Roubini says US-China Dispute Would Trigger a Recession

The rivalry between the U.S. and China could be so disruptive that it’s starting to decouple the global economy and eventually causing a recession, according to Nouriel Roubini, the economist famously called the housing bubble.

“The consequences of this trade and tech war and cold war [are] the beginning of de-globalizaion … and the decoupling of the global economy. We’ll have to redo the global tech supply chain. And eventually by next year, if this escalates, it will be a global recession,” said the head of Roubini Macro Associates in an interview with Bloomberg TV on Tuesday.



The U.S. and China have recently reached a truce in their year-long trade war after the two countries slapped tariffs on billions of dollar worth of each other’s goods. Yet Roubini is pessimistic that the two largest world economies will work out a long-term agreement anytime soon.

“My base case is … the trade and tech war between the U.S. and China is going to get worse. Manufacturing is already in a recession globally. It’s affecting services…The tech sector is in a slowdown,” Roubini said.

Roubini, who has often been referred to as “Dr. Doom” because of his bearish outlook, said there have already been signs of a global recession.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza