• The upcoming BRICS Summit may redefine global economic power, challenging U.S. dollar dominance.
• De-dollarization is accelerating, with BRICS nations conducting 67% of trade in local currencies.
• Physical gold emerges as a critical hedge against currency instability as BRICS influence grows.

Global Power Shift Endangers Financial Security

In just a couple of months the world economy may shift irrevocably. The 17th BRICS Summit convenes this July in Rio de Janeiro. It marks Brazil’s turn at the helm of an expanded bloc that now includes Indonesia, Egypt, Ethiopia, Iran and the United Arab Emirates alongside its original five members. This meeting could usher in a truly multipolar era as BRICS nations rise at the expense of the U.S. dollar. And bring potentially deep consequences to the value of your retirement funds.

BRICS Ascendant

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Combined gross domestic product (GDP) in purchasing power parity (PPP) of the BRICS Plus and G7 countries from 2000 to 2025

Since the BRICS bloc’s GDP growth hit 3.4% in 2025, more than double the U.S. forecast of 1.4%, investors can’t ignore their momentum. High‑growth BRICS members span from Ethiopia at 6.6% to India at 6.2% and Indonesia at 4.7%. Meanwhile China posts 4% and South Africa 3.4%. Even Brazil, the host of July’s summit, is expected to expand by 2.3%. In contrast, America is facing limited growth and threatened trade. Domestic markets are left playing catch‑up and vulnerable to global headwinds.²

Beyond headline GDP, BRICS nations now account for 40% of global output. They are projected to command 41% of world purchasing‑power parity in 2025 . That scale gives them outsized sway over commodity markets. From oil and gas supplied by Russia and food exports from Brazil to strategic minerals sourced throughout the bloc. Rodrigo Cezar of the Getulio Vargas Foundation noted that BRICS will be “very relevant in terms of dictating or giving direction to the prices of these materials.” U.S. consumers may find themselves at their mercy.³

De-dollarization Accelerates

This economic heft underpins a deliberate move away from the U.S. dollar. Russian Foreign Minister Sergey Lavrov revealed that just 33% of intra‑BRICS trade is now settled in dollars. The remaining 67% is conducted in local currencies. China’s yuan alone is set to represent 24% of those transactions by year‑end. At the same time, member states are developing their own settlement platforms and credit lines to bolster autonomy . By fragmenting dollar dominance, the bloc not only shields itself from U.S. monetary policy. They are also chipping away at Washington’s financial leverage.⁴

BRICS cohesion shouldn’t be doubted. Russia and China recently signed a comprehensive strategic partnership. Russian President Vladimir Putin declared, “In our joint statement with Xi Jinping, we set ambitious tasks… In particular, we are talking about ensuring a significant qualitative advancement of Russian‑Chinese trade and investment by 2030.”⁵

This pact reinforces the alliance’s economic, scientific, and digital integration. Further eroding the dollar’s, and the U.S.’s, centrality.

Wall Street Concern

Wall Street’s biggest names are sounding alarms. In its latest research, JP Morgan warned that the dollar’s “longstanding overvaluation is beginning to unwind.” They are predicting a 10%–20% decline in the U.S. Dollar Index over the medium term. A 10% drop would push the index into the 90s; a 20% slide could see it sink into the low 80s. These projections show the risks ahead for dollar‑denominated assets and portfolios.⁶

In practical terms, this means your dollar won’t stretch as far. Everyday goods imported from abroad could become more expensive. In other words, a weaker dollar erodes the purchasing power of your savings.

At Berkshire Hathaway’s 60th annual meeting, Warren Buffett warned against the U.S. dollar. He cautioned, “We would not really invest in a currency … that is going to hell.” Buffett criticized “alarming” fiscal behavior. He hinted that Berkshire could take positions in other currencies. Saying “There could be things happening in the United States that make us want to own a lot of other currencies”. ⁷

Gold

In a developing era of multipolar currencies and de‑dollarization, gold stands out as a proven store of value. Unlike paper monies, gold cannot be printed or devalued by fiscal policy. Its scarcity and global recognition make it the ultimate hedge. History shows that during periods of currency weakness, gold preserves purchasing power. And provides portfolio stability.

For those planning retirement, a Gold IRA offers both protection and peace of mind. It allows you to sidestep the risks of paper currency and financial system fragility. The BRICS’ rising influence and the dollar’s potential reset are creating uncertainty. Having a tangible asset like gold can help ensure your nest egg weathers any storm.

Conclusion

Don’t wait to see how the 17th BRICS Summit reshapes the monetary order. Learn about securing your retirement today by adding physical gold to your portfolio. Call American Hartford Gold at 800-462-0071 to find out how a Gold IRA can safeguard your future against the shifts in global economic power.

Notes:
1. https://www.statista.com/statistics/1412418/gdp-development-g7-brics/
2. https://watcher.guru/news/gdp-of-brics-countries-outperforms-global-average-us-distantly-behind
3. https://watcher.guru/news/gdp-of-brics-countries-outperforms-global-average-us-distantly-behind
4. https://www.cointribune.com/en/the-brics-are-accelerating-their-transition-to-local-currencies/
5. https://watcher.guru/news/brics-china-russia-announce-new-major-partnership
6. https://watcher.guru/news/brics-jp-morgan-predicts-20-decline-in-the-us-dollar
7. https://watcher.guru/news/brics-warren-buffett-says-us-dollar-going-to-hell-invests-in-local-currencies

 

• America’s $36.2 trillion national debt poses a serious threat to economic stability.
• Rising interest rates and reliance on foreign debt holders are compounding the risk.
• Gold offers a proven way to safeguard wealth from the consequences of runaway debt.

Rising Debt, Rising Risk

Beneath the daily headlines about tariffs, inflation, and stock market swings lies a deeper and more dangerous threat to the U.S. economy: the national debt. At $36.2 trillion and rising fast, America’s debt burden is more than just a budget problem, it’s a potential economic catastrophe. While politicians talk about solutions but rarely act, many Americans are taking steps to protect themselves. One increasingly popular option? Physical gold and Gold IRAs.

An Unsustainable Path

U.S. Treasury Secretary Scott Bessent has been blunt. He said the national debt is on an “unsustainable” path. Testifying before the House of Representatives, Bessent stated, “We do not have a revenue problem: we have a spending problem. We have to bring this spending under control.”¹

²

Despite the urgency, government spending continues to climb. A new federal budget bill currently in Congress could add up to $29 trillion to the national debt over the next decade. This proposal outlines spending from 2025 through 2034. And the reaction from voters has been loud and clear.³

A recent survey shows that 92% of Democrats, 88% of independents, and 80% of Republicans say recent economic turmoil has increased their concern about the national debt. 76% of all voters want the president and Congress to make tackling the debt a top priority. ⁴

Michael A. Peterson, CEO of the Peterson Foundation, summed it up. He said, “With significant market volatility and the United States already on a dangerously unsustainable fiscal path, Americans are sounding the alarm.”⁵

Debt and Foreign Influence

The national debt isn’t just a domestic issue, it’s also a point of vulnerability on the world stage. Foreign nations like Japan, China, and the UK are among the top holders of U.S. Treasuries. This makes America dependent on their continued willingness to finance U.S. spending.

Japan is the largest foreign holder of U.S. Treasuries. They recently floated the idea of selling off its holdings as part of trade negotiations. Although Japanese officials later walked back the threat, the mere suggestion revealed a troubling truth. The U.S. relies heavily on foreign countries to absorb its growing debt.

If a nation like Japan or China were to sell a large volume of Treasuries, it could spark a broader sell-off. This would raise borrowing costs for Washington and destabilize global financial markets.

Spending Pressure and Inflation Fears

Despite targeted cuts, layoffs, and fraud crackdowns, federal spending keeps climbing. It’s driven largely by programs that are politically untouchable. Military and veteran benefits, Social Security, Medicare, Medicaid, and interest on the debt account for 62% of all federal spending. A ratio that hasn’t changed much in a decade.⁶

Even Donald Trump’s administration, which has promised to rein in spending, has seen federal expenditures rise. In the first 100 days of the current year, federal spending was more than $200 billion higher than the same period the year before.

The Department of Government Efficiency (DOGE) claims to have saved $160 billion. But that amounts to just 0.5% of the national debt, a drop in the bucket.⁷

Nat Malkus is a senior fellow at the American Enterprise Institute. He put it plainly: “If you really want to cut federal spending, you’re going to have to cut into the programs where the lion’s share of the money is. That’s Medicare and Medicaid, Social Security, and we spend a lot of money on interest.”⁸

Rising Interest Rates and the Debt Spiral

The U.S. government has issued over $29 trillion in debt in the last year alone, four times the gross issuance of a decade ago. Meanwhile, the average interest rate on federal debt has climbed from 1.6% in 2022 to 3.3% today. This is largely due to the replacement of older, low-yield bonds with new, higher-interest debt.⁹

According to the Peterson Foundation, more than $9.3 trillion in federal debt will mature by March 2026. $3.1 trillion of it was originally issued at lower interest rates. As this debt is reissued at higher yields, interest payments will rise sharply.¹⁰

The Congressional Budget Office now projects the average interest rate on the national debt will rise to 3.6% in coming years. If rates go even higher than projected, the cost of servicing the debt will balloon further. As a result, a dangerous feedback loop, a ‘debt death spiral’, could emerge.

A Warning from Warren Buffett

The Oracle of Omaha is stepping down, but before he does, he addressed the growing debt crisis. He warned that current government spending levels are unsustainable. And that the annual deficit is spiraling out of control.

Buffett acknowledged that the U.S. technically can’t default. It can always print money to pay its obligations. But doing so, he cautioned, comes at a steep price: inflation and reduced purchasing power for ordinary Americans.

Conclusion

In the face of an exploding national debt, rising interest costs, and geopolitical uncertainty, many Americans are looking to protect their savings. One smart way to safeguard your retirement portfolio is by putting physical gold into a Gold IRA. A Gold IRA allows you to hold tangible assets, like gold coins and bars, in a tax-advantaged retirement account. It can help preserve the value of your wealth even as the dollar’s value declines.

At American Hartford Gold, we help clients take control of their financial futures in uncertain times. Call us today at 800-462-0071 to learn more about how a Gold IRA can protect what you’ve worked so hard to build.

Notes:
1. https://www.telegraph.co.uk/business/2025/05/06/trump-tariffs-ford-carney-ftse-100-markets-latest-news-uk/
2. https://www.cbo.gov/publication/61270
3. https://dayton247now.com/news/nation-world/voters-express-deep-concern-over-national-debt-economy-inflation-congress-trillions-budget-interest-rates-mortgage
4. https://dayton247now.com/news/nation-world/voters-express-deep-concern-over-national-debt-economy-inflation-congress-trillions-budget-interest-rates-mortgage
5. https://dayton247now.com/news/nation-world/voters-express-deep-concern-over-national-debt-economy-inflation-congress-trillions-budget-interest-rates-mortgage
6. https://www.cbsnews.com/news/trump-promised-cuts-spent-200-billion-more/
7. https://www.cbsnews.com/news/trump-promised-cuts-spent-200-billion-more/
8. https://www.cbsnews.com/news/trump-promised-cuts-spent-200-billion-more/
9. https://www.barrons.com/articles/treasury-bond-yields-national-debt-e9c81fc1
10. https://www.barrons.com/articles/treasury-bond-yields-national-debt-e9c81fc1

 

• The U.S. dollar is facing a crisis of confidence, threatening long-term economic stability.
• Foreign investors are retreating from dollar-based assets, accelerating the dollar’s decline.
• Protect your finances from inflation and currency risk by owning physical gold.

The Dollar Continues to Slide

For decades, the U.S. dollar has served as the world’s most trusted currency. It’s been buoyed by its role as the global reserve currency and its reputation as a safe haven during turmoil. But today, the dollar is in a crisis of confidence, putting the retirement savings of millions of Americans at stake.

Tariffs & the Dollar

In theory, tariffs should boost the dollar by making imports costlier, reducing demand for foreign currencies, and spurring interest rate hikes that attract capital. Historically, market turbulence has sent investors running to the dollar.

But not this time.

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Since peaking in January, the dollar has steadily weakened. The U.S. Dollar Index (DXY) is down more than 8% in 2025 and hit a three-year low. In April, the dollar plunged 4.5%—its worst monthly drop since 2022. Instead of reinforcing dollar strength, recent tariffs have added to investor anxiety, driving capital away from dollar-based assets.²

Not Just a Currency Slide—A Confidence Crisis

Goldman Sachs calls this a “confidence crisis.” Chief economist Jan Hatzius stated, “With all due humility, I believe that the recent dollar depreciation of 5% on a broad trade-weighted basis has considerably further to go.” Foreign investors, who hold over $22 trillion in U.S. assets, are now pulling back. Especially from U.S. stocks, which are typically unhedged against currency losses. As the dollar falls, their exposure grows riskier.³

This could have far-reaching consequences. With a current annual deficit of $1.1 trillion, the U.S. depends heavily on foreign capital inflows. A slowdown or reversal in that flow could accelerate the dollar’s decline and shake global markets.

A New Dollar Downcycle

Economists see worrying parallels to past dollar downcycles in the 1980s and early 2000s, when the dollar lost up to 30% of its value. Many believe we’re entering another prolonged decline.

Joe Brusuelas, chief economist at RSM, warned, “Both institutional investors and central banks are having to begin to think about what would happen should the dollar and the Treasury market no longer be the safe haven.” HSBC’s Frederic Neumann added that bond market volatility is likely to continue, putting further pressure on the dollar.⁴

Mounting Economic & Policy Risks

Multiple forces are undermining confidence in the dollar:

Recession fears: Optimism from tax cuts and deregulation has faded amid escalating trade wars and erratic policies.

Stagflation threat: Investors fear stagnant growth plus inflation will reduce real returns and spook Treasury buyers.

Slowing growth: The IMF projects U.S. GDP will fall to 1.8% in 2025, down from 2.8%, undercutting a key dollar strength pillar.

Fiscal imbalance: U.S. interest payments hit $949 billion in 2024, exceeding even defense spending.

Stock and debt risk: Household stock exposure is near record highs, and a major correction could cut consumer spending and GDP. With much of corporate debt maturing by 2027, a downturn could trigger defaults and strain an already fragile banking system.

A Global Shift Away from the Dollar

Geopolitical rivals are accelerating efforts to de-dollarize. The BRICS nations (Brazil, Russia, India, China, South Africa) are pushing alternatives, while the euro and yen gain ground. The dollar may be losing its unipolar dominance in a shift toward a multipolar currency system.

History shows that even reserve currencies are not invincible. The British pound once held this role before being supplanted by the dollar. Now, the dollar faces a similar test.

Consequences of a Declining Dollar

If the dollar continues to fall, the effects on the U.S. economy could be severe:

Higher import prices: U.S. consumers and businesses pay more for goods from abroad, adding to inflation.

Weaker travel power: Americans abroad get less for their dollars, while the U.S. becomes cheaper for tourists.

Loss of reserve status: Central banks may diversify into other currencies, weakening the dollar further and raising U.S. borrowing costs.

Increased debt burden: Higher interest rates may be needed to attract capital, making debt more expensive to service.

Market volatility: Stock and bond markets could face more risk as foreign capital exits.

Global instability: If others devalue their currencies in response, global trade could suffer.

Gold Stands Out

As recent record prices reflect, physical gold stands out as a reliable hedge in times of monetary and economic instability. That’s due to a number of reasons:

Inverse correlation: Gold usually rises as the dollar falls.

Inflation hedge: Gold helps preserve purchasing power as fiat currencies lose value.

Safe-haven appeal: Gold attracts investors during crises, boosting demand and price.

Tangible security: Unlike digital assets, gold can’t be inflated, hacked or frozen.

Global demand: Central banks are stockpiling gold to diversify away from the dollar.

Debt-free value: Gold isn’t tied to any country’s liabilities or politics.

Historical performance: Gold has consistently outpaced the dollar during inflationary and currency crises.

Conclusion

As the dollar’s troubles mount, protecting your financial future becomes more urgent. A Gold IRA from American Hartford Gold provides long-term security against inflation, currency decline, and market turbulence.

Call 800-462-0071 to learn how to diversify your retirement portfolio with physical gold and protect your purchasing power.

Notes:
1. https://wolfstreet.com/2025/04/11/omg-the-dollar-is-collapsing-or-whatever/
2. https://watcher.guru/news/goldman-sachs-u-s-dollar-has-much-further-to-fall-will-foreign-investors-abandon-u-s-assets
3. https://watcher.guru/news/goldman-sachs-u-s-dollar-has-much-further-to-fall-will-foreign-investors-abandon-u-s-assets
4. https://watcher.guru/news/de-dollarization-us-dollars-decline-just-starting-says-analyst