Roubini: This Will Trigger the Next [economic] Crisis

... Trump will create a foreign policy crisis to deflect attention. Since we are already in a trade war with China and the US is unlikely to attack a nuclear-armed North Korea, they see Iran as a potential target.


Trump's been gunning for Iran since long before he even started running for office. He won't need an economic crisis as an excuse to do it.

However, the Fed could see the light and not clampdown so much that it causes a recession. I won't be holding my breath, though. They're pretty slow on the draw.

We'll probably need a fiscal stimulus, but if the Democrats retake the legislature, I don't see them handing Trump a second-term opportunity by bailing out the economy. They'd likely wait for a Democrat President and then stimulate. Whether they'd stimulate enough is something we'd just have to wait to see. They too are slow on the draw. Obama stimulus, for example, was way, way too small and poorly targeted.

Will the young people coming in understand the economics? Will they break out of the deficit nonsense by issuing the money directly without issuing bonds?

Tom Usher

About Tom Usher

Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.