Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

'Dr. Doom' economist Nouriel Roubini says we'll have inflation for a long, long time. He blame wars, the robot revolution, and 3 other disasters that will plague the global economy.

'Dr. Doom' economist Nouriel Roubini says we'll have inflation for a long, long time. He blame wars, the robot revolution, and 3 other disasters that will plague the global economy.

Inflation is sticking around, and you can blame war, robots, and rampant disease for that, according to "Dr. Doom" economist Nouriel Roubini.

"Dr. Doom" Nouriel Roubini warned that we'll have inflation for a long, long time – and you can blame, wars, the robot revolution, and slew of other disasters that will plague the global economy.

"Inflation rose sharply throughout 2022 across both advanced economies and emerging markets. Structural trends suggest that the problem will be secular rather than transitory," the top economist said in a recent op-ed for Project Syndicate.

That comes after a difficult year for the US economy, with prices hitting a 41-year-high in 2022 and still hovering well-above the Fed's 2% target. According to Roubini, central bankers around the world are unlikely to bring down inflation without causing a severe recession, which could spell trouble for the global financial system considering that many households, banks, and governments are heavily indebted.

Central bankers can't cushion a debt crisis without slashing interest rates, which could worsen inflation. That impasse could slam the global economy with "the mother of all stagflationary debt crises," Roubini warned, a financial disaster that entails high unemployment, high inflation, and in the US, a steep stock market crash.

Roubini, who called the 2008 recession and is known for his doomsayer predictions on Wall Street, has said that sort of inflationary-debt disaster is inevitable at this point. It could also stretch on for years, he warned, pointing to five major problems in the global economy that could jack up prices and government spending, exacerbating the incoming crash.


Wars


Russia's invasion of Ukraine disrupted supply chains and has already rattled the global economy, but geopolitical conflict could spread across the world, Roubini said. He pointed to tensions between the US and other major powers, such as the Middle East, Iran, and China, and previously warned that World War III has already begun. 

Tensions are leading many powers to build up their shore of military supplies, including NATO, Europe, and the US. That burden on national budgets could exacerbate high-debt levels and inflation, prolonging the financial crisis he's warned of.


Climate change


The global economy is also waging a war against climate change, which could be expensive to resolve.

"Climate-change mitigation and adaption could cost trillions of dollars per year for decades to come, and it is silly to think that all these investments will boost growth," Roubini said, adding that nations would likely become poorer over time.

"A significant share of the existing capital stock will have to be replaced, either because it has become obsolete or because it has been destroyed by climate-driven events."


Rampant disease


The spread of COVID-19 isn't over, and neither are pandemics. Roubini predicted disease outbreaks would become rampant in the future, partly due to the effects of climate change. That could significantly rack up government debt as leaders attempt to tackle one public health crisis after the other, while also confronting the costs of welfare for an aging society.


The robot revolution


The global economy will be slammed by "globotics," as Roubini calls it, or the innovation stemming from globalization and automation. While some argue those factors are spurring economic growth, they're a major threat to blue- and white-collar workers, meaning governments could be forced to shell out huge sums of cash if robots, AI technology, and other advancements put people out of work.

The costs could be hefty, Roubini warned. He estimated that the US could lose about 20% of its GDP if the government doles out a basic income of $1000 per person a month.


Wealth inequality


Wealth gaps are sparking unrest among the young and the middle- and working-classes, Roubini said, which could be expensive for government leaders to smooth over.

"To prevent populist regimes from coming to power and pursuing reckless, unsustainable economic policies, liberal democracies will need to spend a fortune to reinforce their social safety nets – as many are already doing," he said.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
×