It’s Over: China Just Broke The US Dollar

THE FULL STORY:
On March 29th, it was announced that China and Brazil “struck a deal to trade in their own currencies, ditching the US dollar as an intermediary.” This would essentially enable them to trade directly, without having to buy any US dollars in the process (they currently transact around $150 billion dollars per year that’s no longer going through the US).

Now, keep in mind, this isn’t the first time that something like this has happened: China has been already been shifting away from the US dollar since 2010. Russia and India both ditched the US dollar a year ago, and Saudi Arabia recently said that it was open to the idea of trading in Chinese Yuan.

Not to mention, China, Russia, India, Brazil, and South Africa have already joined forces to transact and create their own reserve currency that’s separate from our dollars (referred to as BRICS) so this isn’t exactly a shock that came out of nowhere - BUT it could have a significant impact.

On top of that, a Cambridge study warned that “US dollar’s dominant status should not be assumed to last forever,” and that - “BRICS accounts for 24 percent of world GDP and over 16 percent of world trade,” - so, it’s not like these changes are going to be taken lightly.

However, I personally believe that - the US Dollar isn’t going anywhere - it still takes the number one spot BY FAR - and most of these headlines simply want clicks. That’s why, I believe it’s good to understand what’s going on and WHY this is happening - but, instead - focus on what you can control - like, whether or not you’re properly diversified, whether or not you have a consistent income, whether or not you save at least 15-20%, and, whether or not you consistently invest long term.