Chairman & CEO at Roubini Macro Associates Nouriel Roubini Talks Geopolitics, AI Takeover

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Stephen Carroll 0:00
Hello, I'm Stephen Carroll. I'm in Brussels, where many of Europe's biggest decisions get made.
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Tom Keene 1:07
Norah Rubini now joins us with these wonderful books, all that he's done for me over the years, going way, way back pre-crisis is, well, let me just get Bitcoin out of the way. I don't want to waste time on it. We've had not one, but two of our guests emphatically state Rubini's right. It's going to 10,000. Is BitDog going down from 60,000 to 10,000?
Nouriel Roubini 1:32
I think it doesn't matter. I don't make predictions. It could go significantly lower, could stay where it is. But the point is that, you know, Bitcoin is down from its peak by 50%. The other top 10 cryptocurrencies are down between 60 to 90%. You know, Melania coin and the Trump coin are down 97, 99%. Even worse than Fart coin is down only 95%.
Karen Moscow 2:00
Can we say that on air?
Nouriel Roubini 2:01
Well, you know, it's a traded currency, so. And, you know, the NFT index is down 95% from the peak. So it was a bubble, has burst, whether Bitcoin goes much lower or not, who cares?
Paul Sweeney 2:16
Who cares? Nouriel, you were saying that you've just come off three weeks of travel. Yeah. A, where were you? And B, what did you learn?
Nouriel Roubini 2:24
Well, I spent a good amount of time between Saudi Arabia, Israel, Dubai, and Abu Dhabi. I would say that foremost on people's mind was the question of whether there would be another conflict between Israel and U.S. on one side and Iran, debated in Israel, in Saudi, throughout the Gulf. We don't know. There are negotiations. I would say the Israeli view is that probably it's not just an issue about nuclear bomb, but also about... the missiles, ballistic missiles, and the regional proxies, while Trump might just cut a deal on the nuclear bomb alone that will leave Israel in a weaker position. But we'll see what are gonna be the results of those negotiations.
Paul Sweeney 3:06
Other than geopolitics, There's been a move, just kind of feeling that the U.S. maybe has lost a little bit of its exceptionalism. There are other opportunities to invest outside of the U.S. We've seen that over the last six to 12 months. Is that something you sense in your travels?
Nouriel Roubini 3:22
Oh, yes or no. What I feel is people say we don't like the U.S. in public, and then they invest in the U.S. I mean, throughout the Gulf, whether it's Saudis or Emiratis or Qataris. There's no alternative to the United States. And I think for a good reason. I've argued that actually I'm a techno-optimist that US potential growth by the end of this decade is going to be 4%, not 2%. And if you had American exceptionalism, when growth was 2%, and the S&P was returning you 12%, including dividends for 20 years, and now it's like 16%. If growth is even only three, let alone three and a half and four, then returns have to be even higher. So yeah, in the short term, there is now volatility, but that's short-term volatility.
Nouriel Roubini 4:06
If you look in the medium term, we're 3%, 4% growth, and we'll be there because of technology. The US is number one, together with China, in all of the industries of the future. It's not just AI, there are about 15 other ones. then American exceptionalism is not over. Actually, it's going to be reinforced over time.

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