Rock Meet Hard Place
Roubini sees danger ahead:
The problem is that most economies are now barely bottoming out, so reversing the fiscal and monetary stimulus too soon before private demand has recovered more robustly could tip these economies back into deflation and recession. Japan made that mistake between 1998 and 2000, just as the United States did between 1937 and 1939.
But if governments maintain large budget deficits and continue to monetize them as they have been doing, at some point after the current deflationary forces become more subdued bond markets will revolt. When that happens, inflationary expectations will mount, long-term government bond yields will rise, mortgage rates and private market rates will increase, and one would end up with stagflation (inflation and recession).
Always looking on the bright side is our Nouriel. But of course, he's right. The question is how to pivot and when.