What did Vladimir Putin just call the United States?

Posted By Robert Zeliger Monday, August 1, 2011 - 4:21 PM Share

In the run-up to yesterday's debt ceiling deal between Congress and the White House, there was a lot of frustrated reaction from world leaders fearful of what a U.S. debt crisis could mean for their own economies. But Russian Prime Minister Vladimir Putin might have just won the prize for the strongest response so far.  Today, he told a Russian youth group that the United States was "like a parasite" on the world economy.

They are living beyond their means and shifting a part of the weight of their problems to the world economy ... They are living like parasites off the global economy and their monopoly of the dollar ... Thank god that they had enough common sense and responsibility to make a balanced decision.

Russia holds a large amount of U.S. bonds and treasuries, which means had the United States defaulted, it too would have been in trouble. There was clearly some relief this morning, following the news of yesterday's agreement. Both of Moscow's stock exchanges opened up about two percent -- though, they later declined due to investor doubts about the Washington plan.

In today's speech, Putin said Russia should look for other reserve currencies to hedge against "a systemic malfunction in the U.S. economy," according to the Wall Street Journal.

What options do they have besides the dollar? The Journal reports that last year Russian President Dmitry Medvedev held talks with Chinese leaders exploring the possibility of moving reserve assets into the yuan and away from the dollar.

Russia cut back its purchases of U.S. treasuries in recent months -- down from $176 billion in October, 2010 to $115 billion in May. Still, they are unlikely to completely bail on the U.S. market any time soon since Russian officials concede it is still a safer bet than other world economies.

So, the Kremlin will most certainly be dealing with the U.S. "parasite" for the foreseeable future.

AFP/Getty Images

EXPLORE:EASTERN EUROPE, RUSSIA
 

ZORRO

12:21 PM ET

August 2, 2011

What's His Point?

Putin was right?

 

KUNINO

1:24 PM ET

August 2, 2011

Distressing, but reasonable

The government of the United States has been put largely out of business by a group of parliamentarians who find holy purpose in the principle that the national government should not pay its bills. The outcome is triumph for that splinter group and their patrons, the super-rich, and means the government is now required to enlarge debt a trifle more slowly but not call on its citizens to contribute more to pay those bills. Without more taxes, it seems clear those bills can never be met.

Nothing has been solved by the deal of the past few days. It's a trailer for coming attractions. It guarantees that government debt will continue to grow -- which is not the same as paying the nation's bills. In this instance, Putin seems more clear-minded than insulting.

 

KUNINO

1:35 PM ET

August 2, 2011

PS

The tea party seems a parasite on the Republican party. It is the way of parasites, of course, that they're very vigorous, and they think that what they want is all that matters.

 

DAVE123

4:58 PM ET

August 2, 2011

Well they could always

Well they could always diversify to the Euro with such great economic powerhouses as Greece, Portugal, Spain and Italy.

 

XAMA226

7:19 PM ET

August 4, 2011

possible outs from the dollar.

1) Transact in Euros. (they are doing it)

2) Transact in the currency (and keep reserves in ) their commercial partners'
currency. They have signed agreements on this

 

FONETIC

4:56 AM ET

August 7, 2011

ololo

????????? ???? ?????? ? ??? ?? ?????, ????? ? ??? ????????.

 

DDSNAIK

3:37 PM ET

August 10, 2011

Lecture us on budgeting, sure

But call us a parasite and claim that we're draining the world's economy ? Let's see exactly how the world fares when the largest economy switches to the yuan (unlikely since China doesn't have the confidence yet to float it) or the ruble (not strong enough by most fiscal measures) or the euro (please, they're a little busy)

Vlad, let's see you make that comment in front of an international, qualified body instead of kids. Otherwise, please tone it down and offer constructive criticism without straying into hyperbole - although I'm sure RUssian children were impressed

 

SERVEANDCONSERVE

1:16 PM ET

August 15, 2011

Really! From Putin

If more people would listen to John Bolton, it would be clear to them that this is the "dark horse" that can beat Mr. Cool in 2012. He isn't interested in posturing or bowing to anyone and has more expertise in foreign and domestic affairs than any of the republican candidates. More importantly, he isn't a phony politician. If he puts his hat in the ring he's the one I would vote for. Keep an eye on him. I mean russia is not exactly a model citizen for anyone their county pretty much had an economic funeral.

 

BOYHASO20X

12:14 AM ET

August 29, 2011

true

well he has a point though but such comment should have been left inside a room where no one can hear it. I do agree with what you pointed at above mr serveandconse. I definitely think that we should keep pacquiao vs marquez 3 tickets a close watch on him coz he may very well be just what we are looking for. I too would definitely add him to my list of candidates that i will vote on the next elections.

 

SERVEANDCONSERVE

1:19 PM ET

August 15, 2011

Really! From putin

Opps sorry for the double post.
If more people would listen to John Bolton, it would be clear to them that this is the "dark horse" that can beat Mr. Cool in 2012. He isn't interested in posturing or bowing to anyone and has more expertise in foreign and domestic affairs than any of the republican candidates. More importantly, he isn't a phony politician. If he puts his hat in the ring he's the one I would vote for. Keep an eye on him. I mean russia is not exactly a model citizen for anyone their county pretty much had an economic funeral years ago.

 

AXELBROOK

6:26 AM ET

August 19, 2011

Sure... let Obama try to make

Sure... let Obama try to make friends with our enemies. They will surely see that he is the leader of change and hope and world peace. RIO Was he running for President or Miss America?.

 

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