What happens if we lose reserve currency status?
Former Assistant Secretary for Public Affairs for the U.S. Department of the Treasury Monica Crowley says that if the dollar loses its status we would rapidly face “catastrophic” consequences and the “implosion” of our economic system.
If oil begins to be traded in units other than the petrodollar, we face an almost immediate crisis. According to Crowley, “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.”
“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.
All of this is ramping up.
All the things mentioned in these videos have occurred over the past two weeks, while everyone was (justifiably) outraged or gleeful about the indictment of Trump. Last month we watched the banking system teetering on the brink of disaster. It’s not going to take more than a hard sneeze to send the entire thing crashing down.
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Author of Be Ready for Anything and Bloom Where You’re Planted online course