Personal Finance Expert Says US Rating Downgrade Likely to Embolden BRICS Currency Supporters–Trouble Times Ahead For American’s
BanksterCrime:
The American rating agency Fitch’s recent downgrade of the United States’ credit rating from AAA to AA+ may embolden proponents of a BRICS currency, Riley Adams, a personal finance expert, has said. Adams however argues that there are certain “geopolitical issues” that must be overcome first before the BRICS currency becomes a reality.
Debt Ceiling Standoffs and the Impact on the U.S. Credit Rating
According to Riley Adams, a personal finance expert and the CEO of Young and the Invested, the credit rating agency Fitch’s recent downgrade of the United States to AA+ will likely “embolden anyone in the BRICS [Brazil, Russia, India, China, and South Africa] that supports the creation of a new currency.” Adams, also a certified public accountant (CPA), told Bitcoin.com News that Fitch’s report on the country also “relays legitimate concerns about how the budgeting process has devolved in the U.S.”
As reported by Bitcoin.com News, Fitch has tied its downgrade of the U.S. long-term foreign-currency issuer default rating from AAA to AA+ to the “repeated debt-limit political standoffs” and the last-minute resolutions which have in turn “erode[d] confidence in fiscal management.”
Meanwhile, the personal finance expert has posited that many of those opposed to the U.S. dollar’s reserve currency status will now attempt to use news of Fitch’s downgrade to further rally support for a BRICS currency.
“At the very least, it could trigger a short-term shift in sentiment that BRICS-currency supporters could use to get some traction on their ideas,” Adams, a former senior financial analyst for Google, explained.
BRICS Currency and Geopolitical Issues
In the past few years, critics of the U.S.-dominated financial system have highlighted how the country’s divided legislature has played a part in eroding confidence in America’s ability to meet its obligations on time. Also, before the latest debt ceiling agreement was struck, senior U.S. officials including Treasury Secretary Janet Yellen warned that the U.S. Congress’ constant failure to raise the debt limit on time posed a serious threat to the dollar’s dominance.
However, as has been reported by Bitcoin.com News, the same U.S. officials appear less concerned about the possibility of the Chinese yuan or the much-vaunted BRICS currency toppling the greenback. While American leaders have flaunted the dollar’s unmatched backing by United States’ “deep, liquid and open financial markets” when dismissing the prospects of rival currencies, Adams sees “geopolitical issues” as one of the reasons why people ought to be less sanguine about the BRICS currency’s chances of success.
To illustrate, the personal finance expert pointed to a report in which the governor of the South African central bank reveals that a common currency would require a banking union, a fiscal union, and macroeconomic convergence for it to succeed. According to Adams, attempting to achieve this takes “many steps farther than simply trying to decouple from the dollar individually, and [is] much more unlikely to happen.”
Adams said the fact that proponents of a BRICS currency are seemingly trying to walk back earlier comments about the launch suggests the alternative reserve currency will not start circulating in August as some proponents had predicted.
S&P Futures Hit All Time Highs On Stimulus, Vaccine Hopes; Gold, Silver Tumble
S&P 500 futures hit a record high as investors shrugged off continuing U.S.-China tensions and instead focused on news of an approved, if largely unclear, Russian vaccine, and more stimulus optimism as President Donald Trump said he’s considering a tax…
Nasdaq Tumbles Into Red, Erases Vaccine Spike As ‘Memo Meltdown’ Continues
All major US equity indices spiked in the early hours overnight on the back of optimistic vaccine headlines from Russia. However, while Russell 2000 futures are holding gains up over 1%, Nasdaq has tumbled into the red as the last few…
The Economy Is Mortally Wounded
A fully financialized, totally debt and speculation-dependent economy is terminal once leverage and debt stop expanding exponentially. We all know the movie scene in which the character is wounded but dismisses it as no big deal, and then lurches into…
Morgan Stanley Sounds The Alarm On Record High Bond Duration, Is Starting To Buy Bond Volatility
You Have More Duration than You Think 2020 has seen a pandemic inflict enormous human and economic cost. In 2Q, the global economy contracted by the largest amount on record and, as autumn approaches, major questions around returning to school,…
Another Bank Bailout Under Cover of a Virus
Bulls Charge To All-Time Highs As discussed previously in “Insanely Stupid,” we noted the market remained confined to its consolidation channel, but the bullish bias was to the upside. “While the market has not been able to push above the recent July…
Russia-China “DE dollarization” Reaches “Breakthrough Moment” As Countries Ditch Greenback For Bilateral Trade
Late last year, data released by the PBOC and the Russian Central Bank shone a light on a disturbing – at least, for the US – trend: As the Trump Administration ratcheted up sanctions pressure on Russia and China, both…
“World On Verge Of Spinning Out Of Control”
Financial writer John Rubino says gold is at new all-time highs, silver is vaulting upward and there is no end in sight for the massive money printing around the world. Rubino say’s if you look deeper, you can see the “real…
It’s Happening Again… Investors Dump Everything ‘China’
Global stock markets plunged Friday as tensions between the US and China spiral out of control. Stocks in Hong Kong and mainland China tumbled after Beijing ordered Washington to cease all operations at its consulate in the city of Chengdu. This came days after Washington ordered the Chinese consulate…
Blain: Excess Liquidity Is “Blinding Idiots To Dangerous Reality”
Bubbles are far more dangerous when they are fueled by debt” “This time it’s different”, is one of the most dangerous beliefs in financial markets. This time, things are different – but for a reason. Global Central Banks have pumped…
Sources: BitCoinNews
Day-Traders Send US Producer Prices Soaring In July
US Producer prices were expected to rise MoM following four declines in the last five months and they did, rising 0.6% MoM (double the expected 0.3% MoM rise). However, this was not enough to unwind the annual deflationary print (PPI -0.4%…