US Dollar’s Status As Global Reserve Currency at Risk

Paul Ryan, the Former House Speaker, has expressed concern over the US dollar’s status as the world’s reserve currency due to the massive accumulation of debt by the US government.

In an interview with CNBC, Ryan criticized the lack of proactive measures taken by President Joe Biden to address the country’s increasing debt.

Ryan warns that the US is heading towards a potential debt crisis that could have adverse effects on the dollar’s position as the top reserve currency in the world.

“So we have these leaders who are saying I am not going to do anything to stop a debt crisis in this country. And we know we have a debt crisis coming. So he’s courting disaster on that front. He’s basically harming our ability to stay as a reserve currency. He is moving us closer to a debt crisis by basically committing not to tackle this.”

In the previous month, the US government accumulated close to $1 trillion in debt, with the figure rising from $31.46 trillion on June 1st to the current value of $32.32 trillion.

Furthermore, the government is expected to pay about $663 billion in interest payments this year alone. Within the next ten years, the country’s gross national debt is estimated to reach almost $52 trillion.

The US Congressional Budget Office warns that the increasing debt will have damaging consequences on the economy in the long term.

More than a month ago, we were revealing that the Russian foreign minister Sergey Lavrov said just recently that the de-dollarization is already underway due to the US government’s rhetoric and policies.

According to a recent report from Tass, Lavrov has stated that the countries belonging to the BRICS alliance, which includes Brazil, Russia, India, China, and South Africa, are currently devising a plan to move forward without the need for the US dollar.

Lavrov is a Russian official since before the collapse of the Soviet Union. He recently stated the fact that the next BRICS gathering in August will focus on how the alliance’s New Development Bank can defend itself from potential US hostility.