US senators see the potential for the American dollar to lose its teeth as a global reserve currency, and that is a well-founded fact.
BitcoinNews reported, US Senator Rand Paul shared his views on current hot topics, dedollarization, and the US dollar’s status as the world’s reserve which is increasingly under threat.
“For a variety of reasons, both foreign policy and fiscal irresponsibility, yes, the US dollar is in a precarious position,” he said.
According to him, the US has pushed all enemies farther away and brought them closer together.
American Dollar Loses Fangs
Not only are Russia and China seen embracing each other to build international trade without the US dollar, several other countries were also triggered by the arrogant attitude of the US which used its currency as a weapon of sanctions.
According to him, de-dollarization is likely to happen eventually, as some countries start to show interest in seeking alternatives to the US dollar, such as Iran, Saudi Arabia, North Korea and BRICS members.
In fact, there are approx 19 countries who have submitted applications to join the BRICS, wishing to reduce their dependence on the US dollar.
“If you treat your US dollar like waste paper and you continue to buy large amounts of US debt, your US dollar also becomes worthless,” said Senator Paul.
With his predictions completely unfounded, Paul saw the possibility that the US dollar could lose its status as a global reserve currency.
“We need to be careful about having some kind of zero trade policy because I think that would make the world a worse place… You are basically at war with a country when you stop trading with that country,” he added.
The American dollar is losing its teeth and hegemony increasingly threatened after the alternative movement to the US dollar began to be carried out by several large countries.
France has even completed its energy trade with China using the yuan, no longer involving the US dollar.
The hegemony of the US dollar will be seriously threatened if the global energy and commodity trade begins to reduce the involvement of the US currency there. The world is trying to build a new economic order, making the US cold sweat all day long. [st]