Former Federal Reserve Gov. Lawrence Lindsey has urged world financial leaders to promptly combat the increasing risk of global inflation.
“We've piled up this giant bonfire of liquidity in the form of central bank balance sheets,” he explained to CNBC.
“China's taken the lead as well, as have we, as has Europe, as has Japan," said Lindsey, author of "Conspiracies of the Ruling Class." "I think we have to watch that very, very closely," he said, urging Federal Reserve Chairman Janet Yellen and her colleagues to raise interest rates next month. "otherwise, they're going to be very far behind the curve. We have a risk of global inflation unless we start containing it now,” he said.
Lindsey, who also served as director of the National Economic Council for President George W. Bush, also urged President Donald Trump to quickly snap into action and start righting all the wrongs Barack Obama inflicted on the economy during his 8-year reign.
“Remember what QE (quantitative easing) was all about, it was all about propping up asset prices, create a wealth effect in order to get the economy going," said Lindsey, resident scholar for the American Enterprise Institute and president/CEO of The Lindsey Group.
"Now, the effect of that was probably -- why don't we say 'mixed.' But the result is, we're stuck with very high asset prices, deliberately. And not such a fast-growing economy.," he explained.
"We have to switch gears, we have to pivot to a different strategy. That's why I think moving away from an emphasis on monetary policy, and toward an emphasis on fiscal policy and on regulatory policy is really the best way to go,” he advised.
While his first few weeks have certainly been volatile and controversial, Trump will be a demanding leader who applies the best of his negotiating skills to push for U.S. growth, bestselling author David Horowitz recently 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.
“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.”
Horowitz's new book, "The Big Agenda: President Trump's Plan to Save America," reveals Trump's "first 100 days strategy" to roll back Obama's legislative and executive record.
Horowitz's new book is the first book about the Trump presidency and has soared to the top of the Amazon bestseller charts, becoming the No.1-selling book on the web. Trump will also lead the way in making infrastructure spending to boost the U.S. economy, Horowitz said.
“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 wires services the Associated Press, Bloomberg and Reuters contributed to this report).
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