Former Assistant Secretary for Public Affairs for the U.S.
Department of the Treasury Monica Crowley has warned of “catastrophic”
consequences 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 said,
predicting 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, explained on Fox News Saturday what
would happen if emerging economies move away from the U.S. dollar
towards the Chinese yuan and the USD is no longer the world’s dominant
currency. She stressed:
It’s really hard to overstate exactly how catastrophic
the abandonment of the U.S. dollar would be as the world’s global
reserve currency.
Crowley explained that since the end of World War II, the dollar has
been considered a safe haven. Initially, it was backed by gold, but
after President Nixon took the U.S. off the gold standard, there has
been no hard asset backing the dollar for the last 50 years. Instead, it
has been backed by “the strength and economic power” of the U.S., she
said.
The former Treasury official added that another important factor is
“the fact that oil has always been traded in dollars,” warning:
If that were to end, that would mean the end of the U.S. dollar.
Emphasizing that the U.S. dollar having the world’s reserve currency
status “has been a real privilege,” she expressed: “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 added that since we
are at a pivotal moment, “all it would take at this point … is for
Saudi Arabia, who has indicated that they are open to this, to say: ‘You
know what, we’re going to be open to considering other currencies to
trade in oil.'” Crowley warned:
If that were to happen, there would be a complete
implosion of the global economic system, but certainly the American
economic system. And if that were to happen, you’d be looking at
sky-high inflation just raging, Weimar Republic kind of inflation. If
you think inflation is bad right now, just wait.
“But more importantly, we would lose our economic dominance and we would lose our superpower status,” she noted.
Do you think the U.S. dollar will lose its world’s
reserve currency status and do you agree with Monica Crowley about the
“catastrophic consequences”? Let us know in the comments section below.
