U.S. President Donald Trump is likely to escalate the war with Iran, risking “1970s stagflation” if it does not go as planned, renowned economist and investor Nouriel Roubini told CNBC. Speaking to CNBC’s Carolin Roth at the Ambrosetti Forum in Cernobbio, Italy on Friday, Roubini — best known for predicting the 2008 Global Financial Crisis — rejected the view that Trump was “looking desperately for an off-ramp” to end the war. Markets have appeared optimistic in recent days about a potential resolution to the conflict. “People make the argument that … his polls are down, he wants this war to be over because there’ll be damage for the economy, growth, inflation and the mid-term elections,” he said, referring to congressional elections in November. “But if you think about it, the damage has already been done. If there is a ceasefire on conditions that are Iranian style, he’s going to look like a loser — his credibility’s weaker, he’s going to lose the election for sure.” “My argument is that, counterintuitively, he’s going to decide to …