Senator Rand Paul of Kentucky claims that the government’s fiscal and foreign policies are encouraging the BRICS and other countries to band together against the US dollar. Paul claims that the US is becoming more and more isolated as other powers band together to settle commerce without the use of the dollar in a new Fox Business interview.
Paul claims that it is not China or Russia, two of the BRICS’s biggest members. Iran, North Korea, and Saudi Arabia, according to the Kentucky senator, are also looking for methods to abandon the US dollar.
“When you examine the structure of global trade, you’ll notice that more than we’ve seen in a long time, a sizable portion of it is expressed in currencies other than the US dollar.Â
That may be related to our foreign policy as well, in my opinion. All of our enemies were pushed away from us and together closer as we advanced. Foreign policy is attempting to bring together more than just China and Russia. Undoubtedly, some of it is of their own making and is a reaction to actions they have taken that we find objectionable.Â
But North Korea is also included in that category. That basket contains Iran. However, some nations, like Saudi Arabia, are also being forced into this non-aligned or unaligned coalition and wish to value their commerce in currencies other than the dollar.Â
Paul thinks that the government’s lax monetary policies are the reason the dollar is holding on to its throne. The senator claims that while the government keeps the USD devalued, countries are seeing their reserves of dollars decline.
So, I believe it is imminent. Additionally, your dollar loses value if you use it like scrap paper and keep amassing huge quantities of US debt. Therefore, the dollar is in peril for a number of reasons, including foreign policy and budgetary irresponsibility. And I believe it is a reasonable assumption to say, “Yes, we might lose our status as a reserve currency.
