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Basis of US economy 'cracking' due to government debt, inflation — Putin

"It is an unequivocal problem for all holders of the dollar assets," the Russian president went on to say

ST. PETERSBURG, June 7. /TASS/. The basis of the United States economy is now "cracking," with the government debt and inflation featuring high on the list of problems, Russian President Vladimir Putin said at the plenary session of the St. Petersburg International Economic Forum (SPIEF).

"The American economy is shrinking, and its basis is heard make cracking sounds from time to time. I mean not only the debt, which is sky-high, but also the fact that they don't always manage to meet the inflation targets set for themselves. They have inflation targets of 2%, but they've been hitting 7.8%, as it happened recently during the pandemic. This undermines confidence in the US economy. What is it backed by at a time when it is also shrinking? Nothing, and this is a problem. It is an unequivocal problem for all holders of the dollar assets," Putin said.

He stated the share of the US economy in the world was shrinking.

"This is an absolutely natural movement towards multipolarity in the world economy, and in world finance. We can, of course, come up with all sorts of systems, but the value of this or that currency depends on the value of the economy it regulates. What are we doing now? We and our BRICS partners are pushing ahead with this joint work. Russia's role here, of course, can be noticeable," Putin believes.