the head is mohammed el-erian. tyson said she doesn't think that ending qe2 will have much effect. el-erian said he isn't sure about that. they both agreed that weak growth and europe's sovereign debt crisis have left investors scratching their heads and wondering what to do. maggie asked tiszen a tyson and what is needed to get the economy moving again. the answer is leadership. >> i actually am becoming more optimistic that we will certainly see something on the debt limit and what seems to be going 0 in washington is an agreement that the discussion of the debt limit will be associated with a large multiyear commitment to the $4 trillion over ten years. we can, if we put enough into that statement that's credible,

world's largest bond trading firm, mohamed el erian. >>> next up, crime sourcing the u.s. constitution. i asked for your idea for amendments. we got an extraordinary response and we'll talk to jeff toobin about the realities of amending the u.s. constitution. all that and more, but first, here is "my take." >>> this week we got a look into the way barack obama's mind works. from his campaign on, obama has clearly felt that the united states has a lopsided foreign policy with too large a military commitment to certain crisis points on the globe. he has wanted to rebalance american foreign policy to shift the focus away from the problems the focus away from the problems the focus away from the problems the focus away from the problems of the past iraq, afghanistan, and focus on the challenges of the 21st century, the rise of china and asia more generally. this week, he announced a significant drawdown of troop, effectively reversing the surge that began 18 months ago. when he came into office, the united states had almost 200,000

mohamed el erian is the ceo of pimco, the world's biggest bond trader.rb book on markets and mayhem. he now joins me. thank you for joining us. >> thank you, fareed. >> let's start with just that question. for a long time, the europeans have tried to find some way that they could kick the can down the road, that they could provide some kind of assistance because i think they fear a lehman-like event, where if greece falls it causes a kind of shock to the markets. is it inevitable that greece will default? >> it is inevitable that greece would have to restructure its debt. you're absolutely right. europe has been kicking the can down the road, treating greek greece's problem not as a sol sen si issue but as a liquidity problem. i don't like the analogy of kicking the can down the road. i prefer a better one fashgs reed. think of rolling a snowball down a hill. two things happen when you do that. first, the snowball or the problem gets bigger. and secondly, the dynamics start accelerating and becoming more disorderly. that's exactly what's happening in gre

mohamed el-erian is the ce off of pimco, and he's written a sue push back on marketsoff of pimco, anda sue push back on markets and mayhem. he joins me. let's start with just that question. for a long time, the europeans have tried to find some way that they could kick the can down the road, that they could roy some kind of assistance because i think they fear a lee maaym leh event. >> you're right, europe has been kicking the can down the road treating greek's problem as a liquidity problem. i don'tic look the analogy of kicking the can down the road. think of rolling a snowball down a hill. two things happen when you do that. first, the snowball or the problem gets bigger. and secondly, the dynamics start accelerating and becoming more disorderly. that's exactly what he's happening in dre happening in greece. degrees has two problems. it has too much debt and cannot grow. and until these problems are solved, more and more of europe is going to be contaminated. we had a massive bailout a year ago in greece. massive. a year later, every single indicator in greece is worse off. >> one

maggie lake with mohammed el-erian and laura tyson. >>> the u.s. treasury officials say without an increase in the debt limit the u.s. will have trouble paying its bills on august 2nd. before that on june 30th. greece's parliament is set to vote on austerity measures that the eu is demanding as a condition for a second bailout. this could be a long summer and it could be quite eventful. let's turn to another seemingly intractable problem, afghanistan. on wednesday, the u.s. president barack obama laid out a schedule for pulling tens of thousands of u.s. troops out of the country. >> starting next month, we will be able to remove 10,000 of our troops from afghanistan by the end of this year. and we will bring home a total of 33,000 troops by next summer. >> cnn money has tallied the cost of the afghanistan conflict and how much the u.s. might save by pulling those troops out. take a look at this chart over here. as you can see clearly through this red line, just how costs have skyrocketed after the u.s. deployed tens of thousands of more troops in 2

joining us now with more analysis, mohamed el-erian, c.e.o. of pimco and co-chief investment officer of the world's biggest bond fund. hi, nice to have you with us. >> thank you, sus yee. >> susie: we have lots to talk about. let's begin with greece, how do you think this whole greek drama is going to play out? >> it's going to play out over time. it's both an engineering problem and a political problem. and they've got so many people involved. you've got the greek government, the official creditors. so we should expect a lot of volatility. lots of conflicting news and ultimately the reality is, susie, it's very difficult to solve. >> all right. now today deutsche bank c.e.o. said that if the greek problem spreads to other countries it could top lehman brothers in terms of contagion for the world financial system. tell us what you see as the best scenario that investors can expect and the worst. >> the best scenario is that we get a greek population that is willing to sacrifice for a number of years. official creditors willing to put in money

maggie lake has been speaking to mohammed el-erian of pip co-the biggest bond holder in the world and also to laura tyson from university of california who chaired bill clinton's council of economic advisors. >> what is going to happen to the economy when the fed withdraws this extraordinary stimulus they've put in place? >> well, i think that the fed has made it perfectly clear that it's going to do it. it's made it perfectly clear when it was going to do it. i think the market has absorbed that information. the fed has also made it perfectly clear they're going to continue with their low interest rate policy for the foreseeable future. they've made all of their reasoning apparent. so i actually think it's not a source of uncertainty in the markets. there's a lot of uncertainty out there. there's the greek debt uncertainty. there's oil prices. >> people -- i think there's concern that the economy has been on life support and it's not strong enough once you take away that. do you think it can stand on its own without that support? >> i think the view has been clearly articulated that