The Julia La Roche Show, Released on 12/27/22
Dr. Nouriel Roubini (@nouriel), Professor Emeritus of Economics at New York University’s Stern School of Business, joins Julia La Roche on episode 42 to discuss his newest book, MegaThreats: Ten Dangerous Trends That Imperil Our Future, and How to Survive Them. Roubini, known as “Dr. Doom” due to his tendency to make pessimistic predictions, warned of the 2008 housing crisis and impending recession, but it was too late. Roubini is now making another prediction that is even more alarming and should not be overlooked. The world is facing a multitude of interconnected threats, referred to as Megathreats, that have the potential to cause widespread disaster. According to Roubini, these Megathreats are all connected and threaten not only our jobs, income, savings, and wealth but also our health, the planet’s health, and even our species’ survival. Megathreats include the worst debt crisis the world has ever seen, governments pumping out too much money, borders that are blocked to workers and shipments of goods, the rise of a new superpower competition between China and the U.S., the effects of climate change on heavily populated cities, and more. Roubini says we’re “sleepwalking into disaster,” and this book is a “wake-up call.” Time is of the essence in addressing these issues and attempting to prevent their adverse outcomes
0:00 Roubini’s new book
2:58 Connecting the dots of 10 Megathreats
4:00 World faces the biggest test since WWII
5:50 Mother of all debt crises
11:00 A perfect storm
18:00 Can we go back to 2% inflation without a hard landing?
19:30 Debate is no longer a soft or hard landing
20:42 Not going to be a short and shallow recession
23:42 Factors that could lead to a hard landing
24:00 Central banks are going to blink
24:45 Demographic time bomb
28:50 Intergenerational conflict between young and old
31:40 AI as a megathreat
35:14 AI will usher in a massive increase in income and wealth inequality
36:00 The trouble with UBI
39:00 Threat to our species
41:50 Roubini’s advice to young people
46:27 Public enemy No. 1 of crypto since 2017
49:40 Crypto is ‘the biggest financial fraud in human history’
51:58 Megathreat of financial instability
54:40 US dollar status as the global reserve currency
56:00 Divided world
58:00 De-dollarization, rise in gold
1:00:31 Do you want to own gold right now?
1:03:00 What to own in this scenario?
1:06:38 Global pandemics
1:11:13 Things Roubini never used to worry about
1:13:05 World looks more like the period between 1914 in 194
1:15:20 Sleepwalking into disaster
1:19:00 How do we survive the Megathreats?
1:21:20 Technology is the solution
1:23:00 Parting thoughts
Nouriel Roubini is the CEO at Roubini Macro Associates, a professor at NYU’s Stern School of Business, and Chairman of Roubini Global Economics. He was Senior Economist for International Affairs in the White House’s Council of Economic Advisers during the Clinton Administration. He has worked for the International Monetary Fund, the US Federal Reserve, and the World Bank. His latest book is MegaThreats: Ten Dangerous Trends That Imperil Our Future, And How to Survive Them.