Financial News/Mohamed A. El Erian/5-15-2022
“Big shocks to the global economy, such as Russia’s invasion of Ukraine, understandably capture the most attention. But a new worldwide pattern of little fires everywhere may be equally consequential for longer-term economic well-being. Over time, these small fires can coalesce into one that is just as threatening as the initial large fire that acted as the catalyst.
USAGOLD note: Remember nuclear proliferation? Now, according to El Erian, we have nothing less than systemic risk proliferation coming at us from multiple directions. “If that nightmare scenario materialises,” he warns referencing the risks listed in the headline, “the effects will be felt far beyond individual developing countries – and will extend well beyond economics and finance.” As we pointed out in the May issue of News & Views, today’s headlines serve as a constant reminder of why we own gold.
