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The looming stagflationary debt crisis

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Project Syndicate/Noriel Roubini/6-30-2021

graphic image of a harried investor watching the blow-up of the financial bubble

“In April, I warned that today’s extremely loose monetary and fiscal policies, when combined with a number of negative supply shocks, could result in 1970s-style stagflation (high inflation alongside a recession). In fact, the risk today is even bigger than it was then…At some point, this boom will culminate in a Minsky moment (a sudden loss of confidence), and tighter monetary policies will trigger a bust and crash.”

graphic image of a book and reading glasses A Good Weekend ReadUSAGOLD note: Dr. Doom, as he is known on Wall Street, sees symptoms of a breakdown already in motion wherever he looks. He goes so far in this analysis to say that in the end we will get a melding of the 2008 debt crisis and the 1970s stagflation – pretty much a banana republic-style breakdown.

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