{"id":20101,"date":"2023-04-22T03:31:26","date_gmt":"2023-04-22T03:31:26","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/white-house-economist-warns-china-wants-to-weaken-us-dollars-reserve-currency-status-senator-says-biggest-threat-comes-from-within-economics-bitcoin-news\/"},"modified":"2023-04-22T03:31:26","modified_gmt":"2023-04-22T03:31:26","slug":"white-house-economist-warns-china-wants-to-weaken-us-dollars-reserve-currency-status-senator-says-biggest-threat-comes-from-within-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/white-house-economist-warns-china-wants-to-weaken-us-dollars-reserve-currency-status-senator-says-biggest-threat-comes-from-within-economics-bitcoin-news\/","title":{"rendered":"White House Economist Warns China Wants to Weaken US Dollar’s Reserve Currency Status \u2014 Senator Says Biggest Threat Comes From Within \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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In a congressional hearing, White House economist Jared Bernstein says there\u2019s \u201csome evidence\u201d that China wants the U.S. dollar to lose its status as the world\u2019s reserve currency. However, U.S. Senator Bill Hagerty stressed that the biggest threat to the USD dominance comes from within.<\/strong><\/p>\n

China Wants to See U.S. Dollar Losing World\u2019s Reserve Currency Status, Says Bernstein<\/h2>\n

White House economist Jared Bernstein answered some congressional questions about the U.S. dollar\u2019s status as the world\u2019s reserve currency before the Senate Banking Committee on Tuesday during a hearing on his nomination to be chairman of the Council of Economic Advisers.<\/p>\n

Bernstein, a current member of the White House Council of Economic Advisers, previously served as chief economist to then-Vice President Joe Biden in the Obama-Biden Administration before joining the Center on Budget and Policy Priorities, where he served as a senior fellow from 2011 to 2021.<\/p>\n

During the hearing, Senator Bill Hagerty (R-TN) noted efforts by several countries that threaten the status of the U.S. dollar as the global reserve currency, such as Brazil\u2019s president, Luiz In\u00e1cio Lula da Silva, calling<\/a> for an end to the dollar trade dominance. Emphasizing that China applauded this, the senator from Tennessee asked Bernstein: \u201cDo you agree that China wants to see this happen?\u201d The White House economist promptly replied:<\/p>\n

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I think there\u2019s some evidence that it does.<\/p>\n<\/blockquote>\n

Commenting on why China wants to see the USD dominance reduced, Bernstein detailed: \u201cI think there are extremely important privileges, and even in the realm of security reasons, to have \u2014 the benefits from having \u2014 the reserve currency.\u201d He added: \u201cOne of the most obvious is, of course, sanctions. If you control the reserve currency, you\u2019re able to impost sanctions as we\u2019ve done on Russia to considerable effect.\u201d<\/p>\n

Debt Ceiling and the \u2018Biggest Threat\u2019 to USD<\/h2>\n

Senator Hagerty proceeded to raise concerns about \u201cthe incredible debt\u201d the U.S. government \u201chas piled up,\u201d and \u201cthe interest rate cost, which the CBO [Congressional Budget Office] has projected to actually be greater than our entire defense budget.\u201d<\/p>\n

However, Bernstein said: \u201cOne thing we could really do to help both the dollar maintain its reserve currency status, but also to protect the value of the dollar, would be to raise the debt ceiling.\u201d<\/p>\n

Commenting on the U.S. dollar potentially losing its reserve currency status, Hagerty stressed the importance of getting fiscal policies in order. \u201cThe fiscal spending is, I think, going to let the market dictate what happens to the dollar as a reserve currency, and if we continue to allow deficit spending to get out of control, I very, very seriously am concerned that we do it to ourselves. I know China would like to do it to us.\u201d He concluded:<\/p>\n

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China would like to see us lose our status as a reserve currency but I think the biggest threat is from within by allowing our spending to get out of control. That\u2019s the path that we\u2019re on now. We need to see it back under control.<\/p>\n<\/blockquote>\n

Do you think the U.S. dollar will lose its status as the world\u2019s reserve currency? And, do you agree that the biggest threat to the USD comes from within? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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