Beautiful Virgin Islands

Saturday, Jul 05, 2025

‘Doctor Doom’ predicts world is headed for stagflation

‘Doctor Doom’ predicts world is headed for stagflation

The period of relative calm in the global economy has ended and what lies ahead is an era of stagflation, meaning a time of slow growth coinciding with higher unemployment and rising inflation, renowned economist and New York University professor Nouriel Roubini said on Friday.
According to Roubini, who was among the first to predict the 2008 financial crisis, today’s situation may be even worse given the host of risks and “mega-threats” the world is facing.

“In the short term, there are [risks] related to the war in Ukraine, of course, to inflation and to the specter of a financial crisis which could arise in the next few months or in the next two or three years. Added to this are mega-threats likely to materialize more or less severely in the long term… starting with climate change… geopolitical tensions which could degenerate into nuclear war between great powers, and socio-political instability,” he said in an interview with the French news outlet Le Monde.

Roubini, dubbed ‘Doctor Doom’ by Wall Street, argued that the general consensus that inflationary pressures are temporary and that raising rates will temper soaring prices and provide for a “soft landing” of the economy is wrong.

“I think the landing will not be soft but harsh, and associated with financial stress. Raising interest rates while the economy is losing momentum, with an overall level of debt much higher than in the 1970s, could cause a collapse in stock and bond markets, which could deepen the recession,” he stated.

According to the economist, “part of the solution will necessarily involve inflation, which reduces the debt burden.”

“I'm not saying inflation is desirable, but I don't see how to avoid it. The era of the great moderation is over, we are entering the great stagflation.”

Roubini also warned of a potential trade war between the West “and a group of revisionist powers,” namely Russia, China, Iran and North Korea, “which could lead to a fragmentation of globalization and a re-localization of production chains, increasing global insecurity.”

The economist urged the global community to learn from history and mobilize forces to prevent a further worsening of the crisis.

“We lived like zombies who go back to sleep despite the alarm ringing, and who have forgotten that history is not linear… The creation of major international institutions enabled us to reconnect with a period of relative peace and prosperity. But believing that such an era can last is a mistake… The main stages of grief are denial, anger, depression and acceptance. If we look our problems squarely in the face, we can wake up and start mobilizing, but we're still stuck somewhere between denial and anger.”
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
×