With Both Presidential Candidates Full Of Hot Air, El-Erian Warns Of Populist Anger Returning

Tyler Durden's picture




 

As the 'new' normal limps on, PIMCO's Mohamed El-Erian focuses his attention on the political dysfunction that roils the 'new new' normal in an excellent op-ed in Foreign Policy today. The economic and financial system risks breakages that the political system will be increasingly incapable of mending rapidly enough," he opines as he fears sluggishness in economic growth, unacceptably high youth unemployment and long-term joblessness, redoubled debt and deficit concerns, and worsening inequalities between rich and poor leading the US down a path towards Europe's disruption.

Via Foreign Policy:

"Sadly, neither Obama nor Romney has yet offered a meaningful, forward-looking economic reform program to address problems such as a malfunctioning labor market, unsustainable public finances, a broken credit system, inadequate infrastructure, and a lagging education system.

 

The risk for the United States, as well as the global economy, is that a lack of vision and political courage ends up leading to even greater economic disappointment and financial instability, bringing with it the social unrest we've seen in so many other countries over the past 18 months. Occupy Wall Street and the Tea Party may have somewhat fizzled, but populist anger could return with a vengeance.

 

The longer America's interlocking economic and political challenges persist, the greater the number of companies and long-term investors that begin to worry -- and, more importantly, act on those fears. They hire fewer people and invest less in factories and equipment. As they increasingly sit on the sidelines, the country's fate will be left in the hands of tactical position players and short-term traders, further ramping up volatility and reducing future growth and job opportunities. And when day traders and company flippers start running a country's economy, watch out.

 

The warning bells are ringing, and they are ringing loudly. We've already allowed bad economics to lead to bad politics. Now, it's high time to put a stop to the cycle where bad politics undermines an already fragile economy."

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Mon, 08/13/2012 - 13:38 | 2701158 Paul Atreides
Paul Atreides's picture

Hows this for alarm bells: DHS have put an order in for another 750 million rounds of assorted ammunition on top of the previous order of 450 million.

You can view a pdf of the order here.

Mon, 08/13/2012 - 13:38 | 2701161 Dr. Engali
Dr. Engali's picture

Shit you beat me to it. I was just getting ready to post the same thing. I just got done reading about it.

Mon, 08/13/2012 - 13:40 | 2701163 fuu
fuu's picture

Fun with Anagrams:

 

Barack + Joe = A Bare Jock

Mitt + Paul = A Tit Lump

Election 2012: The Dick or the Cancer, either way we're fucked.

Mon, 08/13/2012 - 13:58 | 2701230 economics9698
economics9698's picture

Gary Johnson 2012.

Mon, 08/13/2012 - 14:04 | 2701251 Pladizow
Pladizow's picture

Birth, Growth, Maturation, Decline & Death - Where is America?

Mon, 08/13/2012 - 14:12 | 2701269 Skateboarder
Skateboarder's picture

lol collectively that's more than a billion rounds of ammo.

Two or three bullets for one and all
However large or however small
In your head or heart, even in your bum
Lest you go to camp and duly succumb

Mon, 08/13/2012 - 14:25 | 2701332 francis_sawyer
francis_sawyer's picture

More fun with anagrams...

"I am" (which is supposedly the name God gave himself to Moses) = M.I.A.

Mon, 08/13/2012 - 14:36 | 2701386 fuu
fuu's picture

President: I Pretends

United States: Unstated Ties

Mon, 08/13/2012 - 14:58 | 2701449 Hugh_Jorgan
Hugh_Jorgan's picture

"Sadly, neither Obama nor Romney has yet offered a meaningful, forward-looking economic reform program to address problems..."

Uh, excuse me? It looks like Romney just nominated the man with the most cohesive, well-vetted economic plan to date as the candidate for VP.

Mon, 08/13/2012 - 14:58 | 2701486 Paul Atreides
Paul Atreides's picture

The most cohesive, well-vetted economic recovery plan to date = Austerity for the masses while more money is shoveled into the military-industrial complex.

Mon, 08/13/2012 - 15:01 | 2701508 The Big Ching-aso
The Big Ching-aso's picture

 

 

Maybe rename it Department of Hollowpoint Security?

Mon, 08/13/2012 - 15:08 | 2701546 ParkAveFlasher
ParkAveFlasher's picture

USDs = suds

Mon, 08/13/2012 - 15:14 | 2701576 Paul Atreides
Paul Atreides's picture

Hahahaha +1

Mon, 08/13/2012 - 15:38 | 2701672 Things that go bump
Things that go bump's picture

I've always wondered whose homeland they were securing.

Mon, 08/13/2012 - 18:36 | 2702242 NewAmericaNow
NewAmericaNow's picture

I almost spit up my drink at the cluelessness of your comment. Obama wants socialism for healthcare and NATO and the UN to run our "humanitarian" assasinations but Ryan's idea is let Blue Cross and GSK run healthcare and Lockheed martin and Goldman Sachs run the pentagon. Not what I'd call Free Market principals either. The time is right for the end of Elephant and Donkey political theory.

Mon, 08/13/2012 - 21:25 | 2702691 cynicalskeptic
cynicalskeptic's picture

Neither the Elephant ior Donkey are going to give up their reserved seating at the public feed trough.  

They will BOTH do whatever is needed to hold onto power and keep the masses from actually demanding that thir 'representatives' actually serve THEM instead of pandering to thecorporate/uber wealthy oligarchy.

Better hope that our military and police uphold their oaths of office and defend the Constitution form all enemies - foreign or DOMESTIC.......nah.... they can always hire  Blackwater/XE/whatever eh latest incarnation of corporate mercenaries is called to put down any revolt.  Look at the reaction to OWS...... MASSIVE OVERKILL.   I wonder how bad they'll be towards protestors at the political conventions.....  Want to bet that the 'Free Speech Zones' will be conveniently located at the enarest FEMA camp. 

Mon, 08/13/2012 - 14:32 | 2701365 Bastiat
Bastiat's picture

Hah!  Al Qaeda in America will not have a chance!!!!

Mon, 08/13/2012 - 14:52 | 2701460 Everybodys All ...
Everybodys All American's picture

like a 90 yr old with Alzheimer.

Mon, 08/13/2012 - 14:06 | 2701258 AldousHuxley
AldousHuxley's picture

Not all is lost. There is one way to beat the system.

 

you have to join the system and play the game.

 

just like banksters have lobbysts, middle class need to organize and pay for their lobbysts. The amounts aren't that much....<$1M. If everyone who works for a living donated $1 to the "middle class lobby", the funding will be staggering $150,000,000. pretty much buy any politician you want.

 

 

Mon, 08/13/2012 - 14:30 | 2701319 Paul Atreides
Paul Atreides's picture

With infinite printing capabilities, and numerous secret groups and initiatives it took the banks 100 years to capture the USA. You think that rallying the mindless drooling masses into giving up their piggy banks for lobbying is going to work?

Mon, 08/13/2012 - 14:40 | 2701401 knowless
Mon, 08/13/2012 - 14:41 | 2701405 fuu
fuu's picture

Kickstart that idea!

Mon, 08/13/2012 - 15:11 | 2701561 slewie the pi-rat
slewie the pi-rat's picture

it's time has come!

tell the AARP!  and don't forget the public employees and teachers, too!

hey!  maybe thePeople could form a political party? 

or work to get gold and silver coinage back into circulation, thru political speech!

and pretend they are A.Hux and not an asswipe fuking trolololio... too!

Mon, 08/13/2012 - 15:30 | 2701638 fuu
fuu's picture

My apologies for annoying you sir.

Mon, 08/13/2012 - 15:27 | 2701624 bank guy in Brussels
bank guy in Brussels's picture

Ha! Would never work in America ... they would squash it before it got too far ... the media would slander and bury the lobbying organisation while US judges shut it down and seized all the assets ...

Money only 'buys' politicians in the US when that is permitted ... if you aren't on the approved list of bribers, they will use other methods to seize the money and destroy the organisation ... Especially via various lawsuits or criminal accusations ...

It is one of the things that business people slowly learn in America ... Even unlimited money can't bribe against the US political insiders ... Unlimited money cannot get people justice in the US courts against them ...

There are cases of people offering US lawyers hundreds of thousands of dollars ... and no American lawyer would take the case, because representing that client would mean the lawyer losing his US law licence, or being jailed or dead ...

Our political refugee from the US in Brussels was one of those examples ... He was in a 200K American job when he had to leave America with the friends of George Bush threatening to kill him ... lawyers talked to him privately, telling him to get out before he was dead, but no US lawyer was ever brave enough to speak for him in a US courtroom ...

US politicians and judges and can only be bribed against political nobodies or weaker parties, not against Powers That Be insiders ... Otherwise people risk ending up suddenly dead, like US Federal Judge John Roll shot dead after ruling against Obama ... by a lone gunman of course who 'confessed' ... nothing to see here ...

Mon, 08/13/2012 - 15:40 | 2701675 RockyRacoon
RockyRacoon's picture

....pretty much buy any politician you want.

I'd rather have a good dog.  A damn sight cheaper... and more useful.

Mon, 08/13/2012 - 16:04 | 2701791 Ying-Yang
Ying-Yang's picture

Middle Class could open their own Central Bank!!! Yea, that's the ticket!

Mon, 08/13/2012 - 13:43 | 2701173 Manthong
Manthong's picture

Um.. What kind of training do you use jacketed hollow point ammunition for?

Mon, 08/13/2012 - 13:48 | 2701193 OTC_Options
OTC_Options's picture

It's generally only double the price of FMJs so, for a government expenditure, it's a fantastic savings. All kidding aside, I shoot a fair bit of it at the range 'cause it does shoot differently than FMJ.

Mon, 08/13/2012 - 14:12 | 2701254 Manthong
Manthong's picture

So an inch or so at 100 yards (rifle) makes a difference to how many feds?

(25 feet for pistol)

Mon, 08/13/2012 - 16:34 | 2701893 Uncle Remus
Uncle Remus's picture

Ah, but at 1000 yds., it's the diff between a hit or a miss.

Mon, 08/13/2012 - 13:48 | 2701198 1100-TACTICAL-12
1100-TACTICAL-12's picture

I sense a disturbance in the force... We will be lucky to make to the next puppet show in Nov...

Mon, 08/13/2012 - 14:01 | 2701229 Michael
Michael's picture

Anger like this?

Revenge votes for Obama is the solution. Black balling Dr Ron Paul was not a smart move this time.

No self respecting Ron Paul supporter will vote for Mitt Romney since he is a wholly owned subsidiary of the Rothschild's and Rockefeller banksters just as Obama is.

The Presidency is a wholly owned subsidiary of the international banking cartel, multi national corporations, and Goldman Sachs/JP Morgan.

Many millions of Ron Paul supporters like me will be voting directly for Obama in November in a political strategy so we can get a real Liberty candidate on the ballot in 2016.

If you don't like Obama next year, then impeach him for illegally attacking Libya, gun running fast and furious, and being disqualified for his forged birth certificate.

Fox news is an infomercial for the republicans and the GOP. MSNBC is an infomercial for the democrats, ABC, NBC, CBS, and CNN are left leaning, brainwashing, social engineering scum. Try not to get your news from them.

What's Romney gonna give me? Will he cancel the TSA/government 1.2 billion hollow point bullet order, abolish NDAA, and the Patriot act? Then fuck him.

Mon, 08/13/2012 - 14:06 | 2701244 Michael
Michael's picture

This is the deepest thought of the last decade nobody gets;

The war against a Military Tactic(Terrorism) used by The Base(in Arabic Al-Qaeda) is idiotic. The Base doesn't even have any tanks or boats.

Mon, 08/13/2012 - 21:37 | 2702741 cynicalskeptic
cynicalskeptic's picture

The US needed a new bogeyman to justify spending 40% of the world's total military budget after the Commies folded......    Sort of pathetic that the best they could come up with was a bunch of jihadists formerly in US employ against the Ruskies in Afghanistan but the masses fell for it....

Great excuse to revoke the Bill of RIghts - somethign we didn't even attempt on a wholesale basis during WWII or the Cold War when the threat to our nation was far more real.  'Terrorism' is a tactic employed by the WEAK who cannot muster anything remotely comparable to the power their enemy possesses.  There is now way in hell that even the combined nations of Islam cxould overgthrow the government of the US and impose an Islamic state here (not that the nations of Islam have any such desire - they just want the US out of THEIR countries).

Madison naied it 200 years ago - when tyranny comes to these shores it will be in the guise of protecting us against a foreign thereat.  Our Founding Fathers feared our own government ebing undermined and subverted by a few for their own purposes more than any outside threat. 

Mon, 08/13/2012 - 14:13 | 2701277 Paul Atreides
Paul Atreides's picture

"Many millions of Ron Paul supporters like me will be voting directly for Obama in November in a political strategy so we can get a real Liberty candidate on the ballot in 2016."

The bipartisan system is an illusion of choice between two groups that serve the same masters. The republic is broken and all branches of the government have been completely hijacked by private banks. Your voting strategy will achieve nothing and only serves to give approval to your current owners. Being a frequenter of ZH for almost 3 years you should know this by now, what is the purpose of your post?

 

Mon, 08/13/2012 - 15:13 | 2701573 Michael
Michael's picture

You answered your own question. It doesn't matter which presidential candidate you vote for. I'd rather have 4 more years of Obama than 8 years of Romney.

Mon, 08/13/2012 - 15:45 | 2701690 RockyRacoon
RockyRacoon's picture

I'm sympathetic to your position.   However, it seems that the devil we know is not going to be sufficient for many.  I find it odd that so many here who are willing to bring down the system won't vote for the person who would be best for the task.   Seems to me that the best choice would be the one who could do the most damage.

Mon, 08/13/2012 - 16:08 | 2701802 Ying-Yang
Ying-Yang's picture

Rocky.. are you working that raccoon reverse psychology on us?

Mon, 08/13/2012 - 14:19 | 2701300 CH1
CH1's picture

Like I say, it's time to dump the entire game, and build new systems ouselves.

The Overseers (all of them) are Evil.

Don't get angry, get away!

Mon, 08/13/2012 - 15:22 | 2701606 Anusocracy
Anusocracy's picture

Panarchism.

You can live next to a commie or fascist and not have to worry about their government.

Mon, 08/13/2012 - 14:33 | 2701368 El
El's picture

Oh, that makes a lot of sense. Really??? Why not write Ron Paul in if you support him, genius? I suspect many more RP supporters will be doing that than will be voting for either Romney or Obama.

Mon, 08/13/2012 - 16:35 | 2701897 Uncle Remus
Uncle Remus's picture

Luke, you're adopted...

Mon, 08/13/2012 - 13:59 | 2701233 Manthong
Manthong's picture

I suppose we shouldn't be too concerned..

a billion rounds or so for federal domestic use sounds reasonable.

Mon, 08/13/2012 - 14:25 | 2701328 Plymster
Plymster's picture

According to wikipedia (http://en.wikipedia.org/wiki/Jacketed_hollow_point), hollow points would be used in situations where you'd want less penetration (ie: on a plane).  Of course they have the not so pleasant (for the people hit with them) side effect of generating more tissue damage.  It seems like this is exactly what you wouldn't want in a crowd situation, but what you might want on a plane.

In fact, if you were a conscientious agent of public safety, you would want to train with this type of ammo thoroughly, to learn how to minimize collateral damage in public situations (crowds, tight spaces, etc).

Of course, the tinfoil hat in me says it would help cut down on witnesses, too.

 

 

Mon, 08/13/2012 - 15:18 | 2701588 knightowl77
knightowl77's picture

You do not use "hollow points" on a plane....you use frangible bullets

 

BTW hollow points are banned in war by the Geneva Convention which is why our military uses full metal jackets...the hollow points are for us...

Mon, 08/13/2012 - 15:54 | 2701717 RockyRacoon
RockyRacoon's picture

They were called dum-dums.  The GIs would whittle out the point, knowing what damage would occur.  They were then mass produced in India where the name was derived.  The proposition that the purchase of JHPs would be purposefully used against the populace has precedence in history:

"During the Hague Convention of 1899, the British delegation attempted to justify the use of the dumdum bullet by pointing to its utility when putting down colonial unrest. Barbara Tuchman writes that, "Developed by the British to stop the rush of fanatical tribesman, the bullets were vigorously defended by Sir John Ardagh against the heated attack of all except the American military delegate, Captain Crozier, whose country was about to make use of them in the Philippines. In warfare against savages, Ardagh explained to an absorbed audience, "men penetrated through and through several times by our latest pattern of small calibre projectiles, which make a small clean holes," were nevertheless able to rush on and come to close quarters. Some means had to be found to stop them. "The civilized soldier when shot recognizes that he is wounded and knows that the sooner he is attended to the sooner he will recover. He lies down on his stretcher and is taken off the field to his ambulance, where he is dressed or bandaged. Your fanatical barbarian, similarly wounded, continues to rush on, spear or sword in hand; and before you have the time to represent to him that his conduct is in flagrant violation of the understanding relative to the proper course for the wounded man to follow - he may have cut off your head." However, the rest of the delegates at the Hague Convention 1899 did not accept this justification and voted 22-2 to prohibit the future use of the dumdum bullet."

Mon, 08/13/2012 - 16:46 | 2701934 Uncle Remus
Uncle Remus's picture

Theoretically speaking, potential civilian defenders might want take that into consideration.

Smells like a "police action" but I'll bet a case of Lake City .223 55 grain FMJ that it'll be a domestic military operation.

Mon, 08/13/2012 - 14:55 | 2701477 Hugh_Jorgan
Hugh_Jorgan's picture

ZOMMMMMMMMBIE Training Sir!!!!!!!!!!

Mon, 08/13/2012 - 16:01 | 2701773 takinthehighway
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Bill Murray: "ARMY TRAINING, SIR!"

http://www.youtube.com/watch?v=zPaIixH6WnA

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