U.S. Senator Rand Paul has warned that the U.S. dollar could lose its status as a global reserve currency. “For a variety of reasons, both foreign policy as well as fiscal irresponsibility, yes, the dollar is in a precarious position,” said the lawmaker.

Senator Rand Paul on U.S. Dollar Losing Reserve Currency Status

U.S. Senator Rand Paul (R-KY) shared his concerns about the growing de-dollarization trend and the USD losing its global reserve currency status in an interview with Fox Business Thursday.

He was asked: “Is king dollar going to be tossed off of its throne because of bad fiscal and monetary policies? Is it going to lose its world reserve status in your judgment?” The senator from Kentucky replied:

I am concerned about it.

“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. It’s not just Russia and China being pushed together by foreign policy and obviously, some of it is their own doing, and it’s a response to things they’ve done that we don’t like,” the lawmaker opined.

He added: “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. So I think it is coming. And also 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.”

Senator Paul continued:

So, for a variety of reasons, both foreign policy as well as fiscal irresponsibility, yes, the dollar is in a precarious position, and I think it’s not an unfounded prediction to say, yeah, we could possibly lose our status as a reserve currency.

Paul 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.” The senator concluded:

You are essentially at war with a country when you quit trading with that country.

Tags in this story

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.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Articles You May Like

Why is the populist right surging across Europe, but not Britain?
Our criminal justice system deserves a damning verdict
Keir Starmer’s difficult choices
Labour considers releasing offenders early to stave off UK prisons crisis
Powell tells Congress Fed needs more confidence before cutting