Trump threatens to cut off countries who abandon American greenback if reelected
While global tensions continue to escalate, Russia is hosting the BRICS Summit in Kazan Tuesday, where some of the world’s largest economies will be meeting to entrench a new global order, namely undoing the U.S. dollar.
BRICS is made up of several different nations, including Brazil, Russia, India, China, South Africa, Saudi Arabia, Iran, Ethiopia, United Arab Emirates and Egypt. According to Statista, combined BRICS nations make up over 45% of the world’s population and 35% of the global GDP.
Undoubtedly, one of the most powerful of the alliance is China, which accounts for almost two-thirds of the bloc’s exports and over half of the bloc’s 35% GDP. With the joining of oil-rich nations such as the United Arab Emirates and Iran, the bloc controls almost 30% of all global oil output.
The alliance between these nations has sent alarm bells off, as the U.S. dollar is threatened with losing its leading spot in global finance. The de-dollarization of the U.S. would lead to a shift in global power, largely affecting the U.S. and its financial markets, especially given the rising debt of the U.S. economy which is currently far outspending revenue.
According to a report from Fortune, Nassim Nicholas Taleb, a scientific adviser at Mark Spitznagel’s Universa Investments and author of “The Black Swan,” a book about unpredictable events, there are grave concerns about the future of the U.S. dollar.
“So I’m really afraid of a progressive loss of the role of the dollar … People nominally conduct transactions in dollars, but they don’t store it in dollars, and that is what the problem is,” Taleb told Bloomberg TV.
Taleb noted he was worried about the actions of the Biden-Harris administration in 2022, which resulted in freezing Russian assets after Russia invaded Ukraine. Taleb called it a “confiscation,” and pointed out it will not boost confidence in investors.
“It may make sense from a justice standpoint, but you’ve got to remember, it’s not going to encourage people to invest in the system,” Taleb said.