New economic data combined with President Barack Obama's "stay-the-course" approach point to recession in 2013, says David Malpass, president of Encima Global and former deputy assistant Treasury Secretary during the Reagan administration.

"This administration's economic policy is built on deficit spending, government control over the economy and dependence on the Federal Reserve to buy the government's excess debt," Malpass writes in The Wall Street Journal.

"These policies aren't working,” says Malpass. “They discourage private investment and jobs, and the policies have resulted in high unemployment, weak business confidence and rapidly declining median incomes."

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

While some say that these policies are working and should be given more time, Malpass says that is “absurd.”

“Since President Obama took office in January 2009, the U.S. government has implemented more fiscal stimulus and monetary intervention than ever before, yet real [gross domestic product] has slowed from 2.4 percent in 2010 to 2 percent in 2011, and to only 1.6 percent in the first half of 2012,” he says.

Instead of concentrating on job creation and investing in small businesses, Malpass observes, there is a fever for investing in government bonds and $1,700-an-ounce gold.

“That is the market's response to Obama administration efforts to reverse core American principles of growth and prosperity,” he says, principles that include a sound dollar to provide price stability and to attract capital; a belief that markets can set prices and allocate capital better than governments; a preference for low tax rates to encourage investment and hiring; and a commitment to limited government as a prerequisite for higher living standards.

According to PolitiFact.com, deficit spending exploded during the Obama administration’ to $5.3 trillion over four years, compared with deficits totaling $2 trillion in eight years under President George W. Bush.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation