By Dr. Doom to Dr. Boom: Nouriel Roubini surprises with an optimistic economic outlook

• Nouriel Roubini with an optimistic economic outlook
• Dr. Doom becomes Dr. boom
• Still criticism of Trump’s trade policy

Nouriel Roubini, who, with his pessimistic business forecasts before the financial crisis in 2008, – namely as Dr. DOOM – Made, recently hit a significantly more optimistic tone in conversation with Simon Nixon, editor of WEALTH of Nations, at the 10th Delphi Economic Forum in Greece, as Greekreporter.com reports. “I became a boom from the Doom,” said Roubini.

Technological revolution

Roubini, which is more optimistic about the US and the entire global economy, with one in his opinion that is upcoming technological revolution with a focus in the USA, which will not only emphasize productivity to a new level, but also neutralize the negative effects of tariffs & Co. “For the first time in history, we enter into a phase of exponential innovation. Technology will compensate for protectionist measures. Even in the middle of a trade war, the US economy will continue to grow – and this growth will spread to the rest of the world. Even Greece can benefit from it,” quotes him Greekreporter.com.

As an important factor for global growth, he considers the ubiquitous topic of artificial intelligence. “Artificial intelligence will transform a dozen important sectors and boost economic growth,” said Roubini, who believes that US growth could reach 4 percent by the end of this decade and even 6 percent by the end of the next decade. “Big companies are not worried about tariffs. Investments in technology and AI count for them. If they do not act now, their competitors will depend on them,” he explains. “In view of the dynamics that bring innovations with it, it doesn’t matter whether Mickey Mouse is president – the economy will continue to grow,” said Roubini.

US tariff in focus

According to Greekreporter.com, Roubini sees four main reasons for ensuring that US President Donald Trump exposes his recently announced tariffs to 75 countries for 90 days: market discipline, the US Federal Office, the economic advisors of the US President and its weak majority in the congress. “The bonds rose and the dollar fell disordered,” said Roubini. “This volatility would not only unsettle the markets – it could bring the economy to crash. Trump could not withstand this pressure. Ultimately, it was investors, bond guards and market forces that forced him to rethink.” With regard to this, Roubini also found praising words for Jerome Powell, the chairman of the US Federal Reserve: “Powell did not switch with the eyelash in this game. He showed that he has more power in this context”. The economist believes that the United States could achieve trade agreements with several important partners within the 90 days for which the tariffs were exposed to – but excludes China.

According to Roubini, for example, Trump could offer the tariffs for Europe to 10 percent in return for higher defense spending and a greater commitment to importing American liquid gas. “A 10 percent customs on European goods is not ideal, but it won’t ruin Europe’s economy,” says Greekreporter.com Roubini. “It is manageable. In fact, this scenario could reduce the general risk of global recession.”

However, Roubini looks at the situation between the United States and China more critically. “He believes that China wants to undermine the USA – not only economically, but also militarily. I fear that even when attempting to talk, no real agreement is likely. An escalation seems more likely,” said Roubini about Trump and its relationship with China.

But even if Roubini is optimistic, he criticizes Trump’s trade policy. “Yes, what Trump does is crazy and unfair,” said the economist. But in his opinion, China also has to “reform its economic model. No longer only the USA demands changes – the rest of the world also awaits them.”

Editor finance.net