U.S. Secretary of State John Kerry has warned that the U.S. dollar is at risk of collapse, if Congress decide to re-apply sanctions on Iran.
Iran has the 29th biggest economy according to the World Bank, and has the ability to cause the U.S. dollar to cease being the reserve currency of the world, should the current nuclear deal be withdrawn.
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The United States’ chief diplomat told Reuters at an event 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 added that the U.S. Treasury Department has been tasked with “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,” he added.
At the event, Kerry subtly threatened that even if Congress were to reject the deal, the Obama administration would not be committed to reapplying the sanctions.
Responding to whether a better deal with the Ayatollah’s murderous regime could be possible, Kerry said, “Are you kidding me?”
“The United States is going to start sanctioning our allies and their banks and their businesses 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?” he added.
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