David Stockman, a prominent author and former budget director to President Ronald Reagan, believes that American consumers should brace for another wave of rising food and energy costs this winter.
"The first thing we need to recognize ... this isn't a short-run storm. It's going to last more than a few months because it's been building for 30 years," Stockman told Newsmax on Wednesday afternoon while appearing on "The Chris Salcedo Show."
From Stockman's perspective, America's fiscal policies have been "out of control" for the better part of four decades.
For example, since the Reagan era, the public debt has mushroomed from $1 trillion to approximately $31 trillion.
"The federal government printed the money to make all this debt possible," said Stockman, while adding the $31 trillion figure has already been "baked into" stock trades and the real-estate realm.
As such, Americans may never encounter low-interest financing rates again for house or vehicle ownership.
"It's becoming the mother of all bubbles," said Stockman, who's currently promoting a new book, "The Great Money Bubble: Protect Yourself from the Coming Inflation Storm."
"The economy will [soon] go through a pretty serious reckoning," lamented Stockman, while also decrying the rise of cryptocurrency and other forms of digital currency, which created "millionaires overnight" but was "all unsustainable and wrong to begin with."
To guard against high inflation and exorbitant energy costs, Stockman said the average American must strategically "spend less, save more" and preserve enough capital to weather harsh economic times.
"The financial world [has become] a very dangerous place," said Stockman.
Regarding last week's elections, Stockman asserts the country might have missed an opportunity to right the economic ship.
However, with the Republicans controlling the House again, according to Newsmax's elections tracker, it should at least curb the Democrats' penchant for spending money at an accelerated rate and further devaluing the American dollar.
For now, "the [money] printing press has been shut down," added Stockman.
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