El-Erian Defends Dimon: "He's Right To Sound The Alarm... Comments Don't Make Him Un-American!"

Authored by Mohamed El-Erian via Bloomberg.com,

The blunt remarks by Jamie Dimon, the highly successful chief executive of JPMorgan Chase, during a conference call on July 14, have triggered a wide range of reactions, from supportive to accusations that he is anti-patriotic:

It's almost an embarrassment be an American citizen traveling around the world and listening to the stupid shit we have to deal with in this country and at one point we all have to get our act together. 

Put in a proper context, the comments speak to four consequential realities in the U.S. and global economies:

1. Dimon's main worry, which is rightly shared by many in this country, is that by unnecessarily increasing contextual uncertainty and delaying the implementation of sensible economic policies, political gridlock in Washington has for years undermined growth, made it less inclusive, and denied many Americans the higher level of prosperity that is both desirable and feasible.

 

2. Dimon was correct in observing during the call that, despite the "dysfunction" in Washington, the U.S. economy has still managed to deliver annual growth in the 1.5 percent to 2 percent range -- an outcome that illustrates the resilience of the private sector. Yet the longer this low growth equilibrium persists, the greater the downward pressure on the country's potential and its future prosperity.

 

3. Given the role and importance of the U.S. in an interconnected global economy, much of the rest of the world -- and especially America's friends and allies -- has gone from looking at this situation with curiosity and bemusement to confusion and concern. For decades, America's traditional values, institutions and entrepreneurship have been the source of inspiration for efforts to improve the well-being of many people around the world. And America remains a very important growth locomotive for the global economy, and its most important anchor of financial stability.

 

4. American credibility and leadership still form the most critical elements for effective global policy coordination. Without them, the global economy will be subject to the uncertainties and challenges that come with greater fragmentation pressures, including the redefinition of regional economic orders that will be difficult to add up well at the international level.

It is one thing for foreign business and government leaders to express concern about the damage of U.S. political dysfunction. It is quite another for such comments to come from one of the country's most influential and respected CEOs. In doing so, Dimon rang an alarm bell about both foregone opportunities at home and eroding influence internationally.

The timing of Dimon's remarks also was important.

Delays in formulating and passing pro-growth legislation (such as tax reform and infrastructure investments), together with the diminishing effectiveness of Federal Reserve policies in continuing to buy time for the economy, exposes the U.S. to a higher risk of a downward drift. The low level of global policy coordination, as illustrated most recently by the outcome of the G-20 meeting in Germany, would make the potential economic, political and social consequences of such a move even more disturbing were it to occur.

Rather than dismiss Dimon's remarks as anti-patriotic and the product of an unfortunate outburst, the nation would be best served if they were to provide a wakeup call for Washington, which remains divided, distracted and continues to fall short in stepping up to its important economic governance responsibilities.

Comments

Bryan Mon, 07/17/2017 - 09:03 Permalink

Sounding the alarm a day late and a dollar short; you can bet he's talking his book.  We are already past the threshold of any possible recovery to 'normalcy'.  The cliff is approaching quickly but thanks for the warning, Chicken Little.

eclectic syncretist strannick Mon, 07/17/2017 - 09:20 Permalink

Wait. A dude named Mohammed is telling us that Dimon is actually an American Patriot, simply because he belatedly made the already widely known observations that many American politicians do not behave patriotically?Dimon created this shithole economy when he bribed the politicians to bail out his bankrupt company, and then proceeded to run it further into debt, all so that he could pad his ass a little. Fuck Jamie Dimon and El-Erian! It's time for a new paradigm.

In reply to by strannick

Ghordius Bill of Rights Mon, 07/17/2017 - 09:11 Permalink

perhaps, just perhaps, you put the finger in the woundsome people are known to listen to those who have large bank accountsI call that "Calvinism Light", a kind of "if he is rich, it's a proof that the Almighty loves him, and so he has something worthwhile to say"disclaimer: I am not trying to besmirch Calvinism, only that simplistic viewhow about listening to... experts? oh, damn, that's a bugger, isn't it? because there are lots of shills that portray themselves as suchnever mind, nothing said

In reply to by Bill of Rights

All Risk No Reward Ghordius Mon, 07/17/2017 - 11:13 Permalink

appeal to authority LOGICAL FALLACY = "listening to experts."

No, **YOU** have to do the research to understand the subject matter grammar. **YOU** need to logically assemble the grammar of the subject matter, verify there are no contradictions, verify the conclusion is not supported by logical fallacies, and make sure the conclusion is logically sound based on the grammar.

Otherwise, a real expert, or someone merely posing as an expert, will simply to your face and you won't know it.

This is the story of government for thousands of years.

Have we ordinary people learned NOTHING?

In reply to by Ghordius

Ghordius curbjob Mon, 07/17/2017 - 09:35 Permalink

again, I do not seek to besmirch Calvinism itself, the branch of Christianityonly this dreadful simplification that led Dimon to give that "I am richer then you, so shut up" or somethingnote that the Vatican, in that recent article against Bannon, the "Church Militant" etc. went in the same directionin a kind of "the Jesus of Catholics loves you regardless of your bank account, your wealth, your trappings and possessions in this life"I feel the need of putting this disclaimer because I'm still shocked about how lightly people here besmirch Other People's Religions/Churches/Faiths. a very... juvenile thing, in my eyes

In reply to by curbjob

Ghordius Tejano (not verified) Mon, 07/17/2017 - 09:43 Permalink

where is the need to go in such depths? stay on the level of "applied" Christendom for let's say some ten centuries, aka a cool millenniumin the tune of "the brother (in faith) should not lend to the brother (in faith)"why? well, because lending leads to animosity if things do not go the way they were projectedand the worst that can happen, from Christianity's point of view, is "brother turning against brother"in the middle ages, the smartyass workaround was Christians lending to Jews, which then lent to ChristiansVenice practiced this for a long time, as many other cities in the early times of bankingbanking crisis? throw out the Jews from the city, close the ghetto. reopen after a few years. wash and rinse and repeatwhat we have now, today, is a banking system centered on the state (hence fiat, btw)so there are two ways, now: moan about "the banks"... or do something about banking regulationsthe third alternative is to call for the Jews to be thrown out of the city, which is just as Venice did... and did again, and did again, so actually it's just wasted breath

In reply to by Tejano (not verified)

Tejano (not verified) Ghordius Mon, 07/17/2017 - 11:21 Permalink

The worst that can happen with usury is fractional reserve banking, fiat currencies, central banks, unbelievable wealth and income inequality in favor of the parasites, financial, economic and political oppression of the (former) middle class, a crap culture that glorifies perverts thugs and degenerates, dangerous uninhabitable cities and people giving a rat's ass about what an Egyptian says about a hebrew.If that's what you want just keep doing what you're doing.

In reply to by Ghordius

All Risk No Reward Ghordius Mon, 07/17/2017 - 11:23 Permalink

>>what we have now, today, is a banking system centered on the state (hence fiat, btw)<<

You couldn't be more wrong, Ghordius. A private cartel of international bankers run the money in every country in the West. And those countries not under their private monetary control have their governments overthrown and a central bank installed (Ukraine and Libya are two recent examples).

“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”
~Napoléon Bonaparte

"The true equation is 'democracy' = government by world financiers...The main mark of modern governments is that we do not know who governs, de facto any more than de jure. We see the politician and not his backer; still less the backer of the backer; or what is most important of all, the banker of the backer. Enthroned above all, in a manner without parallel in all past, is the veiled prophet of finance, swaying all men living by a sort of magic, and delivering oracles in a language not understanded [sic] of the people."
~J.R.R. Tolkien,
Candour Magazine, 13 July 1956, p. 12

“In our time, the curse is monetary illiteracy, just as inability to read plain print was the curse of earlier centuries.”
~ Ezra Pound

“There is natural ignorance and there is artificial ignorance. I should say at the present moment the artificial ignorance is about eighty-five per cent.”
~ Ezra Pound

The governments of the West are vassals of the Debt-Money Supremacists, NOT the other way around.

That's why when JP Morgan officials bribed Jefferson County officials (and Goldman Sachs to stay away!), ONLY THE COUNTY OFFICIALS WERE CHARGED WITH CRIMES, NOT THE JP MORGAN BRIBERS.

That's why when the Mega-Banks launder up to $378 billion in drug money, including the leasing of the drug running planes, there are no criminal charges... there is no drug money confiscation, there aren't even any firings... well, as long as you don't count the whistleblower...

How a big US bank laundered billions from Mexico's murderous drug gangs
https://www.theguardian.com/world/2011/apr/03/us-bank-mexico-drug-gangs

Yeah, they got fined less than half a penny on the dollar.

So, what was the government's involvement in this drug / money laundering operation?

They gave guns to the drug cartel that worked with Wachovia to launder the money...

ATF gunwalking scandal
https://en.wikipedia.org/wiki/ATF_gunwalking_scandal

You do know that 2+2=4, even in politics, right?

At least make them torture you before you go around selling the idea that 2+2=5.

In reply to by Ghordius

Son of Loki Mon, 07/17/2017 - 09:06 Permalink

Billionaire Banker Dimon can go join the wookie who said she was not proud to be an America ... as the dumbed down Americans voted her husband into the wh. Fuck these spoiled shitheads.

Ghordius Mon, 07/17/2017 - 09:06 Permalink

reading El-Erian, I have to agree to his stancedefending someone like Dimon, though... I presume he had to puke a few times in between the writing of this piece. I would had to

Dubaibanker Mon, 07/17/2017 - 09:07 Permalink

El Erian and Dimon should both be sent to open JP Morgan branches in Afghanistan, Yemen, Iraq, Pakistan and Syria. Let us see who likes them out there?Insensitive misguided pricks with 200m in their accounts will always watch each other's backs!  

Dubaibanker Tejano (not verified) Mon, 07/17/2017 - 10:19 Permalink

This El Erian keeps giving his opnion on Linkedin and Bloomberg. His opinions are allowed because he gets paid in hundreds of millions to keep the masses in check as if he is a neutral voice.They should all be sent straight to hell instead preferably via a guillitone.What kind of professionals make USD 100m or USD 200m per annum unless they work for the devil?? 

In reply to by Tejano (not verified)

Nexus789 Mon, 07/17/2017 - 09:10 Permalink

The bankers and their tyranny of debt finance are the root cause of the problem. They create nothing and destroy much. Stupid article tries to exonerate the banks. 

Ghordius Nexus789 Mon, 07/17/2017 - 09:20 Permalink

modern banks are a special kind of company with a state backing, and a special, state-given right to dispend...... creditthat's it. that's their "product", that's what they sellnow, do I read you ranting about the non-return of the Glass Steagall Act? do I read you ranting against the 1999 trashing of the said Act?do I read rants about how the US Congress plans to trash all the existing limitations... further?no? then you are kind of supporting the thing by ranting about it without noting that it is not credit as such that is bad, but how it is dispensedexample: US Student Debttwo cardina sins: giving too much credit to too young people and... accepting the collateral of a whole person's life for it, and by that creating a new kind of serfdomyou won't "get rid of the banks, period". what you can do, though, is mitigate and limit the damage they can doproblem is, it's dreaded re-gu-la-tion, the thing too many people learned to hate, "just because"... and plenty of corporate propaganda

In reply to by Nexus789

kochevnik Ghordius Mon, 07/17/2017 - 09:32 Permalink

Bolshevik Banks do not have credit.  They only have debt, owed to themselves.  They have no consideration for their loans.  Their only consideration is their holohoax, their chosen race,  and a bullet to your headThe West is empty of credit.  It cannot give credit.  Only economy with hard assets like gold can give credit

In reply to by Ghordius

kochevnik Ghordius Mon, 07/17/2017 - 12:15 Permalink

Wrong.  The land has been financialized with counterfeit debt notes.  So that to claim title one must fetch many speculative Jewbucks in addition to the value of the land.  That is the tribute you must pay to the Bolshevik Banksters to claim a property right.  Yet they never owned the property, but simply block you from owning with the use of liens and an ant army of tenants who are content to rent everything in their lives, owning nothing, while banks hold mortgage, and thus the exclusive right to lend out their worthless counterfeit Jewbucks to an even greater foolIn the end Bolshevik Banksters hold title to the planet while all others are rent seeking tenants, owning nothing.  Not even a means of feeding themselves

In reply to by Ghordius

Midnight Rider Mon, 07/17/2017 - 09:13 Permalink

"the U.S. economy has still managed to deliver annual growth in the 1.5 percent to 2 percent range -- an outcome that illustrates the resilience of the private sector"Wrong - it illustrates that we have doubled our national debt over the past 8 years.

friendly manitoba Mon, 07/17/2017 - 09:22 Permalink

Too many Americans get a vote - should be an IQ test - 50 gets you a ballot.

Then if you try to buy an election with promises of of free shit and dont deliver you are banned from running again - forever.

Pass a law limiting campaign spendiing - max $1000 per voter - fk u kok bros .

Pass new legislation banning the shit that fox and cnn does - should be equal time for each candidat and NO opinion pieces - just report the news fkheads .

Ban anonymous posting like mine here - if if you have an opinion - sign your name .

Encourage new candidates to run and treat them decently - when someone slanders a candidate make sure the prk doest do it again - one lash should do it.

Overall the world is a great place - just need to tweak a few things and start sniping the bad dudes - n korea , turkey come to mind .

And napalm the crap outa the poppy fields and cocaine fields - we need a war on drugs that takes no prisoners - ban cigarettes to start . Just direct bill the hospital and dr bills to the smokers would do it .

Cheers - have a good day

iamerican4 (not verified) Mon, 07/17/2017 - 09:28 Permalink

As America's named Sovereign is God Almighty, the Creator of the universe - the biblically foretold "Zion" now under attack by the Anti-Christ's Fifth Column Beast of (((Gog))) and Babylon (viz. Eze. 38:11) - and until recently, since time immemorial only naked men and boys circumambulated the Kaaba, no one named "Mohamed" will ever have the standing to say who is or is not of "the righteous remnant of the House of Israel" - "American": for pedo homo rapist "Allah," god of the abominations of "birds flying over Kandahar with one wing;" Sodom and Gomorrah; and pharaonic Egypt, is Satan.