Who Are The Biggest Losers From The Emerging Market Crisis?
Markets won’t be calmed until there is clear evidence the current account deficits in EM nations improve. But how can these adjustments happen? Current accounts are a zero sum game, so future...
View ArticleEmerging Markets, Interest Rates and Tapering
Having added unprecedented amounts of liquidity into its own economy through QE, the Fed is now reducing the pace of its expansion of narrow money. This is bad news for emerging market countries, who...
View ArticleThe Emerging Market Volatility May Just Be The Beginning
The volatility in Emerging Markets which began in 2013 may just be beginning as much of the excess liquidity that went in search for yield may reverse course. During the next few months to few years,...
View ArticleEuropean Banks have $3 Trillion of Exposure to Emerging Markets
European banks have loaned in excess of $3 trillion to emerging markets, more than four times U.S. lenders, putting them at greater risk if financial market turmoil in countries such as Turkey, Brazil,...
View ArticleWhy Some Emerging Markets Are Heading for an Economic Bust
A tighter monetary stance undermines the rate of growth of money supply and thus weakens support for various bubble activities. This sets an economic bust in motion. The main reason for the tighter...
View ArticleEmerging Markets Banking Crises Are Next
The concern for emerging markets is that carry trades and subsequent inflows of capital have created substantial credit and real estate bubbles in many of these markets. The unwinding of these bubbles...
View ArticleFiat Money and Business Cycles in Emerging Markets
The role money plays in international trade is not different, nor is it less a medium of exchange in foreign trade than it is in domestic trade. A surplus of money flows into a country only when its...
View ArticleWhy Did the BRICS Back Russia on Crimea?
The BRICS’s support for Russia shows the Western-dominated post-Cold War order is eroding. It’s worth noting that the BRICS countries are supporting Russia at potentially great cost to themselves,...
View ArticleBRICS Announce $100 Billion Reserve To Bypass Fed, Developed World Central Banks
The anti-dollar alliance - BRICS has successfully created the BRICS Bank with India as the first President, a so-called mini-IMF as part of a system of measures that would help prevent the harassment...
View ArticleFirst BRICS Bank, Now BRICS Food Bank
In retaliation to Western sanctions, Putin yesterday unveiled a total food import ban from all sanctioning nations & just as the BRICS created their own 'IMF-lite' away from Washington's prying...
View ArticleThe Biggest Economic Story Going Into 2015 Is Not Oil, But Emerging Markets
Emerging markets today are half the world economy. Much of what happened in global credit markets, especially in emerging markets, was based on cheap, easily available dollars, which has ended. It used...
View ArticleGold, the SDR and BRICS
There are difficulties when it comes to including gold in the SDR basket as none of its paper constituents are convertible into gold. It also cannot last long as major central banks insist on printing...
View ArticleBRICS Bank Officially Launches As Sun Sets On US Hegemony
On Tuesday, ahead of this year’s summit in Ulfa, the BRICS countries officially launched the new bank along with the reserve currency pool. Brazil, Russia, India, China and South Africa (BRICS) will...
View ArticleWill the Fed Have to Save Emerging Markets with QE4?
As emerging markets and nations attempting to defend their currency pegs to the USD sell U.S. Treasury bonds (which have been held as foreign exchange reserves), the yields on the Treasuries rise as a...
View ArticleWhy the Fed Would be Insane to Raise Rates: The Rising U.S. Dollar
What happens when the Fed makes the US Dollar more attractive to global capital? Capital flows even faster out of emerging economies and China. The tidal flow of capital out of emerging markets and...
View ArticleEmerging Market Meltdown May Plunge Global Economy Into Recession
When the Fed effectively telegraphed its new reaction function last month, the FOMC served notice to the world that it was not only acutely aware of what’s going on in emerging markets, but also...
View ArticleEmerging Markets and Gold – Right Concoction for a Balanced Portfolio
We can look at emerging markets with strong domestic spending such as India, the Philippines, other parts of Southeast Asia & Latin America where their growth patterns are independent of what's...
View ArticleWhy It’s High Time to Consider Emerging Market Stocks
According to the International Monetary Fund (IMF), emerging markets grew 4.1% last year. For perspective, the U.S. economy grew 1.6%. For 2018 the EMs will grow 4.8%, compared to 2% U.S. economy...
View ArticleThe Safe Way to Play Emerging Market Stocks
There’s a lot to like about emerging market stocks. But like any investment, there are risks you have to consider. Today, we look at the biggest threat to emerging markets. But don’t worry. There’s a...
View ArticleMiddle Class from Emerging Markets – Key to Future of Gold
Emerging markets are important when forecasting gold demand because these are the regions positioned to see the greatest population growth over the next decades. Investors in many of these countries...
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