Nouriel Roubini, the economist who predicted the real estate and banking crisis of 2007-2008, has issued a new warning regarding the elections that will take place in the United States on May 5, with Democrat Kamala Harris and Republican Donald Trump as protagonists. .
The American professor, of Turkish origin, assures that Kamala Harris’ option is the best for the American economy and that a victory for Donald Trump would increase the risk of stagflation. “Trump’s combination of trade, currency, tax, immigration and foreign policies poses a far greater risk of stagflation than if Kamala Harris were elected,” Roubini said. Bloomberg at the Economic Forum in Greenwich, Connecticut, held last Wednesday.
In this sense, Roubini considers that there are several factors that could slow down the economy and, at the same time, stimulate an increase in inflation. On the one hand, the imposition of higher customs duties; on the other, a devaluation of the dollar and an adoption; and finally, a firm stance against illegal immigration.
For Roubini, this stagflation scenario represents the worst of all scenarios for workers. “Stagflation is the worst because there are job losses, unemployment, a weak labor market and wages increase less than inflation because there is stagflation,” he revealed has ABC News Australia last year. “In general, even for those who have a job, for their real salary, because prices increase more than salaries and some people lose their jobs and their income.
On the other hand, the economist, also known for his dire predictions about the global financial crisis, points to tensions in the Middle East as a possible catalyst. He argues that a further escalation could cause a rebound in oil prices, which would increase price pressures, hurting businesses and consumers.
To protect against these risks, the famous economist recommends that investors invest in gold, short-term bonds and inflation-protected Treasury securities.
