The stark ‘de-risking’ choice facing economies
Financial Times/ Mohamed El-Erian/5-26-2023
“Slowly and surely, countries will now be pushed towards choosing between two strikingly divergent paths: collaborate more to strengthen multilateralism and its ruled-based framework, or embrace economic decoupling as an inevitable accompaniment to greater risk mitigation by individual states.”
USAGOLD note: El Erian makes a cutting-edge observation. Economics is no longer alone in determining the structure of national currency reserves. The combined forces of national security, “politics National security, and geopolitics are supplanting economics in shaping national and international interactions. An argument can be made that the level of fragmentation and uncertainty El-Erian elevates gold as the more reliable, long-term option.
