Big-time economist Mohamed El-Erian says years of politicians ducking hard decisions are coming home to roost for the global economy right now. He’s with us.
Mohamed El-Erian has overseen the investment of billions, trillons of dollars. Now he’s looking out on the global economy and sees trouble. Since the crash of ’08, central banks like the Fed have propped things up. Political leaders have failed to lead on underlying problems. And soon, says El-Erian, things are going to have to be really fixed or fall apart. Infrastructure, inequality, education. Fix them or watch out, he says. This hour On Point: Mohamed El-Erain on the road ahead right now.
— Tom Ashbrook
Mohamed El-Erian, chief economic advisor for the financial services comapny Allianz. Chair of President Barack Obama’s Global Development Council. Author of the new book, “The Only Game In Town: Central Banks, Instability and Avoiding the Next Collapse.” Also author of “When Markets Collide.” Columnist for Bloomberg View and contributing editor to the Financial Times. (@elerianm)
From Tom’s Reading List
Bloomberg View: A New Mindset for a Shifting Global Economy — “The road that the global economy is currently traveling will effectively come to an end soon and will yield to one of two quite different, truly contrasting alternatives: a materially better state of the world or a materially worse one.”
The Wall Street Journal: Outlook for Markets: More Volatility as Debate Over Economy Heats Up — “The market turmoil has Fed officials reassessing whether their projections for steady growth and job gains and gradually rising inflation will hold up in coming months. For now, officials are sticking to their view that the expansion will continue and interest rates will rise, though Fed Chairwoman Janet Yellen, in congressional testimony last week, emphasized that she wants to keep her options open.”
CNBC: Mohamed El-Erian warns about a day of reckoning — “Either we validate the financial asset prices and growth faster, or alternatively we will slip into a global recession with financial disorder. The path we’re on right now — and that we’ve been on for a while— is ending.”
Read An Excerpt Of “The Only Game In Town” By Mohamed El-Erian