Mohammed El-Erian is a seasoned investment veteran.
Zero Hedge have posted a piece by him, the key points (as I see them):
- I do not expect a return to the inflation of the 1970s. But we have to respect the possibility of a shock to a financial system that has been conditioned and wired for the persistence of lower and more stable inflation.
- Central banks' often repeated assertion that inflation will be "transitory" is sidelining much needed exploration of what is happening to both price dynamics and the functioning of the labour market. The result is a comforting equilibrium with underpinnings that become increasingly unstable.
Higher inflation and increasing instability. Yikes.
Here is the link to ZH, check it out.
Mo money, mo problems:
