The Obama administration has been doing a hard push for the Iran nuclear deal, but the latest claim from Secretary of State John Kerry may have crossed the line. Kerry claimed that if the U.S. walks away from the Iran nuclear deal, the dollar will no longer be the reserve currency of the world. Wow.
Watch the video below via Real Clear Politics:
"Do you know what it is? Can anyone else explain this? What did he just do?" Glenn asked. "You now have a State Department, a top administration official actually declaring that the dollar, the US dollar will no longer be the world's currency because of something that there is no way that has anything to do with [The Iran Deal]."
"To me that says something additional. We're closer to the end of the reserve currency status than I thought... For him to say that, that's a very big deal."
"Remember, I said the United States dollar would not be the world currency -- would no longer be the economic reserve currency. What did they say about me?"
"Why? It would never happen. Nothing. I had been a kook for seven years for saying that. Now you have the head of the State Department coming out and saying, if you don't go with that vote, the dollar will lose its reserve currency. So you understand, America, what that means. Because America doesn't understand this."
"If you lose your reserve currency, what everybody does is currently, instead of holding gold, they hold dollars in their bank. That's their dollar. That's their gold. Okay. So they can stay afloat because they have, you know -- $100 billion literally, $100 billion, digits, actual cash, in a bank. They hold it in their treasury. If they say, you know what, I'm going to get rid of these dollars and I'm going to go with the ruble. Or I'm go to go with the Chinese. Or whatever. I'm going to go with gold. If they do that, when the world says I'm no longer holding the dollar. They sell those dollars and buy something with it. So they say, I want to buy the yen. The Chinese yen. I want to buy $100 billion of the Chinese yen. They take that money and give it to the Chinese. They buy it with that."
"All this money, all this cash, is now in the system that had been locked up in vaults. You have hyperinflation overnight. It means you don't -- you have plenty of money. It means every dollar you have earned. Every dime you have in the bank is suddenly worthless. We are Zimbabwe overnight."
"People have to understand what he just said. That is shocking," Glenn said.