Blackstone Group LP President Tony James told CNBC he thinks the U.S. economy is weak and has “flatlined.” He said he expects the economy to grow 1.5 percent to 2 percent in 2011, similar to 2010.

“Until things clarify, many businesses aren’t willing to go out on a limb,” Black told CNBC.

He said that quantitative easing by the Federal Reserve will enhance productivity, but not whittle down the large unemployment number in the United States.

“We saw that in Japan when interest rates get to this level, further easing doesn’t really do much,” James told CNBC.

"I think this is actually going to be counterproductive: You’ve got $2 trillion in corporate balance sheets. To the extent that it encourages any capital expenditures at all, I think what it will do is encourage job-saving expenses, which it is not exactly what the economy needs right now. It will enhance productivity. And by doing that, it will cost American jobs, and they'll buy equipment from Germany or Asia to replace those American jobs.”