As debt issues collide with the economic recession, according to American economist Noriel Robini, who predicted the 2008 crisis, the global economy will be worse than the shocks of the 1970s.
“In the 1970s, we witnessed two shocks, one of which is the economic recession, but the percentage of debt formed 100% of the GDP of the private and public sectors in the advanced economies, so we were able to reduce monetary and financial policy as we wanted, but today its debt rates are reached 350% annual growth in GDP, and 420% in advanced economies.
Therefore, the expert said, “We will face a debt crisis coupled with an inflationary recession, worse than the 1970s; the recession won’t be brief and superficial, but we will face a collapse.”
By the end of 2022, the economist predicts a protracted and severe global and American economic crisis that could last until 2023. “Those who anticipate a small stagnation in the United States should consider the huge levels of government and corporate debt,” he said.
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He continued: “Many zombies (businesses that depend on borrowing for the continuation of their business) and banks would suffer greatly due to the high interest rates and the increase in debt service costs.
Bloomberg and Novosti, sources.
Expect the economic crisis in 2008, according to an expert’s predictions for the world economy.
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