Russian President Vladimir Putin harshly criticized western monetary policy.
Putin believes the world will begin to move its reserves away from the dollar and euro, which are losing more and more value every day.
Putin recently accused the US and other G7 countries of causing hyperinflation in global commodity markets. Under these conditions, according to the Russian President, the rest of the world will begin to convert their reserves into “real resources”, which will deepen the spiral of commodity inflation.
The End of a Unipolar World
These criticisms of Putin’s St. Petersburg at the General Assembly of the International Economic Forum.
“Basic business concepts such as business reputation, inviolability of property and trust in global currencies have been severely damaged”
Putin cited sanctions against Russia and record-breaking inflation as the cause of the dollar and euro’s troubles.
Last March, Russian banks were expelled from the SWIFT system used by 11,000 institutions worldwide. With this sanction, Russian financial institutions were isolated by Western economies.
Putin compared the sanctions to a double-edged sword and underlined that they also harm the western states that apply them.
“The world has been dragged into this situation as a result of years of macroeconomic policies, including uncontrolled emissions and unsecured borrowing by the G7 countries”
Western states released money into the market in an uncontrolled manner to reduce growing debts. As Putin stated, the US money supply has increased by 38% in the last two years, while Europe’s has increased by 20%. These coins continued to “destroy global markets”.
Putin emphasized that the United States has recently become a food importer.
Putin said that the reserves of countries holding dollars and euros are under threat:
“The transformation of global reserves will begin. It will shift from weakening currencies to real resources such as food, energy commodities and other raw materials.”
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