FameEX Hot Topics | Economist Jim Rickards: 'Biden's Influence on the Dollar Positions Him as a Global Historic Figure'

Prominent economist and best-selling author Jim Rickards has strongly criticized the Biden administration, holding it responsible for undermining the U.S. dollar's status as a reserve currency. With 35 years of investment expertise, Rickards contends that President Joe Biden's actions are leading to the marginalization of the dollar, as the BRICS bloc proposes a common currency to be unveiled on August 22.

Rickards expressed his views on social media, labeling Biden as a "world historic figure" who has successfully "destroyed the dollar," emphasizing the emergence of a potential BRICS-wide currency that could rival the dollar. This currency would facilitate economic transactions among Brazil, Russia, India, China, and South Africa.

According to Rickards, the proposed BRICS currency will be backed by gold and implemented in stages. He cites reports from the Russian embassy in Kenya as supporting evidence. However, Leslie Maasdorp, Vice President and CFO of the New Development Bank (BRICS bank), has countered Rickards' claims, asserting that there is no immediate push to establish a common currency and that any such initiatives would be part of a long-term vision.

Rickards further predicts the merging of the BRICS bloc and the Shanghai Cooperation Organization (SCO) into an unnamed cooperative group. He believes that the size and influence of this organization will encourage other countries to join, ultimately undermining the U.S. dollar's status as a reserve and transactional currency.

Despite his concerns, Rickards suggests that the dollar will persist as a secondary currency but will experience marginalization. This aligns with his predictions outlined in his 2011 best-selling book, Currency Wars: The Making of the Next Global Crisis, where he anticipates a gradual transition toward a multicurrency world as the dominance of the U.S. dollar wanes. Rickards is not alone in issuing warnings about the potential decline of the dollar. Investor Jim Rogers, famous for accurately predicting the 2008 financial crisis in 2002, has also expressed concerns about the consequences of the dollar's demise, highlighting potential inflation and debt issues that could adversely affect the United States.

While Rickards' assertions raise concerns about the future of the U.S. dollar, it is crucial to approach the topic with a balanced perspective. The precise impact on the dollar and the emergence of alternative currencies will unfold over time, influenced by various complex economic and geopolitical factors. It remains to be seen how significant these developments will be and whether they will genuinely challenge the dollar's global dominance.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.