Dear Comrades --- I was very skeptical of what Roubini wrote --- so I checked in with Dean Baker (one of three world wide recipients of the "Paul Revere Award" for having predicted the housing bubble crash well before 2008). He was equally skeptical of Roubini's argument:
Here is his short response: doesn't really have much of a case. If you pull out food energy there is little inflation anywhere other than the U.S. Here, a very large share is cars, new and used, which is a temporary shortage. Shortages in other areas are already being alleviated. This is clearest in lumber, where prices have been plunging for the last three weeks. FWIW, Roubini ALWAYS has a disaster story. He just changes the cause from time to time ME: Roubini got a lot of good publicity because one of his disaster predictions came true with the financial meltdown of 2008 --- but as Dean says, he's ALWAYS predicting disaster ... On Fri, Jul 2, 2021 at 8:43 AM Louis Proyect <[email protected]> wrote: > By Nouriel Roubini > > > In April, I warned that today’s extremely loose monetary and fiscal > policies, when combined with a number of negative supply shocks, could > result in 1970s-style stagflation (high inflation alongside a > recession). In fact, the risk today is even bigger than it was then. > > > https://www.theguardian.com/business/2021/jul/02/1970s-stagflation-2008-debt-crisis-global-economy > > CONTINUING THE ARGUMENT AGAINST ROUBINI: Unlike the 1970s, the amount of fiscal stimulus coming out of the federal government is GIGANTIC --- and there is NO SIGN of a wage price spiral (probably due to the total weakening of organized labor compared to the decade of the 1970s ...) -=-=-=-=-=-=-=-=-=-=-=- Groups.io Links: You receive all messages sent to this group. View/Reply Online (#9620): https://groups.io/g/marxmail/message/9620 Mute This Topic: https://groups.io/mt/83939036/21656 -=-=- POSTING RULES & NOTES #1 YOU MUST clip all extraneous text when replying to a message. #2 This mail-list, like most, is publicly & permanently archived. #3 Subscribe and post under an alias if #2 is a concern. #4 Do not exceed five posts a day. -=-=- Group Owner: [email protected] Unsubscribe: https://groups.io/g/marxmail/leave/8674936/21656/1316126222/xyzzy [[email protected]] -=-=-=-=-=-=-=-=-=-=-=-
