What Putin really said can be found here
Prime Minister of the Russian Federation - International Visits
Prime Minister of the Russian Federation - International Visits
Third. Excessive dependence on a single reserve currency is dangerous for the global economy. I think it is clear to everyone now. Consequently, it would be sensible to encourage the objective process of creating several strong reserve currencies in the future. It is high time we launched a detailed discussion of methods to facilitate a smooth and irreversible switchover to the new model.
In our opinion, we must first atone for the past and lay our cards on the table, so to speak.
This means we must assess the real situation and write off all hopeless debts and "bad" assets.
True, this will be an extremely painful and unpleasant process. Many will be unwilling to accept such measures, fearing for their capitalisation, bonuses, or reputation. However, we will "conserve" and prolong the crisis if we do not clean up our balance sheets. I believe financial authorities must work out the required mechanism for writing off debts, one that corresponds to today's economic needs.
Second. Apart from cleaning up our balance sheets, it is high time we got rid of virtual money, exaggerated reports, and dubious ratings. We must not harbour any illusions while assessing the state of the global economy and the real corporate standing, even if such assessments are made by major auditors and analysts.
In effect, our proposal implies that the audit, accounting, and ratings system reform must be based on a return to the fundamental asset value concept. In other words, assessments of each individual business must be based on its ability to generate added value, rather than on subjective concepts. In our opinion, the economy of the future must become an economy of real values. How to achieve this is not so clear-cut. I have no explicit answer. Let us think about it together. After all, this is what such forums as this are convened for, thanks to Mr Schwab.
Third. Excessive dependence on a single reserve currency is dangerous for the global economy. I think it is clear to everyone now. Consequently, it would be sensible to encourage the objective process of creating several strong reserve currencies in the future. It is high time we launched a detailed discussion of methods to facilitate a smooth and irreversible switchover to the new model.
Fourth. Most nations of the world convert their international reserves into foreign currencies and must therefore be convinced that they are reliable. Those issuing reserve and accounting currencies are objectively interested in their use by other states.
This highlights mutual interests and interdependence.
Consequently, it is important that reserve currency issuers must implement more open monetary policies. Moreover, these nations must pledge to abide by internationally recognised rules of macroeconomic and financial discipline. In our opinion, this demand is not excessive.
I would be interested to see what our professor don1 would say about this, especially about the bolded part, as it look very attractive to me.
Unfortunately, we are increasingly hearing the argument that an increase in military spending could solve today's social and economic problems. The logic is simple enough. Additional military allocations create new jobs at the initial stage. This is evident.
At a glance, this sounds like a good way of fighting the crisis and unemployment. This policy might even be quite effective in the short term. But in the longer run, militarisation won't solve the problem, but rather will quell it only temporarily. What it will do is squeeze huge financial and other resources from the economy instead of finding better and wiser uses for them.
My conviction is that reasonable restraint in military spending, especially coupled with efforts to enhance global security, will certainly produce significant economic dividends.
I need
don1 to translate other Putin's statements on the financial matters so that even an UN can understand.
Don what is he saying?
