Printing dollars to pay US deficit affects entire global economy — Putin
Issuing more dollars to cover the budget deficit in the United States affects the entire world economy, Russian President Vladimir Putin said, opening a meeting on economic issues on Tuesday, Trend reports with reference to TASS.
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.