PRINTING US DOLLAR AFFECTS GLOBAL ECONOMY, PUTIN WARNS

Wed 28 July 2021:

Printing the US dollar to cover the country’s budget deficit affects the entire global economy, Russian President Vladimir Putin said on Tuesday.

Speaking at a meeting on economic issues, Putin pointed out that the US government has been drafting the budget with a 15% deficit for two years, covering it by printing more dollars, which in turn, affected the global economy, as the US dollar is the largest, most popular reserve currency.

According to him, inflation in the United States has exceeded 5% with a target of about 2%, and the United States has been making up a budget with a 15% deficit for two years in a row.

“So they cover this deficit at the expense of what? At the expense of the issue [of the dollar]. This is where inflation comes from,” Putin said.

“Of course, this affects entirely and completely the world economy, considering the importance of the American [economy] for the whole world and the largest, most in-demand reserve currency,” he said.

Speaking at the meeting, Putin invited the participants to focus on how the Russian economy is overcoming the aftermath of the coronavirus pandemic.

“We see that the global economic recovery continues overall, with quite high rates, though this process is connected with inflation risks as well,” he said.

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