FameEX Hot Topics | Economist Jim Rickards: 'Biden's Impact on the Dollar Makes Him a World Historic Figure'

Renowned economist and best-selling author Jim Rickards has leveled strong criticism against the Biden administration, accusing it of undermining the U.S. dollar as a reserve currency. Rickards, drawing from his 35 years of investment expertise, claims that President Joe Biden is to blame for the impending marginalization of the dollar in favor of a common currency proposed by the BRICS bloc, set to be unveiled on August 22.

Rickards took to social media to express his views, stating, "Biden is now a world historic figure. He has destroyed the dollar, not an easy task." He highlighted the emergence of a potential BRICS-wide currency as a significant contender to the dollar, capable of facilitating economic transactions among Brazil, Russia, India, China, and South Africa.

According to Rickards, the proposed BRICS currency will be backed by gold and introduced in stages. He cited reports from the Russian embassy in Kenya as supporting evidence. However, Leslie Maasdorp, Vice President and CFO of the New Development Bank (also known as the BRICS bank), recently countered these claims, stating that there is no immediate drive to establish a common currency and that any alternatives would be part of a long-term ambition.

Rickards goes on to predict that the BRICS bloc and the Shanghai Cooperation Organization (SCO), two major economic blocs, will merge into an unnamed cooperative group. He believes that the sheer size and influence of this organization will encourage other countries to join, thereby consolidating an economic unity that could undermine the status of the U.S. dollar as a reserve and transactional currency. Despite his concerns, Rickards suggests that the dollar will continue to be used as a secondary currency but will be marginalized. 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 shift towards a multicurrency world as the dominance of the U.S. dollar diminishes.

Rickards is not alone in sounding the alarm about the potential decline of the dollar and its value. Investor Jim Rogers, known for accurately predicting the 2008 financial crisis in 2002, has also warned about the consequences of the dollar's demise, citing inflation and debt problems that could adversely impact the United States.

While Rickards' assertions raise concerns about the future of the U.S. dollar, it is important 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 indeed 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.