Jim Rickards, an economist and the writer of “Currency Wars,” stated that the United States Treasury is actually the greatest danger to the US dollar’s status as a reserve currency. However, he mentioned that an increasing number of countries looking for options other than the dollar as a payment currency is also “very important”, adding: “The dollar is being faced with danger from all directions”.
“The Dollar Under Attack
Jim Rickards, an economist and author of the book “Currency Wars,” has told in an interview on a show called “Fox & Friends Weekend” that the biggest danger to the U.S. dollar is actually not from China or any other foreign nations but from the U.S. Treasury instead.
Rickards talked about the difference between payment currency and reserve currency. He said that although some countries are no longer using the US dollar in their payments, a bigger concern is if it gets replaced by another currency as the main reserve currency. To explain this further, he said:
The U.S. Treasury is using the dollar to punish other countries that have done something they don’t like. It freezes their reserves of money, leaving them worried if the same thing will happen to them if they do wrong. When people don’t want to use dollars anymore as a reserve currency, one of the few options left for them is gold.
Rickards said that China and other countries are trying to replace the American dollar as money we use in daily transactions. He pointed out that many people want a different currency than the USD, saying “The dollar is being attacked from all sides”.
Lots of countries such as China, Russia, India, Malaysia and Saudi Arabia have been trying to not use the US dollar anymore. Recently, China and Brazil made a deal so that they don’t need the dollar for their trades with each other. ASEAN countries (which is an organization) recently said that they want to reduce using dollars too. On top of that, the BRICS countries are thinking about making their own currency instead of using dollars.
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