US Dollar Could Lose Reserve World Currency Position

Retired U.S. Air Force Brigadier General Blaine Holt has revealed fear of China and Russia cutting dependency on the U.S. dollar and trading with their currency holds devastating outcomes for the economy of the United States.

Holt, a former deputy military representative to NATO and Newsmax contributor, said on the network on Sunday that if Russia and China decide to trade within their gold-backed currency, the U.S. dollar might lose its standing as the world’s foremost currency.

“If we lose the reserve world currency, which is absolutely in the crosshairs of [China’s President] Xi Jinping and [Russian President] Vladimir Putin and other countries, our lives will be so completely different,” Holt stated.

The dollar’s standing as a reserve currency means that foreign official institutions, such as their central banks, hold US-dollar-denominated assets like Treasury securities, U.S. mortgage-backed securities, and U.S. corporate bonds. This holds multiple privileges for the U.S. dollar — a greater economic power topping the list.

For Holt, this issue should be a priority for all Americans, beyond the crises, wars, and rivalry. “Americans need to wake up and start educating themselves about this or they’re going to be educated, whether they want to or not,” he warned.

Holt pointed out that making U.S. dollars worthless is Russia’s “top-line goal” and cautioned that the country should be regarded as a threat as it has the backing of formidable allies. “Xi Jinping and the World Economic Forum, they’re not at odds with each other. They’re completely aligned in their goals. Vladimir Putin and Russia, they’re really, really just kind of a client state and they’re becoming a client state of China,” he shared.

The political contributor further noted that China is fast buying tons of gold, a move that smells of “war.” The Asian country’s digital currency, e-CNY, has also been progressing swiftly, with the U.S. far behind the steps in its development of a CBDC.

The idea of the current administration effectively stopping the threats cannot be counted on, as Holt pointed to the consistent loss President Joe Biden’s national security team has swallowed.

The big problem for Holt is the lack of accountability the Biden administration revels in. That, he fears, will be America’s doom as he said China is watching closely and taking notes.

“We’re watching dollars we’re going to need to fly out the door and nobody wants to tell us how they’re being used. China’s taking this all very seriously,” he posited.

Holt is not the first to predict impending doom for the U.S. dollar. Multiple analysts have cast doubts on the idea that the currency is irreversibly lodged in its preeminent status as the world’s foremost currency.

The dollar has indeed seen complicated times in the last three years, from the Biden Administration’s $5 trillion money-printing scheme to the raging inflation, which the administration has brushed off as “transitory.”

While it managed to bounce off and appeared to be in a place of strength in the earlier days of the year, a DailyFx report on Monday revealed that the currency is sinking to its lowest level in a long time.