First of all, Powell began by noting the U.S. Dollar’s status as the reserve currency for the world ever since the end of the Second World War - as well as its numerous benefits - while speaking at the Federal Reserve Board’s “International Roles of the U.S. Dollar” research conference in Washington D.C.
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However, Powell then warned that the situation is about to change for the U.S. Dollar: “Looking forward, rapid changes are taking place in the global monetary system that may affect the international role of the dollar in the future.”
He then went on to say: “Most major economies already have or are in the process of developing instant, 24/7 payments. Our own FedNow service will be coming online in 2023. And in light of the tremendous growth in crypto-assets and stablecoins, the Federal Reserve is examining whether a U.S. central bank digital currency would improve on an already safe and efficient domestic payments system.”
Referring to a Federal Reserve document published on the topic, Powell stated that a U.S. central bank digital currency “could also potentially help maintain the dollar’s international standing.”
The Federal Reserve’s conference took place at around the same time as Vladimir Putin gave his speech at the annual St. Petersburg International Economic Forum. The Russian president said that the West was attempting to blame inflation suffered throughout the world on Russia’s war in Ukraine, and diverting attention from the increase in money creation over several decades.
Even before the Russian president’s speech, he made the same remarks on Rossiya-1’s TV station saying that: “We see attempts to shift the blame for what is happening on the food market on Russia, but this is an attempt to pin the blame on someone else.”
Vladimir Putin has claimed that European legislators and their short-sightedness, started the energy crisis; adding that Russia is ready to take necessary measures to protect itself from a global food crisis.
Putin’s top aide, Maksim Oreshkin, has also said that one of the main causes for inflation was the Federal Reserve’s decision to overprint the dollar back in 2020; he has also claimed that actions taken on Ukraine by the Biden administration have had a significant impact.
Both Ukraine and Russia supply roughly 30% of the world’s wheat; therefore, Western sanctions caused a near 60% percent increase in the price of wheat. The aide’s claims are also backed up by the head of the Bank of England; who has also said that: the cost of living crisis in the U.K. - which is due to enter a recession by the end of the year - is being exacerbated by the ongoing war in Ukraine.
Putin also views the decision of Western nations to penalize Russian producers of fertilizer as a “short-sighted, stupid and erroneous policy,” which is “leading to a dead end.” He then warned that these sanctions would further damage the world’s fertilizer market - which would send food prices through the roof.
The list of people who are concerned about the potential famine are increasing by the day. The world renowned journalist and TV presenter Jeremy Clarkson - who is known for his role in TopGear - has said that the global food crisis will cause cannibalism, and that many farmers are letting their fields go fallow.
“The problem is that next year many farmers will decide that, because of the costs involved, they’ll use less fertilizer,” he wrote. “Some will doubtless try to use none at all. Others will try to use cardboard or lawn clippings or feces instead. Either way they will produce less food. Some farmers — I know of three in my area alone — have already decided to fallow their fields next year and grow nothing at all.”
“And this is not just happening in the UK. It’s a global phenomenon and it could well result in there being maybe 20 per cent less food in the shops than is necessary. That’s bad. And then it gets worse because, between them, Russia and Ukraine grow more than a quarter of global wheat exports.”
According to the Russian President, the world’s economic poles are shifting, claiming that: “We are talking about real processes, about truly revolutionary, tectonic changes in geopolitics, global economy, the technological sphere, in the entire system of international relations.”
Putin proclaims that: “The unipolar world era is finished,” and as a consequence, new nations are set to take over.
He believes that a “change of elites” in the Western world will come after a “revolutionary” development that would be triggered by Europe and America’s reaction to the ongoing war in Ukraine.
Putin then said that: “Such a detachment from reality, from the demands of society, will inevitably lead to a surge of populism and the growth of radical movements, to serious social and economic changes, to degradation, and in the near future, to a change of elites.”
Putin then went onto claim that “some global currencies are committing suicide.”