Ron Paul, former US representative and member of the Libertarian Party, addressed recent events aimed at undermining the influence of the US dollar as a reserve currency in international markets. Paul thinks that even if it happens, it will probably take longer than some predictions say.
Ron Paul analyzes the fall of US dollar hegemony
In the latest edition of its online webcast “The Ron Paul Liberty Report”, former United States Representative Ron Paul analyzed the position of the US dollar as a reserve currency and how current events involving China, Russia, Brazil and other countries threaten this position.
Paul believes that if the U.S. dollar is finally dethroned as the reserve currency, it will take longer than some current predictions say, according to the former congressman. On this he said:
People have been talking about it for a long time, and it’s amazing, it’s always longer than some predictions. Someone might have said in 1930 that the dollar standard would not last long with the Fed taking over. Predicting the exact time is very difficult.
In addition, he explained the various stages the US dollar had to face, placing particular emphasis on former President Richard Nixon’s abandonment of the Bretton Woods system, reminding viewers that even then people were announcing the end of the dollar because it was becoming an inflationary currency. without support.
Consequences of having a global reserve currency
Paul explains that while having a national currency as the world’s reserve currency had advantages for the United States, it also had shortcomings. Paul said:
This gives us license to inflate. It gives us penalties to intervene in the market with penalties. Licensed to fight wars we shouldn’t be fighting.
For Paul, the demise of the dollar began with the creation of the Federal Reserve, which has the right to manipulate the nation’s monetary policy without congressional approval. However, Paul thinks there is an acceleration with the recent movements of countries seeking to abandon the dollar as a trading currency.
There are signs that something big is happening, and it has to do with China, Brazil and Russia. They gang up on us. If they succeed, people will find a scapegoat, but that’s not true. We need to look at our monetary policy in a much more honest way.
What do you think of Ron Paul’s position on the disappearance of the US dollar? Tell us in the comment section below.
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