Navarro to Newsmax: 'Perfect Storm of Stagflation Coming at Us' (Newsmax/"Eric Bolling The Balance")
By Charles Kim | Monday, 11 April 2022 06:54 PM
Senior adviser to former President Donald Trump, Peter Navarro, told Newsmax Monday that there may be a “perfect storm of stagflation coming at us,” according to economic indicators, including a report due out tomorrow that he believes will have inflation at 8.4%.
“There's going to be a report coming out, and estimates say it's going to hit 8.4% inflation in March,” Navarro said during “Eric Bolling: the Balance” Monday. “That's the highest since December of 1981, and that was the high-water mark of the stagflation era of the 1970s (that) bled into the early 1980s, and lead to (Former President Ronald) Reagan beating (Former President Jimmy) Carter (in 1980).”
Navarro said that while being “cliché,” there could well be a “perfect storm of stagflation” coming our way.
Let's blame (President) Joe Biden,” Navarro said. “He deserves the blame, but what we also need for your viewers to understand that this is also a (House Speaker) Nancy Pelosi, D-Calif., (Transportation Secretary) Pete Buttigieg, and Congress driven inflation. A lot of the jump starting of the whole inflation problem is there with those trillion-dollar packages that they sent, sparked (it) off.”
A March Business Insider story defined stagflation as an “economic condition that’s caused by a combination of slow economic growth, high unemployment, and rising prices.”
According to the article, the term was originally coined as early as 1965 during a speech in the House of Commons by British conservative politician Iain Macleod.
"We now have the worst of both worlds — not just inflation on the one side or stagnation on the other, but both of them together,” he said, according to the article. “We have a sort of 'stagflation' situation and history in modern terms is indeed being made."
Stagflation took root during the 1970s and early 1980s in the United States due to high unemployment, the Arab oil embargo, high prices for goods, and high interest rates.
Navarro said that current indicators show stock prices going down, a sign of a possible upcoming recession, and the Federal Reserve raising interest rates to combat inflation, dropping bond prices.
In addition to monetary policies, stagflation also comes from supply shocks, such as those experienced during the COVID-19 pandemic, Business Insider reported.
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