The Fed is going to blow up China

As I have argued for a year or so, the Fed rate hiking cycle was always going to end not in a US crisis but a Chinese one. This is because a rising DXY and falling CNY puts a lot of pressure on EM capital flows and China has been experiencing those hand over fist after its entrance into MSCI indexes.

As well, the new development mantra of “common prosperity” might rightly be called “slow China”, so it has been obvious for some time that capital would face the reckoning of monetary loosening and a falling CNY. Now it is:

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