According to John Kerry, United States Secretary of State, the U.S. Dollar may eventually stop being the world’s reserve currency in case the USA rejects the agreement with Iran and goes back to the policy of endless sanctions. This is what he told during his speech in the New-York office of Reuters.
On top of that, he says this may happen virtually overnight and the first wakeup calls are already here. For instance, Russia and China are already cooperating in terms of currency swaps. He urged the U.S. authorities to pay attention to the fact that the so-called BRICS members are acting and do not want to want when the USA tells them what to do. This is confirmed by the latest BRICS summit in Russia. It seems that Putin is initiating a dialog to join forces when fighting the crisis. According to Mr. Kerry, it is important to keep in mind that all that is happening amid the current global market, which is changing since the rivalry never ends and most people are fed up with the system established after World War II. They thing the system is unfair and it doesn’t take into account their needs and interests.
Since most of the world thinks that the USA behaves inappropriately and using double standards, the world expresses a stronger desire to change the U.S. Dollar for another more decent global reserve currency.
When touching upon the agreement with Iran, he said that agreement implies that Iran is not going to develop its nuclear program without the USA’s consent. If the USA decides to cancel the agreement, this will destabilize the situation and worsen the relations with its allies. If that’s the case, the cooperation between the USA and its allies in multiple fields may well be compromised. Therefore, the Iranian nuclear agreement should be ratified.
It should be noted that the U.S. Congress has 60 days to discuss the nuclear agreement with Iran, which is also known as the Joint Comprehensive Plan of Action (JCPOA for short).
The Congress has two options – approve or reject the JCPOA. Barack Obama is going to veto any decision as long as it goes against the agreement. However, this veto may well be reduced to nothing by 2/3 of the votes.
While Obama’s administration is trying to back the JCPOA, most Republican congressmen express heir concern about it.
Meanwhile, Mr. Kerry says that if the USA says NO to the agreement already backed by the other UN Security Council members and Germany, this may seriously affect the USA’s external policy. In this case, the USA may deprive itself of the allies’ trust and even their military support if it’s needed.
