Finally an economic analyst gets prime-time media pundits to listen as he describes the fundamental difference between the U.S. “Economy” (Main Street) as well as also the U.S. “Markets” (Wall Street). Charles Payne understands most of This kind of, nevertheless El-Erian has This kind of nailed.
Allianz Group chief economic advisor, Mohamed El-Erian, accurately describes what is usually happening in an era where deglobalization is usually taking place. The U.S. economy is usually strong; however, the multinationals on Wall Street -invested overseas- are exposed. Thus there’s a disconnect as well as also accompanying market volatility.
This kind of is usually well worth watching because This kind of is usually the first well-regarded financial pundit that will is usually speaking truth to Wall Street in terms the panel pundits will understand/accept.
There is usually nothing that will China as well as also the EU can do to stop the de-globalization process; as well as also efforts to stimulate their economy, more quantitative easing (pumping money) while the global supply chains are being shifted, are futile.
The more a nations’ economy is usually dependent on exports, the more exposure they have to the inherent downsides of de-globalization. U.S. companies that will are invested in these nations will lose their investment over time; some rapidly. This kind of will keep the stock market volatile, yet the Main Street USA economy is usually thriving.
President Donald Trump has purposefully stalled the process of globalization, as well as also is usually resetting global supply chains. This kind of is usually bringing massive amounts of wealth back into the United States.
In essence Titan Trump is usually engaged in a process of: (a) repatriating wealth (trade policy); (b) blocking exfiltration (main street policy); (c) creating fresh as well as also modern economic alliances based on reciprocity (bilateral deals); as well as also (d) dismantling the post WWII Marshall plan of global trade as well as also one-way tariffs (de-globalization).