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Tuesday, July 16, 2024

Putin predicts ‘gradual collapse’ of dollar-based financial system

The Bretton Woods system is not working and has to be changed, according to the Russian president

The dollar-based global financial system is not balanced as it does not meet the interests of all countries, Russian President Vladimir Putin said on Thursday at the plenary session of the Valdai Discussion Club.

According to Putin, the dominance of the American currency has to end, which is already happening, while the US authorities are “shooting themselves in the foot.”

“The Bretton Woods system – it was once created on the basis of the dollar, but all this is gradually collapsing. Currency is a derivative of the power of the country’s economy, which issues this currency,” the Russian leader pointed out.

In addition, the share of the US economy in global GDP is declining, as evidenced by statistical data, Putin emphasized.

According to the president, Washington is used to printing money in order to cover its budget deficit, and will continue the policy as long as needed.

“They will print more. They printed, well, more than $9 trillion during the Covid and post-Covid period. Therefore, it costs them nothing to print something else and scatter it all over the world, thus increasing food inflation. They will do it for sure,” Putin predicted.