Balaji Srinivasan Highlights De-Dollarization Past of Biden’s Top Economist

Former Chief Tech Officer at Coinbase, Balaji Srinivasan, took to Twitter to remind his followers about Jared Bernstein’s earlier stance on de-dollarization. The angel investor sees logic in views that the brand new White House high economist has now deserted, on the U.S. greenback’s standing as a world reserve foreign money .

Not a Bitcoin Maximalist — Biden’s Chief Economic Aid Said This About De-Dollarization, Balaji Points Out

“The government needs to drop its commitment to maintaining the dollar’s reserve-currency status!” ex-CTO of main U.S. crypto alternate Coinbase tweeted on Monday, asking followers to guess “Who’s saying that…some Bitcoin maximalist?”

“No, it’s Biden’s new top economist,” the tech entrepreneur remarked in a put up exposing Jared Bernstein’s earlier place on what Washington’s coverage relating to the dollar ought to appear to be and discovering sure rationale in it.

DETHRONE KING DOLLAR!

The authorities must drop its dedication to sustaining the greenback’s reserve-currency standing!

Who’s saying that…some Bitcoin maximalist?

No, it’s Biden’s new high economist. pic.twitter.com/C9QT7rjM9c

— Balaji (@balajis) June 19, 2023

Srinivasan referred to an op-ed printed by Bernstein within the New York Times again in August 2014 titled “Dethrone ‘King Dollar.’” In the article, the creator argues that that the greenback’s function as a foreign money that international banks and governments wish to maintain undermines job development in America and pumps up its finances and commerce deficits, inflating monetary bubbles.

President Joe Biden nominated Bernstein to chair his Council of Economic Advisers in mid-February. Answering questions from members of the Senate Banking Committee throughout the vetting course of, the economist blamed China for searching for an finish to the greenback’s dominance as a result of it helped the U.S. to sanction Russia following Moscow’s invasion of Ukraine. He was quoted as stating:

There are extraordinarily necessary privileges, and even within the realm of safety, advantages to having the reserve foreign money.

On June 13, the U.S. Senate confirmed Jared Bernstein, a longtime adviser to Biden, as Chairman of the financial council on the White House. “Yes, I’m aware that Bernstein recanted in his public testimony, but this was his long-held view over the course of a decade and actually has some logic to it,” Balaji Srinivasan famous, backing the unique de-dollarization stance of the economist.

‘De-Dollarization Isn’t Happening, and It’s Good That It Is,’ Srinivasan Says

“Of course neither side wants to admit the similarities, but both Biden and Trump have advocated economic nationalism, trade war, and industrial policy,” the previous Coinbase govt identified, suggesting that Bernstein is “sort of left-MAGA.” He additional elaborated:

And in case you’re actually leaning into that, perhaps you additionally wish to depreciate the USD to make American exports extra aggressive overseas. That’s the place Bernstein is coming from. And what, his case is definitely not irrational!

According to Srinivasan, it’s good that de-dollarization is occurring however it is a “hairpin turn” that isn’t simple to handle. “How do they go from ‘our reserve currency status is unquestionable’ to ‘our reserve currency status is unquestionably a burden?’” he requested rhetorically.

Balaji is satisfied that politicians will attempt to promote it like inflation — “First, de-dollarization isn’t happening. Then, it’s happening, but not fast. Next, it’s happening, but not a big deal. Finally, it was obvious, inevitable, and even good! And your fault for not hedging … Because ‘the privilege of having the world’s reserve currency is one America can no longer afford.’”

Balaji Srinivasan has beforehand highlighted quite a few potential challenges for the U.S. and the worldwide financial system, comparable to sovereign defaults and rising bank card debt, in addition to unfavorable developments within the bond, actual property and different markets, and together with the present de-dollarization pattern.

In different latest tweets, he emphasised that de-dollarization is pushed not by markets or one state however dozens of states, “because they don’t want DC to be able to kill their economy with the flip of a switch. And can you blame them? Is a remote kill switch a ‘democratic’ world order?” he added in one other rhetorical query. “The world is declaring independence. They don’t want ‘King Dollar’ anymore than George Washington wanted to be ruled by the ‘King of Great Britain,’” he concluded.

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