A homeless woman is seen in the rain in downtown Los Angeles, California, the United States, Jan. 10, 2023. (Xinhua)
Murat Tufan, an analyst with Turkish broadcaster Ekoturk, said the Fed's printing of trillions of dollars, especially during the pandemic, is the biggest source of inflation. As a result, he believed, the income gap between the rich and the poor has widened so disproportionately that it cannot be reduced in a short period of time.
"Let's say that income inequality is an unfortunate picture for America, which is known as the world's largest economy," Tufan said.
ISTANBUL, May 13 (Xinhua) -- A Turkish analyst has said that severe corrosion in the United States' monetary policies, especially in recent years, has caused or exacerbated numerous problems in U.S. society.
Murat Tufan, an analyst with Turkish broadcaster Ekoturk, said the collapse of the middle-class population, increasing homelessness, a distorted health insurance system, difficulties in paying home loans, and rising racism are just a few of many problems.
Moreover, Tufan said erroneous and inconsiderate policies by the U.S. Federal Reserve have dragged down middle-income earners in the United States and the world and it is a serious issue as millions of people have slipped into poverty.
U.S. Federal Reserve Chair Jerome Powell (Rear) attends a press conference in Washington, D.C., the United States, on May 3, 2023. (Xinhua/Liu Jie)
"One of the most important reasons for the collapse of the middle class is that all countries have to use the U.S. dollar as a reserve currency (as a medium of exchange)," Tufan told Xinhua in a recent interview, referring to the widespread use of the U.S. dollar across the globe.
"Because when you use the dollar, even if you do nothing, that country experiences inflation due to the cost of using the greenback alone," Tufan said.
The expert pointed out that the Fed's printing of trillions of dollars, especially during the pandemic, is the biggest source of inflation. As a result, he believed, the income gap between the rich and the poor has widened so disproportionately that it cannot be reduced in a short period of time.
"Let's say that income inequality is an unfortunate picture for America, which is known as the world's largest economy," Tufan said.
"Many people in America are barely able to pay their mortgages and are afraid of being homeless. The health insurance system is also so tough. It's a huge challenge," he said. "Under these circumstances, the American people are not the same people of the good old days because the greenback's purchasing power has been falling rapidly."
People queue up outside the headquarters of the Silicon Valley Bank (SVB) in Santa Clara, California, the United States, March 13, 2023. (Photo by Li Jianguo/Xinhua)
The expert also noted that the U.S. Constitution, which dates back to 1789, is "almost impossible to update," and has become a main reason behind many persisting problems in society.
"This constitution was written primarily for the landowners of the white male class and to protect their rights. But today, humanity has changed, people's demands have changed, and the world has changed, but America's Constitution did not," he said.
He also said that currently, one of the most critical issues facing Washington is the debt ceiling crisis, and the Senate will decide whether to raise the ceiling in June. If a solution cannot be found, the country will experience hard times. The U.S. government cannot print money to meet the need, and some public institutions and organizations will be closed or work at low capacity.
Tufan is also pessimistic about the future of the United States, noting that the world may witness a severe political and financial crisis after the 2024 presidential elections.
Last year's midterm elections were the most concerning domestic political event, the expert said, adding that campaign spending reached 16.7 billion U.S. dollars, again showing the "true colors" of money politics in the country.
A homeless person walks in the rain along the 6th Street in downtown Los Angeles, California, the United States, Jan. 10, 2023. (Xinhua)■
