BRICS vs. the Dollar: Goldman Sachs’ Optimistic Take Misses the Bigger Picture
Goldman Sachs has made a bold call: the U.S. dollar is set for a major boom, fueled by tariffs and renewed economic protectionism under the Trump administration. According to the investment giant, long positions on the dollar could prove highly profitable as trade barriers push capital into USD-denominated assets. But while the financial press is quick to celebrate this “strength,” there’s a more sinister reality at play—one that exposes just how precarious the global financial system really is.
BRICS' De-Dollarization Agenda Hits a Roadblock
For years, the BRICS nations—Brazil, Russia, India, China, and South Africa—have been working to reduce their dependence on the U.S. dollar. They’ve built alternative payment systems, hoarded gold, and even floated the idea of a BRICS currency. But Goldman Sachs suggests that these efforts could stall as the dollar gains ground, tightening its grip on global trade.
The reasoning? Tariffs. Goldman’s analysts argue that as Trump reintroduces aggressive trade policies, foreign companies and governments will need more dollars to cover the costs of doing business. This, in turn, props up demand for USD, making the de-dollarization movement even harder to sustain.
But here’s the problem: the so-called "strength" of the dollar isn’t a reflection of a truly healthy economy—it’s a manufactured result of monetary manipulation, capital controls, and economic coercion. The Federal Reserve’s policies—whether it’s artificially low interest rates for years or emergency liquidity injections—have repeatedly distorted the dollar’s true value. The BRICS nations understand this, which is precisely why they’re still committed to finding alternatives, even if they’re facing setbacks.
Tariffs, Inflation, and the Unintended Consequences
Goldman Sachs strategists Karen Reichgott Fishman and Lexi Kanter claim that tariff risks are “underpriced” in foreign exchange markets, meaning there’s still money to be made by betting on the dollar. But what they fail to mention is the long-term damage tariffs could cause.
Yes, tariffs might momentarily strengthen the dollar by driving up demand, but they also stoke inflation—a reality we’ve seen play out time and again. As import costs rise, so do consumer prices, eroding purchasing power at home. Higher yields on U.S. Treasury bonds might attract investors for now, but once inflation spirals, even that so-called "safe haven" status could be in jeopardy.
Meanwhile, BRICS nations are already feeling the heat. Their local currencies have taken a beating against the dollar, and with Trump threatening even harsher trade policies, their economic struggles could intensify. But does that mean BRICS will give up on de-dollarization? Unlikely. If anything, the current economic turbulence only strengthens their resolve to escape the dollar’s stranglehold.
The Illusion of Dollar Stability
Goldman Sachs may want investors to believe that the dollar’s dominance is unshakable, but history tells a different story. Every global reserve currency—from the British pound to the Dutch guilder before it—has eventually fallen. The U.S. dollar is no exception. While it may be experiencing short-term gains, the long-term trajectory remains uncertain. Debts are soaring, trust in the banking system is eroding, and alternative financial systems are gaining traction.
For those paying attention, the lesson is clear: don’t fall for the illusion of stability. The dollar may be strong today, but its future is anything but guaranteed. That’s why protecting your wealth means looking beyond fiat currencies altogether. Precious metals, decentralized digital assets, and strategic diversification are key.
Want to stay ahead of the next financial crisis? Download Bill Brocius’ 7 Steps to Protect Your Account from Bank Failures Here. For exclusive insights into what’s coming next, subscribe to Bill’s Inner Circle Newsletter for just $19.95. Because if you’re relying on the dollar to keep you safe, you might already be too late.
