In an interview with Fox Business, former US president Donald Trump expressed his concern about the future of the US dollar as the world’s reserve currency. He warned that if the dollar were to lose its status, it would also undermine the US’ position as a global hegemon.
Trump stated, “Our country is going to hell and we’re not going to be the big boy. We have power, but it’s waning. In fact, it’s waning in terms of our currency.” He emphasized that the potential loss of the dollar’s reserve currency status is a bigger threat than losing any war.
Under a Trump presidency, such an idea would have been unthinkable, he lamented. However, he acknowledged that now people, particularly in China, are contemplating the end of the US dollar’s dominance. This poses a significant risk to the US’ global status.
The former president also criticized the current state of the country, stating that the US is already reverting to third-world status in many ways. He pointed to neglected infrastructure, such as airports, terminals, and roads, as evidence of the decline.
Trump placed blame for the nation’s decline on the Biden administration, suggesting that his successor’s moratorium on new drilling for oil triggered the current inflationary spiral. He claimed that the US was on track to out-produce Russia and Saudi Arabia combined, but Biden’s policies hindered that potential.
When it comes to the US national debt, Trump acknowledged that no president has successfully paid it down. The current debt stands at $32.6 trillion, according to Treasury calculations. However, some estimates suggest it may be much higher. Trump himself added $6.7 trillion to the debt during his presidency.
The US economy’s apparent instability, including a recent credit rating downgrade by Fitch Ratings, and the growing number of countries facing US sanctions have led to a heightened interest in moving away from the dollar as the world’s reserve currency. In response, the BRICS countries have been developing an alternative to the US’ international bank transfer system, known as SWIFT.
It is clear that Trump believes the US’ position in the world is at risk due to the potential loss of the dollar’s dominance. He highlighted his concerns about the nation’s decline and the current administration’s policies, which he believes have contributed to the economic challenges the US faces. As the 2024 presidential election approaches, these issues will likely continue to be part of the political discourse.