BRICS: JPMorgan Forecasts Unavoidable Crisis for the US Dollar

Joshua Ramos
Source: Watcher.Guru

Over the last year, a global shift has taken place within global economics. That could be set to take its toll, With BRICS de-dollarization reaching new heights, JPMorgan has forecast an unavoidable crisis that could heavily impact the US dollar’s prevalence on an international level.

JPMorgan CEO Jamie Dimon has consistently shared his warnings regarding the US economy. Now, he has continued that, taking aim at the “extraordinary” government spending that could do irreparable harm to the country. Moreover, he notes that the fruit of that damage could be unavoidable.

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JPMorgan Shares Grimm Prediction for the US Economy and the Dollar

Throughout the last several years, two opposing realities have been unfolding. The first has seen the BRICS economic alliance embrace and successfully implement a more fervent growth strategy. Meanwhile, the United States has been caught up in an economic reality that appears to be deteriorating.

That is only compounded by the continued de-dollarization practices that the bloc has embraced. Its emphasis has long been on lessening global reliance on the greenback and diminishing the West’s dominant role in international policies.

Now, those two things may be on a collision course. Amid BRICS efforts and geopolitical concerns, JPMorgan has forecast an unavoidable crisis for the US dollar. Specifically, the firm’s CEO has expressed his belief that a hard landing for the US economy is impending.

Source: Watcher.Guru

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Dimon recently stated that stagflation was unavoidable for the United States. Therefore, he predicted that high inflation and unemployment would be a massive concern for the country. That is a dire statement, as the employment figures have been a stabilizing factor in the US economy amid its two-year inflation fight.

The pressure of these impending realities is only made more concerning with government spending continuing to grow. The US quarterly debt interest payment has recently surpassed the $1 trillion mark. That details the incredible global concern regarding the continued viability of the US dollar as a reserve asset.

If that continues, and countries remain committed to seeking out currency alternatives, trouble is undoubtedly set to brew. The US, facing a crisis within its economy, will only fast-track those same issues to stem from its undeniable spending.