BRIC Will Back Dollar as Reserve Currency: Strategist
The U.S. dollar has no concerns right now, said Ron Shah of Jina Ventures. The main concern for the U.S. needs to be bilateral trade agreements between the BRIC (Brazil, Russia, India, China) countries.
“The Russians are playing a little bit of a good-cop, bad-cop routine,” Shah told CNBC.
“China’s got way too much of [the dollar] in debt, Brazil and Russia have over $100 billion in U.S. Treasurys, and India needs the U.S. for strategic reasons.”
Shah said companies have to start getting worried about wealth creation — how they are creating wealth overseas and how they are going to approach the issues of GDP growth.
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“I think that’s the key issue of how this economy can recover, how the taxpayer dollar can recover, and as a nation, how we can repay our debts,” he said.
He said the Obama administration has to have a plan to repay debt and that it is important to bring the ratio down.
“It’s going to be up to Obama,” he said. “I think the incentive structure has to be focused on growth and how to create revenue despite GDP declines in the U.S.”
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No immediate information was available for Shah or his firm.
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