Will BRICS Break the Dollar’s Hold?

May 05, 2023

During a press conference with National Security Council Coordinator for Strategic Communication, John Kirby, the spokesperson was asked by a member of the press as to the level of concern the NCS had over the rise in the number of nations moving away from using exclusively the dollar for international trade.

“I don’t have a good answer for you,” Kirby responded.

https://twitter.com/RNCResearch/status/1654179967184388099?s=20

That should be an answer enough. Since the United States attempted to truly establish itself as the center of the “New World Order” as George H.W. Bush had proclaimed after the first Gulf War, every president since then, including populists such as our forty-fifth POTUS, Donald Trump to a degree, have attempted to not only project U.S. power overseas militarily, but to defend the Dollar’s status as the world reserve currency at all costs.

Two decades of global military intervention and government destabilization throughout Africa and the middle east specifically has devalued the dollar’s strength as well as our global police force’s efforts to work effectively. Moreso, in pursuit of “building allies” we have only caused some of our economic friends outside of the NATO circle to choose to step away from having a solid relationship with the United States entirely.

Now enter BRICS, which is attempting to now change the focus of the New World Order with a new standard and alliance the United States will have to contend with.

The rise of BRICS (Brazil, Russia, India, China, and South Africa) economies poses a significant threat to the US dollar's dominance and influence globally. These emerging economies, with a combined GDP of over $16 trillion, have been growing at an impressive rate, challenging the established world economic order dominated by the United States and its allies.

Historically, the US dollar has been the preferred currency for international trade, as it is widely accepted and easily exchangeable. However, with the rise of BRICS nations, there has been a shift towards other currencies, such as the Chinese Yuan, as countries seek to diversify their currency reserves. This diversification of reserves reduces the demand for the US dollar and undermines its position as the world's reserve currency, which could ultimately weaken the US economy.

Additionally, the BRICS nations are actively seeking to create alternative financial institutions to challenge the existing global financial system dominated by the West. For example, the New Development Bank (NDB), established by BRICS countries, aims to provide loans for infrastructure projects in developing countries, a role traditionally held by institutions such as the World Bank and International Monetary Fund. The establishment of alternative financial institutions could further reduce the dominance of the US dollar and challenge the influence of Western countries in the global financial system.

Lastly, the BRICS nations have been forming closer economic and political ties, which could potentially challenge the US-led global order. For instance, China and Russia have been strengthening their strategic partnership, which includes joint military exercises, energy deals, and increased trade. Similarly, India and Russia have also been developing closer economic and political ties.

Take into account the United State’s and NATO’s actions towards Russia during the Ukraine conflict. If there was ever a scenario where BRICS was to force themselves to work at warp speed to achieve their goals, it’s not a far off fantasy— it's now.

NEXT: Thomas Massie Stands Up to the Anti-Russia Hawks

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