New York University Professor Nouriel Roubini predicted the 2008 Financial Crisis and is now suggesting that 2013 will be a significant year for the world economy. He makes a number of claims which allude to a major economic catastrophe:
1. There is too much public and private debt worldwide – the US is running over a trillion dollar budget deficit.
2. US unemployment figures are high (9.1%) and the indications are that it will be a this level for a few years
3. The increase in oil and food prices. This leads to less disposable income becoming available for other goods and services
4. Rising interest rates in Asia
5. The Japanese earthquake which has disrupted world trade.
6. Stocks worldwide have lost more than US$3.3 trillion since the start of May
7. China’s economy may face a ‘hard landing’- there are concerns that it will have a lot of excess capacity as world demand dries up.
Here is a clip from Inside Job that has interviews with Nouriel Roubini