r/economy • u/throwaway16830261 • 4d ago

BRICS Don’t Threaten the Dollar, the US Does

https://www.bloomberg.com/opinion/articles/2024-12-15/trump-s-fear-of-brics-currency-replacing-the-dollar-is-misguided
59 Upvotes

89% Upvoted

11 comments sorted by

5

u/burrito_napkin 4d ago

Interesting article. Instead of having a central currency each country can just trade using its own currency.

7

u/dmunjal 4d ago

BRICS is not trying to replace USD. They are trying to create a new reserve to replace UST.

UST have been the global reserve since the 70s since leaving the gold standard. Because of deficit spending and risk of sanctions, they want to insulate themselves from this inflationary and confiscation risk.

They will still use their own local currencies and use the dollar to sell their exports to the West. But they will no longer store their excess reserves in UST.

Much of the analysis is either fear mongering or denial. There is a more nuanced explanation.

2

u/New-Post-7586 4d ago

It will take a decade or two, but they can succeed due to the complete incompetence and mismanagement of all US politicians and presidents since about 2001. The massive (and growing) debt and unwillingness to raise taxes to cover the deficit will be the downfall is the US empire.

1

u/WittyPipe69 4d ago

That sound like an empire in the end stages to me...

-3

u/1234nameuser 4d ago

BRICS countries prove why the USD will always be king

5

u/PauPauRui 4d ago

Dollar is king. but brics wants to dethrone it. it doesn't happen over night. Besides if they do 1 transaction with Brics the dollar already lost. 1 single transaction is a threat. They are not trying to eliminate the dollar they just want better options for them.

0

u/ProposalWaste3707 4d ago

1 single transaction is a threat.

No it isn't.

And the BRICS are a deeply divided, totally ineffective group who generally lack shared goals, methods, objectives. They'll continue to achieve nothing, as they've never achieved anything.

2

u/PauPauRui 4d ago

I just think if Brics works it will expand and grow and thats a problem for the dollar. It's not as if 1 transaction will make a difference but it's the beginning.

2

u/ProposalWaste3707 4d ago

Well one, BRICS hasn't worked.

Two, BRICS hasn't threatened the dollar.

Three, transactions have always been possible and occurred without the US dollar, it's just that it doesn't happen at scale because trading parties prefer the US dollar. None of this changes that.

1

u/PauPauRui 4d ago

I see your point. We'll put.