The recent economic and geopolitical events have opened up a new era in the global markets, in which the success of emerging economic powers, such as the BRICS countries, can have a major effect on the American economy and US global standing. Veteran investor Jon Wolfenbarger argues in a recent article for the Mises Institute that the success of the BRICS could have serious implications for the US dollar and the quality of life of many Americans.

Wolfenbarger is a former investment banker at JPMorgan and Allianz, and according to his analysis, the BRICS countries, which form an economic coalition consisting of Brazil, Russia, India, China, and South Africa, now hold the potential to take down the US after decades of irresponsible economic decisions made by the American government. He believes that if the BRICS can come up with a successful hard currency to compete with the USD, then it could very well lead to a decrease in US living standards and a correlating decrease in global power of the US.

Wolfenbarger notes, however, that for the BRICS countries to take on the US dollar, they need to make big changes. This is because the US is known for having the world’s biggest and most secure government bond market and a strong reputation for enforcing the rule of law. Additionally, there are already $12 trillion dollars of non-US debt that needs to be paid back with US dollars, making it an incredibly difficult and costly task for any BRICS nations to abandon the dollar.

Ultimately, the success of the BRICS nations could have serious consequences for the US and its citizens. With US officials having already failed to bring the country’s financial dealings into line in the past, Wolfenbarger warns that the BRICS countries now have a chance to take the reigns by creating their own successful hard currency to compete with the greenback. In such a scenario, Americans’ standard of living could be dramatically affected, and the global standing of the US could be massively diminished.



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