Markets and economies could face a potential collapse in 2023, and it could lead to an escalation of a new world war beyond the ongoing Russia-Ukraine conflict, Business consultant Gerald Celente, who has been called the American Nostradamus, said, Business Insider reported.

High interest rates have already hit stocks hard, with the S&P 500 Index dropping 20 percent last year due to tightening financial conditions. Officials are expected to keep raising rates until inflation is under control, with many observers warning that the central bank could overreact and easily trigger a recession and stock market crash.

Such a crisis could even lead to an escalation of what he calls a new world war, which has already begun. He is among those Wall Street observers who believe World War III began last year with Russia's invasion of Ukraine, and fears that the conflict could widen this year amid economic turmoil around the world.

The only thing holding the markets up is interest rates. They go up and the market goes down. When nothing helps, they lead to war, Celente said.

Many major banking institutions are warning of much greater pain for the markets. Bank of America, Morgan Stanley and Deutsche Bank are predicting that stocks will fall 20 to 25 percent this year, but a more dire outcome will depend on whether the Fed implements its plan to raise interest rates, which Selente believes could be a bluff.

Other disasters could also hit the economy as interest rates rise. Chief among them is the debt crisis as over-indebted households and financial institutions struggle with rising borrowing costs. He added that gold has been a better bet for investors as volatility shakes financial markets, and predicted the precious metal could rise to $2,000 to $2,500 this year. On Thursday, gold was trading at $1921 an ounce.