Economist Jim Rickards States BRICS Currency Will Leverage Gold to ‘Destroy the Dollar’

Jim Rickards, economist and best-selling author, has explained the imaginable repercussions of issuing a BRICS bloc currency for the dollar. For Rickards, the “bric” (the sanction helium gives to the BRICS currency) volition beryllium anchored (but not redeemable oregon backed) to a value of golden and volition beryllium utilized for debasing the dollar by propping up commodity prices.

Jim Rickards Speculates BRICS Currency Will Be Anchored to a Weight of Gold

Jim Rickards, economist and best-selling author, has commented connected his imaginativeness of a hypothetical BRICS (Brazil, Russia, India, China, and South Africa) bloc currency and however it could beryllium leveraged to devalue the U.S. dollar.

To Rickards, the “bric” — the sanction helium gives the BRICS currency — volition beryllium anchored to a determined value successful gold, but not backed by it. This is due to the fact that the BRICS nations volition free-ride connected apical of the golden markets without intervening to negociate the bric-dollar peg.

This volition besides let its terms to spell up arsenic ostentation and devaluation deed the U.S. dollar, ostensibly starring to the greenback’s destruction. On this, Rickards stated:

It’s a mode to destruct the dollar. You don’t request dollars and you don’t request gold. You conscionable request to beryllium astute capable to anchor your currency to gold, and erstwhile dollar ostentation starts to spell up, your currency is going to beryllium worthy much due to the fact that of however you pegged it, not to dollars, but however you pegged it to gold.

However, Rickards acknowledges that this mightiness instrumentality years to happen.

Disrupting Supply Chains

Rickards stated that different mode of turbocharging the debasement of the U.S. dollar would beryllium to interfere with the proviso chains of commodities successful the world. He mentioned the extremity of the Black Sea atom woody betwixt Russia and Ukraine arsenic an example, stating that atom prices went up by 10% conscionable aft the announcement of the suspension.

On this, Rickards explained:

So, if I were a BRICS member, and I were Russia successful particular, and I had this currency tied to gold, and I wanted my currency to beryllium much invaluable and your currency (U.S. dollar) little valuable, 1 of the ways to bash that is messiness with the proviso concatenation and thrust up the terms of oil, gasoline, grain.

In January, Russian Foreign Minister Sergey Lavrov stated that the bloc would sermon an authoritative currency this August. However, South Africa’s diplomat successful complaint of BRICS relations, Anil Sooklal, precocious declared this taxable was not connected the docket for the upcoming summit.

What bash you deliberation astir Rickards’ thoughts connected the hypothetical BRICS currency? Tell america successful the comments conception below.