Vladimir Putin Criticizes Western Monetary Policy and Predicts a Shift to Commodity Reserves Worldwide
The world will shift its reserves away from depreciating dollars and euros, the Russian president says.
Recently, Russian President Vladimir Putin criticized the United States and other G7 nations for the escalating inflation in the global commodity markets. Under these conditions, he forecasts that the globe would transfer its reserves away from sovereign debt and toward “real resources,” therefore accelerating the cycle of commodities inflation.
On Wednesday, June 15th, the President delivered a speech lasting more than an hour at the St. Petersburg International Economic Forum Plenary. He opened his speech by asserting that the “fundamental foundations of the global economic system” had been compromised.
“Essential business concepts such as company repute, the inviolability of property, and faith in global currencies have been severely compromised,” he stated.
By this, he points to two atypical monetary occurrences in the West in 2022: sanctions against Russia and record-breaking inflation.
In March of last year, Russian banks were excluded from SWIFT, the major financial messaging system used by 11,000 institutions worldwide. Effectively isolating Russian financial institutions from mature Western economies, the decision effectively alienated them from the West. This, coupled with restrictions on Russian oil and gas imports, was intended as retaliation for the February invasion of Ukraine by the Eastern powerhouse.
Putin noted that these measures have proved to be a double-edged sword, affecting those who imposed the sanctions equally. In recent months, for instance, both Europe and the United States have seen dramatically increased living expenses, particularly gasoline prices.
However, inflation in the goods and commodity markets is not only attributable to sanctions and existed long before this year.
“Years of disastrous macroeconomic policies implemented by G7 nations, particularly unregulated emission and buildup of unsecured debt, have brought the world to this impasse,” said the president.