The looming stagflationary debt crisis

Project Syndicate/Noriel Roubini

Repost from 7-9-2021

“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.”

USAGOLD 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.