John Kerry warns of dollar collapse, which is ‘already bubbling out there’
Secretary of State John Kerry warned that if the United States walks away from the nuclear deal with Iran and demands that its allies comply with U.S. sanctions, a loss of confidence in U.S. leadership could threaten the dollar’s position as the world’s reserve currency, the top U.S. diplomat said on Tuesday.
“If we turn around and nix the deal and then tell them, ‘You’re going to have to obey our rules and sanctions anyway,’ that is a recipe, very quickly … for the American dollar to cease to be the reserve currency of the world,” Kerry said at a Reuters Newsmaker event. “which is already bubbling out there…” is the scary conclusion to his remarks.
Check out the video below.
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Defending the July 14 Vienna agreement between Iran and world powers that he helped to negotiate, Kerry warned of a potential loss of U.S. financial and political clout.
He said this was not something that would happen overnight but many countries were “chafing” under the present international financial arrangements.
He said U.S. Treasury experts “are doing a full dive on how this works and what the implications are. But the notion that we can just sort of diss the deal and unilaterally walk away as Congress wants to do will have a profound negative impact on people’s sense of American leadership and reliability.”
Here’s the full transcript:
SEC. JOHN KERRY: Are you kidding me? The United States is going to start sanctioning our allies and their banks and their businesses [who do business with Iran] because we walked away from a deal?
And we’re going to force them to do what we want them to do — Even though they agreed to the deal we came to?
Are you kidding?
That is a recipe, very quickly, my friends… for them to walk away from Ukraine.
Where they are already very dicey and ready to say they have done their bit.
They’re ready to say, “we’re the ones paying the price for your sanctions.”
It was Obama who went out and actually put together a sanctions regime that had an impact — I went to China. I pursuaded China not to buy more oil.
We pursuaded India and other countries to step back.
Could you imagine trying to sanction them after pursuading them to put in place sanctions to bring Iran to the table, and when they have not only come to the table but they made a deal, we turn around an nix the deal, and then turn around and impose the sanctions anyway.
That is a recipe, my friends, businesspeople here, for the American dollar to cease to be the reserve currency of the world, which is already bubbling out there…
