Monica Crowley on Russia Turning to Yuan: ‘We Would Lose Our Super-Power Status’ if S. Arabia, Others Follow

EXCERPT:

CROWLEY: “It's really hard to overstate exactly how catastrophic the abandonment of the U.S. dollar would be as the world's global reserve currency. Look since the end of World War II, the dollar has been the safe place to go. And it's been backed up by a couple of things. Originally was backed up by gold. But President Nixon took -- took us off the gold standard so there's no hard asset backing up the dollar anymore for the last 50 years. But also, it's been backed up by the strength and economic power of the United States and the fact that oil has always been traded in dollars. If that were to end, that would mean the end of the U.S. dollar. Look, there is a perfect storm happening right now, Will. The world's reserve currency -- being that -- having that status has been a real privilege. But we've abused the privilege by wholly reckless monetary and fiscal policy so for many years, certainly over the last couple of years, which has really devalued the dollar. On top of that, now you do have this perfect storm of Biden's weakness, his war on American domestic energy production, the Ukraine war, and as you point out, because of all of these things, we've got America's enemies led by China, forming a new economic bloc. And all it would take at this point now, because we're at this pivotal moment, Will, is for Saudi Arabia, who has indicated that they're open to this to say, 'You know what? We're going to be open to considering other currencies to trade in oil.' If that were to happen, there would be a complete implosion of the global economic system, but certainly the American economic system. And if that were to happen, you'd be looking at sky-high inflation just raging, Weimar Republic kind of inflation. If you think inflation is bad now, just wait. But more importantly, we would lose our economic dominance, and we would --"
CAIN: "Right."
CROWLEY: "-- lose our superpower status."