The Rest Is Money 115. Trump Could Kill The Dollar
Nov 25, 2024
Jim O’Neill, an influential economist known for coining the BRICS acronym, shares his insights on current global economic dynamics. He discusses the long-term significance of Reeves's budget and warns about Trump's potential threats to the dollar's reserve status. O’Neill also expresses concerns about the BRICS nations' cohesion and their evolving governance. The conversation touches on the impact of fiscal policy on the dollar, the challenges posed by political alliances, and the need for effective governance amid rising populism.
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BRICS and Global Governance
- Jim O'Neill, creator of the BRICS concept, expresses discomfort with the group's political alignment with Putin.
- He views their symbolic challenge to global governance as undermining institutions like the G20.
BRICS Reserve Currency Skepticism
- O'Neill is skeptical of the BRICS' ability to create a rival reserve currency, citing the inherent difficulties in coordinating monetary policy between nations like China and India.
- He also questions who would control a shared BRICS central bank.
Trump's Potential Impact on the Dollar
- Donald Trump's proposed policies, including large deficits, could undermine the dollar's reserve currency status.
- This could create chaos in bond and equity markets, eroding trust in the dollar as a safe haven.