The BRICS alliance is coming for the United States dollar. China and Russia are much more demanding and rigorous lenders than many politicians dare to believe, which means trouble for the reigning dollar.

It appears that some emerging market politicians think that joining China and Russia will be a kind of free money panacea. BRICS is currently in the process of creating a currency that could easily dethrone the dollar’s reserve status.

BRICS Block Discussing Possible Expansion As It Seeks To “Upend” The U.S. Dollar

Will A New BRICS Currency Backed By Gold Mean The End Of Global Dominance For The U.S. Dollar?

Over the past ten years, the currencies of the BRICS guest countries have depreciated significantly against the U.S. dollar. The Argentine peso has fallen by 98%, the Egyptian pound by 78%, the Indian rupee by 35%, the Ethiopian birr by 68%, and the Brazilian real by 55%, according to Bloomberg (as reported by ZeroHedge), and the Iranian rial has collapsed by 90%, according to The Economist. Putting together weak currencies does not create a strong currency.

Meanwhile, in the U.S., the government may jeopardize the credibility of its own U.S. dollar if it continues to generate deficits of two trillion dollars a year, which is likely considering the foreign aid to Ukraine. More than $14 billion is the estimated deficit by 2030 and with an increasing number of irresponsible advisers saying that the central bank can create all the money it wants without risk. The fiscal credibility, institutional independence, and economic freedom of the U.S. dollar, the most widely used currency in the world, cement its leadership. If the government undermines these strengths, the dollar will lose its reserve status.

If the dollar loses its reserve status, the U.S. will be hit hard with a lingering recession as the dollar loses its perceived value, and the U.S. government will be directly responsible for the outcome.

How Do You Prepare Now to Make Recovery From Economic Collapse “Manageable”?

Gold and silver have historically been great ways to preserve wealth. While seemingly expensive, holding physical metals will protect you in the event of an economic collapse or a dethroning of the dollar as the world’s reserve currency.

Precious metals can be used as a hedge against inflation. These precious metals are both well-regarded and have long histories. In an uncertain economic climate, they could prove vital to a preparedness plan.

What Will Happen When the Dollar Collapses?