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Will the dependency on a single economy decrease?

Is the US reserve currency a thing of the past, or should we be concerned about the BRICS.

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  • 7 years ago
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    The US is certainly doing everything it can to encourage other nations to abandon the US reserve currency. It is inflating recklessly as well as abusing it's position to force foreign financial institutions into being instrument of US tax and foreign policy.

    The problem is "what's the alternative"? The US, warts and all, is easily the most stable and law driven large economy out there. It's currency is being inflated, but so are almost all the alternatives.

    We should be not be threatened when other nations do well economically. Economics has a competitive nature, but within that competition, it is highly cooperative, especially with respect to trade. As a developing economy grows, it creates more value in the world, raising wealth. This is a good thing. Richer nations are also more stable.

    However, the BRIC nations in particular are yesterday's news. Russia and Brazil in particular have hit some major struggles. India and China are still growing rapidly, but both face significant challenges as they attempt to transition from initial export oriented growth to a more balanced approach that creates a stronger internal economy and sustainable development. China especially has a major demographic challenge and environmental challenge on top of needing to reform it's financial markets and reduce corruption.

    But even if the BRICs didn't have problems, their growth is a GOOD thing, and people need to stop being threatened by it.

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