Ray Dalio, founder of Bridgewater Associates, warned at the World Economic Forum in Davos in 2026 that U.S. national debt surpassed $38 trillion and that governments face a stark choice. He said leaders must choose between printing money or allowing debt crises to unfold, which he links to the end of the existing monetary order.
BRICS nations are accelerating moves away from dollar dependence, and the bloc launched a gold-backed digital unit in December 2025 that mixes gold with member currencies. The Unit uses 40% gold and 60% BRICS currencies and moves de-dollarization toward practical implementation.
Russia and China now settle roughly 90% of their bilateral trade in local currencies, bypassing the dollar, and India assumed the BRICS presidency for 2026 ahead of a summit in New Delhi. Russian President Vladimir Putin stated, “We are not refusing, not fighting the dollar, but if they don’t let us work with it, what can we do?” (Ed. note: this reflects a strategic pivot in settlement practices.)
India’s External Affairs Minister S. Jaishankar said his country does not seek to replace the dollar and stressed global stability. He warned against destabilizing global economic stability while BRICS pursues alternatives.
Central banks bought over 1,100 tonnes of gold in 2025, and BRICS control more than 6,000 tonnes to support alternative systems. Dalio recommends holding 10–15% of portfolios in gold and noted, “People don’t have, typically, an adequate amount of gold in their portfolio.”
The dollar remains dominant, accounting for about 89% of foreign exchange transactions while its share of reserves fell from 65.3% in 2016 to roughly 59.3% by late 2024. Dalio warned generational costs, saying, “My grandchildren and great-grandchildren not yet born, are going to be paying off this debt in devalued dollars.”
