Real-estate investment superstar Sam Zell says the Obama administration needs to change its economic policy.
“I do believe that the current administration is insensitive to the risks of the scale of debt being created,” Zell, chairman of Equity International, told CNBC.
“If there isn’t any radical change in this current administration’s direction, it’s very hard to imagine that we’re not going to be confronted with inflationary pressures going forward.”
The Congressional Budget Office forecast that government debt will total 61 percent of GDP next year.
Zell says economic weakness may prevent inflation from rising much for the next year or two. “But if you continue to raise the debt levels, if you continue the levels of deficit spending that’s going on, it’s just mathematically impossible for us not to have inflation.”
The billionaire investor also is concerned about the dollar’s decline. “There is no other reserve currency right now, nor do I think there is going to any one shortly,” he said.
“But at the same time, as the owners of that reserve currency, that gives the U.S. enormous international power that it shouldn’t fritter away.”
Zell isn’t the only one critical of the White House’s economic decisions. Investment guru Nassim Nicholas Taleb takes issue with President Obama’s decision to reappoint Fed chairman Ben Bernanke.
“He (Bernanke) doesn't even know he doesn't understand how things work or that the tools he uses are not empirical,” Taleb wrote on The Huffington Post.
© 2017 Newsmax. All rights reserved.