Giovanni Russo Jim Rickards, an economist and author of the book “Currency Wars,” claims that the U.S Treasury is a major issue for the U.S dollar’s global influence. He also points out that more and more countries are now trying to find different currencies apart from the dollar to use as payment. According to him, this is “a big deal,” which means the U.S dollar is facing danger from everywhere.
US Treasury Biggest Threat to US Dollar, Jim Rickards Says
Jim Rickards, an economist and author of the book “Currency Wars” recently said on T.V. show “Fox & Friends Weekend”, that the biggest threat to the US Dollar is not coming from other countries, but rather it’s coming from the U.S. Treasury itself!
Rickards talked about the difference between how people might use a currency to make payments, versus when countries keep it as a reserve. He said that while it’s true that more countries are moving away from using the US dollar for payments, the “bigger problem” is its possible replacement as a reserve currency.
The U.S. Treasury has power over other countries money and is able to freeze their reserves (like the Central Bank of Russia) if the government does something it doesn’t like. If a country wants to switch from having their currency in dollars, the only good alternative may be gold.
China and some other countries are trying to replace the US dollar with a different kind of currency for payments. Rickards said that this is really important because people are searching for alternatives.
A bunch of countries, like China, Russia, India, Malaysia, and Saudi Arabia, don’t use the US dollar as much anymore. For example, China and Brazil signed an agreement that says they will use their own currency (not the US dollar) when they’re trading with each other. In addition to that, a lot of other countries in Asia agreed not to use the US dollar for trade either. Finally, some really big countries called the BRICS nations are making plans to create their own new currency too.
Do you have the same opinion as Jim Rickards? Let us know what you think in the comments section!
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