icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
26 May, 2023 10:35

US debt a pyramid scheme – Russia’s top MP

State Duma Chairman Vyacheslav Volodin has accused Washington of defrauding other nations
US debt a pyramid scheme – Russia’s top MP

Senior Russian lawmaker Vyacheslav Volodin has branded US federal government debt a global pyramid scheme that is heading for an inevitable collapse. The comments come as Washington struggles to agree on raising its debt ceiling to avoid a default.

“Just think about it, in 2023 interest payments on the US debt could reach $1.5 trillion – almost a third of all US budget revenue!” Volodin, who serves as chairman of Russia’s lower house of parliament, said in a Telegram post on Friday.

“The US public debt is a global financial pyramid, built by Washington to defraud other nations,” the State Duma member wrote. “History has shown that all pyramid schemes eventually fail,” he added, warning that the dollar is becoming toxic.

Countries dependent on the US dollar should start looking for alternatives such as national currencies, to reduce risks for their citizens, Volodin concluded.

The US government faces a default on its $31 trillion in debt if lawmakers fail to raise the federal borrowing limit. US Treasury Secretary Janet Yellen warned Congress earlier this week that bills can’t be paid if the debt ceiling is not raised by June 1.

Reuters reported on Thursday that President Joe Biden and top Republican lawmaker Kevin McCarthy were edging close to a deal on the debt ceiling but have yet to agree on cuts to discretionary spending, which powers a wide range of military and domestic programs.

Russia started settling trade deals with its partners in national currencies after the US effectively cut it off from dollar-denominated trade as part of sanctions arising from Moscow’s military operation in Ukraine.

Russian Prime Minister Mikhail Mishustin said on Wednesday that the ruble and the yuan are now dominating trade between Russia and China, and are used in 70% of mutual payments.

For more stories on economy & finance visit RT's business section