Vladimir Putin criticizes the monetary policies of the West and forecasts a shift to commodity

Recently, Russian President Vladimir Putin accused the United States and other G7 nations of fueling unrestrained inflation on the world's commodity markets.

Vladimir Putin Slams Western Monetary Policy, Predicts Global Shift to Commodity Reserves
Russian President Vladimir Putin

He believes that under these conditions, the globe will begin to shift its reserves away from sovereign debt and toward "real resources," which will exacerbate the cycle of commodities inflation.

On Wednesday, June 15, at the St. Petersburg International Economic Forum Plenary, the President delivered a speech in which he voiced his criticisms. The "basic principles of the global economic system have suffered a hit," he claimed at the outset of his speech.

Fundamental business beliefs like corporate reputation, property inviolability, and faith in international currencies have all suffered significant damage, he claimed.

In doing so, he alludes to the sanctions on Russia and the record-breaking inflation that will envelop Western money in 2022.

The largest financial messaging system in the world, SWIFT, which is utilized by 11,000 institutions worldwide, kicked Russian banks out in March of last year.

The action effectively cut off access to developed Western economies for Russian financial firms. This was done in retaliation for the Eastern superpower's invasion of Ukraine in February, along with import restrictions on Russian oil and gas.

According to Putin, such actions have proven to be a double-edged sword, affecting both the recipients and the implementers of the sanctions.

For instance, the cost of living has recently increased dramatically in both Europe and the United States, especially with regard to fuel prices.

Inflation in the markets for goods and commodities, however, goes beyond sanctions and was a "fact of life" long before this year.

The President asserted that the world has entered this situation as a result of years of disastrous macroeconomic policies implemented by the G7 countries, including unchecked emissions and the building of unsecured debt.

Western countries have been compelled to print money at an exponential rate in order to deal with their mounting debt.

According to Putin, the money supply in the United States has increased by 38% in just the last two years, while it has increased by 20% in Europe. As soon as this new currency crossed international borders, it started "to wipe out worldwide markets."

Putin supports this argument by pointing out that the US has just turned into a net importer of food. Its monthly imports have increased from $250 billion at the end of 2019 to around $350 billion today.

That represents an increase of 40%, exactly in line with the expansion of the nation's money supply. "Why exchange commodities for money that is depreciating in front of our eyes, like dollars and euros?" he asked.