BRICS: Expert Says US Economy is ‘in Recession’ as Debt Keeps Mounting

Joshua Ramos
Source: Watcher.Guru

Amid the BRICS alliance de-dollarization efforts, one finance expert has recently proclaimed that the US is currently “in recession,” as the country’s debt issues persist. Danielle DiMartino Booth, the CEO and chief strategist of QI Research, recently discussed the concerns facing America’s economy.

Speaking to Fox News, Di Martino Booth stated that the country’s economy was “not in good shape.” Moreover, she noted that labor and economy figures from the state of California show that a recession “probably set in last October or so.”

The US Dollar Losing Ground Amid BRICS Trade Surge
Source: WatcherGuru

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US Economy In Recession as Debt Passes $34.75 Trillion

At the start of June, the inflation figures were viewed as a critical data set to inform the Federal Reserve’s next move regarding interest rates. May’s subsequent data showed that inflation fell to 3.3%, a marginal decrease from a month prior, and still far ahead of the Central Bank’s long-held 2% target.

That has only compounded the geopolitical pressure that the country is facing. Specifically, from increased efforts to circumvent the US dollar for international settlement. Yet, things could be set to get far worse. Amid BRICS activity against the US Dollar, one finance expert has stated that the US is already “in recession,” with a federal debt crisis looming.

DiMartino Booth discussed the growing use of AI by major corporations and small businesses. She referenced a Duke University study that revealed that 75% of companies are cutting jobs and replacing them with generative artificial intelligence. Moreover, 44% of small companies enacted similar layoffs.

us dollar currency bill usd brics
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Also Read: BRICS: Russia and North Korea Announce Historic Agreement

Jobless claim data is expected this week and should provide a more accurate picture of the market’s position. DiMartin Booth predicts that the data will further show “a continuation of the trend” showing increased jobless claims.

These decisions have only increased pressure on the labor market, with tech continuing to embrace AI. Those would only be met with greater concern regarding the US dollar, especially in its battle against BRICS.

The US debt is expected to surpass $35 trillion in the next several months. Indeed, Recent reports show that the percentage share of US treasuries held by foreign entities has declined in recent years. Today, that share is down to almost 23%, after being as high as 34% just ten years ago.