Dave Ramsey, personal finance expert and CEO of Ramsey Solutions, has dismissed concerns of de-dollarization and the possibility of a BRICS currency, the Chinese yuan, or the Russian ruble replacing the US dollar in global trade. In an episode of “The Dave Ramsey Show” aired last week, Ramsey addressed a question from a listener named Zack from Alabama who expressed concern about the impact of de-dollarization on the strength of the dollar and his investments. Ramsey, who is an eight-time national best-selling author and a self-proclaimed personal money management expert, told Zack that he was “spending too much time on the internet” and getting into conspiracy theories about the end of the US dollar. Ramsey said that China, Russia, and Brazil are the three main players in de-dollarization and that they already do not use the US dollar as their basis for international trade. He emphasized that all three countries have their own currencies, and there is a conversion rate between each of those currencies and the US dollar. Ramsey also noted that the BRICS nations are working to create a common currency that will reduce their reliance on the USD. However, he stressed that if they did all agree to use one currency, it would be much like when Europe went to the euro, which did not work as planned. Ramsey concluded that these countries do not have the muscle to take down the dollar, mathematically speaking, because they do not take up a lot of the gross domestic product (GDP) of the world.
Ramsey’s comments have sparked debate among experts who warn that a common BRICS currency could erode the US dollar’s dominance. A former White House economist recently said that if the BRICS uses only its common currency for international trade, “they would remove an impediment that now thwarts their efforts to escape dollar hegemony.” A Swedish university professor has cautioned that Saudi Arabia 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, with the US dollar, the Chinese yuan, and the euro as dominant currencies.
Ramsey’s opinion on de-dollarization is that it is not a real threat. He believes that even if these countries come up with their own currency, they will still have to trade with the US in dollars. Ramsey mocked the size of Brazil and noted that Russia’s economic production is pitiful. He also said that China has no labor force because its labor force is aging out, and they stopped having babies legally, so they have no young labor force coming on. Ramsey concluded that he is not worried about de-dollarization and that it cannot erode the US dollar’s dominance.
Ramsey’s comments are based on his belief that the US is still the vast majority of the gross domestic product of the world, and China, Russia, and Brazil do not have the muscle to take down the dollar. However, some experts warn that the dominance of the US dollar may not last forever. The world is changing, and new players are emerging. The US dollar has been the dominant currency for international trade since World War II, but the rise of China and other emerging economies may challenge the dollar’s dominance in the future.
In conclusion, Ramsey’s comments on de-dollarization and the possibility of a BRICS currency or the Chinese yuan replacing the US dollar in global trade have sparked debate among experts. While Ramsey believes that these countries do not have the muscle to take down the dollar, some experts warn that the dominance of the US dollar may not last forever. The world is changing, and new players are emerging. The US dollar has been the dominant currency for international trade since World War II, but the rise of China and other emerging economies may challenge the dollar’s dominance in the future.
