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Former US Treasury Secretary warns: Dollar is in danger DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Former US Treasury Secretary warns: Dollar is in danger

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Former US Treasury Secretary warns: Dollar is in danger Empty Former US Treasury Secretary warns: Dollar is in danger

Post by Ponee Wed May 27, 2020 9:27 am

Former US Treasury Secretary Henry Paulson considered that the internal situation in the United States poses a major threat to the global state of the American currency.

Former US Treasury Secretary warns: Dollar is in danger %D8%AF%D9%88%D9%84%D8%A7%D8%B1-696x435
And the former US Treasury official warned that "Washington has to do something with the uncontrolled growth of public debt and the budget deficit, otherwise the dollar will lose its privileged position in the world."
Given the fact that the US currency plays the role of the major reserve currency in the world, this allows the United States to withstand a large trade deficit and reduce economic risks and provides American banks with a wide source of liquidity.

However, the former US Treasury Secretary described "a historical anomaly" that the dollar has maintained this trait for a long time. "The Chinese yuan has a greater potential, as the size of the Chinese economy and the prospects for growth and integration in the global economy contribute to increasing the role of the Chinese currency," the official, "Novosti" agency quoted the official as saying in the "Foreign Affairs" magazine.

Paulson stated, "The supremacy of the dollar arose only through a mixture of historical events and geopolitical conditions after World War II, the Federal Reserve policy, as well as the size and enormous dynamics of the American economy."

He recalled that in the first half of the twentieth century the dollar and the British pound were coins used in reserves of equal status.

On the other hand, Paulson believes that China cannot yet be described as threatening the stability of the US currency. Before China turns into a market economy, the yuan cannot become a true global currency.
And many countries around the world warn about the danger of the dollar dominating the global economy in the growing American public debt and the hostile policy Washington is taking against some countries. 25 h has ended



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