Pacific Investment Management Co.’s Mohamed El-Erian called the recent declines in purchasing manager indexes in Europe and Asia “frightening” and said the world economy is suffering its severest slowdown since the global recession ended in 2009, reports Bloomberg.
“This is a serious, synchronized slowdown,” El-Erian said in an interview today.
El-Erian is correct. He may not know what is behind it, but he sees the economic data.
For the record, there is slowed, little or no monetary growth in the eurozone, China and the United States. Because of this, a global stock market and economic crash is very likely, probably before the US elections.
There is a small chance the downturn can be reversed if the Big Three central banks begin a huge money printing campaign, pronto, but there is no indication at this time that any of them are going to open the monetary spigots.
Watch out below.