By Dark Politricks
This is the latest edition of BBC News Hardtalk programme in which Mohamed El-Erian the CEO of the large investment firm PIMCO is interviewed about the global economy.
PIMCO is one of the world’s largest bond investors and manages approximately $1.34 trillion of assets.
It’s an interesting interview and he uses a number of good analogies to discuss the current problems in the global economy.
It is particularly interesting to hear his thoughts on the massive wealth inequality that is only widening across the western world and he believes that this gap needs to be shortened for the financial system to get back on track.
As this site has discussed many times we are not currently living under a true capitalist society and the massive crash that occurred 3 years ago has only widened this wealth inequality between the richest few and the majority of people.
It has also led to crony capitalism in which banksters get to keep their massive profits and bonuses whilst the taxpayer has been forced to bear their huge losses through our bailing out of the banks all in the hope it would fix the problem, lead to an increase in lending to small businesses and create more jobs. None of this happened.
Instead we are now living in an inversed socialist society in which the top 1% are allowed to keep their private gains from dubious and frequently illegal activities but any losses are spread out across the whole of society. It is blatantly not fair that the poorest are being forced to pay for the mistakes of the richest through cuts to services and rises in taxes as well as pay cuts and high inflation.
It seems that even the biggest capitalists on the planet agree that something “just aint right” with our current financial system.
Mohamed El-Erian links the Occupy Wall St protests, the European unrest and the Middle East troubles all together as a sign that people all across the world are starting to realise they have been played. If the problem isn’t fixed properly things are only going to get worse in his eyes.