Moreover, this allows the BRICS group of emerging economies to spread the de-dollarization initiative across the world.
The US national debt is now rising by $1 trillion every 100 days since 2023. The uncontrolled debt could lead to a financial disaster wreaking havoc not only in the US but across the world.
BRICS and other developing countries are worried that a US dollar debt could make their native economies crash. Keeping the US dollar in reserves is now seen as a threat that could undo years of financial stability.
The US dollar national debt now touched a new high of $34.4 trillion and is barely under control. Elected representatives at Capitol Hill and officials from the Federal Reserve are unable to tame the ever-growing debt, watcher-guru reported.
Bank of America warned in the latest piece that the US dollar and economy face a “blowout year” in 2024. The growing national debt is the main reason why the US economy could be poised to head south.
“The US national debt is rising by $1 trillion every 100 days,” Michael Hartnett, Chief Strategist of Bank of America wrote.
Hartnett warned that the collapse of the US dollar is imminent if the debt grows out of control this year. “This doesn’t end well,” wrote Genevieve Roch-Decter, a former Asset Manager at the Grit Capital.
Also, BRICS is now waiting for a possible US dollar decline and could advance with a new currency in the global market.