FAST FIVE: El-Erian Admits The Era Of "De-Globalization" Is Here

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Via The Conservative Treehouse, Finally an economic analyst gets prime-time media pundits to listen as he describes the fundamental difference between the US “Economy” (Main Street) and the US “Markets” (Wall Street).  Charles Payne understands most of this, but El-Erian has it nailed.

Allianz Group chief economic advisor, Mohamed El-Erian, accurately describes what is happening in an era where deglobalization is taking place.

This is well worth watching because this is the first well-regarded financial pundit that is speaking truth to Wall Street in terms the panel pundits will understand/accept.

There is nothing that China and the EU can do to stop the de-globalization process; and efforts to stimulate their economy, more quantitative easing (pumping money) while the global supply chains are being shifted, are futile.

In essence Trump is engaged in a process of: (a) repatriating wealth (trade policy); (b) blocking exfiltration (main street policy); (c) creating new and modern economic alliances based on reciprocity (bilateral deals); and (d) dismantling the post WWII Marshall plan of global trade and one-way tariffs (de-globalization).

Categories: ZH