Senator Rand Paul of Kentucky claimed that the government’s fiscal and foreign policies prompted the BRICS and other countries to unite against the US dollar. Paul claims the US is becoming increasingly isolated as other powers band together to settle trades without using the dollar in a new Fox Business interview.
Paul claims that it is not China or Russia, the two largest members of the BRICS. Iran, North Korea and Saudi Arabia, according to the Kentucky senator, are also looking to ditch the US dollar.
“When you examine the structure of global trade, you will see that more than we have seen in a long time, a sizeable portion is expressed in currencies other than the US dollar.
It may be related to our foreign policy too, I think. All of our enemies were pushed away from us and closer together as we advanced. Foreign policy seeks to unite more than China and Russia. Undoubtedly, some of these are of their own making and are reactions to actions they have taken that we find inappropriate.
But North Korea also falls into that category. The basket contains Iran. However, some countries, such as Saudi Arabia, were also forced into this non-aligned or non-aligned coalition and wanted to value their trade in currencies other than dollars.
Paul argues that the government’s loose monetary policy is the reason the dollar is staying on its throne. The senator claimed that while governments continue to devalue the USD, countries are seeing their dollar reserves decline.
So, I believe it’s close. In addition, your dollar loses value if you use it like scrap paper and continue to build up huge amounts of US debt. Therefore, the dollar is in jeopardy for a number of reasons, including foreign policy and irresponsible budgets. And I believe it’s a reasonable assumption to say, “Yeah, we might lose our status as a reserve currency.