Roubini Sees Deflationary Pressures, Unemployment at 11% and Output Gap

Dr. Roubini at the Reuters Investment Outlook Summit was interviewed at by Dan Burns. Here is the video and a few points he made, he thinks the $GOLD run is premature.

• Too much talk about green shoots, sees mostly yellow weeds
• Still sees data showing contraction rather than expansion
• For next year and a half deflationary pressures will be dominant
• Massive output gap: Demand falling relative to excess supply/demand
• Prices will be cut to sell inventories
• CPI still negative in US and across the world
• Labor market is a major slack, unemployment will reach 11% in US
• Slack in goods and labor markets = deflationary pressures
• Sees inflation problem in 2 years due to Fed monetization of debt
  
• Thinks oil and gold are overpriced