Monica Crowley, once the Assistant Secretary for Public Affairs for the U.S. Department of the Treasury, has forecasted “catastrophic” ramifications if the U.S. dollar loses its status as the world’s reserve currency. “That would signify the conclusion of the U.S. dollar,” she said, prognosticating that “there would be a total implosion of the global economic system.”
Crowley Expects ‘Catastrophic’ Repercussions 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 occur if emerging economies shift away from the U.S. dollar towards the Chinese yuan and the USD no longer retains its spot as the world’s dominant currency. She stated:
It’s very difficult to overstate how disastrous the abandonment of the U.S. dollar would be as the world’s global reserve currency.
Crowley elucidated that since the end of World War II, the dollar has been viewed as a safe haven. Initially, it was backed by gold, but following President Nixon taking the U.S. off the gold standard, there has been no hard asset supporting 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 previous Treasury official added that another significant 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.
Highlighting that the U.S. dollar having the world’s reserve currency status “has been a real privilege,” she articulated: “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 weakened 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, building 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 occur, there would be a complete implosion of the global economic system, but certainly the American economic system. And if that were to take place, 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.
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