Fred Smith, the Founder and Executive Chairman of FedEx, issued a dire alert regarding the BRIC alliance comprising Brazil, Russia, India, and China, cautioning that there is a looming threat to the stability of the U.S. dollar, with it potentially being overthrown.
As the Biden administration continues to say inflation has dropped, Smith told Fox News host Bret Baier that prices are still up 17.9 percent since President Biden took office.
I think the issue is much broader than just the CPI that was announced today. I mean, we’re the wealthiest nation in the world because of all these wonderful inventions since the end of World War II. But we’re also prosperous because we lead the world in opening markets for trade and protected those trade flows with the American Military and our alliances. And then third, and probably equally important, we’re the reserve currency of the world; the dollar is the medium of exchange, and our financial institutions control the movement of money around the world. All three of those things went together.
He continued, saying that the government borrowed nearly two trillion dollars in 2023, and the Congressional Budget Office will spend less on the Defense Department due to spending more on interest in 2024.
And you had a repudiation of both trade beginning in 2018 when the trade wars began with President Xi and President Trump, and more recently, our government has been borrowing money at an enormous rate, almost $2 trillion last year. And the CBO just announced that we’ll spend more on interest this year than we’ll spend on the Defense Department. These subjects are not even mentioned in our political discourse these days. It’s very concerning.
Smith warned politicians that the U.S. should address this situation and stop borrowing trillions of dollars. He gave a stark warning about the current state of the economy, saying that the economy is not doing well because of innovators but because the government is borrowing money "from our grandchildren."
The FedEx Founder concluded by saying the BRICs alliance is on a mission to dethrone the dollar.
And then on top of that, our financial capabilities to print money at will is dependent on the dollar remaining the reserve currency. And the so-called BRICS alliance — Brazil, Russia, India, and China — have set out on a deliberate course to dethrone the dollar. If that happens, and we can’t sell our bonds, I can assure you the living standards that we all enjoy today are going to be a thing of the past.
It's crucial for Biden and the lawmakers in Congress to prioritize this matter before it reaches a critical point. This poses a significant threat, yet it appears that not enough elected officials are responding with the necessary urgency.