THE FED’S “WAR ON WEALTH” AND THE RISK OF DEFAULT
By Cliff Kincaid
November 6, 2010
Charles Ortel, managing director of Newport Value Partners, tells Accuracy in Media in an exclusive interview that the Federal Reserve plan to buy $600 billion of U.S. Government securities “borders on the criminal” because the impact will be the devaluation of the dollar by 20 percent and the destruction of $10 trillion of household net worth.
“Any potential benefit to GDP and incomes [from the Fed’s action] pales in comparison to the wealth loss (in real terms) and to the damage done to foreign investor confidence,” Ortel says.
Ortel, who has been critical of U.S. economic and monetary policy under President Obama, fears that “investors will run faster from the dollar and we may soon experience the sizeable pain that comes when foreign capital rushes for the door.”