Former Treasury Official: If US Dollar Loses Reserve Currency Status, There Will Be A Complete Economic Implosion
The comments below are an edited and abridged synopsis of an article by Ethan Huff
The US dollar, a fiat currency endlessly printed by the Fed, is headed toward losing its status as the world reserve currency. When that happens, it will be game over for the current global economic order. Former Assistant Secretary for Public Affairs at the US Department of the Treasury Monica Crowley warned that the consequences will be catastrophic.
Since the end of WWII, the dollar has been considered a safe-haven currency. At the time, it was backed by gold, but President Richard Nixon ended that in 1971.
Ever since it was de-pegged from gold, the only thing backing the dollar has been the perceived strength and economic power of the US, which has waned dramatically since WWII.
Another concern is that the rest of the world will stop trading oil using dollars (the petrodollar).
To have the dollar as the world’s reserve currency has been a privilege, Crowley said, adding that “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.”
Now there is the perfect storm of Biden’s weakness, his war on US energy production, and the Ukraine war. Meanwhile, America’s enemies, led by China, are forming a new economic bloc.
The only thing that needs to happen to dethrone the US and its fiat dollars from the pinnacle of global finance is for Saudi Arabia, for example, to open up the oil trade to other currencies – and the Saudis have already indicated that they are open to doing this.
If that happens, there will be a complete implosion of the global economic system, and certainly the US economic system.