Nouriel Roubini says the cryptocurrency ecosystem is ‘totally corrupt’

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(Kitco News) – Famed economist Nouriel Roubini is waging a Twitter war against the global crypto economy as it faces a massive liquidity crisis that has brought down major exchanges and players.

This past week the outspoken professor at the NYU Stern School of Business and CEO of Roubini Macro Associates has made headlines describing cryptocurrencies as a “corrupt cesspool.” But he took his battle to new highs Wednesday, saying it’s an “ecosystem that is totally corrupt” in a live panel discussion at the Abu Dhabi Finance Week.

In a direct attack on Binance CEO Changpeng Zhao, also known as CZ, Roubini said that he doesn’t know why the crypto mogul has been allowed to live and operate in the UAE.

He noted that Zhao’s cryptocurrency exchange has been banned in the U.K. by British Regulators, and is now under investigation by U.S. officials for processing nearly $8 billion in funds from Iran, skirting U.S. sanctions that have been in place since 2018.

“He is a walking time bomb and he should be kicked out of this country and not be allowed to operate,” he said.

The harsh comments about the crypto economy come as Roubini issues a stark warning for the global economy, saying that it is headed towards a decade-long stagflationary debt crisis.

“When the recession comes, it will not be short and shallow but long and severe. Not only are we facing persistent short- and medium-term negative supply shocks, but we are also heading into the mother of all debt crises, owing to soaring private and public debt ratios over the last few decades,” Roubini wrote in a recent commentary for Project Syndicate.

“If we don’t stop the multi-track slow-motion train wreck that is threatening the global economy and our planet at large, we will be lucky to have only a repeat of the stagflationary 1970s,” he said.

Along with a looming global economic crisis, Roubini also said that the world faces more geopolitical instability and the potential for more international conflicts and environmental threats due to climate change.

In a world that faces growing mega-threats, Roubini has consistently said that people need to hold tangible assets to protect themselves.

“Investors will need to find assets to hedge against inflation, political and geopolitical risks, and environmental damage: these include short-term government bonds and inflation-indexed bonds, gold and other precious metals, and real estate that is resilient to environmental damage,” he wrote.

Last week, Roubini also launched his latest book: Megathreats: Ten Dangerous Trends That Imperil Our Future, And How To Survive Them.

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