Deficit a Remarkable Consolidation: Pimco's Clarida

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

March 4 (Bloomberg) -- Richard Clarida, global strategic advisor at Pimco, discusses U.S. budget reductions and Ukraine’s potential impact on global markets on Bloomberg Television’s “Bloomberg Surveillance.”

Can we get back to a surplus?

Can we get back to that surplus?

That is certainly not on the near-term horizon.

What is important to note, three years ago the deficit was 10% of tdp and this year, 3%. it wasn't pretty.

It didn't look like the civics textbooks, but we have a lot of deficit reduction.

We had the ryan murphy agreement.

It basically takes fiscal policy off the table for the next two years.

Barring a dramatic or election outcome in november, the administration will be status quo for 2017. are you willing to say austerity in the u.s. worked while austerity in europe did not work question mark -- work?

We were able to register economic growth.

It has been sluggish.

Europe has not been able to pull it off and a big impact of the fed he been the economy supported.

The former fed governor, wonderful textbook, i don't think calvinist there is in the textbook.

How do you respond to the political debate that it is morally good to have less of a deficit?

How does an economist respond to that ancient thought?

The big picture is, if you're going to be borrowing money as a government, you need to put it to a good purpose either enhancing productivity or providing defense or essential services.

The u.s. has the advantage of being a reserve currency country.

We can issue treasuries at low interest rates.

That is essentially what supports our fiscal -- we could talk all morning about fiscal multipliers.

Unfortunately, mr.

Putin is speaking in russia.

I believe he is in his residence.

He is looking casual this morning.

You can't beat some of these headlines -- he has his shirt on.

That is an exclusive.

Clarida takes a shot at putin.

A tie and jacket for mr.

Putin.

Bc is he met with the d'amico which and he -- he says he met with viktor yanukovich and he is alive.

He has no sympathy for him.

Take a look at the features.

Your cohorts in crime suggest, do we just ignore all of this ukraine chat?

The reality is, there is no serious prospect of the u.s. or nato escalating this.

As tragic as it is for the ukrainian people, it looks as though it is now not going to become a larger geopolitical impact.

That is why you see the markets rebounding.

It is a cultural issue.

I thought david brooks was good this morning talking about the history back to peter the great and beyond, of the russian character.

It is my morning must read this morning.

Does that capture the image.

I wonder because a kremlin aide said russia would stop repaying debt to u.s. banks and abandon the dollar in the event of economic sanctions.

Is that likely or even possible?

That was a little saber rattling.

Or either of those to happen, especially failing to pay back the banks, that was certainly get on everyone's radar screen.

The threats about dropping the dollar, i don't think a big, big picture issue right now.

We saw vladimir putin walk away that press conference and we see futures jump of 20, now up 22, dow futures up 182. the markets breathing a sigh of relief.

Are some specific equities affected by this.

I wonder if you think we will see a big turnaround?

A software company were most of their business or much of it is based in ukraine, the stock was down 23% yesterday.

Do you think we will see a quick turnaround?

I would not pretend to be a geopolitical expert and he can be a challenging period for ukraine.

I was speaking more broadly.

The real issue is, ukraine essential from getting the gas to the rest of europe.

How coordinated our central banks in a crisis like this?

Does yellen speak to druggie who speaks to carney?

In past episodes, they've been very coordinated with phone calls and communications, absolutely.

You know exactly what is going on.

As he mentioned that the markets moving, the ruble has rebounded a bit that trading a record low against the dollar.

Do you see money out of russia, out of ukraine many to safer havens like u.s. real estate?

I think it is too soon to say it is driving russia money and a florida or elsewhere, that we have seen over the past two years, huge amount of money coming from russia, venezuela, and other places with high oil places.

-- high oil rises.

Thank you.

We will discuss the state of u.s. housing next.

We also went to bring up starbucks.

It is heating up the battle for your breakfast dollar.

A look at the new breakfast menu items and a frightening map for

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change