The BRICS nations met this past August to discuss expansion as well as adding new members to the bloc. Amid de-dollarization efforts and the rising prominence of BRICS, some worry that BRICS could destroy the US economy. Specifically, as the collective grows in prominence, and takes aim at the US Dollar, the US could be facing certain economic outcomes and obstacles.
The US dollar has been firmly entrenched as the global reserve currency since World War II. However, the rise of BRICS has brought a potential end to that reign. With the BRICS currency growing in talks, and many countries worldwide looking to end their reliance on the greenback, the US dollar may be growing weaker.
Dave Ramsey, host of The Ramsey Show, recently spoke on the growing threat from BRICS to the US Economy. Saudi Arabia, one of the newest members of BRICS, dropping the US Dollar is broken for two key reasons, according to Ramsey.
First of all, he told his listeners, “The Saudis are probably way too smart to think they’re going to undermine the U.S. economy.” These countries, which represent 40% of the global population, are reliant on the U.S. economy and its vast consumer market, Ramsey argued. Therefore, he says destroying the U.S. would destroy BRICS in the process.
Secondly, “the idea that you can get all those communists to line up and not shoot each other is gonna be humorous,” he added.
Hypothetically, Can BRICS Destroy the US Economy?
There have been tensions in the BRICS bloc, so while the latter point is rather extreme, there is logic behind it. The US economy has reigned supreme as one of the most influential in the world for decades. Hypothetically, a collapse of the dollar would lead to even more inflation in the US. Subsequently, a decrease in its value would follow, which could be dangerous for the citizens of the country.
Prices across the country would increase, which would impact Americans already battling inflation. Alternatively, macroeconomic circumstances are already presenting a fragile economic outlook for the country. Along with potential debt default, the country’s financial situation is becoming increasingly volatile.
BRICS can be a factor in causing these issues to occur, however, that worst-case scenario would take a lot of time to come true. The US Economy is currently just as much a danger to itself as BRICS is, and it’s unlikely that BRICS is about to destroy it.