US to move one step closer to a possible ‘wealth bubble’ – economist
3 Nov, 2010 18:33
The US Federal Reserve is set to reveal its plans to pump freshly-printed $500 billion into the economy.
The move is designed to revive the weakened US financial form and reduce unemployment. But economists warn the strategy will result in the drop of the dollar and a rise in consumer prices.Economic researcher, author of the book Gods of Money: Wall Street and the Death of the American century William Engdahl doesn’t believe the move to be a saving grace.“I think the problem is that the Fed is pushing on a string, as it was called during the Great Depression. The money – the $500 billion, or maybe as high as $1 trillion – on top of the almost $2 trillion the fed has pumped into the banking system since the 2008 is simply going to fix the balance sheets of the fraudulent big banks, such as Citibank, J.P.Morgan Chase, Goldman Sachs and so forth, the ones that created this Ponzi scheme called the sub-prime real estate securitization bubble back in the earlier part of this decade,” Engdahl told RT.