America's possible default has resonated far and wide. Russia's prime minister says that the current deal struck by US lawmakers will not solve the underlying issues.
Vladimir Putin believes that raising the ceiling yet again only signals delay in tackling inevitable problems. “Actually, there's nothing good about it. It’s just postponed making more systematic decisions,” Putin said. The PM stressed that in doing so the US is putting pressure on the global finance system. “This colossal debt, 14 trillion or more, means that the country has been living on credit, which is really bad for one of the world’s leading economies. They live beyond their means, and put a part of their burden on the entire world’s economy,” Putin added.The way out, Putin believes, is in varying the existing currency system. “To some extent, they sponge on the world’s economy and on their monopolistic dollar position. Other reserve currencies should show up in the world, not just the dollar, and that the euro should be consolidated,” Putin said. “Asia should come up with regional reserve currencies. The ruble can become a regional reserve currency,” the PM added.