Name: BRICS Plan to KILL The Dollar
Uploaded: 2025-07-25T18:48:56.000Z
Duration: 13 min 31 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

This is by far the greatest threat to the US dollar.

The dollar has never been challenged since 1945.

But this currency is being backed by at least a third of the global economy and has the best chance to replace the dollar as the global currency reserve.

The number of countries who want to join BRICS is growing.

Just 4 new members joined the alliance and another 30 countries have applied to become a part of this new club.

Some of these countries are very close allies of the United States that recently hosted the president of the United States.

There is a growing concern in Washington because BRICS countries on average are growing 2 to 3 times faster than G7 countries.

And mathematically, the gap between the two blocks will be bigger and bigger and European Union together with the United States will not be able to catch up with those countries and over time they will have more influence over the global economy and if China will overtake the United States as the world's largest economy, it will only be the next logical step for the dollar to stop being the global reserve currency.

So here in this video, let's try to find out how BRICS countries are planning to replace the dollar as the global reserve currency and do they really stand a chance to do that.

BRICS was the acronym that a British economist came out when he was working at JP Morgan.

He wanted to draw attention to the countries that recently adopted capitalism and he made a prediction that geographically, these countries are far bigger than western countries and over time they can overtake the United States and the European Union as the world's largest economies.

But Russia quickly picked up the idea and created the first summit in 2009.

However, BRICS did not have any kind of a goal.

But as the tension grew between the west and the east, finally, BRICS found a real purpose that it wanted to create an alternative financial system that would challenge the current world order.

Back in 1995, BRICS countries were just 16 or 17% of the global economy, while G8 countries or G7 represented almost half of the economy.

By 2010, they almost became equal and by 2023, BRICS countries are representing a much global GDP than G7 countries.

And over time, this gap is going to grow and BRICS countries will represent a far bigger share of the global economy and will have a much bigger influence.

While these numbers sound very impressive, the reality is completely different.

BRICS countries will never come up with a currency that will challenge the status quo, simply because money is not simply a medium of exchange that you and I use in order to buy and sell things.

Money or the currency is also the main tool to control the monetary policy within the country.

Monetary policy is the supply of money, and you have to control it based on what economic stage the country is in.

If you are in a recession, you want to lower down interest rates to give the economy the economic boost and make access to the capital much cheaper.

However, if you are going through a very serious inflation, such as the United States, then you want to hike the interest rates to the point where access to the capital will become much more expensive and you will bring inflation down to sustainable levels.

Let's take two BRICS countries and compare their monetary policy and find out whether these two countries can have the exact same monetary policy.

On one side, we have Russia that has persistent inflation of around 18 percent, and even today, inflation has cooled down to around 10 percent.

If you compare that to what's happening in the United States, that is extremely high.

So, it makes logical sense for the central bank of Russia to hike the interest rates to make it much more expensive to borrow money to bring that inflation down.

And when inflation cools down to around 2 to 3 percent, maybe you lower down interest rates to 2 to 3 percent.

Interest rates in Russia are about 20 percent, which is extremely high.

And now, let's take these numbers and compare them to what's happening in China.

China is experiencing a deflation period, which means that prices are actually going down.

People are afraid to spend their money because they are afraid of another crisis.

What if the invasion of Taiwan is going to happen?

The government is not going to take care of me because the country is so huge, which is why people are very careful to spend their money.

And that's exactly why the central bank of China has an absolute opposite policy of lowering down interest rates.

Interest rates in China right now are even lower than the United States.

So, imagine for a moment if both of these countries had the exact same currency.

Will they have high interest rates just like Russia?

Or they will have low interest rates just like in China?

If you have one single currency and two different interest rates, then countries can borrow from one another and that literally destroys the entire point of having a single currency.

The best example I can give you is the European Union.

Back in 2008, when the entire global economy collapsed, European Union went through a very serious debt crisis.

Countries such as Greece, Italy and Spain had a lot of debt, while countries such as Germany and France didn't have as much debt as those countries and could easily survive the 2008 financial crisis.

So, countries such as Greece and Italy supposed to devalue their currency and become significantly poorer.

But that's not what the German people wanted to do.

Germany was very responsible with their finances and they kept their budgets intact.

However, in 2008, there was a huge dilemma.

Are we going to devalue the euro and help the Greece and Italy and Spain to get out of debt?

Or we are going to keep the currency very strong but it will make it impossible for these countries to pay off their debts?

Which is why Germany came out and started helping those poorer European nations to get out of the 2008 financial crisis.

And that's why the economy of the United States and China has grown tremendously since 2008, while the European countries have been stagnating with their GDPs over the last 20 years since the 2008 financial crisis.

If Germany had its own separate currency, its economy would have grown as fast as the United States, if not faster.

If it's impossible for BRICS countries to create one single currency that would challenge the United States, then what is the real goal of BRICS?

It doesn't make sense for BRICS to even exist in the first place.

Especially when the United States is a much more important trading partner for every single BRICS country than they are for each other.

The largest trading partner of China is the United States and not any single BRICS country.

China is also the largest investor in the US debt.

Back in the days, they used to hold around 1.2 trillion dollars in government bonds.

But since the tension between the two countries began to grow over the last 10 years, China started selling a portion of their government debt.

If these countries had the option to choose between the United States and BRICS countries, they will certainly choose the United States, simply because the United States is a much more important trading ally.

And getting it of the United States or the US dollar is going to hurt them much more than it will ever hurt the United States.

That's why it's based on the US dollar as the global benchmark.

If two countries want to trade one another, they need something to base their trade on.

If you have one currency and I have a completely different currency, what is going to be the exchange rate between our two currencies?

Today and since 1945, the US dollar has been the benchmark.

So my exchange rate based on the US dollar and your exchange rate is also based on the US dollar and that will determine the exchange rate between us.

So if you remove the US dollar, suddenly the exchange rate between us becomes much more difficult to determine, which is why countries simply relied on the United States.

And if it wasn't for the United States, global trade would have been extremely difficult and it wouldn't have grown as it did over the last 80 years.

There is a very clear correlation between the growth of GDP of China and its exports.

If 50 years ago China wanted to use its local currency, it wouldn't have grown its exports just like it did.

Especially when most of these exports went to the wealthiest consumers in the world, the market of the United States.

And because they could sell so much in the US, they acquired those dollars and started trading with other countries that made China the second world's largest economy.

So if it wasn't for the US dollar in the first place, it would have taken China 100 years and not 30 years to become the second world's largest economy.

Well, if everybody loves the dollar so much as you claim, why do they want to get rid of the dollar?

If those countries got so rich because of the dollar, if they love the dollar, if they want to continue trading with the United States, if they want to continue using the dollar as the reserve currency, why would they create an alternative financial system, an alternative global financial system?

United States started using the dollar as a weapon to sanction other countries.

It's very easy to get hooked on international trade.

You start trading with other nations, you start selling your goods and buying goods, and instantly you start becoming wealthier and wealthier.

But now the US has so much leverage over you.

If the US will cut you out of the global financial system, you will instantly get back to being poor.

So if your interests would not align with the US interests, suddenly you will be kicked out of the global financial system.

And Washington never hesitated to use the dollar as a weapon.

Which is why BRICS countries are trying to create an alternative option that would challenge the global financial system that is based on the dollar in order to pressure the dollar and not allow the United States to use the dollar as a weapon.

That is the only purpose of creating a BRICS currency or threatening to create the BRICS currency.

Because creating a currency is one thing and using it as the global reserve currency is a completely thing and it's impossible to even use it amongst the BRICS countries in the first place.

But since creating a single currency among the countries is not a viable option, they are simply using their own currencies to trade between one another and are trying to create the systems where these two countries can trade between one another without relying on the financial system that is created by the United States.

So China and Russia are trading in Chinese Yuan or their own local currencies.

Brazil and China are using their own local currencies.

China and other nations are most likely using the Chinese Yuan.

But even in those circumstances, they are using the dollar as the basic benchmark.

So is the dollar under threat and how strong the dollar today as the global reserve currency?

Most of the trade that China conducts is either with the United States or the European Union, which are the wealthiest continents on the planet.

And when you're trading with both of these continents, you're either going to use the US dollar or the euro.

And China wouldn't mind using both of these currencies because it can take these currencies and invest them back and in both of these countries.

In fact, nobody is using the Chinese Yuan as the reserve currency.