Economist Wiedemer: It's Doubtful Fed Will Continue QE Tapering

Thursday, 01 May 2014 07:28 PM

By Courtney Coren

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
It remains to be seen if the Federal Reserve's announcement that it will continue to taper quantitative easing, even though the U.S. economy stalled in the first quarter, will hold, noted economist Robert Wiedemer says.

"We've tapered after QE1 only to find that the economy and stock market was in trouble, so we brought QE2. We tapered after QE2, only to find that the stock market and economy was in trouble, so we did QE3," Wiedemer told J.D. Hayworth on "America's Forum" on Newsmax TV.

"When we get into trouble, they're going to put the printing press back on if we need to pump up the stock market," he added.

Editor's Note: Weird Trick Adds Up to $1,000 to Your Social Security Checks

Story continues below video.

Even though the stock market is at a record high, "it's gone almost nowhere this year, barely up one percent, year-to-date," he explained. "So we're already seeing some impact from this tapering.... I'm sure that they will un-taper if we run into any real problems coming up in the next few months or a year."

The bestselling author of "Aftershock" said that it is "fascinating" that the interest rates have not gone up since the tapering began.

Another surprising factor is that "bonds have . . . been a good investment since the Fed started tapering, which makes no sense at all."

However, Wiedemer said that it's important to "remember that this whole recovery is fake."

"It's driven by massive money printing and massive government borrowing," he explained.

"We're going to borrow probably twice as much this year as our entire economy will grow."

"That's the government alone borrowing money. So let's not think that this is somehow growth that's on its own, is organic," he added. "It's not, it's stimulated growth."

The economist warns that it might be "fine to ride [the bubble] up, just make sure you get out before it goes down."

Wiedemer also warns that even though China's economy is growing, that its "bubble economy is even bigger than ours," and investors need to keep that in mind, as well.

Editor's Note: Weird Trick Adds Up to $1,000 to Your Social Security Checks

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

MSNBC's Lawrence O'Donnell Taking Extended Leave after Taxi Accident

Tuesday, 15 Apr 2014 06:56 AM

Cable news commentator Lawrence O'Donnell is taking a leave of several weeks from his job as host of the MSNBC program  . . .

Chairman of NJ Panel on Lane Closings Defends Role

Sunday, 02 Feb 2014 11:39 AM

The chairman of a New Jersey legislative committee looking into the role Gov. Chris Christie's administration played in  . . .

Democrat O’Malley's 'Better Off' Gaffe Explodes into GOP Talking Point

Monday, 03 Sep 2012 15:18 PM

Maryland Governor Martin O Malley sought today to clarify his remarks after Republicans seized on his answer to a questi . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved