The New CS Board

[jumanji0881]

Nouriel Roubini: stagflationary debt crisis like 'never seen before,' investors need assets like gold
https://www.kitco.com/news/2022-10-17/Nouriel-Roubini-stagflationary-debt-crisis-like-never-seen-before-investors-need-assets-like-gold.html

My Comment: Got Gold? Buckle up.

Excerpts:
"The decade ahead may well be a Stagflationary Debt Crisis the likes of which we've never seen before," Roubini wrote in his latest Time essay.

There are enough signs to forecast that a severe stagflationary debt crisis will define the next recession.

"As a share of global GDP, private and public debt levels are much higher today than in the past, having risen from 200% in 1999 to 350% today. Under these conditions, rapid normalization of monetary policy and rising interest rates will drive highly leveraged households, companies, financial institutions, and governments into bankruptcy and default," Roubini explained.

In light of this, investors need to seek assets that protect against inflation, political and geopolitical risks, and environmental damage. And that includes gold.

"These include short-term government bonds and inflation-indexed bonds, gold and other precious metals, and real estate that is resilient to environmental damage," Roubini added.

At this point in time, central banks are in the so-called "debt trap," Roubini described. "Any attempt to normalize monetary policy will cause debt-servicing burdens to spike, leading to massive insolvencies and cascading financial crises," he wrote.