Tags: El-Erian | pimco | President | Compromise

Pimco's El-Erian: Next President Must Be Ready to Compromise

Thursday, 12 Jan 2012 07:47 AM

Whoever wins the presidential election in November must move to the center and finally solve serious problems facing the U.S. economy in a pragmatic fashion, says Mohamed El-Erian, CEO of Pimco, the world's largest bond fund.

President Barack Obama might drift toward the left to appease those identifying with the Occupy Wall Street crowd this campaign season, while the GOP nominee will drift to the right to cater to Tea Party voters.

The winner needs to rush closer to the center and stop the finger-pointing and bickering that has defined American politics as of late.

71% Disapprove of Obama on the Economy — Gallup Poll
And 76% of Americans think it will get worse! Find out how you can immediately improve your own financial situation by watching the Aftershock Survival Summit now.


"Whoever wins the November elections will have to lead and unite the nation in order to strike the correct balance in three key economic areas — and it is possible to do so, although there are no guarantees: between tax and spending reform, between immediate stimulus and medium-term debt and deficit reduction, and between incentives for businesses and stronger social safety nets," El-Erian writes in a Huffington Post op-ed piece.

The winner must also tackle tough reforms to entitlement programs like Social Security and Medicare to avoid displacing one generation's debt on the shoulders of another.

"The current generation of baby boomers possesses a range of tax breaks and historical contracts that expanded (and seemed to make sense) during America's 'great age' of leverage, debt and credit entitlement," El-Erian writes.

"However, in today's environment of low growth and de-levering, they can only be sustained by fairer burden sharing within this generation. If this shared responsibility does not materialize, the country will end up placing an even greater burden on other generations."

Former Massachusetts Governor Mitt Romney trails Obama in the polls, but not by much.

Romney would get 43 percent of the votes compared to the Obama's 48 percent, according to a Reuters/Ipsos survey.

Obama's ratings have improved with the economy, and Romney will go up the longer he remains the Republican frontrunner.

"Now that Mitt Romney looks like he's got a clearer path to the Republican nomination, his standing is improved as well, so this race is tightening between Romney and Obama," says Ipsos pollster Chris Jackson, according to Reuters.

© 2015 Moneynews. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved