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: https://twitter.com/kofinasMohamed El-Erian Episode: https://bit.ly/3poVQ7f-----SEE ALL EPISODES-----Alhambra YouTube: https://bit.ly/2Xp3royEmil YouTube: https://bit.ly/310yisL----HEAR ALL EPISODES-----Vurbl: https://bit.ly/3rq4dPnApple: https://apple.co/3czMcWNDeezer: https://bit.ly/3ndoVPEiHeart: https://ihr.fm/31jq7cITuneIn: http://tun.in/pjT2ZCastro: https://bit.ly/30DMYzaGoogle: https://bit.ly/3e2Z48MReason: https://bit.ly/3lt5NiHSpotify: https://spoti.fi/3arP8mYPandora: https://pdora.co/2GQL3QgCastbox: https://bit.ly/3fJR5xQPodbean: https://bit.ly/2QpaDghStitcher: https://bit.ly/2C1M1GBPlayerFM: https://bit.ly/3piLtjVPodchaser: https://bit.ly/3oFCrwNPocketCast: https://pca.st/encarkdtSoundCloud: https://bit.ly/3l0yFfKListenNotes: https://bit.ly/38xY7pbAmazonMusic: https://amzn.to/2UpEk2PPodcastAddict: 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: https://twitter.com/JeffSnider_AIPJeff: https://alhambrapartners.com/author/jsnider/Emil: https://twitter.com/EmilKalinowskiEmil: https://www.EuroDollarEnterprises.comDavid: https://DavidParkins.com/Terence: https://www.VisualFocusMedia.comLazer Boomerang: https://www.facebook.com/lazerboomerang/Lazer Boomerang: https://soundcloud.com/user-14207639