Roubini: Debt Crisis Will Spark Defaults, Higher Inflation

By: Dan Weil, NEWSMAX:

The exploding government debt burden in nations ranging from Greece, to the United States, to Japan will end in government defaults or higher inflation, says New York University economist Nouriel Roubini.

“The bond vigilantes are walking out on Greece, Spain, Portugal, the U.K. and Iceland,” Roubini said at a recent conference, Bloomberg reports.

[...]If the debt problems aren’t solved soon, nations will either default on their government debt or monetize them by printing money, which would create inflation, he maintains.

“Greece is just the tip of the iceberg, or the canary in the coal mine for a much broader range of fiscal problems.”

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