Economy

Global Crisis and a Cold War between US and China: Nouriel Roubini's predictions

On the stage of Money20/20 USA, the economist who predicted the 2008 crisis projected an apocalyptic scenario starring China and the US

The Turkish economist Nouriel Roubini

Known as the convention that shows the next steps in financial technology, Money 20/20 USA in Las Vegas has also been the scene of new predictions by Nouriel Roubini, the Turkish economist who predicted the 2008 global crisis.

New York resident, Roubini spoke not only about his economic perspectives but also about his concerns about the current global political environment, especially between China and the United States.

“Today we see a battle between this two countries in technology and probably it will get bigger in the next years. They will battle for you to use their proprietary OS or tools, their products”, said Roubini.

We’ll see a Cold War between these countries where data and technology will be in the center. The world will be fragmented and data will give them more and more power.

Nouriel Roubin, economist.

For Roubini, the next world economic crisis, in addition to being starred by these two countries, should be centered on corporate debt. In explaining his view of this upcoming crisis, he pointed out that making predictions about the economic scenario is a model-based art.

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He explained that forecasting an economic scenario is an art. “Everything goes through a study of the economic model, political movements and also intuition… It is not something simple, based on one concept, it is a more eclectic and diverse process. The truth is that everyone today has data, but when you connect the right points you begin to see information. In 2008, I saw many signs of crisis in emerging economies, for example, that helped in that prediction. ”

“It is not easy to predict a crisis, but they can be identified because they have very clear signs ahead of us,” added Roubini, who said his position as an academic helps him talk about the future of the world economy. “Everyone lives in a bubble and benefits from it. Many market people do not want to talk about crisis, as it affects the market and the business. In my case, I think that academic isolation allows me to talk about what I study without this kind of concern, ”said the professor.

Translated by Fabiane Ziolla Menezes