To a certain degree, the de-dollarization process presently taking place in the world is a self-inflicted wound.
After all, if you want to have a serious currency that is the ‘reserve of the world’, perhaps you should refrain from printing fake fiat money by the trillions like there’s no tomorrow.
But it can hardly be denied that the BRICS group is the leading force for the multipolarity push that is using the de-dollarization as an economic tool.
In the 2023 BRICS Summit held in Johannesburg, South Africa, there were some calls, notably by Brazilian President Lula da Silva, for a rapid implementation of a BRICS currency – an idea first floated by Russia’s Vladimir Putin.
While that seems unlikely in the short term, de-dollarization is already in full motion as Russia and China – to give just one example – are starting to use their own currencies – the ruble and the yen – in the settlement of their considerable bilateral trade.
Meanwhile, Joe Biden’s administration from hell is asleep at the wheel.
US Republican Presidential candidate Vivek Ramaswamy, for his part, has demonstrated to be at least aware of the seriousness of the situation, as he called a potential BRICS common currency a ‘major problem’ for the US government.
Responding to a reporter at an informal press briefing, Ramaswamy stated that the BRICS alliance and what he called its ‘de-dollarization mission’ are a threat to the US that needs serious – and urgent – discussion.
Watcher Guru reported:
“‘This is a major problem for the United States‘, he said to the reporter who asked about BRICS developing their new reserve currency. ‘This would permanently increase our borrowing cost if the dollar is no longer the established reserve currency of the world’. He adds that the US battling trillions in debt will not help its fight in a potential global battle with the BRICS common currency, saying the present is ‘not the great time to increase your native borrowing costs’.”
If I mirror this statement by Ramaswamy, I can, as a Brazilian citizen of a BRICS country, argue that, to a certain extent, it is legitimate to want to distance ourselves from the dollar – because in doing so, that greatly diminishes our costs for borrowing or any other international transaction.
The outlier candidate has a clear vision that the right immediate, initial reaction to the problem lies not in trying to stamp out the multipolarity push – which I’m afraid to inform is quite impossible – but rather, by strengthening the currency that you want to remain as the planetary reference.
“In terms of a solution to the BRICS common currency, Vivek Ramaswamy says, ‘The right way to deal with it, though, is not to try to swat that down, but increase the value proposition of the dollar itself by pegging the dollar to hard commodities‘. He adds that the single mandate for the Federal Reserve, the US central bank, should be dollar stability.”
The US Dollar is used in trade by most countries.
But with the expansion of the BRICS bloc in 2024, and an update on BRICS currency and pay services, Ramaswamy wants to tackle this ‘potential threat’ before it grows even worse.
Great moment from last nights press conference.
Vivek Ramaswamy takes a jab at the media when a young journalist asks about BRICS and the value of the dollar.
“I’m sorry, sir. Intelligent questions are not allowed” pic.twitter.com/sZ7lv9F5dE
— Brad Nichols (@BradNicholsX) January 10, 2024
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