The BRICS alliance and other developing countries are looking to divert from the US dollar and trade in local currencies. The increasing dollar debt ceiling comes with the threat of inflation among developing economies. BRICS and the ASEAN bloc have officially announced to end reliance on the US dollar ushering into a new era in the global financial sector.
Also Read: BRICS Currency To Be ‘Linked’ With Gold, Says Economist
Economists warn that the situation could get worse as the Federal Reserve is continuously raising interest rates. The Fed printing trillions of dollars and circulating it into the markets is causing more harm than good. In addition, the rising debt ceiling in the US could eventually lead to a decline in GDP and jobs. Read here to know how many sectors in the U.S. could be impacted if BRICS stops using the U.S. dollar.
Also Read: BRICS: Can Saudi Arabia Ask the US To Pay For Oil in Local Currency?
BRICS: The U.S. Dollar Could Face A Tragic Ending, Says Peter Schiff
Economist Peter Schiff has warned that the U.S. dollar could experience a tragic ending. He cautioned that the national debt and annual budget deficit are increasing and lawmakers are unable to control the situation. If unchallenged, BRICS and other countries could gain undue advantage giving rise to their local currencies while the U.S. dollar declines.
Also Read: BRICS: Elon Musk Reveals Why Other Countries Are Ditching US Dollar
“You can already see the world is trying to divest itself of the dollar. There’s a big movement to look for alternatives to the U.S. dollar. They’re there and that’s happening,” he said on First TV.
Schiff added, “As our trading partners move away from the dollar, the dollar is going to fall very fast. Prices are going to rise much faster than they have been and at some point, it’s going to spiral out of control. The story is going to have a tragic ending, unfortunately. We’re going to have a dollar crisis and a sovereign debt crisis. The Fed is going to print money until the dollar collapses,” he summed it up.