An EM Debt Crisis Is Really A Dollar Crisis 2

Emerging market debt crises are more often than not global Dollar crises

How would an emerging market collapse come about?

Again using the mainstream narrative/paradigm as a starting point, such a collapse comes about from capital outflows. This is just a fancy way of saying that money will move out of one country and into another.

Common reasons for such outflows include political upheaval in a country, more often that not combined with its creditworthiness going out the window  – hence higher rates.

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