Nouriel “Dr. Doom” Roubini told an audience at the Milken Insitute Global Conference, that the buildup of debt and the potential for nations to default on their loans, means spiraling inflation is unavoidable.
“While today markets are worried about Greece, Greece is just the tip of the iceberg, or the canary in the coal mine for a much broader range of fiscal problems,” Roubini told audience members. Increasing tax revenue won’t be enough “to save the day.”
“The thing I worry about is the buildup of sovereign debt,” noted Roubini. If the issue isn’t addressed, nations will either fail to meet obligations or experience higher inflation as officials “monetize” their debts, or print money to tackle the shortfalls.
Source: Bloomberg