"PIMCO CEO Mohamed El-Erian on Bloomberg TV : the key issue is that there is still too much debt in the system we have not yet sorted out the debt issue the debt over hang , now like individuals governments can do three things , they can either grow their way out the debt that's unlikely in the US without what we call the spot nick moment which means structural reforms , they can impose austerity they can tighten their belt or they can default , but governments have two other possibilities that individuals do not have they can flee their way out of debt and they can impose what's called FINANCIAL REPRESSION which is very simple it means that the government ends up paying savers less than the way of inflation and slowly overcomes its debt issues by recapitalizing because its paying in negative real return we have seen this happen in the past and I suspect it will be attempted in the next 3 to 5 years ..."
at http://jimrogers1.blogspot.com/2011/05/mohamed-el-erian-government-will.html
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