As the US prepares for another election, concerns are rising about potential political instability and its impact on the global financial system. On Bloomberg’s Big Take DC podcast, former Senator Pat Toomey discussed with host Saleha Mohsin the serious implications if a peaceful transfer of power is not guaranteed, particularly for the U.S. dollar, the world’s dominant reserve currency.
Toomey warned that a repeat of the chaos surrounding the 2020 election could not only damage American democracy but also weaken global confidence in the dollar. The U.S. economy’s strength has long been tied to the perception of its stable political system and respect for the rule of law, key factors underpinning global investments in American assets.
“If violent interference in the election process becomes normal, it will damage our ability to remain the dominant reserve currency of the world,” Toomey stated, reflecting on the potential consequences of future unrest. He highlighted how the global economy has run on dollars for over 80 years, a legacy that could be at risk if instability erodes trust in U.S. governance.
As the U.S. election approaches, financial markets are bracing for potential turmoil, with fears that instability could rattle investor confidence, triggering market fluctuations. Toomey and other financial experts stress that while the U.S. remains a global leader, political uncertainty could challenge the dollar’s long-held position as the world’s anchor currency.
With uncertainty looming, the stakes are high—not just for the future of U.S. democracy, but for the global economy as a whole.
In Ghana though, the US Department of State has warned that it will deny visa to anyone who foments trouble ahead of the December 7 elections.
