Economist Nouriel Roubini, who’s been dubbed ‘Dr. Doom’ for his gloomy-yet-correct prediction of the 2008 market meltdown, is making headlines again during a series of interviews promoting his new book “Megathreats”.
“We have to worry about everything at the same time, as all these megathreats are interconnected…”
When asked if we’re “there again” in reference to the 2008 great financial crisis, Roubini replied: “Yes, we’re here again.”
“But in addition to the economic, monetary, and financial risks – and there are new ones – now we’re going towards stagflation like we’ve never seen since the 1970s.”
Private and public debt levels globally have exploded from 200 percent of GDP in 2000 to around 350 percent of GDP today, he said, blaming ultra-loose central bank policies that made borrowing cheap and encouraged households, businesses, and countries to take on ever greater debt loads even though many were barely solvent.
But now, facing persistently high inflation, central banks led by the Fed have embarked on aggressive rate hiking cycles, with Roubini predicting that highly indebted and operationally fragile “zombie” institutions are going to go bankrupt.
“That’s why we’re not only going to have inflation and stagflation but we’ll have a stagflationary debt crisis,” Roubini predicted.
www.zerohedge.com/geopolitical/roubini-world-war-iii-has-already-effectively-begun