An economics expert, author and former financial adviser to President Donald Trump told Newsmax on Monday that the nation's economic policies are ''leading [the country] down a road of financial ruin.''
''The idea that we can spend trillions and trillions and trillions of dollars, and shame on the moderate so-called ‘RINO' Republicans, the [Utah Republican Sen. Mitt] Romneys of this world who are going along with this spending, knowing full well that it's going to lead down the road to financial ruin,'' Peter Navarro said on ''The Balance.'' ''We got serious stagflation issues,'' he told host Eric Bolling.
Navarro holds a doctorate in economics from Harvard University and is professor emeritus of economics and public policy at the University of California, Irvine, where he taught for more than 20 years. He served as assistant to the president and director of the Office of Trade and Manufacturing Policy at the White House in the Trump administration.
Navarro said the policies of President Joe Biden's administration, as the Senate gets ready to debate $1.2 trillion in infrastructure spending and $3.5 trillion in a budget reconciliation bill that could pass the chamber without any Republican support, is going to make the recent increases in inflation even worse.
''What Biden is doing is appropriating trillions and trillions of dollars. That's demand-pull inflation. The pandemic itself is creating what we call ‘cost' or ‘supply shock' inflation, [computer] chips for cars, global supply disruption is the poster child for that, and on top of that, we have weird labor market disruptions where we have what I call supply ... service sector refugees, the ones who are out of work because of all his economic lockdowns. They got nowhere to go. So that's a huge problem.''
In addition, Navarro said, millions of people are still collecting government checks rather than working because it means more money coming in, making it the ''rational'' thing to do.
While some wages are rising, other sectors are declining and are then hit by inflation, he said.
''It is something that the Biden administration and their economists didn't understand after the financial crash in 2008, they're not understanding it now, and we're talking about it because it is the tragedy, economically, of our times,'' he said.
Navarro also said that the nation needs to wean itself from financial dependence on China, which owns a massive amount of the country's $28 trillion debt and may end up owning more if the debt increases with the new proposed spending.
''China can destabilize our bond markets and stock markets simply by dumping some of those bonds onto those markets,'' he said. ''We have to wean ourselves from that Chinese dependence, but we're certainly not going to do it moving in the direction we are, which is into a really debt-laden economy that we have never seen before in our history.''
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