Mohamed El-Erian: America Is Exporting Its Debt Crisis

War with Iran, record diesel prices, and a global bond sell-off: how much more can the world economy take?

Mohamed El-Erian (Wharton, Allianz, former CEO of PIMCO) joins Sir Richard Dearlove (former head of MI6) and John Raine to explain what's driving the bond market sell-off, why the US is exporting instability to the UK, France, and Japan, and why AI is "80% asset, 20% liability." Plus: how PIMCO really navigated Lehman's collapse, and the one decision he's watching.

In this episode:

(00:00) Intro

(03:07) Why this crisis is different

(04:04) Permacrisis and "minilateralism"

(05:46) What's driving the global bond sell-off

(07:32) The hit to US households: mortgages, car loans, the K-shaped economy

(10:10) "Our yields, your problem": UK, France and Japan

(13:05) France, Mélenchon and Europe's leadership vacuum

(17:59) AI: 80% asset, 20% liability

(20:35) US-China AI Race