What Is BRICS and Will It Impact The US Economy?
Worried about the new BRICS currency? On this week’s episode we’re going to talk about what it is and how to overcome any stress and anxiety you have about its impact to the US economy. Check out the full episode and if you have questions about how to get started with Homeowner Prep, be sure to reach out to us or drop your question in the comments.
What You’ll Learn from this Episode:
- What Is The BRICS Currency
- How Will BRICS Impact The US Dollar and US Economy
- Why You Shouldn’t Have Anxiety About The BRICS Currency
- And much more!
00:00 Worried about the new BRICS currency?
00:33 Welcome To The Homeowner Prep Podcast
00:47 What Is BRICS?
00:59 Why Is It Being Created?
01:28 History Of Trade With The US dollar
02:10 The US Economy Isn’t Collapsing Anytime Soon
02:45 What Is The Real Issue?
03:36 The US Dollar Still Matters
04:37 Control The Things You Can Control
05:45 Getting Started With Homeowner Prep
06:07 Connect With Us On Social Media
“If you’re looking to buy a home, it’s still going to take the US dollar in order for that to happen.”Eric Hellon
Full Episode Transcript:
Recently we’ve been receiving a few questions about this new currency called BRICS. So on this episode, we’re going to talk about what it is and how it may impact you as an aspiring first time home buyer.
Welcome to the Homeowner Prep Podcast where every week we educate and encourage inspiring homeowners to help them buy their first home faster. If you aspire to own a home, you’re in the right place, so enjoy. Do us a favor and leave a review, a rating, and be sure to subscribe. Now, let’s get to this week’s episode.
Hello and welcome to another episode of the Homeowner Prep Podcast. I’m your host, Eric Hellon and on today’s episode, we’re going to talk about this new currency that’s in the news that we’ve been getting asked about and it’s called BRICS. Now, BRICS is a currency that’s been brought about by five leading countries, and that’s Brazil, Russia, India, China and South Africa. And what these countries are looking to do is to base their trade on a new currency instead of the US dollar.
Now, before we dive into this, I do want to make a caveat. I am not an economist, I studied economics in college, but that was many moons ago and so I’m going to touch on some basics about how currency impacts our global economy, but more importantly, I want to talk about how this change or potential change could impact your household.
Now, when it comes to trade in the global economy, the US dollar became the foundation of trade after World War II and so all these different countries have reserves of US money that they use as a backing for their trade. So there’s no need for them to convert currencies and things of that nature, they all have a reserve amount of US dollars. However, some of these countries want to start trading in their own currencies or create this new currency called BRICS and so that’s where we’re at today. There’s talks of a new currency, but there’s a lot that would have to be done in order for that to be implemented in our global economy.
One thing I want to point out right off the back is that you should not be afraid of the US economy or the US dollar totally collapsing anytime soon. I can say that with confidence because it took a long time for the US dollar to be considered as a backing for global trade and it’s going to take a considerable amount of not only time, but political agendas, banking institutions and all these other facets of the economic global scale that we’re on in order for them to implement a new currency for trading, but that’s not really the issue here.
The issue is that these countries want to be able to trade in their own currencies and not depend on the US dollar as the foundation of their global trading. So between these countries, they want to be able to trade in their own local currency and some countries don’t allow that to happen. Particularly in India you’re not allowed to take their currency outside of the country. So they can’t all just trade in their local currencies, they have to create a new currency, these BRICS, in order to be able to base their trades on.
So again, there’s a lot that goes into this from a global economic scale and there’s a lot that would need to be done in order for this to take place. So I want to eliminate the fear that you may have about the US dollar collapsing anytime soon.
The second point to consider is that even if this currency was created for trade within these countries, the US dollar would be very important to the rest of the world and particularly here in the US. Now a lot of these countries actually have debt that we as the US owe them. When you think about China and the amount of money that we owe them, it would actually hurt them to kill off the US dollar. So yes, there are some political aspirations, but the US dollar is going to be here for quite some time.
If this currency comes about, I want you to rest assured that your US dollar will still pay for the things that you need to pay for. You’re still going to get your paycheck, you’re still going to go out and buy and spend that US dollar and if you’re looking to buy a home, it’s still going to take the US dollar in order for that to happen. So I don’t want you to be fearful and have worry about what’s going to happen to our economy because I want you to think more local, more to scale of what’s going on in your household economy.
There are things that we can control and things that we can’t. My goal is that this video comes true. It shows that the US dollar stays stable, our US economy is stable, and that this currency takes quite some time to come about, not only for the US but to give some peace of mind to the rest of the world who still depends on the US dollar, but most importantly, I hope that you understand that right now you need to be focused on the things that you can control. What does your budget look like? What is your savings and your investments looking like? These are the things that are inside of your control that you need to be focused on instead of worrying about the things that you really have no control of. By doing this, you’ll eliminate a lot of the anxiety and the stress that comes about worrying about global things that are outside of your control.
So how are you handling your currency? Do you have a budget in place? Are you managing your credit? Do you know what your credit scores are? And are you putting away money to help you buy a home, set a plan in motion to reach the goals that you have for yourself and your family, and if you’re looking to buy a home, put a plan together to help you get there.
If you need help with that, you can always reach out to us here at Homeowner Prep, we’re here to help. You can reach us by texting the word START to 619-848-3700 or you can visit us on our website at www.homeownerprep.com/start and from there you can set up an initial consultation with us and we’ll help you put that plan together.
If you just have a general question or scenario that you want to run by us, feel free to reach out to us on any of our social media channels. We tend to get the majority of our questions on our Instagram account @HomeownerPrep.
I hope you got some value from today’s episode. I hope I helped to relieve some stress and some anxiety about the US dollar and the US economy and helping you get refocused on the things that you can truly control. I look forward to providing you with some more great content on the next episode, and until then, be blessed.
If you’ve enjoyed this show and got some great value from it, please be sure to rate and review and if you’re checking it out on YouTube, please be sure to subscribe. That really does help us to continue the show and bring in some great guests to help you on your home buying journey.
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