Albert Edwards of Society Generale with the note. Capital outflow from China is accelerating dramatically. If the tumbling JPY pushes more active devaluation then all bets are off. Amid Fed tightening and EM capital outflow pressuring capital accounts, a falling CNY adds pressure to EM trade accounts as well, and commodity prices, and the EM complex collapses as an investment option.
This is how the Fed tightening cycle ended in 2016 and it will do so again as CNY falls and takes broader markets down with it.
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