• Senator Rand Paul warns that the U.S. dollar could lose its status as a global reserve currency.
• The lawmaker said this is due to both foreign policy and fiscal irresponsibility.
• He warned against having a zero trade policy, saying it would make the world a worse place.
Senator Rand Paul Warns of US Dollar Losing Reserve Currency Status
U.S. Senator Rand Paul has warned that the U.S. dollar could lose its status as a global reserve currency, citing both foreign policy and fiscal irresponsibility as reasons for his concern in an interview with Fox Business Thursday.
Foreign Policy Cited As Reason For Concern
Paul noted how U.S foreign policy has pushed adversaries closer together, creating an “unaligned coalition” that wants to denominate their trades in things other than the dollar and how countries such as Saudi Arabia are part of this group: “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…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.“
Fiscal Irresponsibility Also Seen As A Factor
Paul also spoke about what he sees as continued fiscal irresponsibility by governments: “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.“
Warning Against Zero Trade Policy
The senator 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” before concluding: „You are essentially at war with a country when you quit trading with that country.“
Do You Agree?
Do you agree with Senator Rand Paul about the dollar losing its status as the world’s reserve currency? Let us know in the comments section below!