U.S. Dollar Loses Value
Is this Biden’s fault?
An economic specialist has issued a warning that the dominant position of the U.S. dollar as the strongest currency globally since the conclusion of World War II may be at risk of diminishing in the near future.
While speaking on the “Fox & Friends Weekend” program, John Carney, the economics editor of Breitbart, cautioned that the weakened value of the dollar may pose a significant risk to the United States’ essential authority on the global platform.
Carney stated, “[It’s] not only a serious threat, I think it is inevitable. We went through three stages, as you said, after World War II. The U.S. was the biggest economy in the world. In the 1970s, global banking became basically dollar central. With the fall of the Soviet Union, the entire world, more or less, came under the domination of the U.S dollar…”
“That is now drifting away. China and Russia are starting to build an alternative block of currency,” John Carney added.
The concerns raised by the economic specialist are linked to China’s continuous efforts to detach itself from the U.S. dollar. This strategic move started during the Russian annexation of Crimea. Approximately 3% of the reserve portfolios now comprise the Chinese Yuan due to this development.
As per the International Monetary Fund, the market share of the U.S. dollar has decreased by 12% over the last 20 years, dropping from 71% to 59%.
Afterwards, Cain asked Carney about the feasibility of China’s substitute, asking, “How workable is it?”
“I don’t think in the long run that the Yuan is actually a threat, that it is ever going to become the dominant currency of the world, because the Chinese communist system is not open enough. The U.S. system is very open. Other countries can trust that our reserve currency, that we’re not manipulating it,” Carney said.
