El-Erian: Syria Conflict Shows More Divided World

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Sept. 6 (Bloomberg) -- Pimco CEO and Co-Chief Investment Officer Mohamed El-Erian discusses the Syrian crisis with Betty Liu on Bloomberg Television's "In The Loop." (Source: Bloomberg)

You're watching "in the loop" live on bloomberg television and streaming on your tablet, your phone, and bloomberg.com.we are back with mohamed el-erian.

I want to get your take on the conflict in syria.

You wrote an article just a few days ago that appeared in "the atlantic," were you talk about the u.k. parliament rejection of action in syria.

This is key for you -- this speaks to you.

It speaks to a divided world, where it is very difficult to get everybody to agree.

In markets, why do we care about this?

There are certain collective issues.

Supervision and regulation is not being pursued in a coordinated fashion.

You get different domestic approaches.

The spillover effect of monetary policy denied or not handled well enough.

When you look around, you realize it is harder these days to get a global response.

In terms of a global response, you could look to the fed as an example of that.


The fed holds the view that it is pursuing domestic objectives using domestic tools, just like the bank of japan said it is.

The spillover effect on other countries has been significant, both when they started the unconventional policies and other they are starting to talk about taper.

There is a need for someone to look at the whole picture, the whole global picture and give that perspective.

At the g20 meeting -- vladimir putin is speaking -- you see very little of that cooperation.

It has been frosty between the u.s. and russia, and quite divisive in terms of what is going on.


You have moved from what should happen to what is likely to happen.

It is likely to be difficult to get global responses to most problem's, and individual countries in particular -- the u.s. will face difficult choices.

Where are things going to go, then?

It is a more fragmented world.

Would you ask the question about international money -- when you ask the question about international money, you cannot replace something with nothing.

There is nothing to replace the u.s. right now.

We will continue to play the role of the provider of public goods.

It will be a more fragmented global system.

It will mean the more tension we see, the more of this divisiveness, that money will continue to flow into the u.s. market.

It does, as long as we don't mess up.

It is an important message to give to investors around the world, which is that -- be careful and focus on the flows and fundamentals.

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


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