Jim Rickards Speculates BRICS Currency Will Be Anchored to a Weight of Gold
Jim Rickards, economist and best-selling author, believes that a hypothetical BRICS currency could be leveraged to devalue the U.S. dollar. Rickards speculates that the currency, which he calls the “bric,” would be anchored to a specific weight of gold but not backed by it. The BRICS nations would allow the price of the bric to rise as the U.S. dollar faces inflation and devaluation. This strategy would effectively destroy the value of the dollar. However, Rickards acknowledges that implementing this plan may take several years.
Main Points:
- The BRICS currency would be anchored to gold but not backed by it, allowing its value to rise as the dollar weakens.
- By interfering with global supply chains, particularly in commodities like oil, gasoline, and grain, the BRICS nations could further devalue the U.S. dollar.
- Rickards suggests that disrupting supply chains would be an effective way to drive up prices and debase the dollar.
- Russian Foreign Minister Sergey Lavrov has indicated that the BRICS bloc will discuss an official currency in August, but South Africa’s diplomat denies this.
Hot Take
Jim Rickards’ speculation on a BRICS currency anchored to gold presents an intriguing scenario for devaluing the U.S. dollar. By leveraging the gold market and potentially disrupting global supply chains, the BRICS nations could significantly impact the value of the dollar. While this plan may take time to implement, it poses a potential threat to the dominance of the dollar as the world’s reserve currency.
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