Nouriel Roubini says we need to defend this instead of BTC, as all the debt bombs and nine other mega threats are looming.
Investing in this instead of BTC
According to Nouriel Roubini, ten ‘mega-threats’, including war, debt crises and a demographic ‘ticking bomb’, will have investors flocking to gold, causing the price of the yellow metal to soar to $3,000 by 2028. “Over the next few years, I would expect gold to have low double-digit rates of return from high single-digit rates,” Nouriel said. ‘In the next five years… I expect rates of return to be around 10 percent a year.’ said.
He claimed that gold would rise 10 percent a year for five years, resulting in a price of over $3,000 per ounce of gold, resulting in an overall return of 60 percent. He also emphasized that he prefers gold instead of digital assets such as BTC.
Roubini, one-on-one, ‘Dr. Doom’s said that because of his brutal economic forecasts and his claim to the truth of the 2008 financial crisis before it happened, a “stagflationary depression” could begin in 2023 that will cause both stocks and bonds to plummet.
Geopolitical Threats
Roubini said ‘revisionist powers’ such as China, Russia, Iran and North Korea will challenge the US and Europe for world domination in the coming years. He chose Taiwan, a US ally, as an example. Echoing US navy chief Michael Gilday, he warned that China could attack Taiwan in 2023, causing further tensions between China and the US.
“[Chinese President] Xi came to power for the third time, not because he wanted reform in China, but because he wanted to go down in history as the leader who united mainland China with Taiwan,” Roubini said. Then, ‘Recently, Biden has made statements that the US will directly intervene in this conflict if China invades Taiwan or even implements a naval blockade.’ he added.
He warned that such a conflict would turn into “an all-out nuclear war between the United States and China” and would lose credibility as a military ally if the United States renounced its allegiance to Taiwan.
Fed tightening will likely stop
The Federal Reserve increased interest rates by 425 basis points last year to rein in inflation, which peaked at 9.1 percent in June 2022. Roubini said the Fed should raise interest rates to at least 6 percent, but is unlikely to do so given that this would cause “serious” calm and debt booms. He suggested that the Fed would change or stop the tightening cycle.
However, Roubini said that this monetary policy repercussion would then cause ‘inflation expectations to come off the anchor’ and lead to ‘at least’ 5 to 6 percent inflation in the medium term. In his statement he said:
“We fall short of raising taxes or cutting government spending in the public sector.” This essentially happened last year and will continue to happen. We will use the inflation tax to deal with a large amount of private and public debt.”
Mega Threats Book
In his book, ten dangerous trends that endanger our future and how to get rid of them, Roubini describes debt crises, deglobalization, the demographic time bomb, climate disasters, Artificial Intelligence and other factors as ‘megathreats’ that endanger all humanity.
The central theme in the book is that solving one problem can make another problem worse. For example, Roubini writes that large investments in green power are necessary to fix climate change, but that such investments will require a decrease in people’s living standards.
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