How BRICS Gold-Backed Currency Will Bring US Economy in Jeopardy

The BRICS nations are diligently working towards creating a currency backed by gold, sparking speculation about their intentions towards the United States’ economy. However, a deeper look suggests that their objective may not be to undermine the U.S. economy directly.

It’s worth noting that the United States boasts the second-largest gold reserves globally. Therefore, if the BRICS nations were to establish a gold-backed currency, it wouldn’t necessarily have an immediate impact on the U.S. economy. The U.S. could still maintain control over its dollars, supported by its substantial gold reserves.

Here’s where the potential threat to the U.S. economy lies: virtually every country in the world holds U.S. dollars in reserve for international transactions. This is largely because the dollar is the primary currency used to purchase oil globally. If the BRICS currency were to become the dominant choice for oil transactions, a significant shift could occur.

This shift would lead to the release of the U.S. dollars held by these countries, flooding the market with dollars. Such an influx of currency could trigger inflation and significantly disrupt the stability of the U.S. economy.

In essence, while the BRICS nations may not be directly sabotaging the U.S. economy, the potential shift in the global oil trade could have far-reaching consequences, ultimately challenging the supremacy of the U.S. dollar and potentially impacting the American economy.