Economist Warns Biden Administration’s Actions Threaten U.S. Dollar’s Reserve Currency Status
In an interview with the Daily Caller News Foundation, Heritage Foundation economist E. J. Antoni expressed concern over the potential consequences of the U.S. dollar losing its reserve currency status. Antoni warned that this could lead to hyperinflation and the return of decades of deficits to the U.S. economy. He also highlighted that the weakening value of the dollar is exacerbated by inflation, which is attributed to the policies of the Biden administration and the Federal Reserve. However, the proposed BRICS currency, backed by gold, is seen as a potential challenger to the dominance of the U.S. dollar. While there is no immediate plan to create a common BRICS currency, the development of an alternative is considered a medium to long-term ambition.
Key Points:
- Potential consequences of the U.S. dollar losing its reserve currency status
- Risks of hyperinflation and the return of deficits to the U.S. economy
- Inflation attributed to the policies of the Biden administration and the Federal Reserve
- The proposed BRICS currency backed by gold poses a threat to fiat currencies
- No immediate plan to create a common BRICS currency, but a long-term ambition
Hot Take:
The actions of the Biden administration and the Federal Reserve could have dire consequences for the U.S. dollar’s reserve currency status. Hyperinflation and the return of deficits are looming threats. The proposed BRICS currency, backed by gold, could potentially challenge the dominance of the U.S. dollar. While there are no immediate plans for a common BRICS currency, it remains a long-term ambition. It is crucial for the U.S. to address the policies that contribute to the weakening of the dollar and ensure its stability in the global economy.
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