Former Treasury OfficialWarns of Complete Economic Implosion if US Dollar Loses Global Reserve CurrencyStatus
Former Assistant Secretary forPublic Affairs for the U.S. Department of the Treasury Monica Crowley haswarned of “catastrophic” consequences if the U.S. dollar loses its status asthe world’s reserve currency. “That would mean the end of the U.S. dollar,” shesaid, predicting that “there would be a complete implosion of the globaleconomic system.”
Crowley Warns of ‘Catastrophic’Consequences if the U.S. Dollar Loses Global Reserve Currency Status
Monica Crowley, former AssistantSecretary for Public Affairs for the U.S. Department of the Treasury, explainedon Fox News Saturday what would happen if emerging economies move away from theU.S. dollar towards the Chinese yuan and the USD is no longer the world’sdominant currency. She stressed:
It’sreally 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 theend of World War II, the dollar has been considered a safe haven. Initially, itwas backed by gold, but after President Nixon took the U.S. off the goldstandard, there has been no hard asset backing the dollar for the last 50years. Instead, it has been backed by “the strength and economic power” of theU.S., she said.
The former Treasury official addedthat another important factor is “the fact that oil has always been traded indollars,” warning:
Ifthat were to end, that would mean the end of the U.S. dollar.
Emphasizing that the U.S. dollarhaving the world’s reserve currency status “has been a real privilege,” sheexpressed: “We’ve abused the privilege by wholly reckless monetary and fiscalpolicy for so many years, certainly over the last couple of years, which hasreally devalued the dollar.”
Crowley continued: “On top ofthat, now you do have this perfect storm of Biden’s weakness, his war onAmerican domestic energy production, the Ukraine war … Because of all of thesethings, we’ve got America’s enemies, led by China, forming a new economicbloc.”
The former Assistant Secretaryfor Public Affairs added that since we are at a pivotal moment, “all it wouldtake at this point … is for Saudi Arabia, who has indicated that they are opento this, to say: ‘You know what, we’re going to be open to considering othercurrencies to trade in oil.'” Crowley warned:
Ifthat were to happen, there would be a complete implosion of the global economicsystem, 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 ofinflation. If you think inflation is bad right now, just wait.
“But more importantly, we wouldlose our economic dominance and we would lose our superpower status,” she noted.
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