The Looming Stagflationary Debt Crisis by Nouriel Roubini - Project Syndicate

The Looming Stagflationary Debt Crisis by Nouriel Roubini - Project Syndicate

• Years of ultra-loose fiscal and monetary policies have put the global economy on track for a slow-motion train wreck in the coming years. 
  
  
  
• When the crash comes, the stagflation of the 1970s will be combined with the spiraling debt crises of the post-2008 era, leaving major central banks in an impossible position.

NEW YORK – 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.

...As matters stand, this slow-motion train wreck looks unavoidable. 

...With inflation rising and stagflationary shocks looming, it is now even more ensnared.
So, too, are the European Central Bank, the Bank of Japan, and the Bank of England. 

The stagflation of the 1970s will soon meet the debt crises of the post-2008 period. 

The question is not if but when...Read all.