Former Federal Reserve Chairman Alan Greenspan reportedly warns that Donald Trump's economic policies risk plunging America into a period of 1970s-style stagflation with low growth and "out of control" inflation.
Greenspan also expressed "grave concerns" about the future of the eurozone, where countries in northern Europe such as Germany have "in effect been funding the deficits of the South," the UK Telegraph reported.
"That cannot continue indefinitely," Greenspan wrote in the latest issue of Gold Investor, the Telegraph reported. "The eurozone is not working," said Greenspan, who led the US central bank between 1987 and 2006.
Under Trump, Greenspan warns that America could enter a "destabilizing period" where inflation rises sharply as workers begin to demand higher pay.
This could return America to "what happened in the 1970s, when we last experienced stagflation and there were real concerns about inflation spiraling out of control,” he predicted.
The Federal Reserve was forced to raise rates to 20 percent to keep a lid on inflation, but the move also threw the economy into recession and pushed up unemployment.
"I hope that we don't have to repeat that exercise to stabilize the system. But it remains an open question," said Greenspan.
Despite a volatile and controversial first few weeks in office, Trump will be a demanding leader who applies the best of his negotiating skills to push for U.S. growth, bestselling author David Horowitz told TheStreet.com.
Trump won’t be an ideological purist like Republicans who support free trade but don't fight for fair trade, Horowitz said.
Horowitz's new book "The Big Agenda: President Trump's Plan to Save America," released just this week, reveals Trump's "first 100 days strategy" to roll back Obama's legislative and executive record.
“If you just say, ‘well we're for free trade and we're not going to look at the deals that we make’ -- that's not a good idea,” he said. “We've had an anti-business president now for eight years who doesn't take a hard-nosed attitude towards these deals. Trump is going to get better deals for us, which is still free trade.”
“If the economy grows as it will under Trump, there's going to be a lot more money to spend,” he said.
"Big Agenda: President Trump's Plan to Save America" is available at bookstores everywhere – or get your copy on Amazon – Click Here Now
(Newsmax wire services contributed to this report).