# US Economy Heading For Recession, Warn Analysts

Despite signs the US economy is on the road to recovery, analysts say the dollar is worthless and the economy is being propped up by capital stimulus. Although it is acknowledged that the actions of the Federal Reserve shows they have aided the revival of the economy, the tactics have been described as “blowing air into a bubble.”

Positive economic data from the US in recent weeks has given cause for optimism in some quarters of Wall Street’s financial sector and reports of the pickup in mainstream newspapers puts a gloss coating on the financial prospects of investors, employees and consumers. But a good percentage of analysts have warned that the Fed will be exposed.

According to research data, the quantitative easing program has actually played little effect on the real economy despite billions of dollars being pumped into the system.

Tapering of the bond buying process began in December and the Fed continued to taper the stimulus by $10bn a month despite economic data showing signs of a slow-down. The Fed however put their faith in positive data following the third quarter of 2013. The slow start to 2014 has been blamed on bad weather conditions, but now better than expected results are being produced, the Fed can say they were right to forge ahead with tapering. ## Currency failure fears Analysts have pointed the finger at policymakers accusing them of resting too much importance on job data. When the markets rise and fall, employment is always the technical indicator that drags behind. In reality, the economy is not accelerating to the sustained 3% growth rate targeted by the central bank. The market rebound is being stretched and when it contracts – some speculators think in the third quarter this year – the weaknesses in the Fed solutions will be exposed. There is a growing feeling that the failure to manage the debt crises will come back to haunt. According to many analysts, the$5 trillion dollars of electronic money has not resolved the issue of a slow-economy, but has added to the problem by fuelling a debt-ridden system with more debt. The growing concern is that currency will ultimately fail – and the crises could occur before the economy really recovers.

Gold prices in 2014 had been predicted to average around $1220, and although that looks unlikely now, gold price at$1330 look an attractive proposition in light of the inevitable stock market collapse. And the greenback raises the most concerns.