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[jumanji0881]

'Dr. Doom' Nouriel Roubini warns the era of stagflation is here and central banks are setting a trap in trying to normalize policy
https://www.msn.com/en-us/money/markets/dr-doom-nouriel-roubini-warns-the-era-of-stagflation-is-here-and-central-banks-are-setting-a-trap-in-trying-to-normalize-policy/ar-AA10tXlJ?ocid=msedgntp&cvid=4c915ad46d16408f9859d9e77570d0be

My Comment: Got Gold?

Excerpts:
"The world economy is undergoing a radical regime shift," he said in an op-ed for Project Syndicate on Tuesday, declaring the end of the Great Moderation, during which economies enjoyed low inflation, high growth, and mild recessions.

Those qualities have been the standard for the past few decades, but are reversing into what Roubini dubs as the Great Stagflation: an era of high inflation, low growth, high debt, and the potential for severe recessions.

Global economies carry larger debt ratios than before, setting up central banks for potential failure, Roubini said.

"Central banks are thus locked in a 'debt trap': any attempt to normalize monetary policy will cause debt-servicing burdens to spike, leading to massive insolvencies, cascading financial crises, and fallout in the real economy," he said.

In recent op-eds, he's added that stocks could plunge as much as 50% and predictions of a mild recession were simply "delusional."

For the new economic era, his message for investors is similarly bleak:

"During the Great Stagflation, both components of any traditional asset portfolio — long-term bonds and US and global equities — will suffer, potentially incurring massive losses," Roubini said Tuesday.