by DoItYrselfLiberation
- Deglobalization is not going to go away. Deglobalization causes stagnation and inflation.
- Record levels of global debt accrued during two decades of low interest rates
- Low interest rates cannot continue due to inflation that is systemic from point 1
- Global debt is at about 300% of gdp. If interest rates even go to 8.3%, that’s 25.2% of global gdp just to pay the interest
- Everything bubble has been popping and will continue to pop
Mass defaults will happen, and interest rates will not be able to cool inflation because the amount of default that would occur at even a small real rate would be catastrophic.
I understand that nothing’s certain, but why isn’t this your base case?
“There is ample reason to believe the next recession will be marked by a severe stagflationary debt crisis. As a share of global GDP, private and public debt levels are much higher today than in the past, having risen from 200% in 1999 to 350% today.”t.co/jfPl7nTwHh pic.twitter.com/jNm889crM0
— Justice_Queen (@RE_MarketWatch) October 28, 2022
The worst of 70s style stagflation combined with the worst of the 2008 GFC, a stagflationary debt crisis, is what we're heading for according to Nouriel Roubini. t.co/r1oEVj6cBY
— Berlin.AlexanderPlatz (@WillMcJ) November 1, 2022
7 reasons why the coming recessionary hard landing will not be short and shallow but rather a stagflationary debt crisis. Stagflationary global debt crisis looms – and things will get much worse | Nouriel Roubini t.co/87EgyKp69M
— Nouriel Roubini (@Nouriel) July 13, 2022
Most People Are Unaware That Inflation Is Compounding