Economist Nouriel Roubini warns of the Stagflation crisis and the world heading for dark times in the next twenty years. Nouriel Rubini known as ‘’Dr Doom’’ believes the world is set to face ‘’Megathreats’ including the global economic crisis.
Dr Doom is famous for predicting the 2008 crash of the United state economy years before it happened. He appeared in a show where he explained to the host Steve Clemons about the US ‘’debt trap’’ of artificial intelligence and deglobalisation as part of the crisis.
Dr Doom says things will get much worse across so-called advanced economies as the year unfolds. Talking to the Business, he said, “I do believe that this stagflation rate crisis is going to emerge this year,”
He adds, “The latest numbers on inflation coming from the US and Europe, and other advanced economies, showed that inflation now is quite sticky.
“Central banks are in a dilemma because they have to raise rates more to fight inflation. But, if they do so, the economy is going to start to contract quite soon, and if they don’t then we could have a de-anchoring of inflation and inflation expectations.
Inflation, Recession, Stagflation and Potential Debt Crisis
Dr Roubini warns of a perfect storm including inflation, recession, stagflation and a potential debt crisis. He believes working people would likely be hit hardest by the looming crisis including those with jobs.
“Stagflation is the worst, because of loss of jobs, unemployment, weakness of the labour market. Wages are growing less than inflation because you have stagflation,” he said.
“So it’s across the board to even those who have a job, to their real wages. As prices are rising more than wages, and some people lose their jobs and their income.
“So stagflation is the worst of all worlds for workers.”
