Pimco, Co-CEO Mohamed El-Erian - Pimco is a leading global investment management firm with more than $790.3 billion in assets under management as of September 30, 2008 – El-Erian is highly respected and extremely visible on CNBC and Bloomberg in the US. This was what El-Erian had to say on CNBC Europe, on Wed, Nov. 12’08. It’s good to see a major US money manager (non-gold person) see the US dollar for what it is:
"We're seeing a cyclical rebound in the dollar that has more to do with other countries than with the US. It has to do with the re-pricing of European prospects. It has to do with the unwinding of the carry trade. For now, the dollar is the beneficiary of things happening elsewhere. Once that is over, which it will be, we expect the dollar to resume on a secular decline. Part of that is because the system has to absorb about 2 trillion dollars of issuance by the US government over the next 12 months, and that is a lot of issuance – about 4 times of the maximum that’s been done previously.”
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