Second try to bring the U.S. dying economy to life

12 August, 2009, 05:57

Washington says it's preparing a second stimulus package by the end of the year, after White House claims that the U.S. economy is showing signs of improvement. But analyst Gerald Celente is skeptical about the move.

The Obama administration says the first stimulus package of almost $800 billion helped reduce unemployment rates and caused the dollar to rise.

However, these claims are a bit premature, says forecaster and analyst Celente, founder of the Trend Research Institute:

“There is no recovery with recession. It’s nearly in remission. They’ve given it loads of stimulus drugs and monetary infusions. But it’s not going to cure the chronic degenerative disease of a failing economy,” says Celente.

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Easy credit, cheap money and masses of borrowing caused the problem, explains Celente. That’s what caused the current economic crisis, he says, adding:

“To put more cheap money, more easy credit and more ramped buying is only going to escalate a bad situation,” concluded the analyst.