Mohamed A. El-Erian warns that the willingness to keep spending will eventually outpace the ability to do so.
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Economics
Jun 5, 2026
Mohamed A. El-Erian
Markets are flying high despite geopolitical turmoil because a broad-based willingness to keep spending has been matched by an ability to keep doing so. But as more economic participants exhaust their means and rely on debt, a painful moment of truth will arrive—sooner rather than later if the Strait of Hormuz remains closed.
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