There’s nothing like a doomsday prediction to begin the week. And don’t fear, Nouriel Roubini has plenty of them. 

The economist, professor emeritus at New York College’s Stern Faculty of Enterprise, and CEO of Roubini Macro Associates, has even earned the moniker “Dr. Doom” for his pessimistic forecasts. 

And on Sunday, Roubini—as soon as once more—warned that the worldwide economic system is heading for catastrophe.

“I feel that actually the world is on a slow-motion prepare wreck,” he told the Financial Times. “There are main new threats that didn’t exist earlier than, and so they’re increase and we’re doing little or no about it.”

Roubini has been sounding the alarm a couple of coming financial disaster of the ages for over a yr now.

In his new ebook, MegaThreats: 10 Dangerous Trends That Imperil Our Future, and How to Survive Them, he breaks down how challenges like local weather change, competitors between financial superpowers, and rising international money owed are all combining to create a nightmare situation for the world.

Roubini even told Fortune in November that “one other variant of a Nice Despair” was potential if policymakers don’t act to cease these “MegaThreats.”

“There could also be extreme monetary crises and debt crises,” he warned. 

And though the U.S. is in a greater place than many countries, based on Roubini, Individuals can anticipate a recession too.

“This isn’t going to be a brief and shallow recession, it’s going to be deep and protracted,” he stated on Sunday.

A debt disaster and World Warfare III?

Roubini broke down two key threats to the U.S. and international economic system in his interview with the Monetary Occasions over the weekend.

First, he warned that rising tensions between the U.S. and China might result in extra commerce wars and deglobalization, exacerbating international inflation.

The Monetary Occasions reported that the economist even stated that he believes World Warfare III started in October when the U.S. blocked the sale of essential semiconductors—also referred to as chips—to China. 

Roubini went on to argue that these geopolitical tensions are a return to regular after 75 years of “relative peace, progress, and prosperity.”

“Earlier than then the historical past of humanity was a historical past of famine, battle, illness, and genocides and so forth. The final 75 years are an exception; they’re not the rule,” he stated.

Roubini additionally pointed to the truth that private and non-private money owed have soared over the previous 4 a long time worldwide as proof {that a} international recession is coming. With rates of interest rising to counter inflation, debt prices are hovering, which might trigger “debt crises,” he says.

Whole private and non-private money owed have been $235 trillion in 2021, or roughly 250% of worldwide gross home product, based on the International Monetary Fund. In 1975, whole private and non-private money owed amounted to simply 110% of worldwide gross GDP.

Technological progress—together with innovations like nuclear fusion—is the one potential savior for the worldwide economic system, based on Roubini. However it’s going to take 15 to twenty years for these to assist in any respect, he stated, and in 15 and 20 years “we’re doomed.”

For traders, Roubini repeated calls to keep away from shares and as an alternative go for short-term bonds, treasured metals like gold, and even land purchases to experience out the approaching financial storm. 

However he did provide a uncommon caveat to his bearish outlook, saying, “Nobody can predict the long run proper on a regular basis.”

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