Here is an interesting interview between Mohamed El-Erian, CEO of PIMCO, and Bloomberg Television's Betty Liu and Michael McKee this morning regarding the situation in Europe and the global economy.El-Erian said that it's "striking" that German Chancellor Angela Merkel can't agree on the "easy part" and that "unfortunately it's a mess" in Europe.
In a speech on BRICs at the Peterson International Institute of Economics former PIMCO co-head El-Erian made the claim Europe Is One or Two Rounds of Sanctions From Recession. The West, and Europe in particular, is one or two rounds of sanctions and counter-sanctions away from entering into a new recession, chairman of President Barack Obama’s Global Development Council Mohamed El-Erian stated Monday.
Germany is repatriating 374 tons of its gold held in Paris and a further 300 tons of gold stored in New York by 2020. At current prices this is valued at $36 billion and represents 19 percent of Germany's gold reserves.
Felix Salmon submits: Mohamed El-Erian has an important piece on Greece in Thursday’s FT; if you want to boil his 750-word article down to 3, it’s basically “Greece will default”. El-Erian comes to this conclusion using three logical steps. The first: