Carney made this claim during an interview with Fox Business host Larry Kudlow on Friday, Aug. 18. This claim was made before the 15th BRICS summit in Johannesburg. (Related: BRICS bloc discussing possible expansion as it seeks to "upend" the US dollar.)
The BRICS bloc is composed of Brazil, Russia, India, China and South Africa.
"I would bail out of that club if I were Brazil and India," quipped Carney. "And what we're seeing in the collapse of the ruble and the collapse of China's currency is the rest of the world wants nothing to do with these controlled economy currencies."
Carney claimed that the Chinese Communist Party is now resorting to artificially propping up the yuan's value rather than devaluing it like the party typically does because doing so could result in a much larger crash.
"The Chinese economy is in a lot of trouble," he said. "Their unemployment rate is so high that they've stopped talking about it. They're concealing what the youth unemployment rate is. It got up to 21 percent, probably going higher because so many people are graduating."
In one report, Carney noted that the youth unemployment rate in China – for individuals between the ages of 16 and 24 – has been rising steadily for the past six months, hitting an all-time high of around 21.3 percent in June, up from 12.2 percent before 2020.
One of the latest blows to the Chinese economy comes in the form of mega property development company Evergrande declaring bankruptcy.
Meanwhile, Carney admitted that Russia's economy remains resilient despite its heavy reliance on oil production and exports. This is in spite of the unilateral sanctions imposed upon Russia and the ruble by many Western nations since the beginning of the country's special military operation in Ukraine. But Carney said the ruble has already crashed in value.
"The ruble is falling because nobody needs the ruble," he said. "We have so many sanctions on that country that all around the world – who needs the ruble? The Chinese don't want rubles. They're saying 'pay us in oil,' basically."
Carney added that while some nations may still be investing in the Russian economy, Western sanctions and the ongoing conflict have made this difficult.
"Some people tried to go long [on] Russia on the idea that the war would end very quickly," said Carney. "The prolonged war means prolonged sanctions, which means it's very risky, very hard to invest there."
Together, the five nations that make up BRICS account for more than 40 percent of the world population and around a quarter of the global economy.
The group's focus on economic cooperation, increasing multilateral trade and development and reducing reliance on the American dollar is appealing to dozens of nations, so much so that over 40 countries have expressed their interest in joining the bloc.
These nations include Algeria, Argentina, Bolivia, Comoros, Cuba, the Democratic Republic of the Congo, Egypt, Ethiopia, Gabon, Indonesia, Iran, Kazakhstan, Saudi Arabia and the United Arab Emirates. Some of these nations have already formally submitted applications, while others – including many nations that were not mentioned – have expressed their informal interest in joining as one of the member nations.
These nations view BRICS as a viable alternative to global bodies dominated by the U.S. and other Western powers, and they hope that membership will unlock certain benefits, including better development financing and increased trade and investment.
Learn more about the dollar's place in the global financial system at DollarDemise.com.
Watch this clip of RT correspondent Donald Courter claiming that the BRICS currency could revolutionize the world's economy and end the dollar's dominance in the current financial system.