Mohamed El-Erian

The good news is there's a long runway because there's no one here to step in.

The good news is there's a long runway because there's no one here to step in.

But you have to be careful.

But you have to be careful.

And I didn't even mention that our fiscal position is bad and getting worse.

And I didn't even mention that our fiscal position is bad and getting worse.

We're now looking at a fiscal deficit as high as 7% of GDP, which is very high when your unemployment rate is as low as 4.3%.

We're now looking at a fiscal deficit as high as 7% of GDP, which is very high when your unemployment rate is as low as 4.3%.

Yeah.

Yeah.

And answering the question is hard because these dynamics are nonlinear, right?

And answering the question is hard because these dynamics are nonlinear, right?

It takes a lot longer than you expect to begin with, and then it happens a lot faster.

It takes a lot longer than you expect to begin with, and then it happens a lot faster.

You know, we used to be respected for two principles.

You know, we used to be respected for two principles.

One is what was called the Washington Consensus.

One is what was called the Washington Consensus.

It was very simple.

It was very simple.