Prominent economist Nouriel Roubini predicted Monday the trajectory of the economy is either out-of-control inflation or a recession.
This from theblaze.com.
Roubini’s prediction is notable because he is one of the few economists who correctly predicted the housing bubble crash of 2007-2008.
His correct analysis earned him the nickname of “Dr. Doom.”
Speaking in an interview on Bloomberg Television, Roubini forecasted a “hard landing,” which is standard economist lingo for what precedes a recession triggered by attempts to control inflation.
Roubini said:
In the U.S., whenever you had inflation above 5% and unemployment below 5%, the Fed tightening has led to a hard landing. So my baseline is a hard landing.
Roubini argued the Federal Reserve must take aggressive action with interest rates to achieve the central bank’s targeted inflation rate of 2%.
The Fed funds rate should be going well above 4% — 4.5%–5% in my view — to really push inflation toward 2%.
If that doesn’t happen, inflation expectations are going to get unhinged. Or if that happens, then we are going to have a hard landing. So either way, either you get a hard landing or you get inflation getting out of control.
[T]hat is long, protracted, severe, and associated with financial distress across the board.
We are still in a severely inflationary environment, not just in the United States but around the world.
Roubini’s stark analysis comes less than a week after Joe-Joe Biden insanely celebrated “zero inflation.”
The truth is, the U.S. economy saw a 0% increase of inflation between June to July.
But the U.S. economy is still experiencing woefully high year-over-year inflation of 8.5%, according to the latest consumer price index.
We’re in for some tough times, Def-Con News readers. But keep the faith. We must believe Conservatism will prevail.
Our only concern is that Our Constitutional Republic survives and the Conservatism that prevails is not conservative communism.
