BRICS Threat: Ex-JPMorgan Executive Warns of US Living Standards and Global Standing
Jon Wolfenbarger, an experienced investor, warns about the potential impact of BRICS on the US dollar and the well-being of American citizens.
In a recent article for the Mises Institute, Wolfenbarger, who previously worked as an investment banker at JPMorgan and Allianz, emphasizes that throughout history, all empires have faced downfall, and the United States is unlikely to be an exception.
He suggests that due to decades of imprudent economic policies pursued by the American government, the BRICS nations (Brazil, Russia, India, China, and South Africa) now possess the capability to challenge and potentially surpass the United States.
Wolfenbarger states, “If the BRICS nations succeed and the US fails to alter its approach by prioritizing a stronger dollar, reduced spending, and peace instead of war, there is a possibility that the dollar may gradually lose its status as the ‘reserve currency.'”
Such a scenario would have adverse consequences for American living standards and diminish the influence of the US government, akin to the decline experienced by the United Kingdom after World War II. As history has shown, all empires eventually falter, and the United States is unlikely to be an exception, particularly if the BRICS nations manage to establish a successful alternative currency that rivals the dollar.
The investor, who is the founder of the investment research service Bull And Bear Profits, acknowledges the substantial challenges that the BRICS nations would face if they were serious about competing with the dominance of the US dollar.
READ MORE: Bitcoin Defies Odds: Unstoppable Momentum Amidst Economic Turmoil
Wolfenbarger argues that if the BRICS nations intend to create another fiat currency out of thin air, they can forget about challenging the hegemony of the US dollar. He highlights the advantages enjoyed by the United States, including the largest and most secure government bond market, the absence of capital controls, and a reputation for upholding the rule of law.
In contrast, the BRICS nations have a limited track record of legal adherence and stable currencies.
Furthermore, non-US entities hold a significant amount of US dollar-denominated debt, amounting to $12 trillion, which they would need to repay in dollars. Consequently, abandoning the dollar would be an arduous and costly endeavor.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
