Maria Tsvetkova
Reuters
8/1/2011
Russian Prime Minister Vladimir Putin accused the United States Monday of living beyond its means “like a parasite” on the global economy and said dollar dominance was a threat to the financial markets.
“They are living beyond their means and shifting a part of the weight of their problems to the world economy,” Putin told the pro-Kremlin youth group Nashi while touring its lakeside summer camp some five hours drive north of Moscow.
“They are living like parasites off the global economy and their monopoly of the dollar,” Putin said at the open-air meeting with admiring young Russians in what looked like early campaigning before parliamentary and presidential polls…
…”Countries like Russia and China hold a significant part of their reserves in American securities … There should be other reserve currencies.”…
The entire article is at Reuters.
H/T Weasel Zippers
Related: The writing is on the wall for the US and the dollar
Even if Congress does not come up with a deal by Tuesday, America will not immediately default on its debt. And if it does come up with a deal, this will not solve the fundamental problem, which continues to look worse and worse. One way or another, the US is heading for a reckoning…
…if the US is to overcome its fiscal problem, there will have to be a major fiscal tightening. Just as in the UK, this will hold back economic recovery.
For several decades, the US has been the global hegemon and its currency the foundation of the world’s financial system. The writing is on the wall for both. Like the British Empire, the American imperium will not end in a flash but rather fade away. Coming hard on the heels of the financial crisis of 2008, a US default, even if it was merely technical, would be a clear signal to the world…
Read also, AP: Almost None of Spending Cuts Would Occur Until 2014.
