Monica Crowley, a former Assistant Secretary for Public Affairs at the U.S. Department of the Treasury, has expressed concern about the potential ‘catastrophic’ outcomes that may arise if the U.S. dollar were to no longer be recognized as the global reserve currency.
During her appearance on local American TV, Fox News Saturday, Monica Crowley gave her assessment of the potential consequences of emerging economies shifting away from the U.S. dollar and towards the Chinese Yuan.
“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.”
This revelation comes on the backdrop of Russia declaring official support for the Chinese Yuan in trade across the globe following a recent bilateral meeting between the two countries.
“We support using Chinese Yuan in transactions between the Russian Federation and its partners in Asia, Africa and Latin America,” said a press release by the Kremlin.
“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 warned.
Crowley went on to explain that following World War II, the U.S. dollar has been viewed as a safe haven. In the beginning, the dollar was supported by gold, but after President Richard Nixon shifted the U.S. from the gold standard, there has been no tangible asset backing the dollar for the past half-century. Instead, the dollar’s value has been supported by “the might and economic strength” of the United States.
The U.S. official, who served in the administration of former President, Donald Trump, also warned that if oil was no longer traded in her country’s currency, then it would spell the end of the U.S. dollar.
“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.
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.”
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