What Mohamed EL-ERIAN got SO wrong about the Economy [Eurodollar University, Ep. 193]

Mohamed El-Erian appeared on Hidden Forces, a great podcast by Demitri Kofinas. But instead of challenging consensus narratives or thinking critically about the power shaping our world El-Erian obfuscated and misdirected Kofinas and the audience about economics, the Fed and history. -----EP. 193 TOPICS----- 00:00:00 INTRO: Reviewing Mohamed El-Erian's appearance on Hidden Forces with Demitri Kofinas. 00:00:56 El-Erian claims the Federal Reserve has made a "policy mistake" in three phases. 00:02:12 El-Erian: the economy's problem is not insufficient demand, but insufficient supply. 00:04:43 Snider: the supply of goods was inelastic during the 2020-21 covid and shutdowns. 00:06:10 El-Erian: the Fed made a mistake in calling consumer price increases "transitory". 00:08:32 El-Erian: the Fed's rate hikes will be too much for the economy to handle. 00:10:21 El-Erian: labor shortages is proof of a world of insufficient supply; not enough workers. 00:15:15 El-Erian: QE helps keep asset prices elevated through psychological, behavior forces. 00:23:39 Kofinas: Why doesn't the Fed factor financial instability into its actions? 00:25:53 El-Erian: the Fed stopped tightening monetary conditions in Q4 2018 because of stocks. 00:35:45 El-Erian: the market has noticed that we are missing market liquidity. 00:40:35 El-Erian: the 1970s Great Inflation began with an oil shock, expanding from there. 00:43:45 El-Erian: supply shocks can kick off (monetary, persistent and pervasive) inflation. 00:45:47 El-Erian: adaptive expectations in the private economy can lead to inflation. 00:47:15 El-Erian: in the 2020s we are following in the footsteps of the 1970s. 00:51:31 El-Erian: the marketplace is pushing the Fed to increase rates 5 times in 2022. 00:54:01 OUTRO: Check out Demitri Kofinas and the excellent Hidden Forces podcast. ---EP. 193 REFERENCES--- Hidden Forces: https://hiddenforces.io/ Demitri Kofinas:   / kofinas   Mohamed El-Erian Episode: https://bit.ly/3poVQ7f ----SEE ALL EPISODES---- Alhambra YouTube: https://bit.ly/2Xp3roy Emil YouTube: https://bit.ly/310yisL ---HEAR ALL EPISODES---- Vurbl: https://bit.ly/3rq4dPn Apple: https://apple.co/3czMcWN Deezer: https://bit.ly/3ndoVPE iHeart: https://ihr.fm/31jq7cI TuneIn: http://tun.in/pjT2Z Castro: https://bit.ly/30DMYza Google: https://bit.ly/3e2Z48M Reason: https://bit.ly/3lt5NiH Spotify: https://spoti.fi/3arP8mY Pandora: https://pdora.co/2GQL3Qg Castbox: https://bit.ly/3fJR5xQ Podbean: https://bit.ly/2QpaDgh Stitcher: https://bit.ly/2C1M1GB PlayerFM: https://bit.ly/3piLtjV Podchaser: https://bit.ly/3oFCrwN PocketCast: https://pca.st/encarkdt SoundCloud: https://bit.ly/3l0yFfK ListenNotes: https://bit.ly/38xY7pb AmazonMusic: https://amzn.to/2UpEk2P PodcastAddict: https://bit.ly/2V39Xjr --------THE TEAM-------- Jeff Snider, Head of Global Investment Research for Alhambra Investments. Master of ceremonies, Emil Kalinowski. Illustrations by David Parkins. Audio and video editor, Terence. Episode intro/outro music is "Hong Kong Story" by Lazer Boomerang. -----FIND THE TEAM------ Jeff:   / jeffsnider_aip   Jeff: https://alhambrapartners.com/author/j... Emil:   / emilkalinowski   Emil: https://www.EuroDollarEnterprises.com David: https://DavidParkins.com/ Terence: https://www.VisualFocusMedia.com Lazer Boomerang:   / lazerboomerang   Lazer Boomerang:   / user-14207639   -----FIND THE TEAM------ Jeff:   / jeffsnider_aip   Jeff: https://alhambrapartners.com/author/j... Emil:   / emilkalinowski   Emil: https://www.EuroDollarEnterprises.com David: https://DavidParkins.com/ Terence: https://www.VisualFocusMedia.com ----------TAGS---------- #JeffSnider #HiddenForces #MohamedElErian #FederalReserve #QE #PolicyError #MonetaryPolicy