With the BRICS bloc bringing about renewed global interest in moving away from the greenback, BlackRock CEO Larry Fink says that the ongoing debt crisis could end the US dollar. Specifically, Fink told Forbes that “the situation is more urgent than I can ever remember.”
The $34 trillion US debt has been an ongoing source of concern for many in the country. Moreover, that worry extends to global powers as well, as they have come to rely on the dollar. Yet, that has slowly been changing, with various Central Banks diversifying their currency holdings in anticipation of a collapse that may be inevitable.
Also Read: BRICS: US Dollar Weakened 25% Since 2020 Amid Global Shift
BlackRock CEO Warns of ‘URgent’ US Debt Crisis That Threatens the Dollar
Throughout the last year, the US dollar has been confronted with a shifting global narrative. Although it remains the global reserve, its fragile economic state has concerned a host of countries. That resulted in many seeking to diversify their holdings, with many acquiring gold.
That situation has only perpetuated the concern that those within the country maintain. Indeed, among BRICS actions regarding de-dollarization, BlackRock CEO Larry Fink has warned of the US Debt crisis and its effect on the dollar. Specifically, he noted that the problem could have drastic implications, and is requiring ‘urgent’ attention.
Also Read: BRICS: US Bank Agrees Switching To Gold Standard Will Stabilize Prices
BlackRock is among the most prominent asset management firms on the planet, with nearly $10 trillion in assets under management. Its head, Larry Fink recently told Forbes that the increase in debt will have massive ramifications on the country as a whole.
“A high-debt America would also be one where it much harder to fight inflation since monetary policymakers could not raise rates without dramatically adding to an already unsustainable debt-servicing bill,” Fink said.
However, the BlackRock head is not the only one of the finance sector’s primary voices speaking out about the debt issue. JP Morgan & Chase CEO Jamie Dimon called the debt issue the “most predictable crisis in history.” Reaching $34 trillion, the issue is poised to be one that could spell disaster for the United States in the coming years.