Putin Aide Blames Massive US Spending for Global Wave of Inflation

Photo credit: Reuters

A day after US Treasury’s Janet Yellen warned the US could default on its debt and called on Congress to raise debt ceiling, Russian President Vladimir Putin’s aide blamed United States for enticing the global wave of inflation, Russian media report.

Speaking at the Moscow Financial Forum on Wednesday, Putin’s advisor Maxim Oreshkin stressed that the US has largely contributed to increased prices and decreased spending power around the world by pushing further up its debt that’s already in trillions of dollars and injecting huge sums of cash into the its economy.

Oreshkin pointed that when you’re in the deepest recession since WWII, you need to come up with same size answers to match the size of the economic problem.

Though to a lesser extent, Russia had also been forced to increase public spending, but he pointed that it has found an optimal balance between the size of stimulus spending and the way it is structured hence making it possible to restore the economy in little more than a year.

Kremlin official underlined that that the US, running a budget deficit of 15% of GDP for two years in a row, has probably gone too far with the stimulus size enticing in the process a global wave of inflation.

Earlier on Wednesday, US Treasury Secretary Janet Yellen warned on that the US, according to Biden administration’s best and most recent calculations, will run out of cash in October if the country’s lawmakers don’t agree to raise the maximum borrowing limit.

Reiterating that emergency measures put in place to raise cash could be fully exhausted soon, Yellen stressed that in such case, for the first time in the history the US would not be unable to meet its obligations.

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