Global trade disruption is a symptom of a deeper malaise | Mohamed El-Erian

Resolving US-China trade war is not enough to ward off what many fear is a looming worldwide recession It is only a matter of time until the escalating tensions between China and the US prompt many more economists to warn of an impending global economic recession coupled with financial instability. On 5 August, Bloomberg News Larry Summers, a former US treasury secretary who was also closely involved in crisis-management efforts in 2008-09, recently The Only Game in Town, all of these recent developments and also, of course, the growing US-China tensions are related in a meaningful way to two basic and persistent features of the global economy since the 2008 financial crisis. The first is the prolonged period in which …