US debt scheme used by Washington to defraud other nations: Russian parliament chief

The Russian State Duma’s Chairman Vyacheslav Volodin has censured the United States for defrauding other nations through a planned debt scheme.

US Treasury Secretary Janet Yellen has warned that the United States is on track for a debt default as early as June.

The White House Council of Economic Advisors warned earlier that the possible impact of a US debt default could be a downgrading of US debt by a credit-rating agency followed by a worldwide recession, worldwide frozen credit markets and plunging stock markets, in addition to mass worldwide layoffs.

US on track for June 1 debt default, Treasury Secretary Yellen warns

US Treasury Secretary Janet Yellen has warned once more that the United States is on track for default in June.

On Friday, the top Russian lawmaker said the US Federal Government's debt default – possibly taking place next week – was a global pyramid scheme heading for an inevitable collapse, RT reported.

“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. 

If the proposed budget bill by the Democratic administration is not approved by the lawmakers in Washington from the opposing Republican Party, who have hinged their approval on the US debt increase and decrease in public spending, the United States could default on its financial obligations to other nations.

“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 said, warning that the US dollar is becoming toxic to nations dependent on the greenback.

Volodin cited speeding up the current de-dollarization trend across the globe as a solution to the problem. "Countries dependent on the US dollar should start looking for alternatives such as national currencies, to reduce risks for their citizens."

Impasse between White House, Republicans continues over US debt ceiling standoff

US President Joe Biden’s administration and House of Representatives Speaker Kevin McCarthy, the top Republican in Washington, exchange barbs over the federal debt ceiling, with both sides calling the other’s proposals as too extreme.

Despite months of budget talks between lawmakers in Washington, President Joe Biden and top Republican lawmaker Kevin McCarthy only reached an agreement on the debt ceiling but have yet to seal a deal on cuts in public spending, media reports said on Thursday.

Over the past years, major global powers have been working to ditch the US dollar, thus preventing Washington from further defrauding their nations by exploiting its power and weaponizing the greenback's global dominance.

The current de-dollarization trend, which is not very new in several countries such as Iran, Venezuela, China, and Russia, has proven to work. Today, powerhouses such as China, Russia and the European Union are major players in the de-dollarization process.

West Asian and North African countries have also started to move away from the greenback hegemony in recent months. Countries like Iraq, the United Arab Emirates, Egypt, and Saudi Arabia are the main states.

Brazil and Argentina have reportedly been discussing the creation of a common currency since the beginning of 2023.

India studies the option of using rupees to trade non-oil commodities. In this regard, Indian Commerce Secretary Sunil Barthwal has said Indian Rupee will be used in trade between countries that are facing a shortage of dollars or currency failure. He said trade between India and Malaysia can now be settled in INR.

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