{"id":20745,"date":"2023-05-10T00:58:46","date_gmt":"2023-05-10T00:58:46","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/dave-ramsey-dismisses-de-dollarization-concerns-says-brics-currency-chinese-yuan-cant-take-down-us-dollar-economics-bitcoin-news\/"},"modified":"2023-05-10T00:58:46","modified_gmt":"2023-05-10T00:58:46","slug":"dave-ramsey-dismisses-de-dollarization-concerns-says-brics-currency-chinese-yuan-cant-take-down-us-dollar-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/dave-ramsey-dismisses-de-dollarization-concerns-says-brics-currency-chinese-yuan-cant-take-down-us-dollar-economics-bitcoin-news\/","title":{"rendered":"Dave Ramsey Dismisses De-Dollarization Concerns \u2014 Says BRICS Currency, Chinese Yuan Can’t Take Down US Dollar \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Personal finance expert and best-selling author Dave Ramsey has dismissed de-dollarization concerns and the prospects of a BRICS currency, the Chinese yuan, or the Russian ruble displacing the U.S. dollar in international trade. \u201cThey don\u2019t have the muscle to take down the dollar,\u201d he stressed. <\/strong><\/p>\n

Dave Ramsey on De-Dollarization and Challenges From Alternative Currencies<\/h2>\n

Personal finance guru and Ramsey Solutions CEO Dave Ramsey answered a question about de-dollarization in an episode of \u201cThe Dave Ramsey Show,\u201d aired last week. Ramsey is an eight-time national best-selling author who sold more than 11 million copies. A self-proclaimed personal money management expert, he calls himself \u201cAmerica\u2019s trusted voice on money.\u201d<\/p>\n

Zack from Alabama asked him:<\/p>\n

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I\u2019m reading more and more about de-dollarization and countries moving away from the U.S. dollar as their basis of international trade. Will this affect the strength of the dollar, and should I be concerned about how I\u2019m saving and investing as a result of this?<\/p>\n<\/blockquote>\n

Ramsey began by telling the Alabama man that he is \u201cspending too much time on the internet\u201d and has gotten into a conspiracy theory about the demise of the U.S. dollar. Regarding countries moving away from the USD for international trade, Ramsey said China, Russia, and Brazil \u201care the three main players in this.\u201d<\/p>\n

He stressed, \u201cThey already don\u2019t use the U.S. dollar as their basis of international trade,\u201d emphasizing that all three countries have their own currencies and \u201cthere\u2019s a conversion rate\u201d between each of those currencies and the U.S. dollar. The self-proclaimed personal finance guru opined: \u201cThe three largest countries \u2026 are talking about bringing in some of the oil countries in the Middle East \u2026 they\u2019re trying to come up with one currency that they all use.\u201d The BRICS nations (Brazil, Russia, India, China, and South Africa) are working to create a common currency<\/a> that will reduce their reliance on the USD.<\/p>\n

Ramsey noted that the new, common currency they come up with would be used for international trade and \u201cconverted back and forth to dollars much like Europe did with the euro which, by the way, kind of didn\u2019t work.\u201d He added: \u201cThese countries \u2014 if they did all agree to use one currency, it would be much like when Europe went to the euro and then that\u2019s going to exchange for the dollar back and forth.\u201d<\/p>\n

He continued:<\/p>\n

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Are those countries going to be able to devalue the dollar by doing that? No. Because while they do take up a lot of land mass, they do not take up a lot of the gross domestic product (GDP) of the world.<\/p>\n<\/blockquote>\n

\u201cThe United States still is the vast majority of the gross domestic product of the world, still. China\u2019s is big, Russia is basically horrible, and Brazil is in a failed economy, like times 10, and it\u2019s tiny as far as economics go,\u201d he continued. \u201cWhen you put them all together, they don\u2019t have the muscle to take down the dollar. They just don\u2019t, mathematically. It\u2019s arithmetic. They just don\u2019t have it.\u201d<\/p>\n

Ramsey further said: \u201cNow, what they are going to do if they all do put it together, it\u2019s not a de-dollarization. It\u2019s not doing away with the dollar. They\u2019ve created their own currency. They\u2019re still going to have to trade with the 800-pound gorilla which be us, and you\u2019re going to have to trade with us in dollars, so whatever little currency you create over there in your little fantasy world that you live in, you still going to have to trade it for dollars, so it\u2019s not going to take down the dollar.\u201d<\/p>\n

Mocking the size of Brazil, Ramsey said: \u201cWhen you look at the math, it\u2019s humorous.\u201d As for Russia, he said that it\u2019s \u201ca huge land mass\u201d but \u201ctheir economic production is pitiful.\u201d In conclusion, Ramsey said:<\/p>\n

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Am I worried about this? Absolutely not. Absolutely zero, because Russia is pitiful and China has no labor force.<\/p>\n<\/blockquote>\n

Noting that China\u2019s \u201clabor force is aging out because they stopped having babies legally,\u201d Ramsey stressed: \u201cThey have no young labor force coming on.\u201d<\/p>\n

Many people do not share Ramsey\u2019s view, warning that a common BRICS currency<\/a> could erode the U.S. dollar\u2019s dominance. Among them is a former White House economist<\/a>, who recently said that if the BRICS uses only its common currency for international trade, \u201cthey would remove an impediment that now thwarts their efforts to escape dollar hegemony.\u201d A Swedish university professor has cautioned that Saudi Arabia<\/a> joining the BRICS group would accelerate the use of the Chinese yuan as a trading currency. A former Morgan Stanley economist expects the world to evolve from a unipolar reserve currency world to a tripolar world<\/a> \u2014 with the U.S. dollar, the Chinese yuan, and the euro as dominant currencies.<\/p>\n

Do you agree with Dave Ramsey about de-dollarization and that a BRICS currency or the Chinese yuan cannot erode the U.S. dollar\u2019s dominance? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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