Roubini

Roubini There's a "perfect storm" of threats brewing, and it could slam the global economy as soon as 2013, according to Nouriel Roubini.Roubini believes that a slowdown in China, the damage done to Japan, the current debt crisis in Europe, and the emerging one in the U.S. have a one third chance of damaging the global economy.Roubini, from Reuters:There are already elements of fragility,” he said. “Everybody’s kicking the can down the road of too much public and private debt. The can is becoming heavier and heavier, and bigger on debt, and all these problems may come to a head by 2013 at the latest.”Roubini still believes we may escape the worst of this scenario, with the global economy bumping along, with weak growth.

Nouriel Roubini’s post is a useful complement to the piece by Wolfgang Münchau that John linked to earlier. In truth, I don’t think anyone really knows what is going to happen to the eurozone, and Wolfgang is admirably frank about the fact that he is just describing one possible scenario. But an increasing number of people are now arguing that eurozone politicians aren’t going to be able to fudge the unfudgeable forever. If that is the case, the Irish people may have some momentous choices to make in the not-too-distant future.

Roubini