U.S. Senator Rand Paul has warned that the U.S. dollar could lose its status as a global reserve currency. “For a variety of reasons, both foreign policy as well as fiscal irresponsibility, yes, the dollar is in a precarious position,” said the lawmaker.
Senator Rand Paul on U.S. Dollar Losing Reserve Currency Status
U.S. Senator Rand Paul (R-KY) shared his concerns about the growing de-dollarization trend and the USD losing its global reserve currency status in an interview with Fox Business Thursday.
He was asked: “Is king dollar going to be tossed off of its throne because of bad fiscal and monetary policies? Is it going to lose its world reserve status in your judgment?” The senator from Kentucky replied:
I am concerned about it.
“I think our foreign policy has something to do with that … We’ve pushed all of our adversaries farther and farther away from us and closer and closer together. It’s not just Russia and China being pushed together by foreign policy and obviously, some of it is their own doing, and it’s a response to things they’ve done that we don’t like,” the lawmaker opined.
He added: “North Korea is in that basket as well. Iran is in that basket. But now we have some countries, such as Saudi Arabia, also sort of being pushed together into this non-aligned or unaligned coalition that wants to denominate their trades in things other than the dollar. So I think it is coming. And also if you treat your dollar like scrap paper and you continue to buy up enormous amounts of U.S. debt, your dollar becomes worthless too.”
Senator Paul continued:
So, for a variety of reasons, both foreign policy as well as fiscal irresponsibility, yes, the dollar is in a precarious position, and I think it’s not an unfounded prediction to say, yeah, we could possibly lose our status as a reserve currency.
Paul additionally warned: “We need to be careful of having some sort of zero trade policy because I think that will make the world a worse place.” The senator concluded:
You are essentially at war with a country when you quit trading with that country.
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