Roubini

It is a brutal combination, but it’s hard not to see in a not so distant future converge. Bloomberg:

There is a possibility of one to three that a combination of the factors affecting the growth of 2013, Roubini said in an interview on 11 June in Singapore. Other possible outcomes are “anemic growth but OK” or better an “optimistic” scenario in which enlargement.

“There are already elements of vulnerability,” he said. “All kicking the can down the road of public and private debt is too much.” The Andean Community is becoming more and more debt and all these problems can come to a head by no more afternoon of 2013. ”

Higher unemployment of United States, an increase in prices of oil and food prices, rising interest rates in Asia and trade distortion of registry Japan earthquake threatens to sap in the global economy. Population groups around the world more than 3.3 billion since the beginning of may have been lost, and Roubini said that the financial markets in the middle of next year can begin to worry about a convergence of risks in 2013.

Nouriel Roubini post is a useful complement to the piece by Wolfgang Münchau, John linked to above. In truth, I do not think that no one really knows what will happen to the euro area, and Wolfgang admirably honest about the fact is that it is simply a description of a possible scenario. But a growing number of people now claim that politicians in the euro area will not be the unfudgeable forever. If Yes, have the Irish some momentous decisions in the not too distant future.

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