Volcker: U.S. Dollar Is In Danger, U.S. Example No Longer Inspires Trust From Other Countries

Paul Volcker, chairman of President Barack Obama’s Economic Recovery Advisory Board and former Federal Reserve Chairman says the U.S. dollar is in danger of losing its role as a global benchmark currency.

Bloomberg reports him saying: “The growing question is whether the exceptional role of the dollar can be maintained,”
He says that the reasons are the decline of the U.S. economy, political gridlock, the two wars the U.S. is in, and geopolitical issues in the Middle East and Asia, all "have undermined the ability of the U.S. to influence global events",

“This is a troubling time for America, a troubling time for the world,” "the U.S. is facing its most difficult economic crisis since World War II." “If ever there were a need for clear-headed, confident leadership, nationally and internationally, that time is now.”

The U.S. example no longer inspires other countries to trust U.S. leadership and the U.S. is "hobbled by lobbyists and an unwillingness to pass realistic budgets". In addition, its civil service has lost its ability to attract America’s best and brightest to public service.

“The time is gone when the U.S. could lay claim as the putative superpower with both unchallenged economic and military might,”

“The growing sense around much of the world is that we have lost both relative economic strength and more important, we have lost a coherent successful governing model to be emulated by the rest of the world,” “Instead, we’re faced with broken financial markets, underperformance of our economy and a fractious political climate.”