Ron Paul, a former U.S. representative, and member of the Libertarian Party have addressed recent events directed to undermine the influence of the U.S. dollar as a reserve currency in international markets. Paul believes that even if this does happen, it will probably take more time than some predictions are saying.
Ron Paul Analyzes Fall of US Dollar Hegemony
In the latest edition of his online webcast “ The Ron Paul Liberty Report, ” former United States representative Ron Paul analyzed the standing of the U.S. dollar as a reserve currency and how current occasions concerning China, Russia, Brazil, and other countries are threatening this position.
Paul believes that if the U.S. dollar is ultimately dethroned as a reserve currency, this will take further time than some predictions are presently announcing, according to the former congressman. On this, he said:
People have been talking about this for a long time, and it’s amazing, it’s always longer than some predictions. Somebody could have said in 1930 that the dollar standard is not going to last long with the Fed taking over. Predicting the exact time is very difficult.
Moreover, he explained the different stages that the U.S. dollar has faced, putting special emphasis on the abandonment of the Bretton Woods system by former president Richard Nixon, reminding viewers that indeed also, people heralded the end of the dollar as it became an inflationary currency with no backing.
Consequences of Having a World Reserve Currency
Paul explains that while owning a national currency as a world reserve currency had its advantages for the U.S., it also presented shortcomings. Paul declared:
It gives us a license to inflate. It gives us sanctions to interfere in the market with sanctions. License to fight wars we shouldn’t fight.
For Paul, the demise of the dollar started with the creation of the Federal Reserve, which has a license to manipulate the monetary policy of the country without congressional approval. still, Paul believes that there's an acceleration with the recent movements of countries seeking to gutter the bone as a trade currency.
There are signs that something big is happening, and it has to do with China, Brazil, and Russia. They are ganging up on us. If they are succesful, people will find a scapegoat, but it is not true. We have to look at our monetary policy in a much more honest way.
(Sergio Goschenko, Bitcoin.com, 2023)