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FameEX Hot Topics | Economist Sounds Alarm that the End of US Dollar Dominance Is Imminent

2023-12-29 16:13:11

Economist Stephanie Pomboy recently raised concerns about the declining dominance of the U.S. dollar, stating that many U.S. policymakers are unaware of the imminent shift. Pomboy, the founder of Macromavens and a former managing director at ISI Group, shared her insights in an interview with Tucker Carlson.

Pomboy highlighted that despite the widespread belief in the U.S. that the dollar's status as the world's reserve currency is unchallengeable, the reality is starkly different. A growing number of countries are moving away from their dependence on the U.S. dollar, opting instead for their local currencies in international trade. These nations are diversifying their holdings away from U.S. dollars, investing in gold, oil, and other strategic resources.

This shift is particularly evident among the BRICS nations (Brazil, Russia, India, China, and South Africa), which have been advocating for the use of local currencies over the U.S. dollar. Additionally, six other countries - Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates - have been invited to join the BRICS. The bloc is even considering the creation of a common currency. Russia's Foreign Affairs Minister, Sergey Lavrov, noted that around 30 countries are interested in establishing partnerships with BRICS, signaling a growing inclination towards de-dollarization.

This trend of moving away from the U.S. dollar isn't just observed by Pomboy. Other financial experts, like Robert Kiyosaki, author of "Rich Dad Poor Dad," economist Peter Schiff, and investor Jim Rogers, have also expressed concerns about the U.S. dollar losing its status as the global reserve currency. They warn of potential historic crashes and point to currencies like the Chinese yuan as emerging competitors to the U.S. dollar.

The implications of this shift are profound for the U.S. economy and its global financial influence. The move towards local currencies and the potential creation of a BRICS common currency could significantly alter the dynamics of international trade and finance. It also raises questions about the future of U.S. economic policies, particularly concerning the continued printing of money and its long-term sustainability.

Pomboy's warning is a wake-up call for U.S. policymakers and financial strategists. It emphasizes the need for the U.S. to recognize and adapt to the changing global financial landscape, where the unchallenged dominance of the U.S. dollar is increasingly being questioned. The growing trend of de-dollarization among various countries, coupled with the potential emergence of new currency blocs, marks a critical juncture in the history of global finance, one that could redefine the economic order in the years to come.

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

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