Former Assistant Secretary for Public Affairs for the U.S. Department of the Treasury Monica Crowley has actually alerted of “catastrophic” repercussions if the U.S. dollar loses its status as the world’s reserve currency. “That would mean the end of the U.S. dollar,” she stated, forecasting that “there would be a complete implosion of the global economic system.”
Crowley Warns of ‘Catastrophic’ Consequences if the U.S. Dollar Loses Global Reserve Currency Status
Monica Crowley, former Assistant Secretary for Public Affairs for the U.S. Department of the Treasury, described on Fox News Saturday what would occur if emerging economies move far from the U.S. dollar towards the Chinese yuan and the USD is no longer the world’s dominant currency. She worried:
It’s truly difficult to overemphasize precisely how disastrous the desertion of the U.S. dollar would be as the world’s global reserve currency.
Crowley described that because completion of World War II, the dollar has actually been thought about a safe house. Initially, it was backed by gold, however after President Nixon took the U.S. off the gold requirement, there has actually been no difficult property backing the dollar for the last 50 years. Instead, it has actually been backed by “the strength and economic power” of the U.S., she stated.
The former Treasury official included that another crucial aspect is “the fact that oil has always been traded in dollars,” caution:
If that were to end, that would indicate completion of the U.S. dollar.
Emphasizing that the U.S. dollar having the world’s reserve currency status “has been a real privilege,” she revealed: “We’ve abused the privilege by wholly reckless monetary and fiscal policy for so many years, certainly over the last couple of years, which has really devalued the dollar.”
Crowley continued: “On top of that, now you do have this perfect storm of Biden’s weakness, his war on American domestic energy production, the Ukraine war … Because of all of these things, we’ve got America’s enemies, led by China, forming a new economic bloc.”
The former Assistant Secretary for Public Affairs included that because we are at a turning point, “all it would take at this moment … is for Saudi Arabia, who has actually suggested that they are open to this, to state: ‘You understand what, we’re going to be open to thinking about other currencies to sell oil.’” Crowley alerted:
If that were to occur, there would be a complete implosion of the global economic system, however definitely the American economic system. And if that were to occur, you’d be taking a look at sky-high inflation simply raving, Weimar Republic kind of inflation. If you believe inflation is bad today, simply wait.
“But more importantly, we would lose our economic dominance and we would lose our superpower status,” she kept in mind.
Do you believe the U.S. dollar will lose its world’s reserve currency status and do you concur with Monica Crowley about the “catastrophic consequences”? Let us understand in the comments area below.
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