Former US President Donald Trump Warns of Dollar’s Decline as World Reserve Currency, Citing Geopolitical Concerns
In a candid interview with Fox Business on Thursday, former US President Donald Trump sounded the alarm over the potential loss of the dollar’s status as the world’s reserve currency and its implications for the United States’ global dominance. Trump’s stark warning comes amidst growing concerns about the country’s economic stability, inflationary pressures, and international sanctions.
Trump, who has remained an influential figure in American politics, expressed his fears about the diminishing role of the dollar on the global stage. He argued that the United States was at risk of losing its prominent position in international geopolitics if the dollar were to lose its status as the world’s primary reserve currency. “Our country is going to hell and we’re not going to be the big boy,” Trump asserted, highlighting the perceived waning influence of the United States.
The former president drew attention to the potential repercussions of such a scenario, emphasizing that the loss of reserve currency status would be “bigger than losing any war.” He further pointed out that while such a notion would have been inconceivable during his own presidency, it was now being seriously considered by global players, particularly China. This, Trump argued, could put the United States in danger of being overshadowed by other rising powers on the international stage.
Trump also took aim at the Biden administration, blaming it for what he described as the nation’s economic decline. He suggested that President Biden’s decision to halt new oil drilling had triggered a chain of events leading to the current inflationary pressures. Trump asserted that, under his leadership, the United States was on the cusp of becoming a major oil producer, poised to outpace both Russia and Saudi Arabia combined. “We would have made so much money. We would have been paying off debt, we would have been doing things that nobody’s ever seen this country do,” Trump lamented.
The economic concerns raised by Trump have been further exacerbated by the nation’s staggering national debt, which currently stands at a monumental $32.6 trillion according to Treasury calculations. While Trump himself contributed significantly to this debt, he argued that the Biden administration’s spending initiatives could potentially surpass his own contributions. The former president highlighted the ongoing spending programs, such as student loan forgiveness, as well as the geopolitical tensions, like the conflict in Ukraine, which continue to strain the nation’s financial resources.
A recent downgrade of Washington’s credit rating by Fitch Ratings from AAA to AA+ has heightened worries about the stability of the US economy. This rating downgrade, which has occurred only twice in history, reflects concerns over the country’s fiscal health and ability to manage its debt burden. Additionally, the increasing number of countries facing US sanctions has sparked renewed interest in exploring alternatives to the dollar as the world’s reserve currency.
In response to these challenges, the BRICS nations have been exploring an alternative to the US-dominated SWIFT international bank transfer system. This alternative could potentially serve as a foundation for a shift away from the dollar’s global prominence.
As global economic dynamics evolve, Donald Trump’s warning serves as a reminder of the complex interplay between economic policies, global politics, and the fate of the US dollar as the world’s primary reserve currency. The implications of such a shift, if realized, could reshape the geopolitical landscape and impact the United States’ standing on the global stage.
