The US national debt is now growing by $1 trillion every 100 days since 2023. The uncontrolled debt could lead to a financial disaster wreaking havoc not only in the US but across the world. BRICS and other developing countries are worried that a US dollar debt could make their native economies crash. Keeping the US dollar in reserves is now seen as a threat that could undo years of financial stability.
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The US dollar national debt now touched a new high of $34.4 trillion and is barely under control. Elected representatives at Capitol Hill and officials from the Federal Reserve are unable to tame the ever-growing debt.
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Amid the economic turbulence, Bank of America has issued a warning about a possible US dollar collapse. Moreover, this allows BRICS to spread the de-dollarization initiative across the world.
Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. A decline in the US dollar allows BRICS to lead other developing countries into de-dollarization.
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BRICS: Growing Debt Risks Exposure of a US Dollar Collapse, Warns Bank of America
Bank of America warned in the latest piece that the US dollar and economy face a “blowout year” in 2024. The growing national debt is the main reason why the US economy could be poised to head south. “The US national debt is rising by $1 trillion every 100 days,” Michael Hartnett, Chief Strategist of Bank of America wrote.
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Hartnett warned that the collapse of the US dollar is imminent if the debt grows out of control this year. “This doesn’t end well,” wrote Genevieve Roch-Decter, a former Asset Manager at the Grit Capital. Also, BRICS is now waiting for a possible US dollar decline and could advance with a new currency in the global market.