{"id":65217,"date":"2023-04-03T04:59:41","date_gmt":"2023-04-03T09:59:41","guid":{"rendered":"https:\/\/olduvai.ca\/?p=65217"},"modified":"2023-04-03T04:59:41","modified_gmt":"2023-04-03T09:59:41","slug":"dr-doom-nouriel-roubini-warns-of-stagflationary-megathreat","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=65217","title":{"rendered":"&#8220;Dr. Doom&#8221; Nouriel Roubini Warns Of Stagflationary Megathreat"},"content":{"rendered":"<header class=\"ArticleFull_header__z0vIZ\">\n<h3 class=\"ArticleFull_title__FDrpw\"><a href=\"https:\/\/www.zerohedge.com\/economics\/dr-doom-nouriel-roubini-warns-stagflationary-megathreat\">&#8220;Dr. Doom&#8221; Nouriel Roubini Warns Of Stagflationary Megathreat<\/a><\/h3>\n<\/header>\n<div class=\"NodeContent_mainContent__2jyAd\">\n<div class=\"NodeContent_body__HBEFs NodeBody_container__eeFKv\">\n<p>Though the threat of an exponential liquidity crisis is a conversation that Bloomberg should have been seriously addressing two years ago, it&#8217;s good to see that reality is finally hitting the mainstream media.\u00a0 Nouriel Roubini, also known as &#8220;Dr. Doom&#8221; because he&#8217;s one of the few mainstream economists that&#8217;s not constantly touting the soft landing narrative, has been rather consistent in terms of covering the clash between credit liquidity, rising inflation and rising interest rates.\u00a0 Now, he&#8217;s talking about an incoming stagflationary &#8220;megathreat&#8221; that will crush credit while prices continue to rise, compelling central bankers to continue raising rates.<\/p>\n<p><iframe loading=\"lazy\" title=\"Nouriel Roubini Warns of Crashes, High Rate &#039;Megathreat&#039;\" width=\"600\" height=\"338\" src=\"https:\/\/www.youtube.com\/embed\/xa127Txog0M?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>The Catch-22 scenario that central banks have triggered should have been obvious to every economist as soon as they began tightening into the financial weakness and instability created by the covid lockdowns.\u00a0 Instead, the narrative has been an ever escalating waiting game &#8211; Everyone was simply biding their time until the central bank pivot they assumed was coming.\u00a0 Except, it didn&#8217;t happen.\u00a0 As long as interest rates remain higher or continue to climb existing debt and new debt will continue to grow more expensive and less desirable.\u00a0 The lifeblood of markets for the past 14 years has been near-zero interest rates and easy fiat money circulating through banking conduits.\u00a0 Now, the dream is dead.<\/p>\n<p>Roubini addresses the deeper problem in part when he notes the exposure of banks like SVB to bonds with declining value caused by rising rates.\u00a0 What he misses, and it&#8217;s surely something Bloomberg does not want to talk about, is the issue of ESG related programs and lending that made up a sizable portion of SVB&#8217;s portfolio&#8230;<\/p>\n<p>\u2026click on the above link to read the rest\u2026<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Dr. Doom&#8221; Nouriel Roubini Warns Of Stagflationary Megathreat Though the threat of an exponential liquidity crisis is a conversation that Bloomberg should have been seriously addressing two years ago, it&#8217;s good to see that reality is finally hitting the mainstream media.\u00a0 Nouriel Roubini, also known as &#8220;Dr. Doom&#8221; because he&#8217;s one of the few mainstream [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,303,426,431,487,534,1917,3303,3650,4318],"class_list":["post-65217","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-fed","tag-inflation","tag-interest-rates","tag-liquidity","tag-monetary-policy","tag-nouriel-roubini","tag-stagflation","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=65217"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65217\/revisions"}],"predecessor-version":[{"id":65218,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65217\/revisions\/65218"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=65217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=65217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=65217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}