Brutal EM outflows. If Fed doesn't exte d swap lines soon we are looking at either
1. Capital controls on everything that moves.
2. Every EM with a twin currency/banking crisis, plus brutal domestic demand contraction.
1. Capital controls on everything that moves.
2. Every EM with a twin currency/banking crisis, plus brutal domestic demand contraction.
Reluctance and legal constraints should be off the table, if Fed wants to preserve the USD as international currency.
Otherwise, hello RMB hegemony.
Otherwise, hello RMB hegemony.
Translation for non finance geek humans. Emerging and developing countries in serious trouble
#everybodyArgentina soon.
And it continues #suddenstop
Mexico should impose capital controls about now
or draw on that NAFTA-based swap line, thought it will need the Orange factor involved. 
Impaaact! But not enough
