The Biggest Monetary Shock in 52 Years

James Rickards: “I recently revealed that the so-called “BRICS+” countries will announce the creation of a new currency at its annual leaders’ summit conference on August 22–24. This will be the biggest upheaval in international finance since 1971. It’s taking direct aim at the dollar. Quite simply, the world is unprepared for this geopolitical shock wave. It appears likely that the new BRICS+ currency will be linked to a weight of gold. (While this event could generate a significant immediate shock, I am not certain of such an outcome. Rather, it may be another steps in the ongoing erosion of the dollar’s status as the dominant reserve currency of the world. Regardless, this is a very important development. Let’s see what happens.)

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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