Renowned financial analyst Lark Davis discusses seismic shifts on the horizon for the US dollar, brought to you courtesy of CoinSpeech. As Davis elucidates the potential outcomes, you can find his new video embedded below for a deeper dive.
BRICS Alliance: A New Financial Powerhouse
The BRICS nations, now expanded to ten members including Saudi Arabia, UAE, Iran, Egypt, and Ethiopia, are poised to make significant monetary announcements. These countries represent 45% of the global population and 37% of the world’s GDP. BRICS, according to Davis, is “working on something big” intended to challenge the US dollar’s status as the world’s reserve currency.
Motives Behind BRICS’ Mission
BRICS aims to create a multi-polar world, both politically and economically. Davis elaborates, “It’s done through economic dominance, and what better way to maintain that than by controlling the money printers.” The dollar’s weaponization has exacerbated these nations’ desire to alter the global financial landscape.
Potential New BRICS Reserve Currency
Davis mentions, “They’re keeping a bit tight-lipped about it much, but here’s what we do know.” Rumors indicate that the new currency may be backed by commodities like gold and could be blockchain-based. The BRICS nations’ substantial gold acquisitions hint at a strategic move towards a gold-backed currency. For instance, Russia has quadrupled its gold reserves between 2009 and 2020, while China has increased its reserves continuously for 18 months as of April 2023.
Implications for the US Dollar
Davis presents a hypothetical scenario: if the BRICS nations de-dollarize, around $8.14 trillion could flood back into the US economy, significantly impacting inflation and potentially triggering a debt crisis. He states, “That’s a lot of money going out the door… the US dollar is backed by nothing.”
Bitcoin: The Silent Contender
In a world of fluctuating fiat currencies, Davis asserts the importance of Bitcoin. “Bitcoin offers transparency, a dependable unit of account,” he says, positioning it as a safeguard against financial instability. Its inherent independence from government manipulation makes it a robust alternative in an uncertain monetary future.