Robert Kiyosaki, author of “Rich Dad Poor Dad,” has recently expressed serious concerns about the state of the U.S. economy. On X (formerly Twitter), he stated that the American economy is in a depression and warned that there would be no “soft landing” for the ongoing economic challenges. This comes as the US dollar faces increasing threats due to global efforts aimed at reducing reliance on it, known as de-dollarization.
BRICS Alliance Advocates for De-Dollarization
Over the past year, the BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, has been actively working to enhance the use of local currencies in international trade and reduce dependency on the US dollar. This shift is part of a broader strategy to assert more influence globally.
Economic Indicators Show US Struggles
According to Kiyosaki, the definition of an economic depression involves prolonged periods of below-average growth. He points out that while the US economy grew by 3.4% in the fourth quarter of 2023, it slowed down significantly to 1.6% growth in the first quarter of 2024. Kiyosaki emphasizes that the current state of the U.S. economy, coupled with a high debt crisis and rising inflation, does not bode well for a stable recovery.
Meanwhile, BRICS countries like Russia and China are moving swiftly towards eliminating the US dollar from their trade dealings. These nations now conduct 90% of their bilateral trade without using the dollar. This trend raises questions about whether this practice will become more widespread.
Also Read: BRICS Eyes Cryptocurrency to Sidestep the US Dollar
Central Banks React with Increased Gold Reserves
As part of the 2024 narrative, central banks around the world are also increasing their gold reserves, aiming to safeguard against the vulnerabilities of the dollar. This move indicates a growing shift towards diversifying assets to strengthen economic stability against potential dollar weaknesses.
The continued efforts by BRICS to promote local currencies and the ongoing concerns about the US economy’s state highlight the complex dynamics of global financial markets. The world watches closely as these developments could reshape economic interactions on a global scale.
