Prominent Brazilian economist Paulo Nogueira Batista Jr. has issued a stark warning regarding the global economic outlook, suggesting that the West is mishandling its relative geopolitical decline. In a recent interview, he argued that the United States and Europe are reacting to the rise of the Global South with protectionism and weaponization of the financial system, strategies he believes will backfire. He points to the increasing fragmentation of global markets as a direct result of these policies.
Batista Jr. specifically highlighted the risk of a major financial crisis, exacerbated by high debt levels in Western economies and the erosion of trust in the US dollar as a neutral reserve asset. He suggests that the freezing of assets and the use of sanctions have incentivized other nations to seek alternatives, weakening the traditional financial architecture. According to his analysis, the refusal to accommodate a multipolar reality is creating dangerous instabilities.
The economist calls for a more rational approach to the shifting balance of power, urging Western leaders to engage in cooperative reform rather than confrontation. He warns that if the current trajectory continues, the world could face a synchronized economic downturn that would be difficult to manage without the international cooperation that is currently being dismantled.
Source: https://www.brasil247.com/entrevistas/paulo-nogueira-batista-jr-diz-que-ocidente-lida-mal-com-seu-declinio-e-ve-risco-de-grande-crise-financeira
