be incredibly difficult and costly.”
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Yurchanka Siarhei/Sensvector
